STRATEGIC FASHION MARKETING PLAN NET-A-PORTER
Karin Linnea Maria Lood Year 3 Semester 1 BA Fashion Marketing Student ID: 24399299 Module Code: ARTD 3039
CONTENTS PAGE 1. STRATEGIC AUDIT 2. Executive Summary 3. Performance review 4. Environmental analysis 5. Internal Analysis 6. Customer Profile 7. SWOT analysis 8. External Analysis 9. Competition 10. Conclusion and Recommendation
11. MARKETING PLAN
12. Introduction 13-14. Strategy 15-18. The App: Signing up procedure 19. Target Customer 20-24. A day on the app 25-26. Marketing Programs 27-28. Financials 29. SWOT analysis 30-31. Planning Metrics and Implementation
32. APPENDIX
33. External Analysis 34-36. Current Market Situation 37. Articles on current market situation 38. Mindmap 39-45. Online articles on Personalisation 46. Online articles on Technology 47-51. Online articles on M-Commerce 52. Journals on M-Commerce 53-56. Books on M-Commerce 57. PESTLE Analysis 58. Internal Analysis 59. Brand Overview 60. Customer Pen Portait 61. 4 P’s 62-65. Articles on Brand 66. NAP services 67-69. Articles on Promotion 70. Performance Review 71-72. Articles on NAP and M-commerce 73-76. The app 77-82. Competitive Analysis 83. Perceptual Map 84. SWOT Analysis 85. Strategy 86. Brainstorm 87-93. Apps for personalised experience & Analysis 94. Mr Porter app 95-101. Online Articles 102-104. Financial Planning 105-106. Bibliography
NET-A-PORTER STRATEGIC AUDIT
1.
EXECUTIVE SUMMARY New customer demands due to new technologies shape the way brands will communicate with its customers in the future. Being at the forefront of luxury e-commerce makes Net-a-Porter a company that constantly has to stay ahead of their game by studying what their customers wants for the future. With new e-commerce business models such as Moda Operandi where catwalk pieces can be bought straight off the catwalk Net-a-Porter need to asses the competition and give their customers an experience they will not find elsewhere. The success of the brand is evident in the company report for Richmont group in which Net-a-Porter operates, with the revenue rising each year due to the performance of the brand. The app for Net-a-Porter gives their time starved, professional women in the age of 2445, target customer the possibility to save time and to shop anywhere at anytime. With the strong position in social media they reach out to their customers as well as aspiring customers on a daily basis and can interact with them in their own space and time. Looking at the external environment will help knowing where the company will have to go in the future to keep their customers spending money. The internal analysis will give a clear idea of how to asses the current marketing strategies according to their customers needs and wants.
2.
PERFORMANCE REVIEW Net-a-Porter group concisting of Neta-Porter, Mr Porter and The Outnet was bought by the Richemont group for £50m in 2010 and is working as an idenpendent brand along side the group. The Richemont group concists of some of the leading luxury goods brands in the world such as Cartier, Van Cleef & Arpels, Azzedine Alai, Chloe and Montblanc. The Richemont group sales rose from €6892 in 2011 to €8867 in 2012. The year 2010 the sales were on €5176 which means a constant rise these last three years. In the Richemont group the brands are divided into categories: Jewellery Maisons, Specialty Watchmakers, Montblanc Maison and Other businesses in which Net-a-Porter operates. This group consists of the brands: Azzedine Alaia, Lancel, Purdey, Chloe, Shanghai Tang and Alfred Dunhill. Sales growth during the last year have been above the grops average due to the performance of Net-a-Porter (Richemont Company report 2012).
Sales (Million Euros) 1500
Group Sales 2010: €584 2011: €967 2012: €1231
1200
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Time 2010
2011
3.
2012
ENVIRONMENTAL ANALYSIS Social media has opened the doors for everyone to have a voice in the discussion about fashion today. The customer demands are higher and they expect faster access, to be able to shop anywhere any time and to be entertained (Trendwatching, 2012). New technologies have made online shopping more desirable with virtual fittingrooms, augmented reality, shareable content and free returns. Mobile shopping has also become more popular due to more people having smartphones, cheaper prices for unlimited internet access and the increase of m-webs and apps (Datamonitor, 2012). With new technology brands have the possibility to gather more information of their customers and their wants which can be used to personalise the shopping experience. Today 39% of mobile shoppers expect a personalised experience when shopping on their smartphones (CHAHAL, 2012). In the fashion industry where changes happen fast with new technologies and ways shop the succesful companies of the future will be the ones that respond to these changes best and most effectively (JACKSON, SHAW, 2010)
With social media and blogs everyone can today have a say about fashion which has made some bloggers into the next generation of media influencers.
