Digital Promotion

Assignment 2

You are required to produce a 2,500 word report. Firstly, select a brand and an appropriate target market, providing rationale. Secondly, you will

be required to propose a digital marketing strategy for this defined brand and consumer

segment using theory to support your strategy

LO3: Determine the value of digital communications channels for defined markets and consumer segments

LO4: Develop a digital marketing strategy for defined markets and consumer segments0

Nathalie Bannon- 13139964 1

Digital Promotion Assessment 2

List of Figures, Tables and Images

Figures

Figure 1.0: The traditional decision model. Richards, J ( 2015) Consumer Behaviour. Manchester Metropolitan University: Manchester. 23 pages, Lecture 2, Term 2, Digital Promotion.

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Chapter(s)

List of Figures, Tables and Images

Chapter 1.0 IntroductionChapter 2.0 Consumer BehaviourChapter 2.10 Situation Analysis

Chapter 2.11 Consumer InsightChapter 2.12 Key Performance IndicatorsChapter 2.13 Market SituationChapter 2.14 Competitor AnalysisChapter 2.15 SWOT

Chapter 3.0 ObjectivesChapter 4.0 Strategy

Chapter 4.1 Evaluation of StrategyChapter 4.2 STOP

Chapter 4.21 Segmentation and TargetingChapter 4.22 Objectives and Positioning

Chapter 5.0 Tactics and ActionChapter 6.0 ControlChapter 7.0 Conclusion

Reference Page

Appendix

Page(s)

Pages 3-4

Page 5Pages 5-6Page 6Page 6Pages 7-8Page 8Pages 8-9Pages 9-10Page 10Page 11Page 11

Pages 11-13Pages 13-14Pages 13-14Pages 14-15Page 15

Page 16

Pages 17-18

Digital Promotion Assessment 2

Figure 1.1: The fashion decision model. Richards, J (2015) Consumer Behaviour. Manchester Metropolitan University: Manchester. 23 pages, Lecture 2, Term 2, Digital Promotion. Figure 1.2: Reiss Desegregated Table. Jobber, D (2010). Principles and practice of marketing. 6th edition. London: McGraw-Hill. Figure 1.3: Reiss Segmented Tale. Jobber, D (2010). Principles and practice of marketing. 6th edition. London: McGraw-Hill. Figure 1.4 Similarweb (2015) Reiss Traffic Overview. Similarweb.com. [Online]. Last Accessed 8th April 2015. Available: http://www.similarweb.com/website/reiss.com Figure 1.5: Fioriti, J (2014) Reiss Financial Performance. Verdict.com. [Online]. Last Accessed 8th April 2015. Available: https://service-verdictretail-com.ezproxy.mmu.ac.uk/verdict/companies/clothing-and-accessories-specialists/reiss/financialperformance/article50710.ece Figure 1.6: Reiss Segmented Table. Jobber, D (2010). Principles and practice of marketing. 6th edition. London: McGraw-Hill. Figure 1.7 B7 mobile app downloads. ACORNcaci (2015). Affluent Proffesionals: Mobile Internet. Acorncaci.com. [online]. Last accessed 10th April 2015. Available: [http://acorn.caci.co.uk/data/#t19_p8Figure 1.8 D15 mobile app downloads. ACORNcaci (2015). Affluent Proffesionals: Mobile Internet. Acorncaci.com. [online]. Last accessed 10th April 2015. Available: [http://acorn.caci.co.uk/data/#t19_p8Figure 1.9 D16 mobile app downloads. ACORNcaci (2015). Affluent Proffesionals: Mobile Internet. Acorncaci.com. [online]. Last accessed 10th April 2015. Available: [http://acorn.caci.co.uk/data/#t19_p8Figure 2.0: E19 mobile app downloads. ACORNcaci (2015). Affluent Proffesionals: Mobile Internet. Acorncaci.com. [online]. Last accessed 10th April 2015. Available: [http://acorn.caci.co.uk/data/#t19_p8

Figure 2.1. Experian.com (2015) Experian Female Fashion Segements.Experian.com [Online]. Last accessed 6th April 2015. Available: http://www.experian.co.uk/assets/business-strategies/brochures/fashion_segments_handbook_females_small[1].pdf Tables

