Page 1

FIGURE 2: (Discount, n.d.)

GROUP B - ASOS MARKETING STRATEGY REPORT

FIGURE 1: (Moss, 2016)

EMMA BOULTER MEGHAN BROWNE ELLIE BUCKMASTER IMOGEN CHANCELLOR FEIER CHEN ELLA CROSS


CONTENTS

4-5 INTRODUCTION .......................................................................................................................................................................................................................... 6-7 WHAT IS FASHION MARKETING? .......................................................................................................................................................................................................................... 8.......................................................................................................................................................................................................................... ASOS - PRODUCT 9 ASOS - PROMOTION .......................................................................................................................................................................................................................... 10-11 ASOS - PRICE .......................................................................................................................................................................................................................... 12 ASOS - PLACE .......................................................................................................................................................................................................................... 13 RECOMMENDATIONS .......................................................................................................................................................................................................................... 14 SUSTAINABILITY .......................................................................................................................................................................................................................... 15 CONCLUSION .......................................................................................................................................................................................................................... 16-17 REFERENCE LIST .......................................................................................................................................................................................................................... 18-19 FIGURE LIST .......................................................................................................................................................................................................................... 20 SELF-ASSESSMENT FORM .......................................................................................................................................................................................................................... WORD COUNT: 1,494

02

03


INTRODUCTION

Our group looked at ASOS over this project, identifying it as a powerful company with a large customer market that allows the brand to draw in a wider consumer group than its competitors. We analysed the strengths of the brand, one being its inclusivity regarding its customers, as well as how they use the marketing mix of the 4Ps: Price, Place, Product and Promotion. The broad price range of ASOS’ products, alongside its variety in products also benefits their ability to directly market to more individuals, as the brand can advertise for all ages, genders and sizes. Yet, through evaluating the company’s strengths and weaknesses, we were able to establish recommendations for the marketing mix so that ASOS can promote their brand’s products and identity even more effectively.

FIGURE 3: (ASOS, 2018a)

05


WHAT IS FASHION MARKETING?

WHAT IS FASHION MARKETING?

FIGURE 4: (ASOS, 2018b)

Fashion marketing is the process of satisfying customers’ needs and demands through the marketing concept (Han, 2018, pp.5-6). This allows marketers to decide how to fulfil the customers’ requirements more effectively than their competitors, therefore generating more sales and creating a successful business through price, place, promotion and product, and adapting these accordingly. (Han, 2018. pp.12-14). “Marketing should be viewed as a holistic system connecting a business with its customers.” (Posner, 2015, p.27). The marketing process involves a variety of skills, ranging from creative mindsets to analytical techniques (Posner, 2015, pp.27-29).

FIGURE 5: (The Fashionista, 2017)

FIGURE 6: (Ballah, 2010)

06

07


PRODUCT

PROMOTION FIGURE 7: (Young, 2018)

ASOS’ product mix has options suited to a breadth of consumers, including sizedbased lines, which positively presents the brand as being inclusive, therefore maximising sales (ASOS, 2018a). The tangible characteristic of quality can be reflected in the price and market level, making trends accessible to all incomes. The extensive portfolio of sizing helps the brand to fit with the social climate as diversity is a focus in industry (ASOS, 2018b). The intangible aspects of ASOS’ experience include premier delivery, which involves an annual fee of £9.95 for a year of ‘free’ delivery, therefore creating loyalty by encouraging the use of this purchase, increasing sales for the company (ASOS, 2018c). Free returns encourages the customer to experiment with styles with a guarantee, adding to the diverse nature of ASOS (ASOS, 2018d).

ASOS have many ways of promoting their brand. A traditional type of advertising is active media (Logkizidou, 2018a, p.9). ASOS constructed a diverse TV advert (Figure 9) that tailored to their varied consumer market, which portrayed the company positively in today’s social climate. ASOS used outdoor media, specifically billboards and bus adverts, as they don’t have a physical store, therefore filling that gap. The next two forms of promotion tailors to ASOS’ young target market, as the printed media magazine catalogue in Figure 10 promotes celebrity endorsement, as well as the instagram stories appealing to a younger target market. Another element of promotion is Fashion PR (Logkizidou, 2018, p.20). ASOS regularly attended Milan Fashion Week to accommodate to their street style (Morgan, 2018). In addition, ASOS host celebrity and designer affiliations to promote styles and brands, while sponsoring new styles, as they have a fashion discovery award that invests £50,000 in a new upcoming brand, showing their dedication to new styles (ASOS, 2018e).

