Marks & Spencer Onboarding Marketing Plan
Transcript of Marks & Spencer Onboarding Marketing Plan
“The fashion market in the Middle East is more than $30bn, and online share is less than 1%”
Marks & Spencer Middle East Digital Strategy
2013
Market Potential, Demand and Attractiveness
SWOT – Customers, Competition, Growth Forces
Strategic Plan
Performance Plan
1 Executive Summary
2
5
3
4
Agenda
Immediate Steps and Timeline6
Executive Summary
The strategic opportunity is to develop our MENA region focused digital strategy, resulting in $370K in new e-Commerce revenues by the end of Year 4 (est. 2017)
63% of retail shoppers expect a more digitally integrated experience over the next 2 years, while the MENA e-Commerce opportunity is predicted to be $1.5T by 2016
Strategic Alternatives• Continue on existing path
OR• Off load to M&S UK with local support provided
OR• Do not enter into e-Commerce arena
Strategic RecommendationAllocate $345K in Year 1 towards strategic digital development reaching operating break even by the middle of Year 1 (est. 2014)
Source: http://www.mediapost.com/publications/article/190447/consumers-want-mobile-enhanced-retail.html#axzz2HSsgs0FO
2013 Market potential
72.5m MENA
internet users
66% search for
products online
33% make online
purchases
6 average purchases per year
$230 average price of
purchase
$21.7B estimated
B2C commerce
opportunity
Existing Market Share
Potential Market Share
100 0
47.8m potential
customers in the MENA
300m population in
the MENA region
100 162013 Market Development Index
2013 Share Development Index
Source: Market Based Management / Wamda.com
Highly attractive opportunity, where our share can develop along side the market
Signals to enter and operate in the MENA market with confidence
Source: McKinsey & GE
Com
petiti
ve
Posi
tion
Unattractive Average Attractive
Category Attractiveness
Weak
Average
StrongCash generator
Disinvest Phased withdrawal
Proceed with care
Proceed with care
Try harder
Cash generator Growth leader Leader
Double or quit
Snapshot of internal key strength and growth areas – SWOT (1/2)
Strengths
Committed and knowledgeable executive team
Extensive experience launching digital platforms
Attractive and loyal customer base
Dedicated budget Aggressive growth plans Known and trusted brand to
create easier digital conversions
Weaknesses
ᵪ Limited digital properties in nascent stages
ᵪ Lack of dedicated digital teamᵪ Absence of existing benchmarks
for measuring successᵪ Lack of advanced data and
analytics
Development of a highly engaged target audience through our strategic digital plan will strengthen our competitive advantage in the market
Snapshot of external key strength and growth areas – SWOT (2/2)
Opportunities
Internet and mobile internet penetration rapidly increasing in MENA
B2C ecommerce to grow by 35% through 2015
In store & offline activation through CRM and integrated profiles
Emerging ‘MENA fashion’ community
mCommerce & social commerce
Threats
ᵪ Global entrants into MENA ecommerce opportunity
ᵪ Absence of familiarity with online shopping
ᵪ Weak payment providers ᵪ Lack of trust in MENA
ecommerce (aftercare services)ᵪ Customer hesitation with online
payment due to safety concerns
Category attractiveness is high; we must
remain aware of new entrances, market trends and voice of
customer
Source: http://www.just-style.com/analysis/debenhams-outlines-expansion-plans_id115927.aspx
DebenhamsDebenhams
LandmarkLandmark
BarneysBarneys
High
Medium
Low
Perceived threat Description
Souq.comSouq.com
MarkaVIPMarkaVIP
Namshi.comNamshi.com
Our competition is aware of the market attractiveness and is entering
• Globally better than predicted online sales; locally building eCommerce team since 2011
• Started building web team in 2012, launched UAE eCommerce site in Nov.
• Recently expanded its international shipping to over 90 countries, ten of which are in MENA.
