INTRODUCTION
BRAND STORY The Couture Club was founded in 2015 by two friends Scott Shashua and Ross Worswick. From humble beginnings, starting from a limited budget out of a bedroom with three T- shirts to now producing thousands of products across mens and womenswear ranging from tracksuits, swimwear, outerwear, footwear and accessories. A premium street style brand, which offers on trend designs at high street prices.
The Couture Club operate out of Manchester, UK. The business is split into three different departments:
• Online • Retail stores - Trafford Centre, Manchester 2016 Metro Centre, Newcastle • Wholesale on ASOS
• • • • •
Physical Stores, don’t just operate online Barbershop in stores DJ in the store at weekends Premium quality Competitors sell similar products, however, The Couture Club quality of product is far superior.
METHODOLOGY
METHODOLOGY ONLINE SURVEY
FOCUS GROUP
An online survey was undertaken in order to gain information on consumer brand awareness, usage and perception.
A focus group was conducted to gain qualitative insights on customer perceptions on the market, the brand and the proposed marketing strategies
The survey was shared on social media pages such as Facebook and Instagram. This enabled fashion followers, bloggers and general users to give their valuable feedback 102 RESPONDENTS
INTERVIEWS Interviews with The Couture Club’s managing director Scott Shashua as well as marketing director Hayley Shashua were carried out where they highlighted the brands areas for improvement and provided the brands own research which was highly informative and useful.
Only a small number of participants, therefore creating a limitation of the findings not being representative. 4 participants - 2 male 2 female aged between 21 and 26
SECONDARY RESEARCH Secondary sources were used to gain detailed insights surrounding the brand and its environment
of survey respondents prefer to use a mobile app over a website
I mostly shop on my phone, whilst I am on the go
I love shopping on my apps especially when I am having my hair done or something
91% of survey respondents do not see The Couture Club as an inclusive brand
“
As a brand we want to try and Reach out to as many countries as possible
“
I choose to shop at The Couture Club because of the quality of the clothing
Managing Director of the Couture Club
2016
500K turnover online
2017
£3.2M turnover split by 2.8M online and 400K in the Trafford Centre Store
2018
£9M turnover split by £6M online and £3M came from stores, The Trafford Centre, Newcastle and the pop up store in Dublin
The Couture Club’s revenue increased to
£9 million
in 2018, compared to the previous year where it was £3.2 million.
Instagram is the main platform for The Couture Club
67899 profile visits in the last 7 days Engagement Rate of
Influencer Posts
2%
New Product Launches
307K FOLLOWERS Competition Posts
Stories
• unisex brand • State that they are leaders in design & quality • Specialise in tracksuits and jeans
Missguided - leading women’s online fashion for 8 years Mennace - combining quality products with Standout styles and trends
& • • • •
Menswear Specialise in jeans Sold in Selfridges Average price range of £48
• Boohoo- Women 16-24 years old • Petite, tall, plus size and curve, maternity, beauty, fit, premium, boutique • BoohooMan - Men 16-24 years old • Big and Tall, Muscle Fit, Oversized, Slim Fit
The Couture Club’s main customer is typically 18-28 year olds, males and females however the brand’s sweet spot is the 21-26 demographic.
FEMALE
MALE
44.3%
55.7%
The brand has strong relationships with students as they offer frequent high student discounts.
GEORGIA
BIO 19 years old and a student at Sheffield University studying Business Management. She has a large friendship group and is always planning holidays with her boyfriend and girls weekends. Social media is essential in her life, with Instagram being her favourite. Georgia is always trying to increase her following and whenever she posts a picture she is constantly checking how many likes she is getting. She also keeps up to date with any offers being posted and student discount codes. Age: 19 Gender: Female Profession: undergraduate business student Income: Student loan and part time job Part Time Job: Club promoter
Likes to shop when this comes in each term! Loves a good student discount code “I love planning trips away and would love to become an Instagram travel influencer one day!”