FIGURE 10: (Griffiths, 2018)

FIGURE 9: (ASOS, 2018)

FIGURE 6: (Ballah, 2010)

FIGURE 8: (ASOS, 2018)

08

09


PRICE

PRICE

HIGH PRICE PRODUCT FIGURE 19: (ASOS, 2018)

Versace - £256.00

BA&SH - £260.00

FIGURE 12: (ASOS, 2018)

FIGURE 11: (ASOS, 2018)

PREMIUM PRICE PRODUCT

Forever Unique - £110.00

AllSaints - £128.00 FIGURE 13: (ASOS, 2018)

FIGURE 14: (ASOS, 2018)

MID PRICE PRODUCT RIVER ISLAND £40.00

ASOS DESIGN £32.00

FIGURE 15: (ASOS, 2018)

FIGURE 16: (ASOS, 2018)

LOW PRICE PRODUCT

PrettyLittleThing - £4.00

FIGURE 17: (ASOS, 2018)

10

Boohoo - £6.00

FIGURE 18: (ASOS, 2018) (Posner, 2015, p.46)

Various qualities stand out in ASOS’s pricing approach. Their price architecture varies depending on brands and selling price. Mini black dresses show one product type being sold at varying prices: Luxury Versace at high price, High-street AllSaints at premium, and ASOS DESIGN at mid (ASOS, 2018f).

(ASOS, 2018g). The strategies used include competition-based and market penetration pricing (Logkizidou, 2018, pp.10, 16). They have sales for limited periods on products that are not always listed on the original brand website, including Dr Martens’ (ASOS, 2018h).

Comparing other e-tailers, ASOS has a unique brand mix, therefore luring customers onto their website, not the brands’ sites

They use market penetration through seasonal sales which are convenient for the consumer while slowly introducing new product lines, starting at a low price then

FIGURE 20: (ASOS, 2018)

increasing to a more profitable price.

They sell luxury to fast fashion, attracting different markets, meaning ASOS’ brand isn’t damaged, as customers know materials and pricing are down to other brands’ decisions.

11


PLACE

RECOMMENDATIONS

Some argue that selling ASOS is a pure play firm who sell through e and m online limits the market to younger buyers. The commerce, showing these catwalk feature enables platforms’ importance as the main method of customers to see items on communication. a 360 scale, mirroring the in-store experience, enticing an older On the app and website, consumer. there are features that try to enhance experiences, Online customers can such as ‘My Edit’, which paste a picture of their filters searches, favourites into the personalising a range of items that could interest an photographic tab, leading them to similar products individual (ASOS, 2018i). and bringing ease to the experience (Edwards,

2017). To bring ASOS to an international scale, they offer 10 different language formats. These elements result in customer satisfaction and potentially repeat purchases thus more sales revenue and profits. We have collated solutions which we feel would improve the brand in terms of the marketing mix.

Product

Packaging could be a focus as ASOS distributes over 59 million plastic bags per year, which juxtaposes the need for environmentally-focused brands (ASOS PLC, 2018a). This could be improved through revising the ratio of plastics to achieve an environmentally-appropriate packaging (ASOS PLC, 2018a). Within intangible experiences, access to reviews could provide consumers with more confidence when buying from the website due to having real experiences from other customers. This could continue to increase consumer loyalty by prompting a continuity of quality in products to continue to receive good reviews, promoting the company positively.

Price

Although ASOS have competitive pricing strategies, the introduction of bundle pricing could increase customer satisfaction and turn a healthy profit. During seasonal holidays, consumers tend to buy more for others, meaning ASOS would have a chance to shift old stock in the process of pleasing the public.

Promotion

ASOS use many productive forms of advertising, however they don’t have a physical store, therefore losing an element of personal selling. A solution for this could be interactive adverts. Consumers could choose which advert they want to watch, for example: there could be a selection of adverts for new prints, seasonal styles, classics etc. These adverts could get into the consumer psyche, making them believe that ASOS are making their experience personal, giving an incentive for consumer loyalty while bridging the gap between adverts and personal selling.

