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Digital marketing affects all aspects of marketing from strategic program through the marketing mix, marketing communications and customers’ behaviour. It emphasizes the most crucial opportunities, objectives and defines the diverse marketing pattern needed. It is the digital media applied in the marketing practice to support a range of e-marketing objective.
The e-marketing strategy also affects the development of the company – New Look. Living in rapidly changing society and there is no longer enough to share common interests and desires, the e-marketing plan helps to depict clearly how they live up to concept in practice through situation analysis, identified business opportunity and e-marketing Objectives. Then outline the online value proposition to build a customer experienced brand, operate and grow business globally.
Table of Content
New Look is the leading fashion brand in Britain. In 1969, New Look was established in Wellington by Tom Singh. With half century’s development, the company has rapidly developed and now operates a series of over 1,000 stores internationally and hires over 30,000 employees (New Look a, 2012). The group had sales revenue of £1,447 million in year 2012 with profits of £62.7 million (New Look b, 2012).
It main operates mid-range stylish clothing. Company’s main products series include: Women’s, Men’s, Teen’s and Kid’s fashion. The fashion dress design with dazzle beautiful color, reveal the girl sunshine and full of vigor, fashionable clothing and do not break leisure flavor, is a new generation of young women love fashion leisure brand.
As one of the most approbatory fashion brands retail in UK, New Look defines its brand by the following three pillars as Figure 1 shows:
Figure 1: NEW LOOK’s three brand pillars (New Look d, 2012)
2. Situation Analysis
Situation analysis is an important part of the e-marketing strategy. It requires analyse internally and externally, both of them influencing the online business situation (Strauss & Frost, 2001).
a. Internal analysis
The internal analysis looks at key performance indicators (KPIs). Through the e-commerce sites, the sales of the British fashion retailers grow rapidly. The key assess online activities include:
Strengths and weaknesses – New Look possess a well-established customer database, with relationships developed for the last 40 years progress. But the online customer care is not splendid enough, the speed of response and speed of resolution has no increased yet.
New Look successfully run a Franchise Business Model in 18 countries besides of the UK. It develop it brand in the large international businesses, and trade with minimum investment in these multiple markets (New Look c, 2012).
It has a distinct and well-organized international expansion strategy that incarnates which markets it intends to turn into in the coming years.
In the year 2012 nearly 355 million customers visited New Look either online or in the hypostatic stores. Most popular pages or most popular product is the Ladies’ fashion trend.
The current online business model is business-to-consumer. It will adjust strategy, implemented entity shop, online shop and brand agency, cooperative sales, sales by procuration.
b. External analysis
E-marketing is inundated with new opportunities and threats thrown up by the changeable market. PESTLE analysis (Chaffey D, 2004) states a framework of macro-environmental factors used in the environment analysis of strategic management.
Economic – With the development of the economy and the increases in purchasing power, more and more consumers improve the budget on buying clothes. New Look will form and acquisitions the growing existing own-store businesses in France, Belgium and Netherlands, follow up to develop the potential markets.
Social – Its goal aims to insure all international businesses hold a solid and stable approach of sustainable profitability. It about defining the process that creates a good customer experience.
To the rapid development of network marketing channel competition brand H&M and ZARA, it was quite a challenge.
3. Identified Business Opportunity
a. Related to overall business objectives
People to the pursuit of fashion never stop. Is committed to provide customers with high-quality, reasonably-priced branded goods for customers to create a high quality of life. It not only indicate people’s hankering to fashion and new trend, but also supply people with the exact demand of high taste.
This is where New Look brings force. Its brand adores of fashion excitement and new wave of fashion is the most important tasks. For the customers, they offer attractive fashion at brilliant prices to bring more fashion excitement (New Look c, 2012). Apart from other retailers, New Look seek to sincerely surprising prices and fashion credentials, this means they can take on the competitors’ challenges.
b. The role of digital in supporting business objective
New technology is being broadly implemented with the intense aim of increase efficiency and cost savings rather than optimizing the customer service. This presents a business opportunity to create competitive advantage by developing a digital integrated CRM (Customer Relationship Management) system (Abels, et al., 1999) that adds more values to customers’ experiences, connect them closer, collects more comprehensive data and satisfies their needs better than ever before.
The main concept of New Look is Sense and Respond marketing. They monitor customer behavior to regulate the methods of delivering relevant and marketing communications. It creates a multi-channel digital marketing process to provide the best apparel of a latest trend and sincerely surprising prices towards to the competition.