HOBBIES:
• Travelling • Partying • Shopping
PET HATES:
• • • •
Spiders Spots Social Climbers Breaking a nail
JACK BIO Jack has a secure career in the marketing industry in Manchester and has a very strong work ethic as well as setting himself aspirational goals. He is financially stable and puts most of his salary into savings as he is saving for a house. His personal style is very minimal and of a very simple colour palette however he occasionally likes to buy statement pieces and bold patterns, especially when he is going on holiday. Jack is extremely sociable and loves a boys night out however he also likes the idea of having a weekend off every so often and just throwing a trackie’ on and catching up on football analysis that he has missed during the week when he has been working late!
Age: 26 Gender: Male Hobbies:
• • • •
Working out Drinking beer Playing football Eating Nando’s
Pet Hates:
• • • •
Leg day at the gym Noisy eaters Humming in the office Bad hair day
“I spend at least an hour a day Doing my hair and picking an outfit! Got to look good whatever I am doing.”
To become one of the leading online and offline retailers in the UK Open more stores internationally Become a more inclusive brand and to make our consumers feel involved
M-COMMERCE As of today, m-commerce traffic drives over 50% of e-commerce in developed countries. By 2021, the rest of the world will catch up, at which point mobile devices will be the main driver of digital retail. At that point, an expected $700 billion in annual sales will be directly processed by mobile devices.
With app usage taking up 90% of all mobile uptime - more than the entire browser - based internet as a whole - it is clear that most of these sales will be driven by apps. The Couture Club have not as of yet created an app where customers can access the brand with just one click
Flawed Fashion A very popular movement in recent times is diversity and unretouched images of models on clothing sites.
LSN global highlighted the micro trend known as ‘Flawed Fashions’ (LSN Global,2014). Consumer’s no longer want to be bombarded with airbrushed, photoshopped images or models on the catwalk, women and men both want to be represented in this industry. British online fashion and beauty store ASOS is being praised on social media for featuring a diverse set of models. 25% of consumers would be encouraged to purchase from a certain brand is they used representative models (Mintel, 2018) also also 65% of people would feel more favourable about a brand that promotes diversity (Marketing Week, 2016).
This displays the mass importance of diversity and inclusivity in this market, and how hugely brands are missing out on potential customers. “The average size in the UK is a size 16, and fashion should be for everyone. People have simply seen enough of seeing skinny models as the only representation”. (Lifestyle, Telegraph 2018)
In terms of The Couture Club, they have not yet attempted body positivity and inclusivity. They are still using size extra small female models and size medium male models.
Influencer Economy Today, brands shower Instagram starts with merchandise and feature a few in their own marketing campaigns. CERY,K (2018) explains that since the rise of influencer marketing “brands have developed a degree of confidence previously lacking in recent years and therefore brands have gained an opportunity to drive this marketing innovation to the next level.”
Personalisation
“One of the influencer marketing trends that I see coming in 2019 is that companies will take more risks when selecting the influencers that they partner with. Instead Giving your consumer a more personalised experience of always choosing the safer option, brands will partner can increase loyalty. with more controversial influencers, who often have the highest engagement rates.” (Ward, T (2018) 63% of people expect brands to use their purchase history to provide them with personalised experiences It is all about improving your customers experience and fighting to keep their attention.
The Couture Club as a brand are investing heavily into influencers with at least 40% of the marketing budget each month going towards this.
It is important to make sure you are giving the best recommendations and offers that suits the specific consumer. As of yet The Couture Club do not have any personalisation to their shopping experience, in order to increase sales they will need to adapt to this trend.
27.73 trillion USD is the projected global retail sales in 2020, up from 24.86 USD in 2019
43% of consumers are likely to spend more with a retailer who offers a meaningful in-store experience
90% of worldwide retail sales are still done in physical stores
Pop up stores are disruptive and never fail to capture people’s attention. Pop-up stores embody a sense of exclusivity and are a powerful tool to boost brand exposure. They deliver a captivating experience as well as attracting great attention and generates excitement that extends beyond the moment in the form of a memory The pop up industry has grown to approximately $10 billion in sales, according to PopUp Republic.