For SS13 collection Diane Von Furstenberg used Google project glass to show the show from another perpective: hers and the models.
The shift of technological innovation from US and UK to eastern countries and the rise of the economy in BRIC countries has made many brands go global. Western countries are still being affected by the struggling ecomony due to the high debts and as the middle class is growing in east that is where more money is and will in the future be spent on luxury goods (KENT, 2012).
Virtual fittingrooms to try clothes and jewellery, in store and on smartphones.
4.
INTERNAL ANALYSIS Marketing mix
Net-a-Porter is a luxury fashion e-commerce site offering over 300 luxury fashion designer brands to its customers. The main products are clothes, shoes, bags and jewellery but they also sell gifts and accessories. The prices range from £50 for t-shirts from the cheaper designer brands to over £6000 for dresses and coats from the top designer brands and up to £19,000 for some of the fine jewellery. The products are shipped to all over the world with same day delivery in London and Manhattan. To promote the brand they often collaborate with bloggers and other influential people in the industry for the weekly magazine on the website as well as adverts in printed magazines. The overall message in the communication process to the customer is the idea of a luxurious and highly fashionable lifestyle and the channels they use for this are more expensive magazines such as Vogue or Harpers Bazaar to reach out to the target customer (JACKSON, T & SHAW, D, 2010). They also send bloggers gifts and loan them samples occasionally f to upload on their blogs as well as talk about in social media. Being active on social media is one of their most important promotional activities. They have a prescence on all of the most popular social networks such as Instagram, Twitter, Facebook, Pinterest, YouTube, Google+ and Tumblr. On Instagram they encourage their customers to upload pictures of their purchases from the website and to hashtag those “whatsinside”. Occasionally Net-a-Porter pick a few of those and upload on their Instagram creating a buzz around the brand and a direct communication with its consumers. On social media they let their followers see behind the scenes and get exclusive information which makes the brand more integrated into their customers everyday lives. They have got an app which gives the customers the opportunity to create wishlists, get fashion news updates as well as shop. By signing up to this they get their customers e-mail adresses to which they weekly send updates on what is new on the website. Another type of promotional activity they have done to make up for the fact that they do not have a store is augmented reality pop-up shops. For Fashions Night Out and for the launch of Karl collection in Selfridges this 2012 they made it possible for people with smartphones and ipads to scan the products in the shop window and see them on the Net-a-porter website in videos and images as well as to shop them directly. 5.
CUSTOMER PROFILE
Lives in more affluent areas and often in bigger cities such as London, New York, Paris or Amsterdam. Her image is very important and she likes to keep it up by buying luxury goods and taking care of her health and wellbeing
6.
The main customer for Net-a-Porter are proffesional women aged 24-45 with a high disposable income. Most are educated and most often graduates or post graduates. For them time is limited with long days at work and therefore shopping online in their own time in the comfort of their home or on the lunch break is something that appeals to them. These women generally have a high interest in fashion and designers as well as in the way they look. They see the value in luxury fashion and designer brands and are willing to pay the high price. On the fashion lifecycle they often catch on to trends and new designers at an early stage and are therefore classified as fashion leaders and followers (JACKSON & SHAW, 2010). This customer orders mainly from Net-a-Porter but if she goes to an actual store these would be Browns fashion, Harvey Nichols, Harrods or The Shop At Bluebird. If she goes shopping it is most often a social activity in which buying will not be the main goal. This customer likes to be informed on trends and advised on style. Being inspired by the magazine and clicking the link to buy is the most likely scenario when she is purchasing from the website. She shops for both occasion wear but also for everyday wear as her appearance is important to her.
