Presented by: Taj Zadhra-Ogunsola August, 3rd, 2016
Linking Offline and Online Marketing Efforts to Africa’s Luxury Retail Experience. Multi-Screen Approach 2016
Interact Engage
1. Drive Profit Potential. 2. Expand Customer Base &
Franchised Line.
3. Adopt Long-term Goals to Tackles Gaps in
Sales drive. 4. Grow Retail across
market
1. Outline Communication Objective
2. Develop Communication Strategy
3. Deploy Digital Asset Receptive to Target
Customer.
2. Engage and expand Distribution Channels for
increased customer Reach & Store Traffic
1. Deploy Retail Strategy that Choose Polo Luxury rather than competitors
Objective
1. Focus on Nigeria, working outwards into western territory
with Pan-African pursuit.
2. Robust Sales Strategy that Underscore New Revenue
Stream/Frequent Visits to Polo’s Stores/Builds Brand reputation but
Connect with Customers .
Situation Product
Challenges – Perception
Luxury Retailer
Low foot traffic to
stores and high
custom duties on
imports a disincentive
for customer to buy
locally.
Obstacle
Change in trajectory
Company Overview
The company has the potential to become Africa’s local Bergdorf Goodman or Alfred Dunhill within five years.
Polo Luxury
Polo Avenue
Polo Limited
Polo consist of two retail brands
Purchasing arm & franchising company
Jewellery & Watches
Luxury Leather Goods
Attract + Inspire + Experience & Commit
Discovery – Affluent Luxury Buyers
When making purchase decisions, they use the internet more than any other medium
75% conduct research online before purchasing
2x use a search engine in their research
Affluent luxury buyers are extremely tech savvy
100% use a smartphone, tablets, laptop or desktop
2x smartphone penetration than for general population
Across markets, some buy online but most will go to a store
72% of shoppers in new markets research online and offline then go to a store
65% say they want to touch and feel a product before purchase
39% to 32%: - Store windows losing relevance vs. online (from 39% to 32%: is store role changing?
75% - Omnichannels
getting momentum 75% of consumers asking for it (brands to be reached through different channels)
Source: Bloomberg: Untapped Growth Potential Attract Luxury Goods, May, 11, 2015- Bloomberg Professional Source Google - How Affluent Shoppers Buy Luxury Goods, Think Insight, 2015 Source:John Guy, Mainfirst AG, 2015
Constraints – Assumptions
Product franchise
line expansion
importation
benefits sought
• Complex product franchise agreement with NO shared marketing or financial risk, locally.
• Time consuming processes with 100% outright payment before reselling goods
• Luxury retailer with an African experience
• Convenience, superior service, quality and professionalism with great product offerings.
• Mobile friendly approach
• Expensive Real Estate
• Expansion through shopping mall chain creates unpredictable target customers at high cost
African Factor
• Preference to shop overseas for the experience
• Bureaucratic and political airport concession policies
• High custom duties on imported goods
• Restriction of certain leather goods • Difficulties convincing foreign
brands of Africa’s market potential • Unattractive upwards pricing
conversation (Forex) reduces sales.
The Market
2.5 million AB class in
Nigeria by 2020. 23% more projection than for Germany and UK combined. Source: Rod
Walker, 2013
25% of luxury brands
at risk of loosing exclusivity base on consumer declaration. Source: Rod Walker, 2013
53% of luxury
consumers spend made out of the home country.
Luxury consumers make up
just 30% of consumers
but generate about
50% of retail sales and
70% of gross profit
margins. Source: Marina Strauss –
Retailing Reporter, The Globe & Mail, June, 03,2012.
…9% of luxury sales will
happen online by 2020. Source: Mario Ortelli, Bernstein Analyst, 2015.
$5.2 billion in African
luxury retail sales by 2019. Source:
Bloomberg: Untapped Growth Potential Attract Luxury Goods, May, 11, 2015- Bloomberg Professional
62% vs. 53% Digital growing importance with online influencing 62% vs. 53% of total luxury purchases.
e-Commerce
is shaping up to be an “online luxury turf war” Source: John Guy,
Mainfirst AG, 2015
Fast-growing luxury markets, where trendiness and newness are key is in New Market.
56% are female buyers
37 is the average of buyers
Average number of luxury items purchased in the last two year:
22.7 Source: Google - How Affluent Shoppers Buy Luxury Goods, Think Insight, 2015
Why e-Commerce?