Last year The Couture Club opened a pop-up store in Dublin for six months, turning over one million pounds throughout their short stay. This proves that the pop-up industry has a positive future for the brand.
“The great thing about pop-ups that we find all across the board - whether it’s a pop-ip store, pop-up restaurant or event - is that they have this ‘fear of missing out’ quality to them. Customers are attracted to exclusivity. They’re attracted to a ‘here today, gone tomorrow’ type of concept.” Jeremy Baras, the CEO of PopUp Republic.
Strengths
• Strong relationships with bloggers and celebrity influencers creating collaborations • As noted by focus group respondents The Couture Club’s celebrity collaborations drive awareness, excitement and engagement • Omni channel experience - brick and mortar stores as well as online site • The brand has a fun and youthful company culture, this helps to boost morale of employees and create a community between the company and its customers. • The Couture Club supplies all over the world but has stayed true to their roots and remained in Manchester, with the head offices and distribution here.
SWOT ANALYSIS
Weaknesses
• Higher price point in comparison to competitors • Lack of digital innovation • No diversity or inclusivity within the brand • Some of the main competitors release many new items daily, however The Couture Club only release new items two days a week
Opportunities • Website development and App development (e.g. emerging technologies) • Loyalty schemes could be a great opportunity to increase order frequency and retain customers • International expansion, opening stores in international countries • Create a more sustainable range - creating a more environmentally friendly brand • Creating a more inclusive brand
SWOT ANALYSIS
Threats • Brexit aftermath creating an unstable economy • Oversaturated and competitive market • Trends change extremely quickly, if The Couture Club do not react quick enough to the latest trends, their competitors could get there first • Consumers may not like or be able to relate to the influencers The Couture Club use • Not keeping up to date with the latest technology such as the use of an app could mean a loss in sales, as competition may use one to create a better experience
MAIN ISSUES: • Customer retainment and retention • Strong competition within the current market • Lack of diversity and inclusivity within the brand If The Couture Club improved these areas it would improve sales, customers would be more loyal to the brand, make a bigger investments, as well as attract new customers.
Increase customer spending on the app by 30% in two years of it being launched (compared to the website)
To make The Couture Club a global inclusive brand by 2022
Annual app downloads to reach to
200K
To establish the Couture Club as an inclusive and authentic brand toexisting and new audiences
STRATEGY PLAN
AIM: To create a more inclusive product portfolio using a diverse range of female and male models onsite When asked what improvements The Couture Club could make as a brand, one respondent commented that they would like to “see The Couture Club bring out a plus size range with models bigger than a size 10 modelling it.” 98% of the survey stated that they wanted to see The Couture Club use a more diverse range of models on their site. Couture’s competitors such as Boohoo, Boohooman and Mennace represent diversity and inclusivity better than The Couture Club. However direct competitors such as Maniere De Voir and Hera have not stretched out to a plus size range as of yet.
Recommendation: To widen the product portfolio and to widen the audience of The Couture Club. A male and female plus size range to be launched. The Couture Club should use models of different sizes for this launch. They should look confident and natural, have different shapes, some with larger hips and larger chests, some with muscles and some without. By doing this it gives a better indication of what the garment might look like on and not generalising by all looking like the model. Male line: Couture goes Big and Strong Female line: Couture goes Curvy Gen Z’s are becoming much more involved in social activism at an earlier stage compared to previous generations.