Table 1.0- Schiffman, L and Wisenblit, J (2015) Consumer Behaviour: Consumer behaviour is interdisciplinary. 11 edition. Essex: Pearsons Education Limited. Table 1.1- Similarweb (2015) Reiss Traffic Overview. Similarweb.com. [Online]. Last Accessed 8th April 2015. Available: http://www.similarweb.com/website/reiss.com Table 1.2- Information sourced from: Similarweb (2015) Traffic Overview. Similarweb.com. [Online]. Last Accessed 8th April 2015. Available: http://www.similarweb.com/website/reiss.comTable 1.3- TOWS matrix for Reiss. Table 1.4- Speak and Sizzle for Reiss using: Chaffey, D and Ellis-Chadwick, F (2012) Strategy, Implementation and Practice. 5th Edition. Essex: Pearson Education Limited. Table 1.5- GANT Chart based on: Chaffey, D and Smith, PR (2013) Emarketing Excellence: Planning and Optimizing your Digital Marketing. 4th Edition. Oxon: Routledge.

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Images

Image 1.0- Global online interaction map for Reiss.com: Similarweb (2015) Traffic Overview. Similarweb.com. [Online]. Last Accessed 8th April 2015. Available: http://www.similarweb.com/website/reiss.comImage 1.1- REISSME fashion app description.

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Chapter 1.0 Introduction This academic piece of writing will be focused at using the SOSTAC model and the study of consumer behaviour to design a new digital strategy focused at the brand Reiss and their target market. Buying behaviour has become a lot more complex with the advent of the internet, the digital revolution is one of the biggest influences on consumer behaviour where online advertising, search engine optimisation, social networks, blogs and 24/7 online shopping continue to influence consumer’s needs(SmartInsights, 2015) (Soloman, 2015). The SOSTAC model founded by PR Smith will be used in order to insure that a new digital marketing strategy will be fully integrated into Reiss’ brand image, meeting their consumer needs, pushing for innovation and optimising their digital platform to gain insight of their current and potential consumers, resulting in brand loyalty and retention. Chapter 2.0 Consumer BehaviourConsumer behaviour is the study of individuals who select, purchase, use or dispose of products and services (Soloman, 2015). Fashion is the process of social diffusion by which some groups of consumers adopt new styles, it’s a complex industry where it effects consumer behaviour on a personal level; many people desire to be ‘in fashion’ and this motivates consumers to give off a certain demeanour (Soloman, 2015). All these factors are involved in the decision making process of a consumer which stems from four disciplines; psychology, sociology, anthropology and communication (see table 1.0 for definitions).

Table 1.0 (Schiffman and Wisenblit, 2015)

These four factors disrupt every decision making process that a consumer makes, problem recognition is what stems decision making. Problem recognition usually begins with something that consumers need, however in today’s consumer environment the need for something is followed very closely with wanting it. Hedonic needs are subjective and experiential; for example some products meet needs for feelings such as excitement, self-confidence or fantasy (Soloman, 2015). Figure 1.0 demonstrates the traditional model of decision making. When a problem in the traditional model a consumer will evaluate the different types of products on sale according to price, type and brand and then make their choice. The fashion consumer behaves differently within this process demonstrated in figure 1.1 (Richards, 2015). When a fashion consumer goes shopping, they have what they need in mind however are offered a range of

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different products in terms of style, trend or colour by hundreds of different retailers. The consumer takes interest in these products by trying them on, they then evaluate each product available and how it will fit into their lifestyle, how much it fits their original need and how long the product life cycle will last. A decision is then made where the consumer either chooses to purchase the product or decided to look elsewhere leading to the outcome of purchase or no purchase.

Figure 1.0 Traditional Model Figure 1.1 Fashion Model

Chapter 2.10 Situation AnalysisUnderstanding an organisation’s environment is a key part of situation analysis which then forms a solid foundation for devising a digital marketing strategy (Chaffey and Ellis Chadwick, 2012). Chapter 2.11 Consumer InsightReiss is a bridge brand which sits a mid-market level attracting consumers with a higher disposable income as well as those who focus on wearing aspirational fashion products with a strong understanding of quality and tailoring (Reiss, 2015). The Reiss consumer group therefore is a varied one, their main target group is women from a sophisticated and affluent background, focusing on variables from the AB demographics, however aspirational shoppers from the demographic D and E may also turn to Reiss for statement, long lasting pieces. (See appendix 1.0 for further information) (ACORNcaci, 2015). Using demographic information enables companies to take their insight a step further with a deeper understanding of existing and prospective consumers wants and needs by researching into demographic information, buying behaviours and lifestyles so that they can market their products more accurately (Schifferman and Wisenblit, 2015). Jogger 2010 suggests that most retailers offer products for a variety of different customers, but what is important is which consumer group is most appealing for the brand and their current objectives. Figure 1.2

