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Marketing & Commmunication Plan

Dannisa Azzahra G1323228N BFMD1 1406A Marketing Strategy & Communication Lecturer: Stephanie Dickson BA Hons Fashion Marketing & Branding Nottingham Trent University


Executive Summary The purpose of this plan is to present an effective 3-years marketing strategy and 1-year communication tactical plan for Mothercare, a retail specialist in newborn and parenting products. The brand is the pioneer of one stop shop for mothers, baby and young children, with more than 50 years of experience. Mothercare differentiates itself with its extensive expertise, service, exclusive range, and as a trusted brand by parents. The specialist retailer’s vision is to be the leading global retailer for parents and young children. Based on Mothercare’s annual reports, market and consumer research, this report analyzes and evaluates the company’s current strategies, activities, financials, aims and results achieved through the appropriate selection and application of marketing tools and methodologies. For the past decade, amidst economic downturn, and intense competition, Mothercare has lost a tremendous amount of sales and market share. The brand has been focusing in an unsustainable shortterm strategy of slashing prices in a price war against supermarket and mid-market high street brands. In order to rectify this situation and return to full profit, Mothercare has acquired £100 million rights issue

for repayment of debts and to support the re-constructing of their core strategies. However, reconstruction alone will not be enough, as Mothercare needs to strengthen and emphasize its positioning in a crowded market to achieve meaningful differentiation from its competitors. Another major obstacle, derives from supermarket competitors who are gaining the most market share, such as George, a private label by Asda, that occupies the top position in the UK childrenswear market. The emergence of value for money retailers in the children market segment has affected customer shopping attitude; they’re now willing to spend less money on clothing for their children as they get older, with the exception of luxury brands. Customers are also getting more tech-savvy and prioritize convenience in their shopping regime. This report addresses the issues above and details the proposal of a 3-year marketing and a 1 year tactcial communication strategies aiming to maximize customer engagement, boost brand awareness, strengthen Mothercare’s positioning in childrenswear market, returning mothercare to profitability, particularly in the UK, and ultimately to re-establish itself as a leader in mother and baby market.


Table of Contents INTRODUCTION Purpose, Scope, Limitations, Objectives SITUATION ANALYSIS Company Profile Vision & Mission Essence & Personality Brand Promise Brand Value Functional Benefit Emotional Benefit Consumer Segmentation MOTHERCARE MARKETING MIX Product Price Place Website Analysis Promotion COMPETITOR ANALYSIS Primary Competitors George 4p’s Next 4p’s Secondary Competitors River Island H&M SOCIAL MEDIA ANALYSIS Facebook Youtube Instagram COMPANY INSIGHT CONSUMER INSIGHT

UK CHILDRENSWEAR MARKET TRENDS GLOBAL CHILDRENSWEAR SWOT MARKETING STRATEGY YEAR 1 Omnichannel E-commerce Expansion Click and Collect YEAR 2 Expert Digital Personal Shopper YEAR 3 Launch In-house Brand for Tweens Ansoff Matrix Brand Extention Mood Board COMMUNICATION STRATEGY Tactical communication plan Shoppable Digital Magazine Celebrity Children Endorsement Social Media Metrix Social Media Objectives Facebook Instagram Youtube Video Series Timeline & Budgeting CONCLUSION


Introduction Purpose The purpose of this plan is to produce an effective 3-years marketing strategy and 1-year communication tactical plan for Mothercare, a retail specialist for mothers, baby, and children. This brief will critically evaluate its current marketing strategy and recommendations will be made to strengthen the brand’s positioning, the brand’s relationship with its customers, and to ultimately become a leading global retailer for parents and young children

Scope Marketing strategy and tactical communication will include Mothercare’s current brand analysis, primary and secondary competitors, market and consumer insights, and suggested marketing strategies such as Omni channel, expert digital personal shopper, and extention brand for tweens. The tactical communication consists of shoppable digital magazine, celebrity children endorsement, and integrated social media campaigns which will be divided into detailed plan, budget, and timeline to support and help in the implementation of strategies.

Limitations Only secondary research are utilized; Online articles, and journals, reports from industry experts, Euromonitor, Mintel, MarketLine among others.

Objectives The main objectives for marketing strategies and tactical communication plan are to increase customer engagement by 40%, international online presence by 10%, customer service by 30%, increase brand share by 10%, and increase profit margin by 20% at the end of the fourth quarter of 2019.

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Situation

analysis WHERE ARE WE NOW?

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Who We Are Mothercare is a retail specialist in

newborn and parenting products with more than 50 years of experience. It is the pioneer of one stop shop for parents founded by Selim Zilkha on September 1961 in Surrey, United Kingdom. It was his vision to create a specialized shop where customers can find every necessity for mother and baby under one roof.

Today, Zilka’s pioneering spirit contin-

ues to be the pillar of the brand under the umbrella of Mothercare PLC, as the world’s biggest and most trusted retail specialist providing parents-to-be and families, quality products, and choice at an affordable price (Mothercareplc.com, 2015).

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Vision Our vision at Mothercare is to become the leading global retailer for parents and young children

Mission Mothercare is committed in bringing the best parenting experience to expecting, and existing parents of newborn, and young children around the world, through its vast collection of high quality products, and expert guidance.

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Essence Newborn and parenting specialist

Personality Honest Caring Reliable

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Brand Promise As a one-stop specialist retailer for parents-tobe and families, Mothercare offers a vast range of high quality, safe, and innovative products. Mothercare provides expert guidance and assistance, with more than half a century experience on the field.

Brand Value Brand values are delivered through Mothercare’s expertise in bringing a wide array of high quality products for moms-to-be, newborn, and young children in one platform. Mothercare also delivers the highest level of customer service including expert guidance.

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Functional Benefit Offering a wide range of innovative, high quality products, for parentsto-be and families

Emotional Benefit Supporting parents-to-be and families by providing their needs and assisting them through “That wonderful, frustrating, hilarious, serious, exhausting, rewarding experience called parenting” – Mothercare

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consumer segmentation • Mothercare caters to parents-to-be, and parents with babies and children up to the age of eight • Customers who buy gifts for family relative or friends • They are predominantly tech savvy 25-35 year olds who are connected digitally • Lives in urban and suburban cities

// First Time Expecting-Parents (FTEPs) • Mostly younger (mid 20s to early 30s) • Inexperienced and Anxious • Excited and hopeful • Hungry for guidance and information • Overwhelmed by too many choices (indecisive) • Tech savvy and digitally connected via social media and internet • Price sensitive, and tends to compare price online First Time Parents (FTPs) • Tired but overjoyed as newly parents • Need guidance & assistance • Conscious about their parenting ways • Juggling between work and raising a family • Looking for a parent community to belong to • Active in social media and sharing their new experience • Prefer to shop online due to convenience • Shop for practical, quality products • Brand switching in response to price incentives Experienced Parents (EPs) • Confident with their parenting style • Know which products work best for them • Shop from several different brands but keep coming back to their favorite • Balancing work, family, and ‘me’ time • Engaging in a hobby outside of parenting • A proud member of a parenting community (online or offline) • An active social media user, sharing their advice and experience in internet • Expert on travelling with family

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Mothercare marketing mix

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product Mothercare offers clothing for babies, toddlers, and young children up to the age of eight.

Product offering includes childrenswear and accessories with various ranges including a unisex line, from affordable everyday products, to the more premium ones, such as Little Bird and Baby K lines and Blooming Marvellous, which is the in-house maternity line; Home & Travel includes pushchairs, car seats, furniture, bedding, feeding and bathing equipment. In addition, Early Learning Center (ELC) provides toys mainly for babies under the Mothercare Plc group.

