Digital marketing impacts all aspects of marketing from strategy and planning through the marketing mix, marketing communications and customers behaviour to marketing research. It highlights the most significant opportunities, objectives and defines the new marketing approaches needed. It is the digital media applied in the marketing practice to support a range of e-marketing objective.
The e-marketing plan also affects the development of the company – New Look. Living in rapidly changing times and it is no longer enough simply to share common goals and aspirations, the e-marketing plan helps to express clearly how they live up to responsibilities 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.
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New Look is the leading fashion brand in Britain. New Look was founded in 1969 in Wellington, Somerset by Tom Singh. With half century’s development, the company has rapidly expanded and now operates across a chain of over 1,000 stores internationally and hires a staff of over 30,000 (New Look a, 2012). The group had a turnover 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 recognised fashion brands 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 both internally and externally – internally within the organization, and externally, the business environment affecting the online business situation (Strauss & Frost, 2001).
2.1 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 has a well-established customer database, with relationships developed during the course of the last 40 years. But the online customer care is not outstanding enough, the speed of response and speed of resolution has no increased yet.
New Look successfully operate a Franchise Business Model in 18 countries outside of the UK and ROI. It works with large international businesses, with either minimum investment or multiple markets, to trade and develop it brand in these markets (New Look c, 2012).
As a brand it has a clear and structured international expansion strategy that highlights which markets it intends to enter in the coming years.
In the year 2012 alone 355 million customers visited New Look either online or in one of the 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.
2.2 External analysis
E-marketing is overflowing with new opportunities and threats thrown up by the constant waves of change. PESTLE analysis (Chaffey D, 2004) describes a framework of macro-environmental factors used in the environmental scanning component 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 continue to focus upon growing existing own-store businesses in France, Belgium and Netherlands either organically or via acquisition, alongside the development of potential new markets.
Social -Its goal remains to ensure all international businesses follow a clear and credible path 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
3.1 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 comes in. Its brand adores of fashion excitement, value and newness are at the heart of everything they do. For the customers, they deliver irresistible fashion at brilliant prices, which means more fashion excitement (New Look c, 2012). With genuinely surprising prices and fashion credentials that set it apart from other value retailers, this means they can take on the competitors’ challenges.
3.2 The role of digital in supporting business objective
New technologies are being extensively implemented with the overriding aim of driving efficiencies 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 serves their needs better than ever before.
The main concept of New Look is Sense and Respond marketing. They adjust approach of delivering relevant and contextual marketing communications through monitoring customer behavior. create a multi-channel digital marketing process to provide the best wearable interpretation of a latest trend and genuinely surprising prices relative to the competition.
A good objective for an e-marketing strategist must be clear why you’re getting into e-marketing and the areas on which you want to focus as you improve your e-marketing. New Look has specific objective to connect emotionally and forge a strong brand position. The fashion excitement, value and newness are at the heart of brand.
4. E-Marketing Objectives
The brand is about delivering fashion excitement, newness and value. The e- marketing objective is providing more fashion garment for the customers at a reasonable price and security services. It translate the latest trends from the catwalk, celebrities and the streets as fast as we can, providing our customers with fashion that is bang on trend – and great value to boot. 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.
All these e-marketing objectives can be summarized 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 range than in-store or lower prices compared to other retailers. Achieve 30% of sales online in market and increase online sales for product by 25% in year. Speak – Creating a two-way dialogue through web and e-mail forms and polls online, conducting online market research through online surveys and monitoring chat rooms 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 customers are always changing. Not only do they talk back, they even shout back and even bite back if brands break their promise (Forcht, 1996). Successful e-marketers should listen and learn customers’ needs. Research shows that today’s customers are less tolerant of bad service, with 80% of consumers showing that they will never go back to an organization after treated with a bad customer experience. New Look current online business model is business-to-consumer; it aims to pay more attention to customer experience. They offer a unique fashion, value and newness to a target customer of stylish 16 to 45 year old women, also to men and children.
Understanding customer motivations is not a puzzle or a luxury. It is an absolute necessity 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 are motivated to go online for a range of reasons – social, shopping, entertainment. 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 latest trends from the T sets, celebrities and the streets as fast as they can, providing customers with excitement and newness.
