BUSM4302 Strategic Marketing in the Digital Economy Assignment Sample

Here’s the best sample of BUSM4302 Strategic Marketing in the Digital Economy Assignment

Executive Summary

Marketing is a strategy that is used by Asos to capture the market by promoting its products and services in the market. This will also assess the competition that takes place in the market due to a change in the internal and external factors. This is to have a high stake in the fashion industry by attracting a huge number of customers. A number of marketing strategies like pay per click, sponsorship, email marketing will be suggested to meet with the needs of the market.

Introduction

The report focuses on the SOSTAC modal that will be used ASOS for the usage of digital marketing to meet with the competition. The market plan will be implemented and used by ASOS to attract customers and generate brand awareness in the market. This makes the organisation improve its sales with the use of innovative strategy and tools.

The innovation in technology has made the organisation to expand its business with the use of new digital marketing tactics. It has given a boom to the growth of the market and made it increase the competition. In today’s scenario, the success of the business can be accompanied by the use of modern methods and technology.

Situational analysis

The situational analysis helps in understanding and evaluating the internal and external environment for identifying the capabilities of the organisation, customers and environment.

PESTEL analysis

Fashion industries are affected by the macro environment factors as this directly affects their sales and products they sales for the customers. ASOS made the adoption of innovative technology to be its priority as the satisfaction level provided to the customer is its main objective. The advancement in digital technology has made the ASOS make it production and sale to be made online so that it could attract the customers at a high level. The usage of PESTEL analysis, it is evaluated that technological and social needs are changing with the passage of time (Cadle, et. al., 2014). Digital technology has made the organisation to serve the products and services to be made online as the most used sources and tools are social media. Social media has made the consumers to changes the preference of shopping from retail market to the online market. This made the ASOS bring its business to be made online so that it can make it stake in the market and have a high number of customers. In the year 2017, around 3 million people have interacted to the organisation with the use of social media and increases 58% of the sales.

Porters five P’s

Porters five P’s is conducted to have an in-depth analysis of competition that takes place in the fashion market with the entry of new companies. The changes the customer preferences for the products give rise to the competition and make the changes in the products and services. The preference of the customers and rivalry in the market makes the ASOS change its pricing policy and make the customers retained in the company. The differentiation of products influences the customers and their demands in the market as it focuses on giving specific products and services to the customers. The promotion of the products and services is made with the use of promotional techniques to generate brand awareness (Guggenheim, 2016). The entrance of new companies to the digital platform for the sales of products and services created high competition for ASOS. The innovation in technology has reduced the barriers to enter into the market as an online transaction, mobile services and digital became into existence.

Porters five P’s

SWOT analysis

SWOT analysis makes the evaluation of the facts that makes affects the organisation internally and externally. This makes the derivation of the ASOS and its stake in the market for meeting with the competition. The understanding of ASOS can be analysed with the use of SWOT analysis and opportunity they have to meet with the needs of the market. Growth of the organisation in the fashion industry is increasing at a rapid rate with the development of the digital platform (Phadermrod, et. al., 2019). The celebrity endorsement makes the ASOS to create market goodwill in the market and to have a large number of customers. The sale increases per year and 1.8 billion pounds annually. It captures around 63% of the total sale in the market and deals in 850 brands. The major strength of the ASOS is a high level of customers who avail the services online due to its quality. The major opportunity that it carries with the market is to make the production and sales globally. The arrival and entry of new companies in the fashion industries and usage of new strategies in the organisation is the biggest threat for the ASOS. This can be taken into consideration by making the production and sales to be made online.

2. Objectives

Objective 1- Creating brand awareness

The awareness of the organisation can be made with the usage of various social media like Facebook, Snapchat, Twitter and Instagram. This makes the ASOS promote its products and services through social media and tools to capture the fashion market and industry in the UK. This aims at making and serving the services to be provided globally to the people for having a large number of customers.

Objective 2- Attainment of business goals

The major goals of the organisation are to spread its business at a global level outside the geographical boundaries with the use of innovative products and technologies. This makes the ASOS embrace digital technology and make the products to be provided online at a low cost (Aithal, 2017).