Clothing & footwear dominates the product range both in UK and International.

All of the ranges are supplemented with ranges from carefully curated third parties with the exception of in-house brands.

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price

The brand applies economy pricing for its value-for-money ranges. Mothercare also applies competitive pricing strategy that matches their price with its competitors (e.g. George at Asda).

As for the home & travel and exclusive ranges, such as Baby K and Little bird, mothercare varies the pricing strategy from economy to premium, parallel to the range and quality. The prices start as low as £2 for accessories, with childrenswear ranges from £10 to £35, and to the more premium home and travel products ranges up to £1500

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Place Mothercare Plc operates through multi-channel retail and wholesale operations in the UK with 189 stores and through franchise operations across International markets in Europe, the Middle East and Africa, Asia and Latin America with over 1200 stores Mothercare, the brand, operates in 175 stores in the UK, with 908 franchises worldwide.

Online • Mothercare also cater customers through an online store, and currently has transactional websites in 10 countries outside the UK • Online sales now account for 30% of total UK sales and 1.2% of total international sales (Mothercare plc, 2015)

Mobile App • Mothercare has an award winning app that creates an integrated and seamless shopping experience for shoppers on-the-go • It is packed with features with an online community and provides parents with helpful advices, product reviews, and e-receipts • The ipad app has a catalogue feature that enables customer to browse and shop the products through tapping the pictures • Mobile and click-and-collect service continue to grow and now represent 82% of online sessions ad 36% of online orders respectively (Mothercare plc, 2015)

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analysis mothercare.com analysis

• Mothercare.com is down to #27 in the children category rank, although number of visitors is relatively high compared to September 2015.

• The website lacks of engagement with average of only 6 minutes per visit on the website

• Only 2% of traffic comes from social media with the most from Facebook. Other social media channels lack integration with the online strore 22


Promotion Celebrity collaboration Mothercare has launched two in-house brands with celebrity collaboration; Baby K and Little Bird. Baby K was launched in 2008 and is designed by television presenter Myleene Klass. Launched in 2012, Little Bird is designed by Jools Oliver, wife of celebrity chef Jamie Oliver.

Parenting privilege VIP Reward Campaign A Loyalty program, which enables VIP members to receive free gifts, special discounts, other promotions and rewards.

My Mothercare club Mothercare’s loyalty program online, mergers contrasting elements and makes them work for the benefit of parents, as well as the brand.

It combines the in-store experience with popular advice, human support and product information at every stage of pregnancy and parenthood Program enrollment is available online, however, it’s sign-up through e-receipts only, that reinforces the importance of physical destination in a digital world. Today, My Mothercare has built a customer database of over 2 million and continuing to increase relevance and create an ever-deeper dialogue based on the needs of individuals, while simultaneously providing offline support with in-store activities (Rapp.com, 2015) . 23


Expectant Parent Event This event is a part of My Mothercare’s program that runs in round 130 stores across the UK, three times a year (usually in February, June and October). In-store experts give advice on in-car safety, sleep safety and nursery, pushchair choices and the best toys for baby’s first year. Midwives and Health Visitors frequently attend to give advice and the British Red Cross offers first aid advice to parents wherever trainers are available (Mothercare.com, 2015).

Gurgle magazine and website Gurgle is a baby and parenting magazine aimed at the modern mum, which is sold exclusively in all Mothercare stores. Gurgle magazine will form part of the Mothercare owned Gurgle brand, which includes a range of apps, books and parenting guides published under the umbrella of its established gurgle.com website, a unique mix of social networking, expert advice and practical help for parents with over 300,000 unique users every month (Media-ten.com, 2015). Gurgle aims to reinforce mothercare’s relationship and engagement with their customers.

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competitor analysis

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George, is a private label under the umbrella of Asda, a wholly-owned subsidiary of Wal-Mart.

It is one of the leading retailers in the UK. It operates 577 stores in the UK that primarily sell groceries and apparel (MarketLine, 2015). George at Asda was launched in 1990 as the first Supermarket clothing brand. It has changed the perception that keeping up with fashions and styles required expensive price tags that only few people can afford. Today, George at Asda caters to everyone at every age providing value for money products. The brand’s childrenswear has been particularly successful, and has gained the most market share in the UK by 2014, making George at Asda the leading player in the industry. 27


product

George at Asda offers women and menswear, including accessories and footwear, baby and childrenswear, and necessities for home & garden. George aims to bring stylish fashions and essential wear at value for money, accessible to all. The brand delivers award-winning designs at customer-winning prices while never compromise on quality (George at Asda, 2015). For childrenswear, George at Asda provides a vast collection of clothing, accessories, nursery, and travel, for both genders including a unisex line for kids up to 12 years old.

price

George at Asda applies penetration-pricing strategy for basic necessities and economy pricing strategy for their products. The price ranges from £3, with average of £10 for clothing, and up to £100 for baby travel. Overall price is affordable and relatively low, which is an attractive point for parents who prefer not to splurge for their baby or kids’ products. 28


promotion Collaboration The brand has done many collaborations in the past with celebrities and leading designers like like Charlie Allen, Barbara Hulanicki and Max Azria (whose collection was fronted by Miley Cyrus). The customers accepted the collaborations with open arms and had increased George’s appeal and raised the brands’ profile (George at Asda, 2015).

Annual Graduate Fashion Week George is the main sponsor for Graduate Fashion Week. The brand creates yearly collaboration, and teams up with the selected, freshest, university designers to create exclusive collections. Its head office houses hundreds of graduates and delivering popular ranges for their customers instore and online (Gfw.org.uk, 2015)

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blog In addition to the online store, Direct.asda. com also provide an integrated blog about fashion & lifestyle, similar to an online editorial, which provides inspiration, product recommendation, buying guides, etc. The blog is also connected across George’s social media.

place George is a global brand with over 3,000 stores across the UK, Canada, Brazil, Mexico, Argentina, Japan and the US Its online store delivers everywhere in the UK and 18 countries across Europe

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The Next retail chain launched its first store in February 1982 in the UK, with an exclusive co-

ordinated collection of stylish clothes, shoes and accessories for women. Collections for men, children and the home quickly followed. Next clothes are especially designed by its in-house design team to offer great style, quality and value for money with a contemporary fashion edge (MarketLine, 2015). Today, Next is one of the global leading retailers, and ranked second in the childrenswear market in The UK by 2014.

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product Next product offering includes products for Women, Men, Kids, and home & furniture. Next is committed to deliver ‘exciting, beautifully designed, excellent quality’ products though innovation, improving their ranges and focusing on being better by design (Next plc, 2015). The Kids range offers clothing and accessories for baby, and children up to the age of 16 years old. In addition, special occasion collection, unisex line, and maternity range. The online website also carries third party brands such as adidas, Cath Kidston, Abercrombie & fitch

PROMOTION CATALOGUE NEXT Directory is the online and printed catalogue first launched in 1988 with mail order operation. It is a hardback book containing 350 pages, creating the blueprint for catalogue retailing. There are over 770 pages in the Winter 2015 book alone offering extensive collections for men, women, children and everything for the well dressed home. Online shopping was introduced in 1999 and ever since then the whole catalogue became available to shop from the internet (Nextplc.co.uk, 2015)

NEXT DAY DELIVERY To reinforce online sales, Next introduces next day delivery to home as standard for NEXT Directory orders placed before midnight for free next day delivery to home or store (Nextplc.co.uk, 2015). It increases the convenience and creates a speedy online shopping.

pRICE Next applies penetration-pricing strategy and moves towards economy and premium pricing based on the style and quality of the products. The price ranges from £3 to average of £25 and up to £100 for childrenswear.

place Next distributes through three main channels: Next Retail, a chain of over more than 500 stores in the UK and Eire; Next Directory, the home shopping division with over 4 million active customers in the UK and overseas; and NEXT International Retail, with almost 200 mainly franchised stores in more than 40 countries overseas (Next plc, 2015).