Source: Google - How Affluent Shoppers Buy Luxury Goods, Think Insight, 2015
Where do luxury shoppers purchase
In-store in my country In-store aboard/while travelling Online
Metal - Attraction
Obsession Carre LV Landscape
Acetate - Mahina
Sun Glasses
Celestie Tie
Olivia Scarf
LV Initials Monogram Belt
Ties and Scarves
Organic expansion – Aggressively lobbying for key strategic positions at Nigerian airports (PL Concessions)
Increase product range – Discover new sales channels with low entry products to increase foot traffic offline & online.
Incorporate REAL time technology innovation in digital assets – Connecting with African customers and attract foreign tourist, PL is a place to shop when in West Africa
Strategic Alliance/Partnerships – Airlines PR campaigns/adverts that delivers value for money builds PL’s Pan-Africa drive.
Market Drivers Shoes
Harold Loafer in Calf Leather
Sofia Sandal in Suede Goat Leather
Rose Pump in Glazed Calf Leather
PL’s Digital Overview
Digital Asset Digital Name
Tweets/Post
Following /Friends
Followers Likes Joined Images Challenges Solution
Website Pololuxury.com N/A Web Traffic ???
N/A
N/A
N/A
Around 26
Requires face-life
To be determined
Facebook Polo Luxury Don’t know what’s going on
Couldn’t access this information at time of review
N/A 8,974 22 Room for improvement
Immediately address
Twitter Account 1 Polo Luxury 24 99 88 1 December 2013
9 Inconsistent & confusing
To be addressed
Twitter Account 2 Polo Avenue 315 81 224 1 February 2014
1 Poor structure & inconsistency
Address immediately
Instagram Account 1 Polo Avenue 938 629 18.6k N/A N/A Over 100 Room for improvement
To be determined
Instagram Account 2 Polo Luxury Shoe
1,288 8,935 3,621 N/A N/A Over 100 Room for improvement
To be determined
E-Commerce (partly)
Sub-domain to main web portal
Traffic -------------- Low
Friendliness ------------------- Questionable
Payment ------------------ No Platform
N/A Delivery--------No options
Product image _______ out dated
Untapped gap of opportunities.
Review or consider total e-commerce.
Linkedin (Linkedin Name: Polo Limited)
Social Networking
None N/A 839 / N/A Irrelevant to Polo Luxury
To be determined
Source: Polo Luxury Digital Content, July, 22,2016
Customers [1] The Snobs
The Snobs
35 -70 years old
Nigerian/Ghana or African shopper
Women and men
High Net Worth Individuals (HNWI’s)
Old money philosophy
Income NGN 200 million and above Conservative with spending but some do indulge to make a statement
Love travel Luggage’s, tend to change them frequently
Buys designer bags to maintaining the statue-quo
Fashion accessories is to die for, “darling!”
Perfumes… well, the more expensive the better.
Customers [2] - Vulgar clicks
Vulgar clicks
34 - 45 years old
More men then Women
“New Money” or newly found wealth statues Made up of Ministers, Bankers, Oil & gas worker, IT guru’s or enteropuaeurs
African celebrities are part of this group
Income NGN100 million and above
Worships “fake it till you make it” theory
Designer watches is the “new” found religion and they are willing purchase
The fake it notion confuse them from purchasing REAL designer handbags and accessories over $2,500
Loves “Perfs” (meaning Perfumes) and will indulge from time to time
This is the cult of “show it, if you’ve got it”
Questionable fashion sense but perfect visitors for PL stores
Customers [3] Followers & Closet Politian's
Followers & Closet Politian's
Intellectually sound Africans with benefits to match the new corporate Africa. They live in hotels and airports across the world and need to look good at all time.
30 - 55 years old
Women and men
Income NGN 50 million and above
Lovers of tech product to subtly display competitive success.
Exposed and accessible to making frequent purchases for lost family times and may shower spouse with extravagant gifts.
Selective in style, cut, and design but that’s partly due to their professions.
Closet Politian's are a new group added to this category, who spends money on anything fashionable.
Closet Politian’s are big spender on women’s leather goods products as gifts to their many lady friends!!!
“Closet” has no reference to their sexuality but rather secretive about spending on luxury as government officials.