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demonstrates the desegregated consumer market for Reiss, where individual consumer characteristics are understood, figure 1.3 exhibits the segmented market where similar characteristics are segmented in terms of usage of digital platforms such as social media and how often apps are downloaded on tablets/ mobile phones. Appendix 1.0 outlines each consumer group’s factors (Jobber, 2010). Figure 1.2 Figure 1.3

Chapter 2.12 Key Performance Indicators Digital effectiveness is often measured through key performance indications, this measurement demonstrates how effective a brands online content is in comparison to their competitors, how search engine optimisation is effecting their online sales as well as how active their site is at satisfying their consumers through looking at their bounce rate and average time spent on their website (Chaffey and Chadwick, 2012) (Smartinsights.com, 2015). Reiss currently rank 41,592 most visited website globally, and 2988 most visited in the UK. Table 1.1 demonstrates their current KPIs in terms of engagement including time spent on website per visit, and how they are directed to the website (Similarweb, 2015).Table 1.1 Reiss Engagement (Similarweb, 2015)

Chapter 2.13 Market Situation“To effectively plan your e-marketing you need to tap into a wealth of research about current internet usage and future trends” (Chaffey and Smith, 2013). Reiss has made some major investments internationally, countries such as India, Australia, China and South Africa are now part of Reiss’ consumer group meaning Reiss have to consider their digital marketing strategies globally, adapting them to be culturally enticing and appropriate (Fioriti, 2014). Image 1.0 displays which countries are interacting with Reiss online, indicating the previous threat (Similarweb, 2015). This can be overcome by using digital marketing strategies available globally which will reach out to new consumers.Image 1.0 Global online interaction map for Reiss.com.

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Table 1.0 demonstrated Reiss’ online engagement, this demonstrated where Reiss are now in terms of their situation analysis, figure 1.4 demonstrates which of their social media platforms is receiving the majority of their online traffic (Similarweb, 2015).

Figure 1.4 Social Media Traffic

Financial statistics and trading information are also key factors that need to be taken into account when designing a digital campaign. Figure 1.5 demonstrates Reiss’ recent financial and operating figures over the last 5 years and the predicted turnover for 2015 (Fioriti, 2014). Growth has been strong since 2013, with a rapid increase in online turnover, with only a fifth of its growth being from the UK market as it reduced its store numbers (Fioriti, 2014).Figure 1.5 Reiss Group Key Operating Statistics, 2010-15e

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Sender, 2014 from Mintel outlines how the womenswear market is also growing, as women continue to prioritise buying new clothes over other areas of spend. In 2013 there was a 4.6% increase reaching £24.9 billion. It is estimated however that this sector will grow by 22% between 2013 and 2018, expectantly reaching £30.4 billion (Sender, 2014).

Chapter 2.14 Competitor Analysis

Reiss sits as a Bridge Brand in the mid-market therefore there are fewer competitors who trade within similar pricing structures and use a retail strategy where quality is the forefront of their business. Table 1.2 demonstrates Reiss’ main competitors along with their online KPI’s in comparison to Reiss.

Table 1.2 Reiss Competitor online KPI

Table 1.2 demonstrates how Reiss are the second global leaders in terms of visitors however their bounce rate is high showing that their website is not as enticing as their competitors. None of these competitors, although target the demographics outlined in appendix 1.1, provide applications that can be downloaded on tablets and smartphones, this is a digital strategy that should be embraced as their target consumers are renowned for using this type of digital platforms within their lifestyles. Chapter 2.15 SWOTA core activity for situation analysis is performing a structured SWOT analysis and tows matrix to summarise how current negative factors can be turned into opportunities and threats. Appropriate planning to counter the threats and take

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Digital Promotion Assessment 2

advantage of the opportunities can be built into internet marketing plan (Chaffey and Chadwick, 2012). Table 1.3 demonstrates a TOWS matrix for Reiss.

Strengths Strong Brand Image British Heritage Quality Garments and

understanding of current trends

Second globally searched website ranked in comparison to competitors

Celebrity following demonstrated on social media

Weaknesses High online bounce

rate Low percentage of

followers compared to competitors on social media

Lack of online presence

Difficult pricing strategy for current UK economy

Current target market are not as digitally savvy as potential consumers.

