The Q Club Digital Marketing Plan
The Q Club Digital Marketing Plan
The Q Club Digital Marketing Plan
- Report Objectives
This report presents the potential factors and digital strategies aimed at directly impacting the Q club’s business, specifically for purposes of increasing sales, maintaining relationships, and improving the image of the brand. The objectives of the report are:
- To establish the factors that will impact the digital operations of the Q club;
- To identify and critically evaluate the digital marketing strategies of competitors; and
- To recommend and execute relevant digital marketing strategies for the Q club.
- Situation Analysis
MACRO – PESTLE
|BREXIT||Since June 2016, Brexit has been greatly influencing the online retail market. Mauritius Bruggnik, the Secretary General of the European E-commerce and Omni-channel Trade Association (EMOTA), recently presented several cross-channel trade disruptions, including, but not limited to product conformity procedures and international customs regulations. Such disruptors are likely to affect trade by leading to delays in the transportation of products to the UK (Forbes, 2019). Moreover, challenges in unstable currencies are likely to be experienced, thus directly affecting customer interests and behaviors.|
|GDPR||The EU recently enacted the General Data Protection Regulation (GDPR) to ensure that no customer data is collected, stored, and used without the customer’s permission. This policy is quite significant to digital promotions for online retailing, which usually involve big data mining activities such as customer profiling and personalization (We Make Websites, 2019).|
|Customer Spending||Online retailing is significantly affecting inflation patterns in the current UK economy. The growth of the online business directly influences the economy through aspects such as tariffs imposition, currency swings, and oil prices. The UK Cards Association reports that in the year 2015, the approximate online payments made by customers was 4,611 pounds (BBC News, 2019). The massive online spending by fashion customers is affecting fashion retailer’s marketing decisions like pricing patterns, which also affects their market segmentations strategies, as they aim to creating competitive advantages.|
|Unemployment||Though the past few years saw high unemployment rates for retail workers in the UK, the rate is now much lower as compared to any other time since 1975 (BBC News, 2019). Nevertheless, online shopping, particularly for certain luxury brands, has been on the increase in the recent past. Thus, some retailers prefer operating online stores rather than physical stores, in order to reach out to international markets. The Centre for Retail Research indicates that approximately 43 retail firms have ceased to trade, leading to the closure of 2,594 stores and 46,014 employees losing their jobs.|
|Returning of items||The flexible return policy has also led to regular return of items by online shoppers, with online retailers facing risks on the cost of free returns. According to BBC Radio 4, approximately 63 percent of women’s clothing are returned after purchase.|
|AI Chatbot||A greater percentage of e-commerce retailers use the chatbot customer service, which has new technologies such as artificial intelligence-enabled features. Through it, retailers are able to get feedback from customers and to resolve problems immediately, using the AI-powered customer service. These technological advancements are much cheaper, in comparison to the traditional online customer service and telephone services. Research indicates that 95% of customers believe that the major beneficiary of chatbots is customer service (Invespcro.com). Using chatbots reduces on customer service costs and time, and it enables clients to get quick answers in case of emergencies.|
|Cookie Law||Since the establishment of the cookie law in the UK, in 2012, the browsing experience for many users has been affected considerably. Cookies enable websites to track users on the site, which can help in gathering information on user preferences and browsing behaviors (Eukhost.com, 2019). In addition, cookies help to protect users from scammers. The cookie law also requires online retailers to improve on their privacy policies.|
|Packaging Waste||The rise of online shopping has led to serious environmental concerns, especially due to the packaging waste. According to Point Breaj Foundation, by 2025, there will be 1 ton of plastic for every three tonnes of fish (Forbes.com, 2019). There is a great need for sustainable packaging, which has motivated many retailers to improve the packaging supply chain, with the aim of reducing the effects of packaging waste, and minimizing packaging and shipping costs.|
The Q club
- The Q club seeks to partner with many luxury brands for diversity and clients’ convenience, by creating a one-stop store.