THE COUTURE CLUB NOW MODEL WEARS SIZE XS
MODEL WEARS SIZE M
BOOHOO MAN E COMMERCE MODEL
THE COUTURE CLUB E COMMERCE MODEL
CREATION OF THE COUTURE APP AIM: Annual downloads to reach to 200K by 2021 Increase customer spending on the app by 30% compared to the website, in two years of it being launched
100% OF SURVEY RESPONDENTS PREFER TO USE AN APP OVER A MOBILE WEBSITE
• An effective mobile strategy involves more than just a mobile-friendly website. • Apps offer a more convenient way to browse, shop and interact with a brand, with easily accessible information right at their fingertips • Through push notifications you are getting even closer to a direct interaction, and can easily remind customers about your products, services and promotions. • It is estimated that between 2016 and 2020, yearly downloads will double roughly to 284 billion. • Mobile app users spend an average 201.8 minutes per month shopping, compared to 10.9 minutes/ month for website users.
• From research, it was found that consumers prefer apps over mobile sites due to user experience, speed, extra features and special offers. • Millennials embrace in-app shopping. 61% of millennial say they download retail apps and 58% of millennials mentioned that they preferred purchasing through apps. • Apps push more people down the purchase funnel, with 3x higher conversion rates compared to mobile sites and even 1.5 times more conversions per session than via desktop. • Shopping cart abandonment rates on mobile sites are much higher than on desktop, driving the global abandonment rate up to 73.4 percent.
The graphic above shows the Google Analytics page at
4:30pm on a Wednesday afternoon. This shows the popularity of the customer base shopping on their phones.
84%
of live users were accessing The Couture Club via their mobile phone on the site.
User experience would be much improved if visitors could access products directly through the app.
Visitors would increase significantly if an e-commerce app was available.
INTERNATIONAL EXPANSION
Pop-up shops have taken the retail and e-commerce industry by storm. Pop-ups enable brands to test new markets, customers and locations.
LAUNCH SEVERAL POP-UPS:
OUR PERMANENT STORES INTO POP-UPS In addition to selling popular products from The Couture Club, the pop-ups will offer a series of activities at the weekends.
POP-UP FEATURES • Barber • Tattooist
From the Google Analytics page:
78%
of users of the site are coming from the United Kingdom
0.71% of users are from Spain
5%
of users are from Germany
2%
of users are from Holland
By doing pop-ups, this will create an increase in awareness throughout these counties.
The Comms Campaign:
Hashtag JoinTheClub The aim is to engage with a more diverse customer base and to reposition The Couture Club and ultimately increase sales. To celebrate and reinforce the birth of this community, every Instagram follower will be given the chance to enter a draw run to
win 1 of 20 invites tochtheevent. exclusive Couture laun There, they will be able to interact with influencers in an Instagrammable environment, which will encourage the creation of highly influential user generated content around the new launch.
Partnering with plus size models, KOL’s (bloggers, influencers, celebs) to launch the range
Launch Event:
• Menagerie Restaurant and Bar, Manchester • Catwalk with plus size models showcasing the new clothing lines • Influencers • Blog post • PR piece
Ideal Influencers:
Entries into Instagram competition
Click through purchase rates
Number of sales from pop ups
New custome r conversion rates
Interaction rates
An increase in Instagram followers
Number of downloads of the app
Budget: £150,000 Breakdown of Costs
Quantity
Unit Costs
Total
Influencers
30
£2,000
£60,000
Competition
20
£10
£200
Billboards
10
£1,500
£15,000
Launch Event Catwalk Models Hire of Menagerie Restaurant and Bar (minimum spend £5,000)
6
£5,000
£5,000
£5,000
£5,000
Instagram Sponsored Posts
15
£100
£1,500
Total = £86,700 When the Couture womenswear range was launched, there was an increase of
+40%
The plus size range should increase sales by
+25%
Conclusion The Couture Club have successfully created a strong presence within their market in the UK. If The Couture Club follows the recommended path they should be able to grow their business while remaining true to their brand outlook. This marketing strategy will continue to accelerate their success and by demonstrating their diversity and inclusivity will grow their customer base, reposition the brand and ultimately increase sales. or the future, the brand will be able to accommodate fully and fulfil all of their customers wishes to assure they have the best possible shopping experience.