This report will focus on a three-year Marketing Strategy Plan for Boohoo and a one-year Communication Plan to explore what improvement Boohoo can make across their shopping experience, their site and their social media to drive sales in the UK market.
Methodology
Primary research
For my primary research I made a questionnaire on Survey Monkey to find out customer experience with brand Boohoo. The sample of people used in the primary research ranged from the ages of 16 – 25 who are the main consumers Boohoo targets. Secondary research was carried out through websites such as WGSN.
Brand History
Boohoo is a UK online fashion retailer. It was founded in 2006 by Mahmud Kamani and Carol Kane. The brand specifies in its own brand fashion clothing selling over 36,000 products, including accessories, clothing, footwear and health and beauty. Boohoo also run BoohooMAN, NastyGal and PrettyLittleThing and are all targeted at 16-24 year olds.
Mission statement
Here at boohoo we are very proud of our brand and what we have achieved. Day to day we live by four key values that help us to continue to succeed and are at the heart of everything we do. This is our PACT, the values that seal the deal for boohoo..
The key issues boohoo face are that there are many retailers out there are all very similar including Miss Guided and Pretty Little Thing.
Maco/micro trends
Macro Trends
Political factors
- Wage legislation – minimum wage and overtime
- Work week regulations in retail
- Product labelling
- Taxation – tax rates and incentives
- Mandatory employee benefits
Economic factors
- Exchange rates
- Labour costs
- Economic growth rate
- Unemployment rate
- Interest rates
- Inflation rates
- Education level in the economy
Social factors
- Class structure/hierarchy
- Power structure in the society
- Leisure interests
- Attitudes (health, environmental consciousness)
- Demographics and skill level of the population
Technological factors
- Recent technological developments by Boohoo competitors
- Impact on cost structure in Retail industry
- Rate of technological diffusion
- Technology’s impact on product offering
Environmental factors
- Climate change
- Weather
- Recycling
- Air and water pollution regulation in Retail Industry
- Waste management in consumer services sector
Legal factors
- Copyright
- Data protection
- Employment law
- Health and safety law
- Discrimination law
SWOT
Strengths
- Strong distribution network – Boohoo have built a trustworthy distribution network which is able to reach most of its potential market
- New markets – Boohoo has been entering new markets and making success of them such as BoohooMAN and PrettyLittleThing. The development has helped Boohoo build a new revenue.
- Good returns on capital expenditure – Boohoo have made good returns on capital expenditure by making new revenue streams.
- Reliable suppliers – Boohoo has a strong reliable supplier of raw material therefore enabling the company to overcome any supply chain holdups
Weaknesses
- Investments in new technologies – The scale of expansion and geographies that Boohoo are planning to expand into, they will need to put more money into technology as the investment In technologies is not at balance with the vision of the company.
- The profitability ratio and net contribution % of Boohoo are below the industry average.
- Global competition such as Missguided, Topshop, Asos and H&M
- No flagship stores
Opportunities
- Opening up of new markets because of government agreement – the approval of new technology standard and government free trade agreement has provided Boohoo an opportunity to enter a new emerging market
- Lower inflation rate – the low inflation rate brings more stability in the market and enable credit at lower interest to Boohoo customers
- New technology gives Boohoo an opportunity to maintain its loyal customers with great service and lure new customers through other value positioned plans.
- Continue using celebrity endorsements
- Creating an online chat on their website that allows customers to receive 24-hour help.
Threats
- Poor quality products compared to Boohoo competitors
- Increased competition within the industry
- Technological developments by competitors – new technological developments by competitors pose a threat towards Boohoo as customers attracted to this new technology can be lost to competitors which will decrease Boohoo overall market share.
Competitor analysis
The retail industry face a strong competition as Boohoo have many competitors such as ASOS, Missguided, New Look and H&M. A way that most consumers experiment all different trends with different brands is to choose cheaper retailers which in this case would be Boohoo.
2019-1-18-1547810074