Place

ASOS’ returns are completed through post, therefore offering popup stores for customers to return items could draw in older consumers who aren’t confident with delivery returns. Moreover, there is a lack of customer service as, if errors occur or customers have queries, they cannot directly speak to a supervisor, creating inconvenience. Having a customer helpline enables issues to be resolved quicker, reducing the risk of error. There is currently a live chat however it can sometimes cut off or be difficult to use. These recommendations create direct interaction, helping to maintain customer relationships. FIGURE 21: (ASOS, 2018)

12

FIGURE 22: (ASOS, 2018)

FIGURE 23: (ASOS, 2018)

13


SUSTAINABILITY

CONCLUSION

ASOS has an ambition to produce and distribute products that are environmentally friendly, highlighting their sustainability. ASOS has a team that are labelled the ‘Dedicated Sustainable Sourcing Team’ (ASOS PLC, 2018b). The 11 experts are responsible for advising retail teams and suppliers about how to adjust and transform designs to create sustainable products (ASOS PLC, 2018b). The team work with a variety of organisations so that they’re able to measure the environmental impacts of products and, therefore, how to reduce any negative impacts they have (ASOS, 2018). ASOS also focuses on trying to reduce the amount of clothing wastage and this will further be reduced through the transition they are making from a traditional linear company into a circular fashion economy (ASOS PLC, 2018b). This modern, environmentally-beneficial scheme involves keeping resources for longer, extracting the maximum value from them whilst in use and regenerating products and materials at the end of each service life (ASOS PLC, 2018b) We feel that ASOS is successfully and effectively promoting their brand as one that is a circular fashion business by consistently monitor the environmental impacts of their brand to benefit their customers and the world.

From reviewing ASOS’ marketing techniques, we believe ASOS is very successful, surpassing their competitors and offering a unique take on modern shopping experiences. ASOS’ online platform makes it an accessible brand, shipping to over 200 countries and allowing a target market of all generations (ASOS, 2018j). Their effective promotion techniques are tailored to their social media base, as their target demographic is people in their 20’s, whom are easily attracted by mobile adverts. Pop up stores and phone helplines are some ways ASOS could evolve and reach their full potential. Through working as a group, we have learned how to balance workloads and communicate well as a team, resulting in work we have contributed to fairly. Meeting altogether regularly helped to keep track of progress.

FIGURE 24: (WGSN, 2016)

14

15


REFERENCE LIST ASOS. 2018a. Women. [Online]. [Accessed 6 November 2018]. Available from: https:// www.asos.com/women/ ASOS. 2018b. Women’s dresses. [Online]. [Accessed 6 November 2018]. Available from: https://www.asos.com/women/dresses/cat/?cid=8799&currentpricerange=5-450&nlid=ww|clothing|shop%20by%20product&sort=pricedesc ASOS. 2018c. Premier Delivery. [Online]. [Accessed 6 November 2018]. Available from: https://www.asos.com/customer-service/premier-delivery/ ASOS. 2018d. Delivery and Returns. [Online]. [Accessed 6 November 2018]. Available from: https://www.asos.com/customer-service/returns ASOS. 2018e. Fashion Discovery - Meet the winners. [Online]. [Accessed 16 December 2018]. Available from: https://www.asos.com/fashion-discovery/ ASOS. 2018f. Mini Black Dresses. [Online]. [Accessed 3 December 2018]. Available from: https://www.asos.com/search/?q=mini+black+dresses ASOS. 2018g. A-Z Women’s Brands. [Online]. [Accessed 3 December 2018]. Available from: https://www.asos.com/women/a-to-z-of-brands/cat/?cid=1340&nlid=ww|brands|top+brands

ASOS PLC. 2018b. Corporate responsibility. [Online]. [Accessed 16 December 2018]. Available from: https://www.asosplc.com/corporate-responsibility/our-products/ sustainable-sourcing-programme Edwards, J. 2017. ASOS’ new search tool lets you upload a pic of something you want and they find it for you. [Online]. [Accessed 16 December 2018]. Available from: https://www.cosmopolitan.com/uk/fashion/style/a11663550/asos-new-searchtool/ Han, S. 2018. What is Fashion Marketing Today? [PowerPoint presentation accessed through Minerva]. DESN1355 Fashion Marketing. University of Leeds. Logkizidou, M. 2018a. Marketing Mix - Promotion. [PowerPoint presentation accessed through Minerva]. DESN1355 Fashion Marketing. University of Leeds. Logkizidou, M. 2018b. Marketing Mix - Price & Place. [PowerPoint presentation accessed through Minerva]. DESN1355 Fashion Marketing. University of Leeds. Morgan, M. 2018. Street-style takeaways from MFW AW18. [Online]. [Accessed 16 December 2018]. Available from: https://www.asos.com/women/fashionfeed/2018_02_27-tues/milan-fashion-week-autumn-winter-2018-street-style/ Posner, H. 2015. Marketing Fashion - Strategy, Branding and Promotion. 2nd ed. London: Laurence King Publishing.