Objective 3- Brand success

The success of the organisation can be attained with a high stake in the market by capturing the large stake in it. This makes tracking the number of followers that visit the ASOS to avail the products and services. This makes the analysis of the customers after analysing the weekly visit which is made by the people.

Facebook followers- 137, 383

Instagram- 9.3 million followers (Asos, 2018)

3. Strategy

Segmentation

The segmentation of the market is made on the basis of the age group of the people as this makes the Asos take advantage of high sales. Segmentation helps the organisation to identify the number of customers and their demands. This makes the Asos set its target market so that it would produce its products for providing gratification to the people. The segmentation is made with the analysis of the behaviour, attitude, preferred brand, mode of payment and spending criteria. This helps in making the eight segment groups of the customers based on the factors and accordingly, the production has been made. The behaviour of the customers makes the organisation set its target market and make the production and sales of those brands that are required (Cadle, et. al., 2014). The changes in taste and preferences of the customers make it difficult for the fashion industry to set its target segments and to satisfy them.

ASOS considers the behaviour and purchases power of the customers into contemplation as this makes them set it’s to market. This makes it have 1.6 million customers who make their purchase online from the Asos. The age group of people especially the teenagers makes the purchase of its products and services online. This is due to the high usage of social media and preference are given to online shopping as it is easy and time-saving. While some of the users prefer the products and brands that consist of discounts. Asos makes the sale of products at a large level and takes into consideration all the customers. This makes it sell its products and services globally satisfying customers.  Consumers prefer the products that consist of high quality at low cost and available to them at their door. The distribution channel of the Asos makes the customer attracted by the availability of products of their choice.

Target Audience

From segmentation, the target audience of the Asos is the youngsters as they prefer more online shopping instead of other age group people. The people with the age of 16-21 are more indulged into the purchase of online products and services due to multiple demands as per the changes that took over the fashion (Burns and Dewhurst, 2016). The different clothing categories as per the fashion attract the customers and the availability of products on discounts influences them. The growth of the Asos takes place with a large number of customers that are associated with the company. The target audience prefers those products and services which could provide the quality at a nominal price. The stepping of customers to other products makes the company fluctuate its prices as per the needs and wants. Offering discounts in a number of brands and products influence the customers and make them have their purchase from the Asos online.

Proposition

Asos deals in both the ways that are retailing as well as online so that it could make the customers satisfied in both the manner. The company makes its sale in the UK with its retail store and sell its products in nearby areas with the services provided online. The organisation makes its stake with the increasing sale due to digital platform and promotion made by it through social media and website. ASOS need to focus on the products and services to be sold to all the age group of people as this will help in grabbing the market opportunity at a high level (Morgan, et. al., 2019). The improvement and innovation in technology made all the people access online for having products and services. The stability in the organisation can take place with a large number of customers and have an interest in the products and services that are sold by the company. It should be more focused on fashion which is dynamic in nature so that influence over the customers can be easily made.

Marketing Mix

Promotion– promotion of products is made to make the customers know about the products. This can be made by promoting the products on website, social media and direct selling.

Price– The pricing of the products needs to be flexible as per the affordability of the customers so that they get influenced. Discounts need to be offered to the customers as this attracts them the most (Sulaiman and Syahrivar, 2018)

Place– The place where the products need to be sold are assessed by the salesperson and make the customers purchase the products. The delivery of products to the entire place in the UK needs to be made online.

Product– Asos need to provide those products that are required by the customers by analysing their purchase that has been made previously. It should focus on fashion those changes with time so that satisfaction could be provided easily.

Physical evidence– The branding, packaging and layout of the products need to be attracted to the customers. This makes them purchase the products as these influences their behaviour and choice (Fan, et. al., 2015).

Process– This involves the distribution channels through which the products are delivered to the customers on the right place at the right time. This is to make the customers to satisfy them with the delivery of standardised products.

People- This makes the analysis of the significance of people who are important internally and externally in the organisation. Internal people make the online transaction to be made in a successful manner and external people meet with the customers.