• The Middle East’s largest e-commerce site, is growing through acquisitions
• Private online sales club has announced $15 million in investment over two different funding rounds
• In two separate rounds of funding have raised upwards of $20m lead by JP Morgan Asset Management.
Our immediately addressable customer spends with discretion and expects a high level of customer service
Home 1%
Ladies28%
Lingerie25%
Mens23%
Childrens13%
Foods5%
Beauty5%Title
Based on internet averages marksandspencerme.com is visited most by the following demographic:
• Gender: Females• Age group: 35 - 44• Education level: College
educated• Additional: Browse the
site from work
Source: M&S Internal / Alexa.com
Potential MarketTotal Market Accessible Market Realistic Share
1.45M potential M&S e-
Commerce customers
72.5M MENA Internet
Users
Growth facilitation is necessary for apprehensive consumers in this young and growing segment
7 key forces that restrict a market from realizing its potential
5 customer adoption forces affecting new market penetration
1. Feel the need2. Observation3. Buying Decision4. Mitigate Risk5. Trail-ability
TargetCustomer adoption
1. Lack of awareness2. Lacks desired performance3. Consumers lack skills to use4. Insufficient infrastructure5. Unaffordable6. Unrecognized need7. Unavailability
Source: Market Based Management
Multifaceted digital strategy to be integrated across departments
Our strategic plan will create tactical touch points to build extensive customer profiles and use robust monitoring, analytics, and data to facilitate decision making
Offline/In Store
Community building
Mobile
Direct digital
Paid placement
Branded web properties
Marketing
Public relations
In store management
Buying
Visual merchandising
IT/Agency
Lifetime Customer
StrategyResult Department
High awareness
Community Building - Maneuver digital awareness of M&S to a top consideration for MENA retail shoppers
Tactical examples and tools used include:
Visual Content Blogger/Magazine Outreach Article Marketing Social Media channels Link building
44% of users are more likely to engage with brands if they post pictures
Tactically position community building to effect • ‘Free’ and Paid Social Media • Search Engine Optimization• eCommerce conversionsby creating third party vetted and internally developed awareness, trust, and conversions
Source: ROI Research
Paid Placement - Expand our market share with observable brand placements to create measureable, predictable, and instant awareness
Tactical examples and tools used:
Ad Words Mobile Ad networks Ad Sense display ads Social promoted stories Social display ads
Enhanced with QR codeStandard magazine Ad
Offline/In-store - Create the strongest interconnected experiences bring customers closer to our brand and ultimately a buying decision
Tactical examples and tools: In-store item pick up VR/Augmented Reality Unique Campaign Landing Pages Coupons or check-in offers On-site Interactivity Mobile ‘gamification’
Source: http://pushsci.com/2011/10/01/mobile-what-not-to-measure/#.UPKGkaHF00w
Drives Information Capture and mCommerce
Opportunities
Mobile is estimated to influence $230 Billion of total brick & mortar and online sales
Tactical examples and tools used:
Internal fashion blog Live customer chat Live customer phone support Customer feedback section On-site & off-site search engine optimization Multi-fulfillment option shopping cart Couponing Customer capture Community management Mass media integration
Source:http://www.emarketer.com/Article.aspx?R=1009585
Branded Web Properties - Develop to a MENA online market share player maximizing reach, customer service, and sales
The highest response measured at 48% of online shoppers said they trusted brand websites over all other forms of digital media.