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SECONDARY COMPETITORS

• River Island is one of the most well-known high street brand based in the UK. The brand is renowned for stylish and affordable fashion. The majority of their product are designed in-house, and delivers new products in-store and online every week. • The childrenswear range caters to baby and kids up to 12 years old with price ranges from £3 to £50. The brand operates through over 350 stores across the UK, Ireland and internationally throughout Asia, the Middle East and Europe, as well as six dedicated online sites operating in four currencies (River Island, 2015). • River island clothing Ltd is ranked 12th in Childrenswear UK market in 2014 (Euromonitor, 2015).

• H&M is one of the leading global high street retailers based in Sweden. The core of their business is to deliver fashion and quality at the best price in a sustainable way. The collection includes everything from basic necessities, sportswear to party collections for women, men, teenagers, baby and children. In addition to clothes, there are also accessories, and H&M home children and adults. • The Childrenswear price ranges from £3 with majority at £15, and up to £35. The department caters to baby and children up to 14 years old. The brand operates through 3,900 stores in 61 markets worldwide and online shopping in 23 countries (H&M, 2015). • H&M is ranked 13th on Childrenswear in UK market 2015, by Euromonitor.

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POSITIONING MAP PREMIUM PRICE

MASS MARKET

EXCLUSIVITY

AFFORDABILITY

The positioning map above shows where Mothercare is placed against its primary and secondary competitors in the childrenswear market. Mothercare offers a range of affordable and exclusive products, placing itself on the map middle of the map, leaning towards exclusivity, due to its premium range and status as a specialist retailer for mothers and children.

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Social Media ANALYSIS

VS

&

MOTHERCARE IN SOCIAL MEDIA CHANNELS Through Social Media, Mothercare is not only promoting its products, but also curate advice from experts and other parents. Parents are invited to join the conversation, share their thoughts and ideas, get their questions answered, and join groups around shared interests (Rapp.com, 2015). In addition, Mothercare also holds competitions, product recalls for quality issues, and features customer review as a part of customer service.

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The IRUK 500, 2015 research shows that Mothercare is present on six social networks, while both its app and product page have social media sharing. Its links to social media put it second in the Breadth section of Subdimension of Brand and Engagement. This won it a place as a Leading company in the Brand and Engagement Dimension (Rigby, 2015).


facebook.com/mothercareuk

• • • • •

Liked by 308k people, which is the lowest number compared to competitors Hashtags: #MyNewborn #LittleBirdbyJools #MyFirstMoments Creates Facebook competition to win mothercare products Typically reply messages within a few hours Engages more with followers compared to the competitors

• The service level surpasses other competitors which emphasizes on mothercare’s expertise as baby and parenting product specialist • Total likes, comment, and shares fell behind NEXT, which could be due to the quality of the content • Mothercare supposedly international facebook page is inactive compared to mothercare UK page, the last post was posted on 2013.

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youtube.com/mothercaretv

• Mothercare has the most subscribers at 25k compared to competitors • Posts collection campaign, behind the scenes, Demonstration instructional manual, buying guides, baby advice and style edit videos • Leading the total number of channel views at 16.5M • However, there is a lack of engagement and emotional appeal

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instagram.com/mothercareuk

• • • • • •

Mothercare has 37k followers, which is far lower than Next Post products, pregnancy & parenting tips, fun facts, behind the scenes, and video campaign The engagement is weak compared to the competitors The total likes ranked the lowest Although profile performance index is relatively good but still fell behind its competitors A factor that could affect the performance is the variety of contents. Mothercare’s competitors are not specialists in children market, thus, their content varies more than that of Mothercare’s

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COMPANY INSIGHTS FINANCIAL Worldwide sales

Underlying profit

£ 1,203m +1.0%

£ 13m +37%

Group sales

Statutory loss

£ 714m (1.5)%

£ (13.1)m reduced by 50%

(mothercare plc, 2015)

• Mothercare has struggled in the last few years as it has lost sales to online rivals, department stores, and supermarkets (Ruddick, 2014). • The company recorded a decrease of 3.3% in revenues of the fiscal year 2014, compared to fiscal 2013. Its net loss was $45 million in fiscal 2014, compared to a net loss of $36 million in the previous year (MarketLine, 2015)

Mothercare plc: revenues & profitability Profit margin

Net income

1,400

4

1,200

2

1,000

0

800

-2

600

-1

400

-6

200

-8

0

-10

-200

-12

-400

-14 2010

39

6

2011

2012

Year

2013

2014

Profit margin (%)

$ million

1,600

Revenues


BUSINESS INSIGHTS

80% expecting mothers visit motherscare

Differentiate in crowded market

£100 million rights issue

Performance in the UK is expected to improve

• Mothercare is still the primary destination few years. Mothercare’s recent restrucfor 80% of first-time mothers-to-be. But they turing has led to a decline in total sales came to window-shop the product, then went as the company continues to focus on reelsewhere to buy them (Rapp.com, 2015) turning to profitability. Nevertheless, to• One of the major business challenges istal sales are expected to increase as the the need to differentiate in crowded mardust settles on their programme of store ket across both online and traditional retail closures, which contains a core element channels (Mothercare Case Study, 2010) of its attempt to rationalise its operations • In 2015 mothercare oversaw the refinanc- • Mothercare is moving away from the exing of the company and gained a successtensive use of promotional activity in a ful £100 million rights issue for repayment of bid to return profit and sales growth to its debts and to support their new strategy for remaining stores. The company is focusa sustainable future (Mothercare plc, 2015) ing a considerable amount of its attention • The performance of Mothercare in the as it seeks to sustain its operations and asUK is expected to improve over the next sure its future in the UK (Euromonitor, 2015)

WHAT DIFFERENTIATES US? Trusted own brand | Exclusive product | Expertise and service | Understanding customers, 2m on database | Develop ranges Innovates, quality and style | Effective logistics, 6 DCs 2 hubs | Manage Risks | Efficient sourcing, 15 countries 7 offices | Full service vendors, 314 suppliers 30 countries 40


CONSUMER INSIGHTS Consumers are increasingly researching and buying product online, with a growing demand for 24/7 availability (Mothercare plc, 2015).

In a saturated market with retailers claiming to offer the best products, and the overwhelming amount of parenting advices on the internet, mothers-to-be needed somewhere they could depend on for advice and support.

Customers are looking for far more than just a transaction, they’re looking for service, advice, information, interaction, and overall a great customer experience.

Nowadays, busy parents are looking for time convenience and customers are increasingly research and buy online, thus, practicality and clear information are vital .

Mintel’s research in 2013 found that overall comfortable clothing and low price are more important than quality when buying childrenswear. However, the important placed on value for money differs depending on the child’s age and how affluent the parents are. As British children grow older, their parents are generally increasingly willing to spend less on their children’s clothes because they know their children will soon grow out of their clothes (Euromonitor, 2015).

However, over a third of consumers are willing to pay more for well-known branded childrenswear. Dressing their children in fashion-led clothing is something that parents with older children aged 10-15 are more likely to be interested in (Mintel, 2013).