They are ostentation and that’s good for PL’s business
Customers [4] Royalty
Royalty
Lil Prince and Lil’ Princess
23 - 35 years old
1st, 2nd and 3rd generation African wealth
Income 15 million and above
The “new” trust-fund junkies
Foreign educated groupies
Well mannered but too much “talkology”
Purchases made in Africa is like a favour to that economy
Clear on what they want and CAN”T be sold special products by Africans retailers.
Snobbish but not rude, it only serves to remind others they are well travelled..
People – Whether someone is selling a product through a channel or using a direct sales model, the value of people in the buying process is critical to the success of business transaction. Product – Luxury is synonymous with excellent quality. The components are of an exceptional nature and manufacturing the product involves high level of expertise. Passion – Whether they are collectors, connoisseurs or communities of like-minded individuals, passionate consumers are brand advocates respected by their peers and a brand marketers best allies. Pleasure – Luxury products need emotional marketing to give them that extra dimension. Provide sensory fulfillment beyond the functional attributes of the item or service. Purpose – Luxury must be both exemplary in function and form. The balance between practicality and pleasure will be different for different customers. Price – Luxury sets the price; price does not set luxury
PREREQUISITES Deploy sensory
engagement that can be employed, as needed, in right
combination.
CUSTOMER
You are not the
customer
LISTEN Listen to the customer.
PEOPLE: They buy from people.
6 P’s of Luxury Marketing
Source: Adopted & Developed using Winsper- Six Key Luxury Marketing Definition
PRODUCT: Has a history, heritage for authenticity
with a unique brand identity.
PASSION: Connoisseurship
shared in real and virtual
communities
PLEASURE: Luxury is
experiential
PURPOSE: The six key
characteristics of luxuries.
PRICE: Fractional
ownership is temporarily.
Cater to the already existing loyal Polo Luxury customer
Increase the Market Share & Increase Revenues
Fulfill people’s desire of owning luxury goods at LP
Why travel aboard when you can visit, click, and have it deliver to your home with PL
Opportunity & PL’s Cash-Cow
Perfumes when sold through selective distribution channels are clearly luxury products, even if they correspond to low-priced items
Invite the customer to travel and dream. Join the Polo Luxury world.
Global retailer with extended product propositions increase sales and in-store visitors.
Target the largest audience by creating desire with permission
Sun Glasses
Design Puerfume
Ties & Scarves
Designer Belts
Accessories Wallets & Leather Goods CASH-COW
Shoes – both sex
Designer Bags
Strategic Overview
Communication Objective
Communication Strategy
Communication Tactics
Business Strategy
Business Objective
Increase purchase
frequency and
retail visits among
current/potential
customers.
Incorporate digital
assets into
communication to
develop engagement
and favorable
attitudes among
customers.
Build personal
relationships with
current and potential
customers.
Aggressive online & offline
drive
Create Polo Luxury app
supported with customer
acquisition strategy
Print advertising
(airline/Airports)
SMS Alert (Geo targeting/
device targeting
Acquire agreed cumulative customer base within an agree period. Expand franchise product range to include: Belts, Ties & Scarves, designer sun glasses Leather goods. Aggressive expansion approach to drive product reach and accessibility
Improve and drive store traffic
Increase product information
via push marketing that
relates to online behavious
data (cookies) to drive store
traffic.
Enable customer service
engagement and develop
customer loyalty programme
points.
Marketing Strategy
Recommendation
Polo Luxury should continue to: ✓ Carrying out the illusion of exclusivity – the emotion, the product, the texture – and the buying experience. ✓ Focus on increasing potential consumers & frequency of current consumers ✓ Monitor the success & ROI of the outlined communication programs ✓ Develop communication plan in conjunction with Polo Group’s overall business development goals relating to further penetration of your markets
1). Work with other foreign direct investors to lobby government to reduce tariffs and restriction effecting the business.
2). JV with other African retailers or consider franchising brand – “Polo Luxury” to reduce cost/risks and grow pan-African expansion strategy.
3). E.A.C.C. Evaluate: your core business function/Cash-Cow product
Align: with product demand and market needs
Consider: diversifying franchise line to deliver growth profits Create: engaging online/offline brand experiences and in-store
experience
Going Forward
Thank you!
Any Questions?
Taj Zadhra-Ogunsola August, 3rd, 2016
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