DIRECT MARKETING CAMPAIGN
Revolve is an L.A based online retailer that features the latest trends of the most acclaimed emerging designers from all over the world. It was created in 2003 by Michael Mente and Mike Karanikolas two friends who wanted to incorporate into the industry the unique pieces from boutiques into a bigger scale. Their main idea was to eliminate the process that consumers go through in which they drive from store to store looking for the perfect clothing piece or outfit.Â Â
current marketing strategy
Their marketing strategy is very
With the approach of the bloggers
different from the competitors Nasty
they are not just targeting a wider
Gal and Farfetch from London which
audience but also creating a
has allow them to grow and reach the
connection with potential and loyal
success that they have today in the
customers in which they show a group
market industry. They identified the
of people having a good time while
importance of meeting customers’
they wear the brand.
expectations by making them feel comfortable and related to the brand,
This marketing strategy has work for
that is why they have develop strong
them very well in fact one of the
relationships and marketing
owners Mike Karanikolas told Digiday
campaigns with influencers and
“80 percent of the company’s revenue
bloggers to represent the brand,
comes from 20 percent of its
showing not just clothing pieces but a
customers. Revolve is on track to bring
lifestyle in a realistic way.
in $455 million this year, a 50 percent year-over-year increase from 2014.”
Revolve host multiple getaways to
(Digiday). The past statement is from
cities such as Miami, Palm Springs and
2015 and in 2016 Fortune magazine
even the Hamptons in which they
announced that the company revenue
provide their influencers a space to
grows approximately 50% yearly which
share, relax and enjoy the idealistic
is more than their main competitors
lifestyle of the brand customer.
Nasty gal is and American fashion retailer that offers to young women clothing and accessories from multiple brands their prices range from budget to contemporary. The company was created in 2006 by Sophia Amorouso and it settle in L.A California. Strengths: ♣ They carry their own private label. ♣ They have branded content magazines online and in their brick and mortar operations. ♣ Have made different partnerships, the most recognized with MAC cosmetics to create a capsule collection. Weaknesses: ♣ High prices for a poor quality. ♣ Lack of patents. ♣ Wholesale distribution less control of the merchandise. ♣ They just offer women’s wear.
River Island is a high street fashion brand that is based in London although it operates in a number of worldwide markets. It was created in 1988 by Bernard Lewis and his brothers. Their first shop was in the Republic of Ireland. Since then it has expanded into a dozen markets including Russia, Poland, and various countries in the Middle East. Strengths: ♣ They have 60 years of retail experience which gives them more knowledge of how thrive in the market. ♣ They have a partnership with True Start to get primarily access to the latest technology. ♣ Strong customer loyalty. Weaknesses: ♣ They do not offer student discount as many other retailers do. ♣ Their styles remain constant they do not change as their competitors do like Zara. ♣ The clothing is not very fashion forward or trendy.
SWOT ANALYSIS POSITIVE
Revolve clothing aims to target young
The revolve approach to the market is
women, men that have a passion for
very untraditional but it seems to work
travel, gather with their friends and
for them, their sales growth has
families, party but mostly live their life
accelerated from 25% a year to even
at the fullest that are between their
50% a year in 2016 and it is expected for
early 20’s to their late 40’s.
2017 to grow even more. Their plan is to
- They offer a great variety of merchandise and brands with a wide range of prices. -High quality of products. -Fashion forward and trendy - Strong celebrity endorsements. -They are constantly improving customer lifetime value
-The brand lacks diversification in their target market since their approach goes towards an L.A lifestyle. -Lack of control over the product production. -Not well known because they lack promotional strategies. -Not differentiation with the competitors that they have.
support the brands that they feature on The revolve marketers have
their business side with sales data and
recognized that although their
inventory advice versus just buying the
customers work very hard to maintain
items that they like, they can even ask to
certain level of their social class they
those brands to make certain amount of
also want to have time to develop
the products in different color ranges to
extracurricular activities and it is
fit better their customers demands.
there where the brand has a gap to penetrate into their target market.
Their market continues to grow and expand, according to Fortune “Resolve’s
They need not just to fulfill their
men’s business, which makes up 5% of
customers’ needs and wants but also
sales, is growing by 50% each year.
surpass those by offering
International sales, which comprise 20%
complementary services that make
of the business, are thriving, especially in
their clientele experience a more
enjoyable one that attracts them into the online site every time they need an outfit for a special occasion, a party or even their casual lifestyle.
OPPORTUNITIES - Invest more in the “REVOLVE Social Club” creating more appearances in different cities inside the U.S to promote the brand. -They have an affiliate program that helps influencers or REVOLVE lovers to become brand ambassadors and gain commission to promote the brand . -Creating collaborations with more upcoming designers to diversify more the target market. -Through optimization the brand can include Latest, Spotlight and Top Hot in order to inform their customers or even their audience which are the lattes added products, which were worn by celebrities and influencers.
THREATS -The brand has a lot of competition inside the fashion market. -E-commerce competition. -Trends changing constantly. -Economic instability. - People going green and the brand does not have any environmental friendly practice.
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