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UK CHILDRENSWEAR MARKET MARKET VALUE The United Kingdom childrenswear market grew by 2.9% in 2014 to reach a value of $10.1 billion

MARKET VALUE FORECAST In 2019, the UK childrenswear market is forecast to have a value of $12.1 billion, an increase of 19.8% since 2014. With an anticipated CAGR of 3.8% for the five-year period 2014 – 2019

GEOGRAPHY SEGMENTATION The UK accounts for 15.1% of the European childrenswear market value. The UK possesses the biggest retail value sales in Western Europe in 2014 (Eurmonitor, 2015)

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MARKET ANALYSIS • The UK childrenswear market experienced low to moderate levels of growth for the 2010-2014 period. It is predicted that the growth will accelerate from 2014 through the forecast period in 2019 • The performance of the childrenswear market has been more flexible than that of both the womenswear and menswear markets during the difficult economic climate. Children quickly outgrow clothes and therefore the purchase of new children’s clothing is a necessity • Clothing, footwear, and sportswear retailers form the leading distribution channel, accounting for a 81.5% share of the total market’s value • Supermarket, and discounters accounts for a further 9% of the market (MarketLine, 2015 UK childrenswear market distribution: % share, by value, 2014

4.3%

17%

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• The birth rate in the UK fell for the first time since 2001, down 4.3%, impacting sales of babywear (Mintel, 2014)

• As financially stable women enter motherhood, they are spending more on baby products. A 2014 Aviva study of 2,000 recent parents in the UK found that on average a UK family spent £1,619 on infant and baby products – up 17% since 2012 (Euromonitor, 2015)


BRAND SHARES OF CHILDRENSWEAR IN UK 2014

COMPETITIVE LANDSCAPE Asda Stores Ltd is the leading player in childrenswear in the UK during 2014 due to the popularity of its George private label apparel. Asda’s private label range of childrenswear is hugely popular with consumers in the UK because of the wide selection of products it offers at low unit prices (Euromonitor, 2015) Some 73% of childrenswear buyers have bought clothes for babies and children online, rising to 90% of parents with children aged 0-3. Asda and Next are the most popular places to purchase online. While overall only 7% of consumers have purchased from Mothercare, this rises to 34% of parents with children aged 0-3 (Mintel, 2014)

THREAT OF NEW ENTRANTS HIGH

MODERATE

MODERATE

SUPPLIER POWER

COMPETITIVE RIVALRY

THREAT OF SUBSTITUTES

MODERATE

BUYER POWER

73% buy childrenswear online

Moderate Degree of Rivalry • Low switching costs and a large number of players contribute to a moderate degree of rivalry. Moderate degree of Buyer Power • The wide variety of potential customers, negligible switching costs and the position of retailers at the end of the value chain Moderate degree of Supplier Power • Lack of substitute inputs play against low switching costs for retailers. High degree of New Entrants • Entry to the childrenswear market is possible on a small scale and does not necessarily require large amounts of capital • The UK childrenswear market has displayed growth in recent years which may prove attractive to potential new entrants Low degree of Substitutes • Low probability of buying directly from manufacturers, or selling directly to end users without the need for retailer (Marketline, 2015)

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TRENDS The rising trend of buying cheap baby clothes in supermarkets and fast fashion has been unfavorably affecting the performance of childrenswear specialist retailers in the recent years. However, there are still parents who are still willing to invest in higher price tag for high quality products their newborns.

Delayed motherhood is a well-established trend in the UK. The average age of women at the birth of their first child is 30.5 years. The UK’s birth rate has been declining in the recent years due to delayed motherhood. However, birth rates in the UK are relatively high in comparison with other European countries, making the UK a promising territory for childrenswear.

The rise of infant luxury wear is seemingly intertwined with the rise of celebrity toddler culture, led by the UK’s Prince George. The young prince‘s influence on childrenswear has trickled down to middle class consumers in search of retro outfits for their toddlers.

“Mini-me” trend emerges due to the rise of social media, influence of celebrities and increasing popularity of the “mini-me” trend has seen children’s clothing evolve into trend-led products (Kissane, 2015).

Parents are spending more on gadgets, health remedies and expert advice to help their children with sleeping, feeding, among other issues. Parents are more likely to turn towards technology to help with their parenting issues in the future. Rising tablet ownership drives demand for educational apps. Based on Ofcom‘s 2014 Children and Parents: Media Use and Attitudes report, found that the emergence of tablets as a prominent digital device among five- to seven-year-olds. Around 54% now have access to a tablet at home, up from 39% in 2013 Smartphone ownership drives online video consumption. YouTube recently announced it would be launching a Kids app on smartphones and tablets after viewing time in 2014 grew by 200% for content categorised as family entertainment (Euromonitor, 2015). Click and collect is increasingly popular, especially in the UK. The service offers convenient collection points for online purchases. 45


GLOBAL CHILDRENSWEAR

$229 Billion

MARKET VALUE The global childrenswear market grew by 3.9% in 2014 to reach a value of $229 billion. The Asia-Pacific markets grew with CAGRs of 8.9%, over the same period, to reach respective values of $82.0bn in 2014.

MARKET VALUE FORECAST In 2019, the global childrenswear market is forecast to have a value of $300.7 billion, an increase of 31.6% since 2014. With an anticipated CAGR of 5.6%.

$125 Bn in 2019

The Asia-Pacific market will grow with CAGRs of 8.8% respectively, over the same period, to reach respective values of $125 bn in 2019. GEOGRAPHY SEGMENTATION

+8.8% CAGR

Asia-Pacific accounts for 35.9% of the global childrenswear market value. MODERATE DEGREE OF MARKET RIVALRY Low switching costs and a large number of players. 46


STRENGTHs • A pioneer and the longest standing retailer specialist for mothers-to-be and families with over 50 years of experience making Mothercare a genuine expert in the industry • Carries a vast array of product offerings home & travel which provides a unique selling point (USP) • Provides good quality products with value for money as the majority of parents are not willing to splurge on childrenswear as their kids are growing out of their clothes very quickly • Childrenswear-specific brand, like Mothercare, occupy an important part of childrenswear, especially in comparison with general apparel brands which offer a selection of childrenswear products. Mothercare is known for its ability to offer high-quality baby and toddler wear at reasonable prices, which makes them able to compete with general apparel retailers.

• My mothercare club creates and nurtures the relationship between customers and the brand and builds a loyal community. It has obtained a deep understanding of their customers with database of over 2 million • Mothercare’s Online store has proven to be successful as online sales accounts for 30% of total UK sales • Mothercare’s mobile app is excellent and has won many awards for its integration, engagement, and overall supports a seamless shopping experience • The Click and collect has been a successful strategy that increases convenience and online sales • Celebrity collaboration for exclusive in-house brands such as Baby K and Little Bird successfully increases Mothercare’s sale, and provides unique selling point (USP)

opportunities •

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There is potential for Mothercare as a specialist for mothers, baby, and children to stand out in the market, but in the current economic climate and amid competition from multiples, Mothercare nees to excel and have a strong brand identity Identifying customers and understanding their life stage is an ideal starting point for a more human relationship between them and Mothercare, and get customers to come back more often by providing guidance on their parenting journey in store and across all channels Demand for childrenswear will remain positive throughout the forecast period. The UK’s birth rate remains relatively high in comparison with the majority of other countries in Western Europe Baby and toddler wear is set to continue outperforming girls’ apparel and boys’ apparel during the next few years. Value growth is also set to be derived largely from the fact that British parents are usually willing to spend more money on their children’s clothing with when they are young

Strengthening Mothercare credentials in the fashion area is essential, both in childrenswear and maternity wear. The introduction and promotion of other sought-after third-party brands would present existing consumers with more choice and fill gaps in the company’s pricing range, helping to establish a more premium positioning and attract a new audience Mothercare need to place a stronger focus on rebuilding relationships with its customer base through the use of social media and a specialist offering Providing and, most of all, marketing this expert advice, while using social media to connect with customers, would help to begin rebuilding the brand loyalty that once established Mothercare as the ‘go-to’ retailer for baby products. The International market that boasts great potential hasn’t been maximized. Expanding more globally, especially to to Asia-pacific, will increase market share, brand awareness and sales.