- Greater focus placed on sustainability initiatives
- Simple and attractive website for ease of use by customers
- Strong social media and digital marketing strategy
- Stellar customer service via use of chatbots
- Unlimited mobile application
- Ambient physical environment, with a luxurious appeal, in each department
- Well-designed and attractive window displays
- Serves VIP clients from Qatar, Saudi Arabia, and Kuwait
- Has rewards and discounts programs with VAT refunds
- Partners with Farfetch Black & White in creating and maintaining a state-of-the-art global online destination
- Staff are usually rushing during peak seasons
- Their online presence is limited
- App functionality is restricted
Points of Parity
- Both companies have a British heritage
- Both offer similar products and price ranges
- Both operate online stores with similar social media platforms such as Instagram, Twitter, and Facebook
- Both have a membership system
- Both offer exclusive services and luxury products
- The largest online retailer shop with many third party sellers
- Amazon Prime subscription service offers access to free two-day delivery, prime music, and prime instant videos
- Strong international brand recognition
- Brick-and-mortar presence is limited
- Loss of margins through free shipping system
Points of Parity
- Both operate a membership system
- Both operate web and e-commerce services, and utilize the same social media platforms like Instagram, Twitter, and Facebook
- Both use AI-chatbot technology innovation to interact with customers
- Both use superior distribution and logistics systems for purposes of enhancing customer satisfaction
- Has luxurious boutiques in London such as Browns East, Browns Bride, Browns Focus, and Brownsfashion.com
- Combines both store and online sales for multi-channel reach
- Efficient distribution and warehousing centres
- Lacks a strong online visibility
Points of Parity
- Both have a British heritage
- Both companies have personal shoppers focused on working by appointment to deliver the best possible customer
- Offer exclusive collections
- Both operate e-commerce and web services, using the same social media platforms like Facebook and Instagram
- Both use AL chatbot technology innovation to interact with customers
- Using superior logistics and distribution systems, the company has been able to actualize better customer fulfilment
- Does not operate a normal retail business of buying and pushing out merchandise
- Has an omni-channel
- Harrods’ exclusive partner
- New physical stores
- Poor visibility and engagement with users
- Does not offer rewards and incentives to customers
- Does not have a system for reviewing past purchases
- Weak marketing and advertising campaigns
The Q club’s Porter’s 5 Forces
|Threat of New Entries With lots of funding available for the Q club, the company has a great opportunity for further expansion. Additionally, the Q club has a high growth opportunity because it is a new business in the market.|
|Threat of Substitutes There are many alternative online shopping platforms available for Q club to exploit. The company faces a threat for lack of product differentiation, and the inability to switch costs for the buyers.|
|Bargaining Power of Buyers There are opportunities for the Q club due to higher chances for forward integration and low switching costs for e-commerce companies.|
|Bargaining Power of Suppliers There are multiple supplier options for the company to choose from, thus presenting an opportunity. In addition, the company will enjoy the opportunity for low switching costs, and easy access to price information.|
|Competitive Rivalry The Q club faces the threat of competition within the e-commerce industry and other Brick & Mortar models. There are also high exit costs for inventory-based business models.|
5 S’s & Smart Objectives
|Sell – Acquisition of Customers and Target of Retention|
|Sell a total of 1200 units annually, and 600 units per season.|
|Serve – Potential Customer Targets|
|Get 20,000 – 25,000 people to follow the Q club’s social media platforms, and to purchase and visit the digital platforms like the website and mobile app.|
|Sizzle – Wow Factor|
|Offer a wide range of fashion products|
|Speak – Customer engagement|
|Generate content on Instagram and Facebook that is specifically aimed at engaging customers with the brand.|
|Save – Efficiency|
|Q club’s greater focus on a huge social media following, and its own media, enables the brand to save on paid media costs and maximize the brand’s potential.|
- Marketing Objectives Strategy
The Q club’s target is on a large and differentiated demographic within the United Kingdom, particularly West London. The company seeks to offer services to a diversified market whose customers having different lifestyle needs and purchasing behaviors. The market is segmented by a class-based society with high-end customers likely to purchase high-end fashion.