SWOT ANALYSIS
Strenghts Net-a-Porter was the first brand to enter the luxury fashion market online. At this time it was a big risktaking as it was not a certainity that people would want to buy luxury fashion without being able to feel the quality of the garments or without trying them on. The founder Natalie Massanet took this risk which led into one of the most succesful fashion companies in the world and which still has the position as the first brand in consumers minds when it comes to luxury fashion online (WISEMEN, 2010). They have been and still are seen as one of the best, most innovative brands when it comes to digital content with the weekly magazine to shop from as well as the augmented reality pop-up shops and the app. They are known for always pushing online shopping forward and have a strong team of employers constantly working on the digital content. Selling over 3oo designer brands gives them an advantage to their main competitors and with 12 years going they are well aware of their main customer and their wants and needs. Global shipping and with first day delivery to capitals such as London and Manhattan they serve their customers need for fast demand. They also have a strong reputation for being a good employer. In 2006 they were named as one of the “top 5 coolest places to work in the UK” and they were named one of the “top 100 best companies to work for “ in both 2009 and 2010 by the Guardian. The brand has a strong position in social media with constantly rising followers on Twitter, Instagram, Pinterest, Facebook, Tumblr as well as their own YouTube channel. Customers as well as aspiring customers can follow and interact with the brand on almost all platforms which creates strong brand loyalty. Giving their customers the opportunity to dowload their app and make the shopping experience on mobile and tablet easier and more inspiring suits the the time starved target customer for the brand.
Weaknesses Luxury fashion is competitive business and in harder economic times designer clothing is something that people generally spend less money on and beauty products such as lipstick and nail polishes are products customers buy to update their looks (KELLY, 2012). Without these products they might miss out on customers who then will spend their money elsewehere. Another weakness which affects all e-tailers without a bricks and mortar presence is that they will loose out on some customers who do not like shopping online. Opportunities To develop the M-commerce experience further and provide a more personalised service could be an opportunity to increase sales as well as increase interactivity and brand loyalty amongst both customers and aspiring customers. Taking mobile commerce to the next level would make them once again state they are the number one in luxury e-commerce. Another opportunity would be increasing sales in BRIC countries as the biggest part of the worlds middle class are going to be located there in the future (KENT, 2012). Threats To keep up their profile they need to be on top of their game and be ready to update and be first with new innovative ways to sell and inspire their customers because loosing the position as the first brand when it comes to online shopping would mean loosing many customers (RIES & TROUT, 2001). Retailers with both an online presence and bricks&mortar will most often be a threat as they can catch customers on more than one channel. New e-tailer concepts such as Moda Operandi with their “instant” off the catwalk purchases will be a big threat. 7.
EXTERNAL ANALYSIS Political & Economical The potitical situation with the high debts have created a struggling global economy with uncertainity for consumers in the west. The good and working economy now lies in the Bric countries (Brazil, Russia, India and China) in which the online luxury market is on the rise. The luxury market in general is the biggest here as well and more than 90% of the worlds middle class will live in BRIC countries by year 2030. Social Social networking is rising in popularity with social networking apps for Android phones and lower prices for unlimited internet. A broader choice of networking platforms also give people a chance to interact in their own personal way with either pictures, links or videos. People are generally more time-starved and want things to be quick and efficient such as high speed internet connection on computers as well as on mobiles, faster and easier navigation and same or next day delivery when ordering online. Customer want a more personal experience in which they can save time by not having to look at products that do not interest them. M-commerce has more than doubled over the past year in the UK and 39% of shoppers said they want a more personalised experience when shopping on their phones as well as it to be integrated into social media (CHAHAL, 2012). With the shift of power to the consumer thanks to social media and customers reviews customers needs are more important than ever to listen to. Technological Both e-commerce and m-commerce are increasing in popularity with new technologies cancelling out negative aspects customers found before compared to bricks&mortar shops with virtual fitting rooms, customer reviews, larger images and catwalk videos. According to a survey made by RichRelevance in 2012 on US consumers, 89% of mcommerce comes from Ipads and by 2013 over two billion mobile users globally will have made a purchase on their handsets. Customers today have a strong desire of being inspired and watching “behind the scenes� images from celebrities and other influencial people. The customer demand for a constant flow of inspiration has been the force for creating social networks such as Instagram and Twitter. 8.
COMPETITION
9.