Customers’ expectations can be managed, met and exceeded. It needs understanding expectations, setting and communicating the service promise, and delivering the service promise. Online customers’ expectations always increase. They expect higher standards in terms of service, such as more convenience, speed of delivery, competitive prices.
Customers expect fast service and fast delivery. New Look also has the ability to provide fast service and deliver to stores some of products within a 24-hour period in a safe way in order to capitalize on newsworthy events. However, it is having the flexibility in season to react rapidly to changing trends.
5.3 Fears and phobias
Online customers fears and phobias mostly security risks such as identity theft and stolen credit card details, hackers, hoaxes, viruses, and lack of privacy, the computer taken over remotely by a malicious or criminal hacker, etc.
New Look has provided a clear and effective privacy statements. Undoubtedly, it follows privacy and consumer protection guidelines in all local markets, and makes security of customer data a priority.
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 understand their online media consumption, buyer behavior and the type of content and experiences they will be looking for from website (Strauss & Frost, 2001). New Look regularly win awards for its clothing and footwear in womenswear, but isn’t just for the girls either, they are gaining 10.5% market share menswear (New Look, 2012). Its online business also continues to grow, with customers visiting New Look whenever and wherever it suits them – making itself one of the most visited fashion websites in the UK.
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New Look also subscriber data access for online marketing. The data a site owner has about its customers is also potentially valuable since they can send different forms of e-mail to its customers if they have given their permission to communicate with customers. The website can charge for adverts placed in its newsletter or can deliver a separate 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. With the Internet came the easier facilitation of customer communities, where customers talk to each other and back to the company. The flow of communications eventually becomes like a web of communications 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 changing as products become services, services become customer driven, and customers create communities that extend the brand into new online experiences (Chaffey, 2004).
The e-mix is a well-established conceptual framework that helps marketers to structure their approach to the online market. Although, customers don’t care about an organization structure or internal processes they just want the right product to be available to them at the right time, and at the right 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 variables which, when planned and carefully mixed together in the right way, satisfy customers. 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.
7.2 The role of digital
The digital world affects every aspect of business, every aspect of e-marketing and every aspect of the marketing mix (Reynolds, 1998). Some argue that only selling, pricing absorb the biggest impact. In fact all the elements of the marketing mix are affected by this new world. As the New technology is widely used around the world, the digital becomes an important factor to the e-marketing mix.
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 afford additional information and transaction services to customer base needs.
Repackaging current information assets and creating new business propositions using the digital to content the needs of new customer segments.
Use digital to attract customers to generate new sources of revenue such as advertising or sales of complementary online.
7.3The online value proposition
There is no doubt that every product or service can find some added value online. 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, digital product and online services can expand to meet the growing diversity of tastes being generated by the many customers online.
Customer retention is as important as customer acquisition. The online value proposition could be effective measures. Most important, online communications must be integrated. All communications should support the overall positioning and online value proposition which the e-marketing strategy defines. New Look attach great importance to build relationships and brand values, all communications should 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 maximize visitors to the website and to acquire new customers online, they have to work hard to hole the full range of online and offline marketing communications tools or digital media channels. Traffic building requires combining new online digital media channels and traditional offline communication techniques to incarnate the web site proposition and so fascinate visits. How to achieve the mix of traffic building techniques is vital. New Look should use a digital integrated CRM system that adds value to customers’ experiences. Moreover, the company should ensure that there is sufficient investment in continuous online marketing activities 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 launched its first advertising campaign for three years has opened its concepts towards promotions. The same year it used online advertising for the first time and launched its transactional website. Their core audience is women in the 16-30 year old age bracket; however in 2001 New Look diversified into men’s clothing which has now been implemented into over 20% of the chain. They went live in December 2007 and currently carried womenswear, menswear, generation 915 for teens, kids, footwear, accessories, lingerie, maternity, tall and Inspire (New Look a, 2012).
In fact, spend on online advertising is dwarfed by spend on advertising in traditional media 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 relationships developed during the course of the last 40 years. 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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