No customer loyalty initiative

Opportunities Tap into international

markets digitally Use better known

celebrities rather than news presenters and journalists to endorse products

Use digital PR to increase online following

Use competition and exciting online content to increase brand interaction

Create an app for smartphones and tablets

SO strategies International markets

will recognise brand image therefore will not need to be persuaded to be involved with brand

Increase digital following by directing website customers onto other digital platforms

Use an app to allow digital platforms to be more seamless and easy for consumers to use on the go

Use current celebrities to become more digitally involved to gain higher social media following

WO strategies Look at interacting

with a different consumer group who will raise digital profile

Use competitions to increase social media following

Look into digital strategies that will be more appealing to international markets to increase global presence

Use PR techniques entice non digitally savvy consumers into using digital platforms to shop and interact with brand

Threats Strong competition

using similar marketing techniques

Competitors have a greater online following

Mass market retailers providing similar products for lower prices

Demographics are becoming blurred

Competitors tapping into international markets with more publicity

ST strategies Use brand image and

celebrity followers to distinguish from other competitors

Use quality as an added value image to distract consumers from going to mass market brands

Use global recognition to advantage, for example creating better content for different cultures rather than British focus.

Use international celebrities so that international markets feel more connected to the brand.

WT strategies Move away from other

competitors digital techniques to become innovative

Differentiate website from other competitors layouts to increase interest and lower bounce rate

Ensure that certain demographics are not considered, use a strategy that is popular for all potential consumer groups

Ensure consumers can justify buying products at a more premium price through loyalty initiatives

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Chapter 3.0 ObjectivesChapter 2.1 highlights Reiss’ current situation in terms of growth, competition, and digital presence. It is clear that Reiss’ digital strategy is letting them down in terms of online activity especially social media presence and bounce rate. Their digital marketing techniques lack innovation and replicate that of their main competitors. Their strong brand image and recognition means that their global ranking is higher than their competitors however their lack of digital content linked to their website means that customers are not staying long enough to interact with the brand fully nor are they being directed to other social platforms. It is clear that Reiss use the AB demographic as their consumer group, however chapter 2.11 has demonstrated all consumer groups that would interact with the brand online and offline. Therefore customer acquisition is an objective that can improve Reiss’ online status by targeting consumers who will add digital value to the brand as more frequent users of social media, apps and technology. Figure 1.6

Figure 1.6 highlights Reiss’ digitally active segment, these demographics use applications, social media and technology within their everyday lifestyle therefore in order for Reiss to obtain their acquisition objective they must focus at this consumer group. OBJECTIVE: Customer acquisition and conversion, acquire 50000 new online customers in 1-year with an average unit sale of 2 items whilst offering 20%

off first online order through new digital platform. The SMART model framework can be used to assess the suitability of objectives set to drive chosen strategies in the right direction using five effective objectives; specific, measurable, actionable, relevant and time related (Chaffey and Chadwick, 2012). The 5s (sell, serve, speak, save and sizzle) is another framework that can be used to ensure that your goals can be met through the use of specific areas (Chaffey and Smith, 2013). For customer acquisition serve and sizzle will be the most appropriate two frameworks to ignite the strategy (see table 1.4). Table 1.4 Serve and Sizzle Objectives (Chaffey and Chadwick, 2012)

Chapter 4.0 Strategy

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A strategy should embrace all aspects previously discussed in order to combat any digital improvements required as well as prioritise any objectives set previously to create content which has competitive advantages (Chaffey and Smith, 2013). Image 1.1 presents the strategy to be implemented in order to innovate the way in which Reiss performs online and interact with consumers digitally. Image 1.1 Strategy

Chapter 4.1 Evaluation of strategyWhat the essential question is when designing a new digital strategy is how this new platform is going to compliment other online channels, how they will work together and will they speak to the right audience (Ryan, 2014)(Chaffey and Chadwick, 2012). Creating an app merely mimicking Reiss’ online website would not have pushed the brand digitally, nor will it acquire a new type of consumer. Through creating a piece of technology which makes the shopping process less painful, consumers will rely on the application to purchase their clothing in a more exciting way (Chakraborty and Lala, 2015). In a recent journal of consumer marketing, shopping effort has been used a resource, meaning consumers who positively interact with a brand not only in monetary value, but also in terms of time and effort are more likely to become a purchasing customer (Saini et al, 2010). 4.2 STOP