weaknesses •

Mothercare’s expertise in the industry provides a USP that could be better emphasised. It appears Mothercare is missing out on an opportunity to achieve meaningful differentiation from its competitors While Mothercare remains one of the most popular destinations for baby and nursery equipment the retailer hasn’t done enough to stand out in the children’s clothing market Over the past decade, instead of making the most of expert images, mothercare have engaged in a price war that contributed to its recent poor performances. Struggling to compete with private label products from the UK’s top grocers and value brands, Mothercare focused on the unsustainable short-term strategy of slashing prices Mothercare needs to focus on improving the social environment of the stores as new parents don’t go to a store just to buy, but also want interaction or to socialise with fellow parents

• •

Mothercare.com is currently available to 10 countries only, and the online sales accounts for only 1.2% of total international sales compared to the UK The visual aspect of the website needs to be improved and more integrated with social media. In addition, the website could become better with an improved navigation as to not overwhelm customers with the abundance of product choices Not targeting the tween (9 to 13 years old) and teenage market Mothercare’s positioning in the childrenswear market is not strong enough, especially with strong competitors.

threats •

The difficulty for Mothercare derives from the fact that sales of baby and toddler wear are dominated by the UK’s leading general apparel retailers. By a certain point in a child’s life, his or her parents are generally willing to spend less on their clothing, making it difficult for childrenswear-specific retailers to compete with general apparel retailers (Euromonitor, 2015) The supermarket chains dominate the market and have become even stronger. Grocery chains have thrived on demand for low prices for children’s clothing, combined with the convenience they offer to the customer and have driven down the prices of childrenswear While consumers who prioritize low price are most likely to buy childrenswear from supermarkets, those who place more importance than average on fashionable clothing also buy from grocery chains, highlighting how supermarkets have upped their

game and how their own-brand childrenswear has the potential to become a fashion brand rather than just a supermarket brand Fast fashion, high street retailers stocking childrenswear, such as H&M and River Island, have done well as consumers look to dress their children in affordable fashion-led clothes. Growing competition from fast fashion retailers has driven prices down and accelerate product life cycle due to its trend based products. The current strategy of improving omni-channel operations and store environments will not be enough to return the UK to growth without strengthening brand engagement and loyalty with customers

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marketing strategies 3 years

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Year 11 Year OMNI CHANNEL OBJECTIVES • Increase total sales by 20% • Increase customer engagement by 40% • To drive online customer retention and personalisation, and • To simplify customers’ online journey and create a seamless customer experience All to be achieved by the end of 2017

The digital world Today, people connect with the Internet at almost any time and from almost anywhere using their computers, smartphones, tablets, etc. The Internet has fundamentally changed customer’s notions of convenience, speed, price, product information, and service (Kotler and Armstrong 2014, p. 525). As a result, customer’s shopping experience has become increasingly sophisticated, providing new ways for retailers to create value for customers and build relationship with them. Omni channel Blurring the boundary between physical store and online, Omni-channel marketing delivers a more interactive, personalized brand experience, and enables retailers to reach target customers across the right set of channels. From brick and mortar store to website, mobile, social media and print, every channel presents an opportunity for retailers to reach the desired goals. A report by Neustar in 2013 revealed that omnichannel marketing provided a significant sales lift up to 20%. Omni Channel retailing also means being available at any time anywhere, making it convenient for customer (Deloitte, 2015). Optimizing shopping experience & engagement Customer insights revealed that Mothercare customers are increasingly researching and buying product online, with a

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demand for 24/7 availability. They are time sensitive families who are increasingly demanding convenience and are connected digitally via social media and mobile. Shopping online has been proven to be the solution for busy parents, as Mintel’s UK childrenswear survey in 2014 revealed that 73% customers have bought clothes for babies and children online. Mothercare’s UK online sales have seen a growth of 18.4% in 2015, and accounts for 30% of total UK sales. Meanwhile, mobile represents 82% of online sessions (Mothercare plc, 2015). All of these data emphasizes the importance of strengthening Mothercare’s e-commerce. However, bricks and mortars still represent the majority of sales, and a critical touch point. Mothercare should strive to create a seamless unification of the digital and physical store experiences, which can be achieved through omni-channel retailing. To optimize omni channel, modernizing merchandising and presentation of product and investing further in digital offering are important, which includes improving customer experience in online store, mobile app, video and social capability to increase customer engagement, while integrating more effectively between stores and e-commerce. In addition, customer’s experience of shopping in-store should be as engaging, and seamless as online.


Year 1 LAUNCH WEBSITE TO NEW COUNTRIES OBJECTIVES Increase international online presence by 10% • Increase international sales by 20% • Expand online penetration to 10 more countries • All to be achieved by the end of 2017 Online Transactional Website Mothercare currently only has transactional websites in 10 countries in Europe, The Middle East, and Asia. Mothercare’s online penetration is only 1.2% of international sales; significantly lower compared to online sales (30%) in UK. Internationally, Mothercare’s franchise partners’ online presence is still at an early stage, reflecting the markets in which they operate. International market currently accounts for 62% of worldwide sales, and despite the growing challenges of economic and currency headwinds, total international sales were up by 2.2%, demonstrating its resilience (Mothercateplc, 2015). The Global childrenswear market continues to grow and is forecast to have a value of $300 billion by 2019. Moth-

ercare aims to facilitate the extension of franchise partner’s online presence to most of international markets, starting by expanding to 10 more countries in Europe, The Middle East, Asia-pacific, including Latin America market, which currently has no transactional website. A special attention should be paid to Asia-Pacific market, which accounts 35.9% of the global childrenswear market value (Marketline, 2015). By expanding international transactional websites, Mothercare will increase its online presence and drive up its global e-commerce sales. Potentially, Mothercare aims to expand more widely to market which are currently without franchise partners.

EXPAND CLICK & COLLECT OBJECTIVES Integrate brick and mortar store with e-commerce

Increase customer satisfaction and loyalty by 15%

All to be achieved by the end of 2017 Click and Collect enables shoppers to purchase items online and pick them up in the physical store, merging eCommerce and physical retail outlets together (Retail Assist, 2016). A market report published by Planet Retail in 2015, revealed that half of global shoppers are now influenced by a retailer’s ability to increase online shopping convenience with collection points. The benefits of click and collect from a shopper’s perspective are eliminating the risk of missed delivery and ensuring stock availability. From a retailer’s viewpoint, it is a more cost-effective option than home delivery and generally

results in additional shopper spend. Click-and-collect is no longer a nice-to-have, it’s now a prerequisite. Mothercare has applied click and collect service in the UK and now represents 36% of Mothercare’s online orders. However, it hasn’t been implemented in international market. Mothercare should extend the click and collect service to the established transactional websites in franchise partners’ countries. If done effectively, click and collect will increase sales, customer loyalty and satisfaction in international market.