Our site goals:
High performing Customer friendly Encourages trialability
Tactical examples and tools used:
Social media promotions Mobile applications Mobile notifications Text messaging Email marketing
Direct Digital - Improve retention and increase repeat purchases for customers of Marks & Spencer
Can be used in conjunction with Seasonal, Product
Releases & Anniversaries
Source:https://www.emarketer.com/Coverage/Email.aspx
67% of CMO's still rated email the most successful digital marketing tactic
E-Commerce financial projections show promising new revenue stream from our immediately addressable market
Year 1 Year 2 Year 3 Year 4 Year 5
Traffic Needed @ 1% 117,935 130,908 145,307 161,291 179,033
Total Transactions 1179 1309 1453 1613 1790
Average Net Checkout $230 $230 $230 $230 $230
Sales Revenues $271,250 $301,088 $334,207 $370,970 $411,777
Year 1 Year 2 Year 3 Year 4 Year 5$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
eCommerce Sales Revenues
Fixed CostsDatabase Programmer $ 4,632.15 Front-End Developer $ 4,087.19 Community Manager $ 3,269.75 Advanced Analytics $ 2,043.60 ME Audience Tool $ 2,043.60 Hosting $ 190.74
Variable CostsPaid Ad Spend $ 4,904.63 Graphic Design $ 2,452.32 Mobile App Development $ 2,179.84 Campaign Related Mobile/Web/Email dev $ 2,997.28 Monthly cost $ 28,801.09 Annual cost $ 345,613.08
The right mix of fixed and variable costs will determine break even and payback periods
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12$0
$5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000
Series1Series2
Source: Industry Average Pay Scale and Marketing Spend
Revenue
Fixed Costs
Performance will be measured using industry best practice and internally developed metrics
Monitoring and measuring thorough data and analytics
New customer acquisition Customer Retention Traffic Database growth Social metrics Sales
• Market potentialHighly attractive market with growing demand
• Identifying Opportunities through SWOT analysisMarket forces will provide signals to convert customers
• Develop digital strategy to capitalizeCreate awareness and facilitate new revenues
• Costing and ProjectionsInvest to grow our market share
• Performance MeasurementDevelopment measurement to gauge effectiveness
To recap - here is how we will sell the strategy to management and M&S UK
Digital strategy will roll out to compliment 2013 regional store openings
Reach▪ Internal team ▪ Internal team
▪ Various stakeholders
▪ Management, M&S UK
▪ Internal team
▪ Management
▪ HR
60-90 Days60 Days
Remaining of 2013
▪ Budget released▪ Performance standardsResources
required
Desired outcome
▪ Leverage previous M&S best practices in new strategy
▪ Introduction of M&S digital campaign to MENA market
▪ Build strong audience profile
▪ Talent acquisition
Focus▪ Internal data review
▪ Determine benchmarks
▪ Set performance goals
▪ Complete handover of existing tactical campaigns
▪ Develop tactical campaigns in-line with 2013 store openings and agreed goals
▪ Capture local data (Ipsos, Nielsen)
▪ Begin sourcing process
▪ Obtain management sign off on strategy
Prelaunch
Roll outStabilization
21
▪ Strategy sessions▪ Personnel plan
▪ Digital team
Mobile commerce (m-Commerce) is estimated to grow globally to $31 Billion by 2016
Social commerce expected to reach $30 billion in the next 5 years
Source: http://money.cnn.com/gallery/magazines/fortune/2013/01/10/2013-social-networks.fortune/5.html http://www.strangeloopnetworks.com/resources/infographics/mobile-infographics/the-growth-of-mobile-commerce/
Position our workplace, team, and brand as the most forward thinking and innovative retailer in the MENA region
Thank You & Questions
Appendix
Snapshot of internal key strength and growth areas – SWOT (1/2)
Development of a highly engaged target audience through our strategic digital plan will strengthen our
competitive advantage in the
market
Strengths
Committed and knowledgeable executive team
Extensive experience launching digital platforms
Dedicated budget Aggressive growth plans Known and trusted brand
to create easier digital conversions
Weaknesses
ᵪ Limited digital properties in nascent stages
ᵪ Lack of dedicated digital team