The online environment is a competitive market with most bricks&mortar retailers having an ecommerce prescence. Before Net-a-Porter there were not any websites selling luxury fashion but with the succes of the brand many other companies followed in its footsteps and created similar concepts such as Mywardrobe.com and MyTheresa.com. They are similar to Net-a-Porter with the same style of product pictures with still life as well as in a look styled on a model. There are editorials to inspire customers which they can shop from but not like the weekly Net-a-Porter magazine. Other luxury fashion brands with already well-established bricks&mortar stores that also expanded into e-commerce are LuisaViaRoma, Harvey Nichols and Matches. With both an online presence as well as bricks&mortar they take up a big amount of the customers who still do not like shopping online which most often constitues of an older customer group. Another competitor which created a new concept with the fast customer demand in mind is Moda Operandi which gives its customers the opportunity to buy clothes straight off the catwalk by paying a deposit and then get it delivered within 4 months. This website is the first to sell straight off the catwalk which gives them a great advantage. All the main competitors have a presence in social media. On Instagram Net-aPorter has more followers than any of its competitors with ModaOperandi coming second. LuisaViaRoma on the other hand has a very strong prescence in social media in Eastern countries. Only My Theresa has got an app to shop from at the moment except from Net-a-Porter (see perceptual map p.83)
CONCLUSION AND RECOMMENDATION By looking at current strategic issues there are a few that are especially prominent for the e-commerce luxury fashion business. Today Net-a-Porter have a very strong position as the first luxury fashion e-tailer in consumers minds. They have affected the total sales in both Europe, US and the eastern countries for the Richemont group since they were bought in 2010. They have for quite some time been doing something that no other e-tailer did with the shoppable magazine but with the rise of e-commerce there are other key players today in that field which they will have to keep up with. A big threat is Moda Operandi considering the future consumer demand for fast access they will offer something that Net-a-Porter will not. To get a step ahead of its competitor it is important to think about who the main customer is and why they choose Net-a-Porter today and what can be done to keep them spending money. The customer are time-starved, want to be inspired and want to be able to buy at anytime, anywhere. The main competitors do not have apps to shop from at the moment except My Theresa which gives Net-a-Porter an advantage and a chance to catch the mobile consumers before the others. Taking the internal and the external factors in mind a clear marketing strategy focusing on mobile is formed which will be outlined in the marketing plan.
10.
NET-A-PORTER MARKETING PLAN
11.
INTRODUCTION Continuing on from having looked at the external and internal factors affecting Net-a-Porter and from this result made the choice of a strategy focused on m-commerce, an app will be launched to personalise the mobile shopping experience. The app will target the time starved, female Net-a-Porter consumer who want to be able to shop at anytime, anywhere. This strategic plan will make them want to shop with Net-a-Porter instead of its competitors. In this marketing plan the objectives will be lined up, the strategy will be explained and the plan will be implemented to take all external and internal factors that might affect the plan into consideration to minimize the risks.
“to be the global fashion destination for content and commerce. And to offer an exceptional positive experience for everyone who comes into contact with us, our customers, our brand partners and our team” Net-a-Porter mission OBJECTIVES By taking the brand mission in mind and where they are at the moment a few objectives have been set up to make the company keep up with the external factors in the fast moving business that is fashion, where brands have to “be proactive rather than reactive” (JACKSON, SHAW 2010).
Financial
- Increase spending on mobile with 20% within one year.
Marketing
- Increase customer satisfaction by 30% within the first 6 months among the targeted customers. - Increase brand loyalty by 50% within a year. - Get a minimum of 700 000 downloads of the new app within a year and 250 000 active users within the first 6 months. 12.
STRATEGY Product and brand strategy A new app is developed to work as a personal stylist and give exceptional service at anytime and from aywhere in the world on smartphones and tablets. The app will be available to download from the app store and with location based technology and the personal information the app asks for, a very personal styling service will be provided. Net-a-Porter has got a strong reputation of always being ahead of their game and to be first when it comes to new technology and digital innovation. The strategy involves a new service for an exisiting customer which according to The Ansoff matrix is called a ‘fashion product or service development’ (EASEY, 2010). The new strategy is to enhance the mobile experience by making use of the mobiles personal attributes and the fact that through it customers can be reached at all times (PERSUAD&AZHAR, 2012). The app will be called “Net-a-Porter Personal Stylist”. This app will be linked with the already existing app. Once a customer signs up to the Net-a-Porter app they can download the stylist app and use the same username and password. The idea is for the customers to get an “OOTD” tip (outfit of the day) to be inspired how to dress for the day and use what they have themselves in their wardrobes. The aim is to create a service that no other brands provide, to integrate into their customers everyday life , engage them and build a trust which will if succesful create strong brand loyalty (PERSUAD&AZHAR, 2012).