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Year 22 Year EXPERT DIGITAL PERSONAL SHOPPER OBJECTIVES • Increase customer engagement by 40% online, mobile, and in-store • Increase customer service by 20% • Increase customer satisfaction and personalization Implement the strategy in the UK All objectives to be achieved by the end of 2018

Personalized service/experience Fluid, a digital innovator company, has teamed up with IBM’s Watson cognitive computing technology to create the retail industry’s first ever artificially intelligent commerce platform, with the potential to change the face of traditional eCommerce, called Fluid Expert Personal Shopper (XPS). “Online retail continues to transform the way we shop, but despite consistent industry efforts and advancements in personalized shopping, eCommerce has lacked the heart and soul of the quintessential in-store shopping experience. Now, Fluid XPS is changing that” - Kent Deverell, CEO of Fluid Fluid XPS XPS is a recommendation platform that will enhance product and service discoverability as well as the overall customer experience. Instead of using traditional search or navigation-style shopping, XPS provides an interactive, natural dialogue-based approach to assisting shoppers that mimics the expertise and efficiency of talking to an in-store expert that can make personalized recommendations. How it works XPS is able to answer customers’ questions in plain English via voice or text commands, then evaluate them against a retailer’s extensive product-specific data 53

points to quickly and accurately deliver tailored product and content recommendations that match customer’s articulated desires and preferences (Osborn, 2015). The North Face has adopted XPS in late 2015, and it has been generating extremely positive feedback and results ever since. Customer engagement with XPS averaged two minutes in length, the platform generated a 60% click through rate to try product recommendations, and 80% of customers who engaged with the tool said they would use it again (Osborn, 2015). Strategy implementation By integrating XPS with Mothercare’s 2 million-customer on database, the software will be able to provide guidance on shopping, recommendations with the rights products based on each customer’s preference, and also provide expert guidance and helpful tips on parenting. It is important to implement XPS on online website, mobile, and in-store, to simplify online and instore shopping journey, increase engagement on both platforms, deliver the right product to the right customer, provide an always-on solution to assist customers anywhere anytime, and overall create an effective, engaging, seamless shopping experience for customers.


Year 2 THE NORTH FACE EXAMPLE

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Year 3 3 Year LAUNCH AN IN-HOUSE BRAND FOR TWEENS OBJECTIVES • Increase brand share in Childrenswear market by 10% • Expand demographic and obtain new customers • Increase sales growth by 20% Implement the strategy in the UK All objectives to be achieved by the end of 2019

Tweens Aside from Mothercare’s maternity range, the childrenswear demographic is limited to babies and young kids up to the age of 8 years old. Mothercare product range doesn’t include the older kids, or known as ‘tweens’, between the age of 9 years to 12 years old. According to Mintel’s report, the population of children in the UK aged 5 to 9 years old is forecasted to grow by 9%, and tweens aged 10 to 14 yeas old to grow by 11% during 2014 through the end of 2019.

2014). The new product development/ brand extension for tweens will enable Mothercare to increase competition with competitors (George, Next, H&M) who already have tweens in their demographic. Choosing the tweens segment will support Mothercare’s vision to be the leading global retailer for parent and young children, as the tweens are still considered as young children, not yet teens, and still targeting the parents whose shopping decisions are greatly influenced by their children.

Tweens are digital natives and represent a unique dynamic in which they are greatly influenced by the environment around them, and ultimately by brands. However, since tweens still rely on their parents for the majority of their purchases, this creates an interesting dynamic - while tweens drive demand, parents are the real buyers; 72% of all tween purchase decisions are made jointly by parent and child, and 19% are made by the parent on the child’s behalf (Popai, 2013). In short, tweens play an important role in the shopping decision of their parents. The rising tweens population and their influence on their parents provide a substantial opportunity for Mothercare to fill the market gap through new product development.

In-House Brand Dedicated to Tweens The new product range will be developed under an inhouse brand for tweens aged between 9 to 12 years old. The brand’s USP (Unique selling points) will be the affordability and fashion. As stated in consumer insight by Euromonitor, parents are generally increasingly willing to spend less on their children as they get older because they will soon grow ¬¬out of their clothes. An Economy Pricing strategy will offer attractive key point for price sensitive customers.

Product Development New products are important to both customers and the marketers who serve them: they bring new solutions and variety to customers’ lives, and they are a key source of growth for companies (Kotler and Armstrong, 55

The rise of social media, influence of celebrities, and the “mini-me” trend has seen children’s clothing evolve into trend-led products at low prices (Kissane, 2015). Fashion becomes an increasingly important factor in the childrenswear market, and parents are beginning to shop for children’s clothing as they would their own. This an important key point, as dressing their children in fashion-led clothing is something that parents with older children aged 10-15 are more likely to be interested in (Mintel, 2013).


Year 3 ANSOFF MATRIX Product development Develop new products in an existing Childrenswear market. This allows for growth by capitalizing on Mothercare’s name to launch a new in-house range for children ranges from 9 up to 12 years old

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57


brand extension for tween MOOD BOARD

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59


communication strategies

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TACTICAL COMMUNICATION PLAN

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1ST QUARTER JAN

FEB

2ND QUARTER

MAR APR MAY JUN

3RD QUARTER JUL

AUG

SEP

4TH QUARTER OCT NOV DEC

Shoppable digital magazine Desktop Mobile iPad In-store

Launch

Launch

Launch

Celebrity Endorsement Seasonal Campaign

Launch Spring/ summer

Launch Autumn/ Winter

Social Media Facebook Instagram Youtube video series Mother’s Day Campaign Photo Contest Father’s Day Campaign Public Relations Press releases SEO

(Search Engine Optimization)

SMO

(Social Media Optimization)

Boost facebook post TrueView for youtube

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Shoppable Digital magazine OBJECTIVES • Increase customer engagement by 40% • Increase online retention by 35% • Increase total sales by 20% Implement the strategy in the UK All objectives to be achieved by the end of 2017

TIMELINE Launch the shoppable digital magazine on the first quarter of the year, and continuously develop the content over the course of the year COST $30.000/12 months subscribe to Styla, software developer for shoppable digital magazine Content marketing It is the creation and sharing of digital content with the aim of promoting and selling a brand, product or service. Now, with an ever increasing array of digital promotion options, retailers seek to provide consumers with a seamless digital media and shopping experience that means they can click and buy direct from pictures, video, social media, and of course, online magazine (Posner 2015, p. 175-176). Shoppable digital magazine Its puprose is to merge content and products, transforming e-commerce into sophisticated magazine that drive higher customer engagement, retention and sales. Based on a study by American Marketing Association, shoppable magazine results 500% higher purchase intent compared with traditional web stores.

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Modernizing Mothercare’s current online catalogue to an editorial-like magazine and integrating it with ‘shoppable content’ will boost sales without interrupting the continuous flow of storytelling. The important point is, every product displayed on the virtual pages of the newly built magazine can be added to the shopping basket without interrupting the reading experience, solving the long-standing dilemma of having to choose between content and commerce (Lachowicz, 2016). New Adobe survey (Mastering the Complexity of Mobile with Simplicity: 2015 Adobe Mobile Consumer Survey Results) shows that consumers have a very positive response to ‘shoppable media’; 77% of those who viewed the shoppable site found it easier to navigate and 66% of them got enough information to make a purchase decision.


Emotions sells The major focus will be to evoke emotional feeling in the online shopping journey and enhance people with inspiration to make a purchase. Essentially, customers pursue the feeling of inspiration and the euphoria of discovery that they associate with magazines. Hence, the main task of shoppable content is to turn that inspiration into action and drive people to actually make a purchase (Lachowicz, 2016). And that’s precisely what a shoppable magazine does: instead of selling things, it sells feelings. Instead of just listing a product description, it creates a story, and this way, boosts the product with an added emotional value. In addition, shoppable magazine should be featured in both online and in-store, by making it gadget (mobile or tablets) friendly.