4. Tactics

Tactic 1: SEO

Search engine optimization (SEO) is used most frequently by the organisation to have a colossal number of customers in the market. The effect of the company can be generated by the keyword that is used in SEO for the customers and makes them visit the site for the products and services. This will provide the platform for the Asos in the UK to compete in the UK with the help of keyword that is used widely on Google for the search. Almost all the search by the customers is directly made through Google, this will help in generating brand image and awareness.

Tactic 2: Email Marketing

Email marketing strategy makes the mailing the required customers regarding the number of products that are sold by the company. This provides the newsletter to the customers consisting of content about the product, price, quality etc. and the variations it took place with the passing time (D’Souza, et. al., 2019). This tactic is mainly used for existing customers with the use of the database.

Tactic 3: Pay per click

This is a mode of advertisement to bring the customers directly to the website. This is made to be used by the publisher so that clicking on that the customer can visit the site for availing the products. This is a paid advertisement made by the advertiser to the published for attracting the traffic to the website.

Tactic 4: Sponsorship

This tactic is made to be used by the Asos to promote its products to a number of customers by sponsoring it through agents and agencies. This is paid promotion tactics that influence the customers. This supports the organisation to endorse its products in the fashion industry.

5. Action

Tactic 1: SEO

This makes the analysis of the keyword which is used mostly by the customers. the links that can be used for targeting the website for having a large number of customer and to identify the content that can influence the customers.

Tactic 2: Email Marketing

The tracking software tool makes the usage of track the efficiency of emails that are sent to the customers. This makes the analysis of performance regarding the pay scale, products etc.

Tactic 3: Pay per click

The publishers that can have most of the customers are used by the Asos to have a good number of customers and check its efficiency (Kingsnorth, 2019).

Tactic 4: Sponsorship

The best sponsors and agents are identified so that a large number of customers can be attracted.

6. Control

The plan makes the evaluation of the performance of tactics that are applied in the business with the use of digital technology. The changes that took place in the profits and sales can be measured and evaluated with the implementation of the marketing plan.

Conclusion

The market plan has made the organisation sustain in the market and have a large number of customers. This involves the analysis of internal and external factors for the derivation of best results to meet with the competition and have growth. Market strategies like pay per click, sponsorship, email marketing, SEO has been used to meet with the competition and adopt digital marketing in the company.

References

Aithal, P.S., 2017. An Effective Method of Developing Business Case Studies based on Company Analysis.

Asos, 2018. This is ASOS. [Online] Asos. Available at: https://www.asos.com/. Accessessed: {8 June 2019].

Bull, J.W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C., Lambini, C.K., Rawlins, M., Baral, H., Zähringer, J. and Carter-Silk, E., 2016. Strengths, Weaknesses, Opportunities and Threats: A SWOT analysis of the ecosystem services framework. Ecosystem services, 17, pp.99-111.

Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan International Higher Education.

Cadle, J., Paul, D. and Turner, P., 2014. Business analysis techniques. Chartered Institute for IT.

D’Souza, C., Marjoribanks, T., Young, S., Sullivan Mort, G., Nanere, M. and John, J.J., 2019. Environmental management systems: an alternative marketing strategy for sustainability. Journal of Strategic Marketing, 27(5), pp.417-434.

Fan, S., Lau, R.Y. and Zhao, J.L., 2015. Demystifying big data analytics for business intelligence through the lens of marketing mix. Big Data Research, 2(1), pp.28-32.

Guggenheim, D., 2016. The Collision of Indeterminate Environments and Porter’s Forces: Uncertainty Fields and Their Impact on Entrepreneurial Alertness. Strategic Change, 25(3), pp.239-257.

Kingsnorth, S., 2019. Digital marketing strategy: an integrated approach to online marketing. Kogan Page Publishers.

Morgan, N.A., Whitler, K.A., Feng, H. and Chari, S., 2019. Research in marketing strategy. Journal of the Academy of Marketing Science, 47(1), pp.4-29.

Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based SWOT analysis. International Journal of Information Management, 44, pp.194-203.

Sulaiman, J. and Syahrivar, J., 2018. The Influence of Marketing Mix 4A and Ethical Consciousness towards Ethical Consumption.

Appendix

Appendix 1

Appendix 2

Appendix 3

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