Harrods and Farfetch have strong online market strategies as compared to the Q club. Browns Fashion has narrower product offers than the Q club. Amazon has stringer market strategies, but narrower product offers than the Q club.
OVP (Online Value Proposition)
The Q Club’s products are the easy to find either through the mobile application or online search, thus it is the most popular search engine for online fashion shoppers. The Q Club also offers free personal shopper consultants and free and fast shipping for its customers, unlike its competitors who are unnecessarily slow and expensive. Furthermore, the Q Club shares its customers’ passions and values. The company strives to create and build a team of tech-savvy fashion enthusiasts with enough experience in the fashion industry to understand the desires of customers. Customers are able to find help and communicate easily with the Q Club about their likes and dislikes through the live chats and personal shopper assistants. In the spirit of sharing the customer’s passions, the Q Club allows customers to share their experiences with its brand through short videos and images on social media accounts using the hashtag #QClubGlam.
Brand Identity Prism
The following is a brief of the brand identity prism:
The Q club specializes in premium service, the finest crafted garments, sustainable packaging, fast-access website design and App, as well as membership and rewards system.
The company’s brand personality will be luxury and beauty, chic and refined, celebrity endorsements, young and elegant, as well as a unique and independent representation of the potential target customer.
The Q club and its customers will develop a relationship based on loyalty, good service and professionalism. The company also seeks to establish long-term relationships with suppliers and partners.
The company’s culture is based on its origin, and the subcultures of its clients.
The reflection that the Q club offers is an aristocratic, hedonistic, new style, and trendy look. The company will utilize paid and owned media for purposes of displaying user-generated content and representing the type of customers for which the Q club is targeting.
The Q club’s image will be eye-catching, price-conscious, and exclusive with a social representation.
Brand Equity Model
The Q club will adopt the customer-based brand equity model for differentiating the company from its direct competitors.
The Q Club website will enable the products to be sold by the company and third parties. The site will be boosted by lead intelligence tools, email, social media, blogging, and integrated SEO toolset. There will also be fashion shows for the launch of Q Club’s collections to the press.
By offering a members-only shopping platform, the Q club will sell the concierge service with annual monthly packages, ranging from Black Tier to Gold Tier, to Silver Tier and White Tier.
The Q club will offer competitive pricing packages in line with its competitors pricing. The membership fee will be charged on a monthly basis, with the company’s first customers enjoying free delivery and personal shopper consultancy. The price represents value for money in regards to the package of services offered by the company to its online shoppers.
The Q club will offer both offline and online shopping platforms, which members will select from the company’s official website, mobile App, or booking system. These platforms are easy for customers to access and communicate with the Q Club staff.
The Q club seeks to achieve its desired marketing objectives through a strong promotion mix involving direct marketing strategies, advertising, public relations, and personal selling. These strategies will be utilized to put the Q Club’s message across to its customers in a manner that appeals to their emotions. The Q Club’s spokesperson will attend fashion events across London to speak about the company. There is also need for useful guides amplified by SEO, pay per click and social media advertising.
The Q club will implement physical evidence by ensuring consistent branding across all communications. The shopping bag will have the Q Club’s logo. In addition, the official website will keep updating the latest products.
The Q club will experience better rewards by hiring the right people. The company will recruit confident and creative employees who have an understanding of the fashion industry. Customers can make inquiries and give their feedback online through live chats on the website. The social media team will also be on standby to handle customers’ posts. There is also an online network of partners on the website to share their progress.