ASOS. 2018h. Women’s Outlet: Shoes. [Online]. [Accessed 3 December 2018]. Available from: https://www.asos.com/women/outlet/shoes/cat/?cid=27416&currentpricerange=5-185&nlid=ww|outlet|shop%20by%20product&refine=attribute_1047:8585 ASOS. 2018i. ASOS discover fashion online (version 4.7.0). [Mobile app]. [Accessed 4 December 2018]. ASOS. 2018j. Delivery and Returns. [Online]. [Accessed 16 December 2018]. Available from: https://www.asos.com/customer-service/delivery/ ASOS PLC. 2018a. Corporate responsibility. [Online]. [Accessed 6 November 2018]. Available from: https://www.asosplc.com/corporate-responsibility/our-business/ packaging-and-waste

16

FIGURE 25: (Joseph, 2017)

17


FIGURE LIST

Figure 1: Moss, V. 2016. Put the tanned girl in a swimsuit: How online models are chosen to influence the way you shop. [Online]. [Accessed 15 December 2018]. Available from: https://www.telegraph. co.uk/fashion/people/put-the-tanned-girl-in-a-swimsuit-how-online-models-are-chosen-t/ Figure 2: Discount. (no date). ASOS. [Online]. [Accessed 15 December 2018]. Available from: http://discount-extreme.com/store/asos/ Figure 3: ASOS. 2018a. ASOS DESIGN backless halter pleated mini dress. [Online]. [Accessed 15 December 2018]. Available from: https://www.asos.com/asos-design/asos-design-backless-halter-pleated-mini-dress/prd/11171500?clr=black&SearchQuery=&cid=2623&gridcolumn=2&gridrow=3&gridsize=3&pge=1&pgesize=72&totalstyles=239 Figure 4: ASOS. 2018b. Meet the team. [Online]. [Accessed 16 December 2018]. Available from: https:// www.asos.com/discover/insiders/ Figure 5: The Fashionista. 2017. ASOS masters the oversized trend with its longline duster. [Online]. [Accessed 16 December 2018]. Available from: https://www.thefashionisto.com/asos-mens-oversizedlongline-duster/ Figure 6: Ballah, A. 2010. ASOS Holiday Return Policy. [Online]. [Accessed 16 December 2018]. Available from: http://holy.aslijitu.site/asos-holiday-return-policy/ Figure 7: Young, S. 2018. ASOS mocked over selling bustier made from jeans. [Online]. [Accessed 16 December 2018]. Available from: https://www.independent.co.uk/life-style/fashion/asos-jeans-bustier-sell-twitter-reaction-online-a8189231.html Figure 8: ASOS. 2018. Delivery and Returns. [Online]. [Accessed 11 November 2018]. Available from: https://www.asos.com/customer-service/returns/ Figure 9: ASOS. 2018. More reasons to move | Activewear at ASOS launch video. [Online]. [Accessed 16 December 2018]. Available from: https://www.youtube.com/watch?v=rk12WZ-Co58 Figure 10: Griffiths, I. 2018. ASOS Magazine celebrates 100th issue. [Online]. [Accessed 18 November 2018]. Available from: http://mwb-online.co/asos-magazine-celebrates-100th-issue/ Figure 11: ASOS. 2018. Versace Jeans VJ logo body con dress. [Online]. [Accessed 16 December 2018]. Available from: https://www.asos.com/versace-jeans/versace-jeans-vj-logo-bodycon-dress/prd/10384372?clr=nero-e899&SearchQuery=mini%20black%20dresses&gridcolumn=1&gridrow=2&gridsize=4&pge=1&pgesize=72&totalstyles=2302 Figure 12: ASOS. 2018. BA&SH structured mini dress. [Online]. [Accessed 16 December 2018]. Available from: https://www.asos.com/bash/bash-structured-mini-dress/prd/10764096?clr=black&SearchQuery=mini%20black%20dresses&gridcolumn=3&gridrow=2&gridsize=4&pge=1&pgesize=72&totalstyles=2302 Figure 13: ASOS. 2018. AllSaints knitted bodycon mini dress. [Online]. [Accessed 3 December 2018]. Available from: https://www.asos.com/allsaints/allsaints-knitted-bodycon-mini-dress/prd/10775548?clr=black&SearchQuery=mini%20black%20dress&gridcolumn=2&gridrow=9&gridsize=4&pge=1&pgesize=72&totalstyles=51