13.
Pricing Strategy The app will be a free service to increase interaction and revenue on mobile.
Channel Strategy
The app is a mobile strategy and give customers the opportunity to be woken up by the app at any time they wish and be given the “OOTD” tip considering the current weather, proffesion, age, shape, style preferences, items in wishlist and purchase history. When signing up the customer is asked to tell the app about who they are and what they like through picking options in a questionarie. When this is done they are assigned their ‘personal stylist’ and now have the opportunity to follow the stylist in their everyday life at work under the “my stylist’ category which shows their activities on Twitter and Instagram in one place. If a customer wants an outfit tip during the day they can click “Fashion Emergency” under the “OOTD” category and get a new image sent to the app of a suggested outfit (see p. 15-18 and p.20-24 ). The app will work as an inspirational tool such as the magazine on the website and be shoppable. They can click on the products and press buy which takes them to the “Net-a-Porter” app and their shopping bag. This will if succesful increase the spend on mobile. The customers want instant interaction, advice and the possibility to shop with only a click (STUART, 2012).
Marketing Communication Strategies
To promote the new app and the service it provides it will be shareable on social media. A promotional video will be released to go on the website. Interactions will be encouraged on Instagram such as the activity “whatsinside”.
#WhatsInside
14.
THE APP Signing up procedure
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TARGET CUSTOMER The target customer for this marketing plan is the already existing one (proffesional women aged 24-45 with a high disposable income, a high interest in fashion and designers who they see the value in luxury fashion and designer brands. See audit p. 6). The already exisitng customer belongs to the group of people that are generally working longer and feeling more time-starved (trendwatching, 2012) they also belong to the group “Busy and productive” which is one of five consumer groups identfied for mobile according to Carol Taylor in 2009. This consumer uses their phones to organise themselves and to save time on all things possible (KRUM, 2010). Many women today have many responsibilities and roles such as being wives, workers, mothers and friends and therefore brands need to target them at the right time through the right channel and to “provide as much service online as possible and to be proactive and proficient” (HUTZLER, 2011). With an overflow of information in media customers like to get a more personal service and be adviced what to do and what to buy “Time-starved consumers just want to be told what to do” (SHAEFER, 2012). The influence of the female luxury fashion consumer is rising with 25% more millionaires being female than male in the age of 18-44 and over 60 in the UK. According to Zoe De Givenchy, founder of Financial Jam Sessions, these women will hold 65% of the wealth in ten years if it stays at the same level (HUTZLER, 2011). This customer group will choose the brands which provide them with the best service and the ones that their friends recommend and talk about (Nielsen, 2012). Making the brand and the service they provide viral is therefore something that speaks to this group of customers and using social media will get the message out to them. Most of these women use one or several social networks to interact with their friends and to keep updated on what people they look up to and admire do, wear and buy. They like to be informed on new trends and new products and see what their friends like and wear as well. When they shop or browse online they like the experience to be shareable on social media as their friends and families viewpoints are important to them (Marketingweek, 2012). The target customer is already spending money witthin the Net-a-Porter brand but to keep them spending it is important to look at their future wants and needs and to state once again that Net-a-Porter is the first brand when it comes to shopping luxury online. Getting personalised styling advice online has been the latest factor in trying to take online shopping to another new level and to offer customers a bit extra than normal bricks&mortar stores. As lower end e-tailers such as Asos has started with an online personal stylist service (MACDONALD, 2012) it is time for brands such as Net-a-Porter to take it to the next level and offer their customers who spend a much higher amount of money, a service that will definately be worthwile and treat them as individuals. 19.
A DAY ON THE APP
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MARKETING PROGRAMS - 250 000 active users due to the spreading of word in social media.