Shoppable Magazine

A

Meaningful SEO Although shoppable magazine will be heavily saturated with photos, videos and other visuals, in-text SEO will remain strong. In fact, it will grow even stronger since it’s been proven that people aren’t just looking for keywords anymore, instead, they are looking for context that wraps up a genuine story around that keyword. AIDA By grasping the AIDA-model, the shoppable magazine creates an opportunity to attract potential customers, known as “experience shoppers”. These are people who don’t just want to “buy” — they want to be guided, educated and inspired, which is how they ultimately build a relationship with a brand (Riedl, 2016).

Traditional e-commerce

A

Awareness

Awareness

Interest

Interest

Desire

Desire

I

D

A

Action

Once Mothercare’s customers perceive the shared information (tips, advice, recommendations) as truthful, they come back to the shoppable magazine for as long as it provides them with experiential and emotional value. Which means retention growth. A study conducted by Nielsen Norman Group, revealed that shoppable magazines have a 3x higher RPR (Repeat Visitor Ratio). Once the customers return, they become loyal customers and readers, who genuinely believe in Mothercare. “Helpful content, and not discounts, should be the centrepiece of awareness efforts to at-

I

D

A

Action

tract targeted buyers to your brand. Well-crafted, persona-tailored content will attract more qualified visitors, differentiate a brand, evoke a lifestyle and even surprise and delight shoppers.” Said Chris Pemberton, Digital & Content Marketing Consultant. Shoppable content is transforming they way customers shop, and by integrating it with digital magazine, it creates a seamless shopping experience both online and in-store. Which not only will it boost Mothercare’s performance, but also strengthen Mothercare’s emotional relationship with customers.

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Shoppable magazine examples styla.com

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celebrity children endorsement OBJECTIVES • • • •

Increase brand awareness by 40% Create buzz through the internet and press media Strengthen positioning and brand perception by 20% Increase total sales by 30%

All objectives to be achieved by the end of 2017

TIMELINE Introduce the endorsement in beginning of the second quarter of the year and produce 2 seasonal campaigns throughout the end of 4th quarter of the year

Famous, influential children In an era when every celebrity move is caught on camera and tracked on Twitter, it’s no surprise that celebrity children can achieve firstname-only fame before their first birthday. Suri, Shiloh, Harper, and North West—the stars of celebrity tabloid covers and baby blogs in which their every outfit and tantrum is documented. These children have marketable and measureable influence. They spur clothing sales with what they wear, they sell magazines with their cute faces, and they prop up their parents’ popularity by giving them a human identity far from the glamorous silver and small screen personas (Most influential celebrity kids, 2011). They have a power to be an incredibly influential brand curation tool in the marketing industry. Celebrity children fashion Famous celebrity kids fashion can be both inspirational and entertaining, the clothes they wear could sell out in a day, or even overnight.

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The best example in the UK is Prince George, who spurs the rise of celebrity toddler culture. In a July 2014 article, Forbes dubbed Prince George as “The world‘s most influential toddler,” everything he wore sold out in less than 48 hours. According to a Guardian fashion column in the same month, the Early Days “Alex” pre-walker leather shoes he wore during his royal tour of Australia and New Zealand sold out within 24 hours. Prince George and other famous celebrity children’s influence have trickled down to aspirational middle class customers (Euromonitor, 2015). Kids street style The Internet also plays a major part with its endless pap shots of celebrity offspring. It has been well established that celebrities latched on to the idea of a child as brand extension. Dressing their offspring in stylish clothes while running an errand or attending an event creates good PR.


Harper Beckham as brand ambassador Mothercare will choose Harper Beckham, the daughter of David and Victoria Beckham, to be the brand’s ambassador and appear in seasonal campaigns. The stylish toddler has garnered a multimillion-strong army of admiring fans on Instagram and other social media platforms thanks to her impeccable outfits. She has been featured on the websites of British Vogue and Elle UK and is the subject of a full-time blog devoted to chronicling her every look, titled, “Harper Beckham” (Paton, 2016). Despite the haute fashion pieces Harper sported supporting her mother at her events, another apparent factor behind her breakout street-style star status is the quota of items she wears that are affordable for the general public, making copying her looks more accessible for many parents. Mothercare customers can

easily relate and be inspired by her. The editor in chief of parenting magazine, smallish, agrees that “The fashion industry has adapted to make children a prime area for growth as our attitudes adapt and society becomes more child-centric.” The aim of the endorsement is that the cachet and sparkle of the celebrity children personality will become directly associated with the brand and that this will reinforce the brand’s image and position in the marketplace (Posner 2015, p. 177). Optimize the power of celebrity brand advocacy effectively, with appropriate campaigns through online, in-store, and press media. Mothercare can benefit from brand buzz, image boost, and premium positioning, in addition to a substantial upsurge in sales and brand awareness. 68


Social Media metrix

Social Media

Desired No. Of Followers by end of 2016

600.000

80.000

40.000 subscribers 2000 views per video

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Content Type

Links To

Interation

Product visual different from promotional ones, behind the scene, news, events, parenting stories and advice

Website and other social media platforms

Regular responses to product, brand, and parenting related questions and concerns

Shoppable images of product flatlays and campaigns. Real time insights from parenting events, behind the Links to other social scenes of campaign media accounts. shots. Detailed close-up on specific item or scene setter surrounding brands current image Shoppable product videos and campaigns, celebrity and customer interviews. Behind the scene and event coverage.

Links to every other social media account

None. Reposting from other users.

Respond to brand information upon request, otherwise mostly limited.

Frequency

1x daily (consistent)

1x daily (varies)

1x monthly


Social Media objectives FACEBOOK The objective for Facebook is for Mothercare to collect more personal data and feedback from the users. To increase engagement between the brand and customers by 30%, and increases brand awareness by 20% by the end of 2017

INSTAGRAM The objective for Instagram is for Mothercare to gain at least 80k followers and maximize its brand engagement by the end of 2017. To fulfill this, Mothercare will have to keep their followers’ interest by posting quality content, updating on a regular basis, and hosting photo contest.

YOUTUBE The objective for YouTube is for Mothercare to gain a minimum of 40k subscribers and gain at least 2000 views per-video. Increase customer engagement with our Mothercare video series by the end of 2017.

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Facebook Introduction Facebook is the leader in social media marketing with the largest user base and 1 billion daily active users. The company has redefined the way we look at social networks and also expanded the possibilities of social media for businesses (Jackson, 2015) Facebook works wonder for both viral and content marketing, making it a great platform for curated content. Mothercare’s facebook page has been doing well but its performance fell behind when compared to Next or George at Asda. It lacks engagement with customers, although the customer service shown in facebook has been relatively good. Parents on-the-go Marketing to parents in facebook is crucial, as having a child changes their relationship with mobile phones. Moms’ and dads’ mobile phones have become their lifeline to managing schedules, keeping tabs on teens and sharing their kids’ key milestones. A study conducted in 2015 by Facebook IQ, found that parents globally spend 1.3X more time on Facebook mobile than non-parents. Armed with their mobile devices, parents look for opinions price comparisons and reviews before they make purchasing decisions This is particularly true for Millennial parents (ages 18–34), who are 30% more likely than Boomer parents (ages 50–65) to use their mobile devices to make more informed purchasing decisions (Facebook IQ, 2016). Creating engaging facebook contents of tips, products, and inspirations in bite-sized, visually attractive package, will appeal more to modern parents. It is recommended that to post to Facebook three to 10 times a week. 71

Mother’s Day Campaign To further reinforce the popularity and customer engagement in facebook, Mothercare will create a special engaging campaign for specific events, such as mother’s day on March 6. The campaign will begin 3 months prior the date, and will center on the relationship between mothers and their families, especially children, and will ask the followers to join in and contribute their parenting journey stories on facebook with hashtags, for examples” #MyPreciousMoments #MothersDay2017 Consecutively, Mothercare will choose the best story every month prior mother’s day, and the winners will be given rewards, such as product giveaways. On mother’s day itself, Mothercare will announce the best story of the 3 months competition, and the winner will be granted a special reward. The Mother’s day campaign will create buzz and engage customers and build a community in a deeper emotional level, and reinforce Mothercare’s image as a caring, trusted, family brand. To reinforce the campaign, Mothercare might need to boost its posts in facebook (SMO), to get more exposure and subsequently more engagement. Boosting facebook posts, require additional cost, depending on how large the audience the brand wants to reach. Additionally, Mothercare should feature the campaign in parenthood community facebook page, such as My Baba. Lastly, similar campaign can be conducted for father’s day that falls on June 19.