ᵪ Absence of existing benchmarks for measuring success
ᵪ Lack of advanced data and analytics
Snapshot Improving our digital competitive position through creating more value
SuperiorTechnology
Superior Offering,
Branding & Positioning
SuperiorOperations
Superior Target
Superior Customer
Superior Access
Superior Inputs
Superior Collabora-
tors
Superior Data & Insights
Integrated eCommerce
72% of existing product mix is driven
by highly sought female demographic Strong & customer
focused MENA distribution
Apply M&S Customer Values to our digital channels
Best in Class CRM &
Analytics
Snapshot of external key strength and growth areas – SWOT (2/2)
Category attractiveness is high; we must
remain aware of new entrances,
market trends and voice of customer
Opportunities
Internet and mobile internet penetration increasing in MENA at exponential rate
B2C ecommerce to grow by 35% through 2015
In store & offline activation through CRM and integrated profiles
Emerging ‘MENA fashion’ community
mCommerce & social commerce
Threats
ᵪ Global entrants into MENA ecommerce opportunity
ᵪ Absence of familiarity with online shopping
ᵪ Weak payment providers ᵪ Lack of trust in MENA
ecommerce (aftercare services)
ᵪ Customer hesitation with online payment due to safety concerns
Value is destroyed through substitutions, obsolescence and new entrants
Power of BuyersHIGH
Substitution & Technological Obsolescence
HIGH
Threat of new entrants
HIGH
Competitive rivalryHIGH
Power of Suppliers LOW
Attractiveness of MENA ecommerce opportunity will create extensive new competition
Consumer preferences are shifting, but at what rate? Will online ever overtake the shopping mall in MENA?
• Compliment in-store purchases while still driving revenue
• Competition is entering
http://searchenginewatch.com/article/2232614/10-Reasons-Why-Public-Relations-is-a-Must-do-for-SEO-in-2013
The latest Google changes have put a real emphasis on high quality, unique content that is linked to by quality sites.
"The future of SEO is not in the technology, it’s in the ability to tell stories that readers and Google will find interesting… and that’s public relations.”
“Authentic and relevant link building, aimed at driving engagement, informing publics and building mutually beneficial relationships should be a part of every public relations and SEO effort,"
Public Relations Society of America (PRSA)
Promotions will provide tremendous ROI effecting; social media, SEO, SEM, written & visual content, and eCommerce to drive conversions
Online fashion community deep dive
http://www.forbes.com/sites/chrisperry/2012/01/23/why-every-cmo-should-celebrate-cmad/
Social Media Tactical Deep Dive
Community Management Strategy/ Investor in Customer Relationships
1. Channels informed based on community insights2. Outreach and involvement w/ active and influential members of community?3. Is your content in line with known market needs and expressed community interests4. Community building online and in-person participation in major events5. Actively design and manage it as customer insight and service outpost
Pinterest is 4 largest generator of traffic and offers affiliate links – revenue generation - the act of pinning can signal buying “intent.”
Paid visual content will provide us with awareness for potential brand followers to connect with our brand in a meaningful way
http://www.slideshare.net/TheOnlineProj/how-much-does-a-facebook-fan-cost-in-the-arab-world-15809461
Social Media Tactical Deep Dive
Paid Social Strategy
December 2012, 44 million Arabs are using Facebook. Nielsen predicts fb reaches its intended audience 90-95% of the time compared to 35% on average
Qatar has the highest average cost per fb fan, while Eqypt has the lowest average cost.
Fashion industry has one of the higher average costs per fan compare to most major industries
SEO & Content Strategy Development
14 APPROACHES TO CONTENT
1. Research important questions.2. List good / bad examples.3. Passionately tell a story.4. Highlight recent trends.5. Survey best practices.6. Compile proven tips.7. Point out a problem.8. Recognize who.9. List what.10. Warn when.11. Show where.12. Debate why.13. Demonstrate how.14. State the so what?