Ap ril
- Users start to share - App is launched. their OOTD tips on so- Video advert. cial media and spread - Emails are sent out. the word.
Ju ne
Au gu st
- Show us your best OOTD summer tip campaign to raise awareness of app on Instagram.
Oc t
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2013
- 700 000 downloads of the app.
M
- Video is spread on social media. - Media coverage of the new app.
- A new team of 5 fulltime online personal stylists will be hired.
2014
Fe bu ar y
- Show us your best OOTD autumn tip campaign to raise awareness of app on Instagram.
Product, Price and Place
This new service will be launched in the end of Febuary 2013 and be free of charge available to download to all smartphones and android phones as well as for tablets from the app store.
Promotion
Video When the app is first launched in Feburary 2013 a video will be displayed on the Net-a-Porter homepage to inform and promote the new service the app provides. There will be a link to press that takes customers straight into the app store for them to be able to download. The video will be similar to the one which was used the first time the app was launched in the beginning of 2012. It will be an informative video showing how this app can provide a great personal shopping experience and be filmed from both the users and the personal stylists perspective to give a sense of exclusitivity and personal connection to the stylists.
25.
Emails When the app is first launched emails go out to those who are already signed up to the excisting Net-a-Porter app. The email will show the video of the app and telling them in detail how this will benefit them in their lives. Media After the launch of the new app it will be talked about in media both printed and online. This will promote the app as well and create a broader awareness of the new service. Social Media After the promotional video release on the website and it being spread on social media the first wave of users will have downloaded the app and start sharing their “OOTD” tips. When users start interacting and sharing the app it will increase further downloads (KRUM, 2010). Facebook Users can share their “OOTD” tip as a picture on Facebook onto their timeline which will come up on the newsfeed to all their friends and will in this way be spread. When clicking on the picture it shows the image of the tip in a higher resolution as well as a link from which you can download the app from the app store. Twitter On Twitter the users can share their “OOTD” tip as a tweetpic which will be visible for all their followers and hashtag it “MyNapStylist”. Instagram The “OOTD” tip will be shared as an image on Instagram with the usual option of editing it and hashtagging it “MyNapStylist”. In June 2013 the amount of users will be high enough to create a more direct interaction on Instagram. This time users will be asked to show their best summer “OOTD” tip they got from their personal stylist with a picture of themselves wearing the outfit and hashtag it “summernapped”. Users will be encouraged to do this by the official Net-a-Porter Instagram as well as from their own personal stylists Instagram and twitters under the category “My Stylist” on the app. The best pictures will be uploaded on the official Instagram for Net-a-Porter and will create a buzz around the app and the service it provides. This activity will be repeated again in November but encouraging users to upload their best autumn tip hashtagged “autumnapped” this time. Pinterest On Pinterest the “OOTD” tip can be shared as an image on the newsfeed. 26.
FINANCIALS
Total Revenue for 2012: £152.511.000 Total Profit for 2012: £23.535.000.00 Profit Margin (profit/revenue) = 15.4%
Forecast sales and profits Year Additional Revenue App development costs Staff costs Marketing activities costs Total Cost Net Profit Margin Net Profit/Loss Costs (Contingency plan) Net Profit Margin (Contingency plan) Net Profit/ Loss (Contingency plan)
1200000
+20%
+10%
+20%
2013 £3,050,220 £36,500 £208,350 £40,000 £28,4850 £469,734 £184,884 £240,000 £469,734 -£55,116
2014 £4,880,350 £2,060 £216,680 £10,000 £228,740 £751,574 £522,833 £240,000 £751,574 £282,834
2015 £8,906,640 £10,000 £225,350 £10,000 £245,350 £1,371,623 £1,126,273 £240,000 £1,371,623 £886,273
Mobile Revenue (Million pounds)
Net Profit/Loss Net Profit/Loss Cont.Cont. Plan Plan
1000000
Net Profit/Loss Net Profit/Loss
800000 600000 400000 200000
Time
0 -200000
2013
2014
2015
27.