18

Figure 14: ASOS. 2018. Forever Unique Plunge Mini Dress with Choker Detail. [Online. [Accessed 16 December 2018]. Available from: https://www.asos.com/forever-unique/forever-unique-plunge-minidress-with-choker-detail/prd/9749305?clr=black&SearchQuery=mini%20black%20dresses&gridcolumn=4&gridrow=14&gridsize=4&pge=1&pgesize=72&totalstyles=2306 Figure 15: ASOS. 2018. ASOS DESIGN pleated trapeze mini dress with tie neck. [Online]. [Accessed 16 December 2018]. Available from: https://www.asos.com/asos-design/asos-design-pleated-trapeze-mini-dress-with-tie-neck/prd/10958644?clr=black&SearchQuery=asos%20mini%20black%20 dress&gridcolumn=1&gridrow=1&gridsize=4&pge=1&pgesize=72&totalstyles=751 Figure 16: ASOS. 2018. River Island wrap front dress in black velvet. [Online]. [Accessed 16 December 2018]. Available from: https://www.asos.com/river-island/river-island-wrap-front-dressin-black-velvet/prd/10917442?clr=black-plain&SearchQuery=mini%20black%20dresses&gridcolumn=1&gridrow=11&gridsize=4&pge=27&pgesize=72&totalstyles=2297 Figure 17: ASOS. 2018. PrettyLittleThing basic high neck bodycon dress. [Online]. [Accessed 16 December 2018]. Available from: https://www.asos.com/prettylittlething/prettylittlething-basic-high-neck-bodycon-dress/prd/9654232?clr=black&SearchQuery=mini%20black%20 dresses&gridcolumn=1&gridrow=1&gridsize=4&pge=1&pgesize=72&totalstyles=2307 Figure 18: ASOS. 2018. Boohoo Frill Sleeve Cross Back Dress. [Online]. [Accessed 16 December 2018]. Available from: https://www.asos.com/boohoo/boohoo-frill-sleeve-cross-back-dress/prd/9821703?clr=black&SearchQuery=mini%20black%20dresses&gridcolumn=2&gridrow=2&gridsize=4&pge=1&pgesize=72&totalstyles=2291 Figure 19: ASOS. 2018. Women. [Online]. [Accessed 10 November 2018]. Available from: https://www. asos.com/women/ Figure 20: ASOS. 2018. Dr Martens 1460 8-eye stud boots in black. [Online]. [Accessed 16 December 2018]. Available from: https://www.asos.com/dr-martens/dr-martens-1460-8-eye-stud-boots-in-black/ prd/9980512?clr=black&SearchQuery=dr%20martins&gridcolumn=3&gridrow=5&gridsize=4&pge=2&pgesize=72&totalstyles=120 Figure 21: ASOS. 2018. ASOS discover fashion online (version 4.7.0). [Mobile app]. [Accessed 4 December 2018]. Figure 22: ASOS. 2018. ASOS discover fashion online (version 4.7.0). [Mobile app]. [Accessed 4 December 2018]. Figure 23: ASOS. 2018. ASOS discover fashion online (version 4.7.0). [Mobile app]. [Accessed 4 December 2018]. Figure 24: WGSN. 2016. A starters guide to high-street shopping (if you care about your eco-footprint). [Online]. [Accessed 16 December 2018]. Available from: https://www.wgsn.com/blogs/a-startersguide-to-high-street-shopping-if-you-care-about-your-eco-footprint/ Figure 25: Joseph, S. 2017. As Amazon moves into fashion, ASOS tries to stay ahead in digital. [Online]. [Accessed 16 December 2018]. Available from: https://digiday.com/marketing/amazon-moves-fashionasos-tries-stay-ahead-digital

19

Profile for Meghan Browne

ASOS Marketing Strategy report  

Fashion Marketing // focusing on ASOS' marketing strategy in terms of the 4P's of marketing with recommendations as to how to improve their...

ASOS Marketing Strategy report  

Fashion Marketing // focusing on ASOS' marketing strategy in terms of the 4P's of marketing with recommendations as to how to improve their...

Advertisement