Mothers Day

Share your most treasured mommy moments on Mothercare’s facebook page and win many exciting rewards for your family ! Love, Mothercare

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Instagram

Engagement King Instagram has built itself up as a channel that thrives on users being able to engage with the visual content brands share. A study conducted by Forrester found that top brands’ Instagram posts generated a per-follower engagement rate of 4.21%. Which means, Instagram delivered these brands 58 times more engagement per follower than Facebook. (Elliott, 2014) Instagram is about capturing moments, using images and videos. Mothercare can optimize this channel to showcase original, quality content that appeal to the targeted audience. Mothercare’s current Instagram page lacks engagement and ranked lowest in performance compared to its competitors. Quality content To increase customer engagement and brand awareness, Mothercare should raise its content’s quality standard, extend variety, and make it more relevant to the followers. High perform-

ing content on Instagram has a longer shelf life than average posts, which is why it’s important to focus on quality (Beese, 2015). Instagram is about authentic, beautiful visual imagery, that captures the viewers’ attention and also relatable to them. Photo Contest Content that calls for action is also great for engagement. Mothercare will host an image contest, supporting the Mother day’s campaign in facebook. The contest will require the followers to post their best picture of capturing real, precious moments with their children, and include caption #MyPreciousMoments, to track all the posts. Similar to the facebook campaign, a winner will be selected each month prior to March, and will be rewarded giveaways or special offerings. On Mother’s day itself, the best photo will be revealed simultaneously with the best story on Facebook. Lastly, similar contest can be conducted for father’s day that falls on June 19.

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Youtube

Youtube Is the second largest search engine in the world, approximately 33% of all online activity is spent watching video content, and that 75% of users visit a marketer’s site after viewing a video (Edwards, 2015). This social media platform possesses great potential for Mothercare that is yet to be optimized. The brand’s youtube page currently has the most subscribers and views compared to its competitors. However, there is a lack of engagement and emotional appeal. Creating meaningful content can boost mothercare’s youtube performance whilst motivate viewers to follow through with an actionable response. Video Series Mothercare will produce a video series in a story telling manner with relevant topic that is relatable and elicit emotional feeling within the viewers. Inserting meaningful stories within the video is important, because it is among the most powerful human communication, and inspiration, precisely because they overlap in our minds with our ways of making sense of other people. Most of the brands that are greatly ad75

mired in warmth and competence terms have stories that express that warmth and competence in memorable ways (Malone et al, 2013) The video series will center on capturing precious moments between parents and their children. Following the mother’s day campaign, Mothercare will feature the winners’ and other selected stories in the video series, portraying authenticity of real parents in the real world. The video series will aim to engage viewers and build an emotional relationship with customers, which will strengthen brand loyalty. It also aims to portray mothercare as a genuine, and caring company for children and families. To gain more traffic to Mothercare’s YouTube channel, they should implement In-stream advertisements by TrueView, which are video adverts played before or during another YouTube video. Mothercare can use these adverts to deliver their message to millions of engaged viewers. As viewers are able to skip these adverts after five seconds the brand only has to pay if a viewer watches the video for 30 seconds or more. (Koozai, 2013)


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TIMELINE

1

2

3

4

5

6

7

8

9

10

11

12

1

2

3

4

5

6

7

8

9

10

11

12

Episode 1 Episode 2 Episode 3 Episode 4 Episode 5 Episode 6

BUDGETING COST

TIME

CONCEPT DEVELOPMENT Write Creative Brief

Week 1

Creative Concept Development

Week 1

Finalize Concept & Videographer

Week 1

PRE PRODUCTION Book Location

$2000

Week 2

Book Videographer

$3500

Week 2

Book Hair and Makeup

$1000

Week 2

Cast

Week 2

Book Crew

Week 2

Arrange Set

Week 2

Organise props

Week 2

Finalize Plan

Week 3

Execute Video

Week 3

OTHERS Equipment Catering

Week 2 $500

Week 2

POST PRODUCTION Editing In-stream advertisement TOTAL

77

Week 3 $1000

Week 4

$8,000/ EPISODE

4 WEEKS


Video Series

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Conclusion As a renowned mothers, baby and young children retailer, Mothercare has achieved many things and conducted and reconstructed strategies in order to be the market leader, acquire loyal customers, and return to profitability. The 3-year marketing strategies for Mothercare that was recommended are divided year by year with respective objectives. The year 1 strategies are consisted of: 1. Omnichannel • Childrenswear customers enjoy shopping online, with 30% of twotal sales account for e-commerce • Modernize, Integrate and optimize all Mothercare channels (e.g. in-store, online, mobile) to provide an engaging, seamless shopping experience 2. E-commerce expansion • Mothercare’s international online penetration is low at 1.2% of global sales • Launch online store to 10 more countries, specifically in Asia-pacific, which accounts for 35% of global childrenswear market, and including Latin America market within 12 months. 3. Click and collect • The click and collect service in the UK has been proven successful and now represents 36% of online orders • Optimize and expand click and collect to franchise partners The marketing strategy for the second year is implementing Expert Digital Personal Shopper, a software technology developed by IBM and Fluid, which focuses on increasing customer engagement, online retention, and improving customer service as well as integrating brick and mortars and online store. The third year consists of launching an extension inhouse brand for tweens (children ages 9 to 12). The strategy aims to acquire new customer segments and increase market share and competitive strength against general retailers who offer products for baby, and children above 8 years old.

The third segment of the report, tactical 12-months communication plan for Mothercare details the development of a cohesive and integrated brand identity for Mothercare with the promotional efforts guaranteed to strengthen the brand’s position in the market and in the consumer’s minds. The plan consists of several strategies: 1. Shoppable digital magazine • Shoppable digital magazine merges content and product, with the basis of content marketing. It focuses on engaging customers and increase online retention, using AIDA-model 2. Celebrity children endorsement • In the light of rising celebrity children influence in fashion, Harper Beckham will be chosen as brand ambassador for mothercare to be featured in seasonal campaigns. • The strategy aims to create buzz and establish premium positioning 3. Social media campaigns • Mothetcare will focus on rebuilding relationships with its customer base through the use of social media and a specialist offering • Facebook, will feature mother’s day campaign and story contest. The aim is to increase engagement by asking customers to participate, create buzz, and boosts brand awareness. The campaign will have an official hashtag: #MyPreciousMoment • Instagram, will host a photo contest in mother’s day celebration. It will support the campaign in facebook, as well as increase engagement • Youtube, will feature video series under the #MyPreciousMoment campaign following the photo contest. The aim is to engage customers and strengthen the emotional relationship between them and Mothercare. Catering to modern, tech-savvy 25 to 35 years old customers, Mothercare has great opportunity to re-establishing itself as a leader in the mother baby, and children market, through strengthening its positioning in the market, developing its relationship with customers in a deeper level, becoming a digitally led-business with a seamless Omnichannel operation.

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Thank You

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