A good objective for an e-marketing strategist must clear state the reason getting into e-marketing and the areas on which to focus to improve the e-marketing. New Look has specific objective to connect emotionally and forge a strong brand position. The fashion excitement and new wave of fashion are at the core of brand.
4. E-Marketing Objectives
New Look is about transmitting fashion excitement and new wave of fashion. The e- marketing objective is providing more fashion garment for the customers at a reasonable price and security services. It discerningly translates the latest trends from the T-set, celebrities and the streets to products, providing customers the fashion which is bang on trend. With new technologies are being extensively implemented, developing a digital integrated CRM system is a good opportunity to adds value to customers’ experiences.
Ensure that the products have novel styles, various, leading the fashion leisure is the online value proposition. New look should put emphasis on affiliate marketing, and customer requirements, understanding of online consumer buyer behavior, increasing the amount of interactivity on site.
The e-marketing objectives can be generalized as the 5Ss – Sell, Serve, Speak, Save and Sizzle. These describe how to organize efficiency and effectiveness business strategy by identifying the e-marketing objective (Chaffey & Smith, 2008). Sell – Through building wider distribution to customer service online and through a wider product variety than in-store or lower prices compared to other retailers. In the online market, it attains 30% of sales and increases online sales by 25% in year. Speak – Creating a bidirectional dialogue via web, e-mail and online inquiry, operating online market research through online surveys and monitoring customer behavior to get closer to customers. To addition, speak through reaching them online through PR. The typical objectives are online customer service cover 60% of current customer database and survey more than 30,000 customers online each month. New Look would make effort to increase visitors’ reviews and discussions by 10% (New Look d, 2012).
5. The Target Customers
Online visitors are always fickle. If a brand is unappeasable to the customers’ promise, they will talk back, even shout back (Forcht, 1996). Successful e-marketers should research and observe customers’ needs. Research shows that nowadays customers have no patience toward with bad service, with 80% of consumers showing that they will never go back to the store after an awful shopping experience. New Look current online business model is business-to-consumer, it aims to pay more attention to customer experience. They deliver fashion excitement and new wave of fashion to a target customer of stylish 16~45 year old women, also to men and teens.
Understanding customer motivations is not a puzzle. It is undoubtedly important for an online business to survival. Without the deep understanding of customers need it just hoping for the best, but not the way to run a successful business (Ward & Lee, 2000).
New Look is searching for the reason why customers go online, their motives and the needs they are hoping for. The customers generally go online for a range of reasons – communication, shopping, amusement. It is also one of Maslow’s basic defined needs. To come up with the customers need, New Look should adjust it objects to translate the newest trends from the T sets, celebrities and the streets originally, offering customers excitement and newness.
Customers’ expectations can be managed, met and exceeded. It needs mutual understanding, setting communicating mode, and revealing the service promise. Online customers’ expectations always increase. They expect higher standards online service, such as more convenience and efficient, speed of delivery, account security.
Customers expect fast service and fast delivery. New Look also has the capacity to provide fast service and express delivery the products within a 24-hour period in a safe way to enhance service quality. However, a swift response to the changing trends has the seasonal flexibility.
c. Fears and phobias
Online customers fears and phobias mostly security risks such as identity divulge credit card details, operates a mistake, the password by the risk of pilferage, hackers spread the virus and lack of privacy, etc.
New Look has provided an explicit and valid privacy statements. Undoubtedly, it follows privacy and consumer protection act in all target markets, and makes secure of customer data prioritized.
6. Selecting an e-business model
Nowadays, the international market eventually tends towards commoditization as competition becomes fierce. In this case, consumers use price-driven shopping bots or search quality service to scour the web for best deals and brands. The customer and market focus of New Look span an enormous distribution from teens to adults.
Consequently, the customer segments model is an appropriate e-business model for the New Look E-marketing. This model identifies different segments to know their online pattern of consumption, customer behavior and the online experiences they will be seeking from website (Strauss & Frost, 2001). New Look is the regularly frontrunner for clothing in womenswear, but is no longer only for the girls, it now occupying 10.5% market share in men’s clothing market (New Look a, 2012). Its online sales also sustains to grow, with more and more customers visiting New Look, making it becomes one of the most visited fashion websites in the UK.
New Look also survey data in online marketing. The data reflects its potential customer value then deliver different details of e-mail to communicate with the customers if they have received the permission of customers. The website can charge for adverts aside in its newsletter and send a private message to customers.
In addition, New Look makes access to customers for online research. They use this approach to attract revenue from surveys is the teens and women site. Internet helps customers communicate with each other and feedback to firm, form a good communication network between customers and retailer. This communication model all built around the brand to bring new opportunities. All of these patterns will this help in achieving business objective.