4.21 Segmentation and Targeting

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In order to ensure that the application will be successful in terms of the objective it is important to delve deeper into consumer segmentation. Chapter 2.11 demonstrated a depth of consumer insight, figure 1.6 demonstrates the 4 chosen consumer groups that will be target segments within the new strategy. Figures 1.7-2.0 demonstrate how these consumer groups have a higher index in the use of mobile applications,Figure 1.7 Demographic B7

Figure 1.8 Demographic D15

Figure 1.9 Demographic D16

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Figure 2.0 Demographic E19

Figure 2.1 These demographics evidently use apps regularly meaning that they will be more susceptible to using new ways of shopping via the Reiss app. Figure 2.1 demonstrates a similar consumer to demographic D15, it demonstrates the correlation between internet usage and most popular brand type, this supports the case that this segment of consumers who shop at aspirational brands like Reiss are open to shop online.

Chapter 4.22 Objectives and PositioningAs the strategy has been designed with the target consumer in mind and the original objectives have been considered throughout the process, it is important to look at the strategies positioning as well as its OVP (online value proposition). Reiss’ objective is to be perceived as digitally innovative, pushing one step ahead from its competitors by providing a new exciting way of shopping. Their online value proposition is that their consumers can get personalised online service through the app where a virtual personal shopper will help them with their shopping.

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Chapter 5.0 Tactics and ActionTactics are the details of strategy which use e-tools to optimise and support the implemented strategy. E-tools which are appropriate for the REISSME digital campaign include integrated marketing communication which will execute and monitor the brands campaign strategy in terms of profitability, acquisition, retention and growth (Chaffey and Smith, 2013) (Straus and Frost, 2014). Integrated channels include direct mail and social media (Twitter, Facebook, Instagram and Pinterest), these forms of marketing will be unpaid and non-traditional meaning that the chosen target segment needs to be in touch with these forms of media for the strategy to be successful. The best tool to use when executing tactics is a GANTT chart that lists all tools used over the months that the campaign will be pushed to the forefront of consumers. Instead of using a 12 month period where tactics will be slowly trickled into marketing, the marketing campaign for the strategy will act more fiercely over an 8 month period Table 1.5 demonstrates the campaigns tactics from February to September. The app will be launched during AW17/18 London fashion week therefore each of the tactics in table 1.5 becomes a mini project that needs to be monitored and implemented on time ensuring no mistakes are made, the GANTT chart demonstrates the critical path and the times in which each tactic needs to be completed in order to meet original objectives. Table 1.5 GANTT chart for TACTICS (Chaffey and Smith, 2013)

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Chapter 6.0 Control Control mechanisms are put in place by marketers to ensure that all tactics, objectives and actions are being measured so that what is working and what is not working is recognised earlier rather than later. This is a performance review that tests all previous areas of the SOSTAC model to ensure that you have met your primary objective (Chaffey and Smith, 2013). Figure 2.2 demonstrates how the campaign will be measured and the frequency of each control point. Figure 2.1 Control Analysis Factors to Control Frequency Who?Number of apps downloaded

-daily Strategy Team

Number of sales per download

-weekly Sales and Strategy team

Number of new online customers acquired

-monitor daily for first month-monitor weekly from

Marketing Team

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second month Number of shares on through social media including hashtag

-monitor daily for first three months-monitor weekly after three months

Marketing Team

Number of current consumer interacting with app

-monitor weekly for first three months-monitor monthly from fourth month

Strategy Team

Measure KPI’s in terms of bounce rate on website, and number of visits per day

-measure daily for the whole eight months

Analytics Team

Number of consumers recommending friends

-measure weekly Marketing Team

Amount of consumers and sales generated through celebrity and blogger endorsement