The webpage will contain product information, booking and calendar columns, live chat box, and login to the community page for customers to share their content and save collections. There will be a mobile version for the website to bring good impression to viewers and fast access via mobile phones. The mobile App will also be used to enhance the customers shopping experience by enabling them to easily log into their accounts and transact via their phones. In addition, more sales staff will be engaged to handle conversion.
Advertising and sales promotions will be used for increasing brand awareness as well as boosting website and mobile app visibility. Pay per click and SEO will also increase the brand’s reach by attracting more visitors to the website and mobile app. Easy-to-share content will be created and shared across the social networks, search engines and blogs to reach out to more people. Progress will be tracked through the number of followers and value per visit.
At this decision-making stage for buyers, the website, blog and social media accounts will offer clear customer journeys for customers to make the right decision. Captivating PR stories will be ideal to appeal to the customers’ senses and emotions. Progress will be tracked through the lead conversion rate and monitoring the time of customers on site as well as their shares and comments.
The company will capitalize on marketing investment using CROs, marketing automations, and remarketing for monitoring the e-commerce process. The KPIs for this stage include the number of sales, profit, and average order value.
Digital content creation and publication will be used to ensure the growth of constructive customer relationships. Digital marketing and personal selling will also play an important role in engaging with the customers and getting their feedback. KPIs under this phase include repeat purchases and customer satisfaction and loyalty.
|Digital Marketing Budget|
7. Control and Evaluation
|Sell – Acquisition of customers and target of retention||KPI|
|Sell a total of 1200 units annually, and 600 units per season.||Average return rate, profits, and sales turnover.|
|Serve – Potential customer targets||KPI|
|Get 20,000- 25,000 people to follow the Q club’s social media platforms, purchase and visit digital platforms such as websites and mobile app.||Monitor interactions between the brand and customers.|
|Sizzle – Wow Factor||KPI|
|Offer a wide range of fashion products||Assess the differentiation of new product categories, and introduce new ones|
|Speak – Customer engagement||KPI|
|Generate content on Instagram and Facebook specifically aimed at engaging customers with the brand.||Statistics on the number of users participating in generated content|
|Save – Efficiency||KPI|
|The Q club’s greater focus on a huge social media following and its owned media enables the brand to save on paid media costs and maximize the brand’s potential.||Assess the ROI from affiliates, publishers, and influencers|
BBC News. (2019). UK shoppers ‘biggest online spenders’. Available at: https://www.bbc.co.uk/news/business-39655039 (Accessed 10 Jan. 2019).
BBC News. (2019). Unemployment across UK shows slight fall. Available at: https://www.bbc.co.uk/news/uk-47947205 (Accessed 10 Jan. 2019).
Eukhost.com. (2019). Legal Requirements for UK Online Business Compliance. Available at: https://www.eukhost.com/blog/web-hosting/legal-requirements-for-uk-online-business-compliance/ (Accessed 17 May 2019).
Forbes.com. (2019). How Will Brexit Affect Ecommerce: Will Cross-Border Ecommerce Slow Down?. Available at: https://www. forbes.com/sites/ninaangelovska/2019/01/15/how-will-brexit-affect-ecommerce-will-cross-border-ecommerce-slow-down/#10d-411948ca6 (Accessed 10 Jan. 2019).
Forbes.com. (2019). What A Waste: Online Retail’s Big Packaging Problem. Available at: https://www.forbes.com/sites/jon-bird1/2018/07/29/what-a-waste-online-retails-big-packaging-problem/#8da293371d4e (Accessed 17 Feb. 2019).
Invespcro.com. (2019). Chatbots In Customer Service – Statistics and Trends [Infographic]. Available at: https://www.invespcro.com/blog/chatbots-customer-service/ (Accessed 10 Jan. 2019).
We Make Websites. (2019). What does the GDPR mean for ecommerce businesses? | We Make Websites. Available at: https://we-makewebsites.com/blog/what-does-the-gdpr-mean-for-e%E2%80%91commerce-businesses (Accessed 10 Jan. 2019).