7. The E-Marketing Mix
The e-marketing mix is a new type of mix which transforming the products to services, services to customer motivation, and customers needs to online experiences (Chaffey, 2004).
a. The e-mix
E-mix is an intrinsic organizational structure that helps retailers to establish the path to the online market. Although, customers don’t care about an organization structure or internal processes they just want the desirable product to be available at the desirable time, and at the desirable price. As since customers need increasing, New Look should offer online product experiences to change products to services.
The four Ps – product, price, place, promotion (Chaffey & Smith, 2008) – are vital elements to organized and mixed in an appropriate pattern to meet customers’ needs. The key aspect of the 4Ps of the e-marketing mix is Product, this is central to the reasons that people will visit the website to purchases the goods and services.
New Look is always delivering fashion excitement, value and newness. Fashion design with dazzle beautiful color, reveal the girl sunshine and full of vigor, fashionable clothing and do not break leisure flavor are just the women’s taste. And now, it also designs for teens and men. Online promotion becomes an important online communications tools, it immediately shows key words that attract more customers and online user though online loyalty schemes and rewards.
b. The role of digital
The digital world has an important impact on normal business, e-marketing, also the marketing mix (Reynolds, 1998). As the New technology is widely used around the world, the digital becomes an important factor to the e-marketing mix. It affects the various elements of the marketing mix not only sell and price.
New Look creates a multi-channel digital marketing process to provide the best fashion of a latest trend with genuinely surprising prices, and adds online value to customers’ experiences, collects data and serves their needs.
They are constantly updating and expand database to receive more information and convert services to customer online needs.
Repackaging real-time information and creating new commercial signal through the digital to content the needs of new customer segments.
Use digital to attract customers to create new sources of income, for instance, advertising or online promotion activity.
c. The online value proposition
Every product and service actually can find some additional online value. The online value proposition of New Look is display trend-setting goods with rational price, and provide quality services to build a customer experienced brand.
The online value proposition is a reflection of the offline value proposition, but there still have some differences. The products are consumed and created differently for many customers want to interact with the brand. The online customers need is only a reflection of the offline of need (Chaffey D, 2004). In new communities, these customers want to share information, ideas, problems, and solutions, maybe even friendship. However, online services can preferable to fulfill the growing diversity of online customers’ demands.
Customer retention is as important as customer acquisition. The online value proposition could be effective measures. Most important, online communications should be unabridged. All information should sustain the online value proposition of the e-marketing strategy. New Look attach great importance to build communications and online values, all communications aim to strengthen customer relationships with each other or the company.
8. Promotional strategy
Generating traffic in digital platform is vital to achieving e-marketing objectives. If a company wants to augment visitors to the website and to attract new customers online, they have to make full advantage of online and offline marketing communications ways or digital media channels. Traffic building requires integrating new digital media information and offline communication techniques to attract new flow of visitors to the website. The pivotal is how to achieve the mix of traffic building. New Look should use a digital integrated CRM system that adds value to customers’ experiences. Moreover, the company should guarantee that there are ample resources to make communications mix effective.
It is vital to use offline advertising to communicate their online value proposition (Armstrong, 2001) in specific adverts and traditional companies are increasingly using this approach as more sales are achieved online.
In 2007, New Look promoted its first advertising active for three years and employed online advertising for the first time. Then they established the transactional website opened its concepts towards promotions. Their target customer is women in the 16-30 year old, however in 2001 New Look expended into men’s clothing which has now been occupying over 20% of the chain (New Look a, 2012).
In fact, spend on online advertising is dwarfed by spend on advertising in traditional modes of transmission such as print, TV and radio, the global online advertising spend was around 1% of total advertising. But New Look is now spending more than 10% of their budget online (New Look b, 2012).
9. Summary and Recommendations
In recently years, New Look becomes most popular pages and most popular product is the Ladies’ fashion trend with its well-established customer database, with the 40 years endeavor. However, the speed of response and speed of resolution has no increased yet, the online customer care could also do better.
People in the pursuit of fashion and new trend have been increasing. New Look defines the process to creates a good customer experience. This presents a business opportunity to deliver irresistible fashion at brilliant prices to supply people with the exact demand of high taste. As new technologies are being extensively implemented, a digital integrated CRM system is vital to adds value to customers’ experiences.
In order to expand market share and improve sales in e-marketing, New Look has defined online value proposition – display trend-setting goods with rational price and provide quality services – to build a customer experienced brand.
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