-measure weekly PR team

To be successful within a digital strategy the factors in figure 2.1 will need to be measured on their frequency basis and then iterative refinement (constant tweaking) may need to be applied if certain objectives are not being met as quickly as expected. This may mean that certain departments will have to boost digital activity to the next level to see more acquisition (Ryan, 2014). Chapter 7.0 ConclusionThrough this formative assignment it has been discovered the ways in which Reiss as a business is stunting its growth.  There is a considerable lack of innovative forms of digital platforms other than using techniques that their competitors and most high street retailers are using. It has been found that Reiss may be putting themselves at risk by targeting such a small demographic group rather than marketing to the wider consumer groups who are valuable to the brand in other ways. Their current consumer AB demographic are valuable consumers in terms of monetary value however do not bring value added benefits such as digital brand awareness to Reiss. Through the proposed strategy Reiss will acquire a new consumer group who although might not be as valuable as their current AB demographic in terms of monetary growth, their brand presence digitally will increase through an innovative platform which will create excitement around the brand through social media, reaching international markets and connecting Reiss consumers globally. Through the REISSME app, Reiss’ consumers can become digitally involved with the brand through their virtual selves as well as share their interaction with friends via social media websites. This strategy will tap into new consumer markets globally, acquiring new consumer groups and eventually boost monetary growth as these consumers become brand loyal and rely on Reiss’ quality and fashion expertise over mass market retailers.

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Reference ListACORN caci (2015). Affluent Achievers. ACORNcaci.co.uk. [Online]. Last accessed 16th April 2015. Available: http://acorn.caci.co.uk/data/#c1_p1 ACORN caci (2015). Rising Prosperity. ACORNcaci.co.uk. [Online]. Last accessed 16th April 2015. Available: http://acorn.caci.co.uk/data/#c2_p1 ACORN caci (2015). Comfortable Communities. ACORNcaci.co.uk. [Online]. Last accessed 16th April 2015. Available: http://acorn.caci.co.uk/data/#c3_p1 Chaffey, D and Ellis-Chadwick, F (2012) Strategy, Implementation and Practice. 5th Edition. Essex: Pearson Education Limited. Chaffey, D and Smith, PR (2013) Emarketing Excellence: Planning and Optimizing your Digital Marketing. 4th Edition. Oxon: Routledge. Chakraborty, G and Lala, V (2015). Impact of consumer’ effort investments on buying decisions: Journal of Consumer Marketing. Vol. 32 Issue 2. Fioriti, J (2014) Reiss Financial Performance. Verdict.com. [Online]. Last Accessed 8th April 2015. Available: https://service-verdictretail-com.ezproxy.mmu.ac.uk/verdict/companies/clothing-and-accessories-specialists/reiss/financialperformance/article50710.ece Frost, R and Strauss, J (2014). E-Marketing. 7TH Edition. Essex: Pearsons Limited.Jobber, D (2010). Principles and practice of marketing. 6th edition. London: McGraw-Hill.Richards, J (2015) Consumer Behaviour. Manchester Metropolitan University: Manchester. 23 pages, Lecture 2, Term 2, Digital Promotion. Ryan, D (2014) Understanding Digital Marketing: Marketing strategies for engaging the digital generation. 3rd Edition. London: Kogan PagesSaini, R., Rao, R.S and Monga, A (2010). Is that deal worth my time?: The interactive effect of relative and referent thinking on willingness to seek a bargain. Journal of Marketing. Vol 74 Issue 1. Schiffman, L and Wisenblit, J (2015) Consumer Behaviour. 11 edition. Essex: Pearsons Education Limited.

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Sender, T (2014) Womenswear Analyses Market 2014. Mintel.com. [Online]. Last Accessed 8th April 2014. Available: http://academic.mintel.com.ezproxy.mmu.ac.uk/display/679833/ Similarweb (2015) Reiss Traffic Overview. Similarweb.com. [Online]. Last Accessed 8th April 2015. Available: http://www.similarweb.com/website/reiss.com Smart Insights (2015) Consumer Buying Behaviour. Smartinsights.co.uk. [Online]. Last accessed 4th April 2015. Avaiable: http://www.smartinsights.com/marketplace-analysis/consumer-buying-behaviour/ Smart Insights (2015) Defining Goals and KPI’s. Smartinsights.co.uk. [Online]. Last accessed 4th April 2015. Available: http://www.smartinsights.com/goal-setting-evaluation/goals-kpis/ Soloman, M (2015) Consumer Behaviour: buying, having being. 11 Edition. Essex: Pearsons Education Limited. Porter, M (2008) On Competition: Updated and Expanded Edition, Harvard Business Review

Appendix

Appendix 1.0

Demographic Groups and Variables.