Paid digital placement (ex. banner ads & ad words) will provide instant awareness, strong analytics and a highly measurable marketing spend
Tactical examples and tools include Ad Words, Mobile Ad networks, Ad Sense display ads, social promoted stories and social display ads
Integrating digital components to real world and offline (In-store, ATL/Mass Market campaigns) will increase the all campaign effectiveness, maximizing return on investment
Many people prefer using their mobile devices for shopping even while at home... mobile isn’t just about ‘on-the-go’ convenience when it comes to shopping
63% of consumers expect more mobile shopping experiences in the next two years
72% use a smartphone to locate a store
66% use a smartphone to look up/compare pricing
According to one study, 92% of mobile video viewers also share videos with others.
http://www.mediapost.com/publications/article/190447/consumers-want-mobile-enhanced-retail.html#ixzz2HqfH2zvV http://www.emarketer.com/Article/Nearly-All-Mobile-Video-Viewers-Mobile-Video-Sharers/1009586
Brand websites are the content online shoppers trust most
Live chat can boost conversion rates 10-20%
92% of companies who blog multiple times per day have acquired a customer from their blog.
On-site testimonials have been shown to improve conversion rate by 34%.
http://www.emarketer.com/Article.aspx?R=1009585 http://conversionxl.com/53-ways-to-increase-conversion-rate/
Speed and usability, 400 milliseconds could mean a 5-9% increase in visitor retention for your business.
Proper placement and awareness is vital in the vast expanse of the internet
http://www.slideshare.net/HubSpot/the-state-of-seo-and-internet-marketing-in-2012
3 billion searches per day in Google
75% + of all clicks go to organic results not paid ads
More than 50% of search queries have no ads at all
Google bought Twitter’s data and pulls Facebook ‘s API, social signals are a much bigger part of the Google algorithm
Email marketing is still the most effective direct digital marketing tactic
Tactical Deployment Practices
Build and segment your contact list for better results
Craft strategic content and offers that increase your response rates
Leverage your email content across multiple marketing channels
Measure of email marketing success is vital not only to understand e-Commerce but also offline effectiveness. Email marketing is a great tool to drive more in-store conversions and tracking this is important
http://thenextweb.com/me/2012/04/29/souq-com-the-middle-easts-largest-e-commerce-site-acquires-the-regions-first-private-shopping-club/http://www.alexa.com/siteinfo/marksandspencerme.comhttp://www.emarketer.com/Article.aspx?R=1009307http://www.internetretailer.com/2005/07/21/multi-channel-buyers-spend-298-per-purchase-online-era-study-shttp://www.internetretailer.com/2009/08/27/customer-retention-cited-as-most-valuable-retail-measurement-sthttp://www.internetretailer.com/2012/08/15/consumers-spend-more-and-make-more-purchases-online-q2http://www.majalla.com/eng/2011/09/article6895http://www.intelligent-commerce.net/Gulf_Cooperation_Council_B2C_eCommerce_Overview.pdfhttp://blog.hubspot.com/blog/tabid/6307/bid/33959/6-Ways-Social-Media-Marketers-Should-Capitalize-on-the-Visual-Content-Revolution-INFOGRAPHIChttp://m.arabianbusiness.com/dubai-online-retailer-wins-new-us-investment-484811.htmlhttp://visual.ly/how-mobile-impacting-retailhttp://smallbiztrends.com/2013/01/pinterest-tools-measure-impact.htmlhttp://techcrunch.com/2012/09/06/report-pinterest-beats-yahoo-organic-traffic-making-it-4th-largest-traffic-driver-worldwide/http://blog.hubspot.com/blog/tabid/6307/bid/33959/6-Ways-Social-Media-Marketers-Should-Capitalize-on-the-Visual-Content-Revolution-INFOGRAPHIC.aspx#ixzz2HI7zGvY0http://blog.hubspot.com/blog/tabid/6307/bid/31550/20-Fresh-Stats-About-the-State-of-Inbound-Marketing-in-2012.aspxhttp://unbounce.com/conversion-rate-optimization/cro-and-seo-together-at-last/
Sources