Outline (see appendix for facts and calculations p.102-104) Mobile revenue for 2012 is estimated to be10% of total revenue which gives a number of £15,251,100. Costs - App development £36,500 for 2013 including developing a database app, with share capabilities, Iphone and Ipad compatibility as well as for the staff resource. For 2014 an additional cost of £2,060 ($99/year to have app in Apple store =£60 + £2000 (improvements on app) is measured. For 2015 an additional cost of £10,000 ($99/year to have app in Apple store =£60 + £9940 (improvements on app) is measured as it will then have to be updated. - Staff Average staff pay: £41,670.06 a year. An estimate of 4% staff salary increase per year (inflation). - Marketing activity The marketing activities that will promote the new app are the video and social media interactions. The video will cost an estimated price of £40,000 the first year when it is done. The social media part of the marketing activities will be done by the staff in their everyday job roles and will therefore not be of additional cost. The following two years an estimate on £10,000 would be used for promotional images for the website. - Contingency plan (see implementation p. 30-31) banner on Vogue.co.uk for a two weeks time would cost around= £141,120
28.
SWOT ANALYSIS Strengths
- When the idea is launched in Febuary Net-a-Porter will be the first brand out of its competitors as well as one of the first online retailers to provide their customers with this personal service on an app. - “Consumer engagement and providing their customers with many more services outside of the brand to gain customer loyalty as well as data” (SKELDON, 2011). - “Mobile marketing is more actionable than other forms of web marketing” (KRUM, 2010) with the possibility to click share, buy or put in wishlist straight away. They can also much easier be interactive with pictures as the step from taking one to uploading it is considerable quicker on a smartphone than from a camera to a computer.
Weaknesses
- Apps on the Appstore and called “personal stylist” or similar can cause confusion and make customers think the new app will work like them without any real connection to an actual stylist. - If the alarm function is used the app will be running in the background and will use up more battery on the phone for the users.
Opportunities
- With the app it is much easier to keep in touch with its customers at all times and the possibility to send a personal message from the stylist if the customer is inactive. - The app will gain customer data about consumers and through this they can see who their most loyal customers are and how and what they shop.
Threats
- “There is no such thing as an original idea. It’s who does it first that counts” (WOOLDRIGE&SCHNEIDER, 2011) The fashion industry is very fast moving and so is the app industry. The risk that another company has come up with the same idea of service just before or at the same time could be a threat. - “The biggest challenge for brands with apps is getting people to find it.” (SKELDON, 2011) The marketing activites might not be enough to attract enough users.
29.
PLANNING METRICS & IMPLEMENTATION
Fe bu ar y
Ap ril
Ju ne
How many downloads the How is it being spread/ talked about in social first month after launch media checking #My(video&emails) NapStylist
Au gu st
Ok to
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Evaluate Instagram activity #summernapped How many downloads did it generate?
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Customer satisfaction survey regarding service provided
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gency plan)
Evaluate Instagram activCheck if downloads ity #autumnapped How many downloads did have reached 700 000 or more it generate?
Ja
Check if active users have reached 250 000 (if not: contin-
How many downloads after it being spread in social media/media How many purchases
2014
Fe bu ar y Check if sales have increased by esitmated 20% on mobile Customer loyalty check
Evaluation and implementation After the app is launched and the first promotional activities have taken place an implementation looking at how many downloads the app had during the first month is made. From this it is possible to see how effective the video and the emails were to be able to then compare these promotional activities effectiveness to the later ones. The first wave of dowloads should be of a relatively high quantity and around 150 000. The second wave of downloads will happen after the app is being spread in social media. The amount of purchases made on the app will also be counted but as it is still in an early stage the downloads are more important than the purchases.
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In the end of July a customer satisfaction survey will be emailed to the users asking about how likely they are to recommend the personal stylist app to friends and family. If it has risen 30% from the year before one of the objectives have been reached. The same month the number of active users needs to be counted to get an idea of the succes of the app. It needs to be 250 000 or more by this time for it to reach the objectives. After each of the Instagram activities the number of new downloads should go up as an indicator of the succes of the activity. In the end of January the app will be evaluated by looking at if the downloads are over 700 000 which was one of the objectives as well as if the customer loyalty has increased by 50% by looking at how many customers bought three times or more during this year compared to last year.
Contingency plan If the promotional activites are not enough the app will be featured on the Vogue UK website for two weeks. This should get a big audience on around 750 000 unique visitors (CondeNast, 2012) which should lead to more downloads.
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