ACORN caci is a source of consumer information which supplies variables of demographic data such lifestyle and financial information as well as digital, mobile and social media usage. These sources of information are heavily relied on throughout a product development process, especially when marketing a product. A retailer like Reiss caters from many different consumers however cannot use one marketing technique for all, therefore they have to use certain marketing techniques which are fully optimised through research into their target consumers and ensuring their strategies are focused on the appropriate communication channels. In extension, Reiss will not rely on one consumer demographic to be their only customer, an array of consumers from different ages, backgrounds, job titles and financial situations will shop at Reiss, however the brand must focus on the consumers most valuable to them- in whatever terms- to focus their marketing strategy at and meet their proposed objectives. Figure 1.0 in the main body (chapter 1.1 The Reiss Consumer) demonstrates the demographic groups that would likely be known to shop at Reiss, the following section will outline these demographic groups characteristics to determine which consumer will be most valuable to Reiss, and therefore developing an appropriate strategy for these consumers. A1 Executive Enclaves

These are some of the wealthiest people in the country, living in multi-million pound properties. The variety and level of online shopping is generally well above most other types whilst most tend to avoid use of social media sites. This is not a group to target with digital advertising as response will be very low. They are more likely than others to own iPads to which they are likely to download a number of apps. These apps may be used to manage their travel and lifestyle.

A2- Metropolitan Money

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There might be a combination of younger people and those well advanced in their careers. A good proportion are single and fewer of the couples will have children. Properties are on average eight times the national average with a high proportion having homes worth over £1 million, a significant asset since many have no mortgage. More likely than most to own an iPad or similar device, they may use it to access content relating to travel, news, weather and to play games and, less frequently, access social networks or read blogs. The main uses for their smartphone are email and to exchange pictures, or download and listen to music.

A3 Large House Luxury

These families are living in large detached houses that are usually expensive both in terms of the local area and nationally. Educational attainment is well above the average and many people will have senior managerial and professional jobs. They have the money to spend freely and frequently on their credit cards. A high proportion will be earning six figure salaries. Social media does not hold great influence with most of these people. Similarly their online activity avoids entertainment and socializing. Music, video, games, gambling, blogging and discussion forums are unlikely to be for them. It is more likely that they will use their phones and iPads for focused online activity. They are more likely than average to consider suitable direct marketing to be acceptable by all channels.

B6 Financially Comfortable Families

Well-off working families, many of whom commute and live in modern estates of relatively large detached houses. Most are employed in white-collar managerial or professional occupations and most household incomes are above the national average. Leisure interests amongst these families could include golf, computers, football, fashion and films. A high proportion own modern technology, DAB radio, games consoles, and portable audio. Ownership of smartphones, iPads and tablet devices is higher than average. Paid for content and apps for these devices tends to focus on music and multi-media, with a wider range of free apps being downloaded to phones. The majority of them are well established and frequent users of the internet, they will research and purchase a variety of goods online. Amongst this type are some people more likely to regularly read, comment on and write blogs, read magazines and manage their finances online. While broadly comfortable with traditional forms of advertising and direct marketing they are markedly less accepting of marketing by telephone, SMS or online channels

B7- Affluent Professionals

These are usually located centrally in towns and in the outer areas of large cities in higher priced flats and apartments or larger houses. The residents tend to be well educated with professional or managerial occupations including a high level of company directors. Most incomes will be comfortably above average with people being perhaps three times more likely than average to be paying higher rate tax. These people tend to receive more direct marketing than average and are significantly more responsive than average to a range of media channels, with the exception of TV and telephone, which they tend to feel is an unacceptable style of marketing. Social networking may be more business focused than personal activity for these people. Mobile phones, iPads and other tablet devices are used to access a varied range of content. This might be of a practical nature - financial planning, travel, weather, news, or for leisure activities such as shopping, lifestyle, sport, or gambling. A few will write their own, or follow somebody else's, blog. Some may respond to internet advertising on their phone but are less likely to respond to promoted Tweets or follow brands on social media.

C10- Better off Villagers

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These older couples and families live in the larger, more expensive housing found in villages and the edges of small towns. A fair number are well-qualified and have professional or managerial jobs. Around one in seven is a company director. Incomes are above average and a fair proportion of people are higher rate taxpayers. A number might spend quite freely and frequently on their credit cards. Cards and bank accounts may be managed online by some. Occasional rather than regular users of the internet, these people shop online slightly more than average. Some will regularly use RSS feeds to keep informed and mobile internet to monitor finances and investments, however they are less likely to have a smartphone or to have downloaded apps (except possibly for reading books.) They might tend to shop at department stores such as John Lewis and House of Fraser, and show some preference for retailers such as Waitrose, Gap, Body Shop, and Clarks.

D14- Townhouse Cosmopolitans

These are people living in expensive terraced properties, there may be a mix of age groups with a younger emphasis. Nearly everyone within this demographic will earn more than the national average, many a good deal more. The proportion paying higher rates of tax is well over three times the average. A higher than average proportion will own smartphones and tablet computers to which they will download apps for travel, local information, reference, multimedia , news and lifestyle content. These people are frequent internet users who are comfortable online and tend to be happy to both manage and arrange their financial affairs online or by phone. They are particularly likely to read customer reviews and ratings, read blogs and take part in discussion groups. Many will make use of RSS feeds to keep up to date and share content (although possibly not through social media sites).

D15- Young Professionals in Smaller Flats

These expensive small flats are occupied by younger professional singles and couples. Around a quarter of these flats have been built recently and are more usually found in urban locations, particularly London. These are young areas with a high proportion of people aged under 35 years. In addition to singles and couples there will be households with pre-school children. The majority of people will have a degree and most work in white collar professional and managerial occupations. Their incomes are high, typically double the national average or higher. They tend to spend freely using their credit cards and some might occasionally require the overdraft facility on their current account. Mobile phones will be important to the activity of these people. The number who will respond to advertising, or enter competitions is higher than average. They will plan travel, book tickets, locate shops and share content using their phone. Phones and apps will also be used to access content relating to their travel, lifestyle, and financial activity and to receive news, sports and other entertainment. These people are significantly more likely than average to download paid for apps to their phone or tablet devices. There tends to be a stronger prevalence to use social media to make business contacts or find a job than to follow celebrities.

D16- Metropolitan Professionals

These tend to be younger professional people in their twenties and thirties, with relatively few people aged over 45. Often they live in London where their flats might cost over half a million pounds. Generally these singles and couples will be graduates and work in professional and managerial occupations. Many incomes are well above the national average, although less dramatically above the London average. While generally financially aware, with many having multiple bank accounts and credit cards, the proportion making the minimum repayment on their card is much higher than average. These people tend to enjoy new technology. Ownership of tablet computers (e.g. iPad), games consoles and portable media players is above average. A high proportion will own smartphones with two to three times the average propensity to own a BlackBerry or

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Digital Promotion Assessment 2

iPhone. They may use their mobile devices to access a wide variety of online content and are more likely than most to have downloaded apps for their finances, health, music, photography and lifestyle. Some may frequently access content, or pay for goods using their smartphone QR or NFC scanners. These people form the internet generation, over a third of them might spend over 3 hours a day online. They are likely to share their opinions regularly in discussion forums and comment on blogs. While they will use social media, fewer tend to be very frequent users. Offline many might enjoy travel, music and film in addition to their regular social lifestyle. Most might have recently shopped at stores such as Waitrose and John Lewis.

E18- Career Driven Young Families

These are family areas where younger couples and families with children live in smaller detached or semi-detached houses. Incomes are more often above average with some 10% of these people paying higher rates of tax. Occupations tend to be white collar, professional or managerial. A high proportion of these people have degrees or A levels. They tend to have a smartphone and some will have an iPad or other tablet computer. Being frequent internet users they tend to be more likely to manage their finances online, possibly using their smartphone. Phones will also be used to play games and visit social networking sites, although their use of social media is no more frequent than average. They find communication by all channels, in particular digital channels. Some may respond to text advertising, and a few to online advertising but they are less likely to interact with brands online or through social media.

E19- First time buyers in small, modern homes

Singles and couples in their twenties and thirties are typical of these areas. Many of these people have professional or white-collar careers and their incomes are above average. However few will have built up savings or investments and may well have some debts and possibly still be paying off student loans. They spend relatively highly on their credit cards although one in five may have been refused credit in the past. These people are comfortable using the internet in all aspects of their lives - banking, shopping etc. They are more likely than average to both read and post reviews of products they own or plan to purchase. They will also take part in online discussion forums, read and comment on blogs more often than average. A wide range of apps may well have been downloaded to their smartphones. These might be both utilities such as dictionaries, city guides, maps or translators and games, lifestyle, shopping, fitness and multimedia apps. Mobile devices may play a significant part in organizing the social or leisure activity of some of these people. High street fashion retailers such as Gap, Republic, Warehouse, Oasis, Accessorize and La Senza, will be favored by these young shoppers.

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