Fashion Marketing: Assignment-2
Fashion Marketing: Assignment-2
Fashion Marketing: Assignment-2
Fashion marketing
assignment-2
BRAND-ASOS
Submitted by
Sneha.v
sahana.A
Kavya dharshini.S
vidhyashree.N
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INTRODUCTION
“To experiment, to express yourself, to be brave and grab life as the extraordinary
adventure it is”.
ASOS is a British online based fashion and cosmetic retailer and it was founded in 2000 in
London. Their target audience is young adults. Their brand sells over 850 brands along with their
own brand and ships to all 196 countries. ASOS believes in a world where you have total
freedom to be you, without judgment. ASOS also believe in choice for all so it
producedmorethan30sizesandallthosesizesareatthesameprice.They believe in body positivity as
their audiences are in different propositions so they work with more than 200 models and all
those models are part of the ASOS family. ASOS was honored to be the partner of British
Paralympics Association.
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now it’s working with more than 700 boutiques. ASOS is working with 168 suppliers and those
suppliers work with 713 factories. Considering ever single person in the supply chain they set a
world leading ethical trade strategy in 2017 to improve transparency, wages, health and safety.
They believed that great fashion shouldn’t come with a compromise, be that style, price or
impact. Their brand is slowly converting as a sustainable brand also they ensures that no animals
are harmed and moving into animal free products. ASOS Foundation works with many charities
in UK, India,Kenyatobringthepositivechangesandcreatesustainability.
ONLINE STORE
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Brick and mortar
If brands sets up a brick and mortar store it has to online change its customer segment
Product:
● At ASOS they sell a wide range of branded products which are similar to what has
been seen on celebrities. They sell clothes for men and women and this includes items
like footwear, coats, shirts and several others.
● They have also recently introduced a new line of children's clothes which is known
as little ASOS and also sell branded beauty products like Bourjois.
● Although ASOS operates from online they sell similar products to what can be
found in high street stores however they still sell high quality products at low
affordable prices.
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● Some of the brands that are sold at ASOS include Calvin Klein, Karen Millen, Nike,
People tree and many more. Below is a print screen to show the sorts of products that
are sold at ASOS
Price:
● At ASOS they have a reasonable pricing strategy, however some of their products
are expensive.
● The price depends on what sort of product that the customer is purchasing. Most of
the products are sold are products which are similar to what celebrities have worn but
sold at cheaper, affordable prices.
● The main difference between the high street stores and ASOS is that there is a
delivery charge. Currently 7% of the users make a purchase with an average basket
size of £39.32 to £48.80.
● At ASOS they have regular sales when the products are reduced by 50% or more
and these products are sold in the ASOS outlet section of the website. Below is a print
screen of the outlet
Place
● ASOS are a click this means that they provide the goods through the internet only.
● This means that there will be no stores for the customers to visit and they will have
to log onto the website to look at the products and to purchase them.
● The business will have a warehouse or some other facilities where the products will
be kept and the products will be sent from here.
● ASOS.com delivers their products to customers all over the UK and there is a
delivery charge for this, however in some occasions the delivery charge is not
applied.
● When ASOS first entered the business market which was five years ago, they had a
small warehouse where they used to operate from. It was approximately 550 square
metres which is equivalent to a football pitch. But now they have a huge warehouse
which is 32,500 square metres which is the same size as 5 football pitches. This
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shows that over a 5 year period ASOS have expanded and are attracting a lot of
customers which means that they need a bigger warehouse where they can operate
from.
● They have a head office which is located:Greater London House Hampstead Road
London NW1 7FB UK
Promotion:
● At ASOS the way that the employees provide customer service is different to what
is provided in stores.
● This is because it is not face to face it will either be through the phone or email.
These employees will have different skills and they will be required to deal with any
problems that the customers have and may also be required to work in the warehouse
and make sure that the right goods are sent out.
● ASOS will also have employees that have good web designing and marketing skills
they will be in charge of monitoring and controlling the website.
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● At first they started they only had 47 employees and now they are employing 250
people. This also shows that the business is growing and therefore more employees
are needed. The employees are needed for the human and physical resources
department as ASOS have had a 90% sale increase over a 12 month period.
● Some of the board of directors that work there are Chairman-Lord Waheed Alli,
Chief Executive- Nick Robertson, Non- Executive Director- Karen Jones.
● Process :At ASOS the shopping process is different in comparison to shopping at
an high street store. This is because the customers are not able to feel or try on the
product, they are only able to view the images that have been placed on the website.
● The products that they wish to purchase will be kept in a basket and then the
customer will have to pay by using a credit card and this will go through secure
technology like gateways.
● Then the customer will have to wait to receive their goods via post.
● The customers will not recieve face to face customer service and if they need help
they can leave feedback or look at the FAQ section of the website, this is therefore a
different process to what would take place in stores.
● However the customers are able to view the products in many ways for example
they can zoom into the product and they can also view the product on models.
● At ASOS customers are also able to create an account which will include
information of all the transactions that have taken place and will also save the
customers time as they will not be required to re-enter their information each time
they make a purchase on the website. Also by registering it makes the customers a
member of ASOS and they will receive regular updates via email and post about the
new products and promotions. Below show is a print screen showing how customers
can set up an account.
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Physical evidence
● ASOS are a click business which means that they operate from the internet and there
is no store for the customers to visit, therefore there is no physical evidence.
● The physical evidence that the customers will have is the receipt that they receive
with the products that they ordered.
● At ASOS their main concern will be the appearance of the website, they will want to
ensure that it is easy and convenient to use and it is regularly updated.
● Below is a print screen of the ASOS website and their website
is:http://www.asos.com/.
● At ASOS they regularly update their website with new products and promotions.
● The website is also easy and simple to use for customers, this is because the areas
for men and women are divided up and there is also a drop down menu which allows
customers to view the different sections they are able to view on the website.
● Also ASOS have a wide range of multimedia resources on their website which help
attract more customers this includes banners on the top of the website and also video's
of the products on models which gives customers a similar shopping experience to
what they would get if they were high street shopping.
RELATIONSHIP MARKETING
ASOS Relationship marketing helps to develop long term engagement from customers to their
employees through social media for the information that directly suits their needs and
communication styles.
Basic marketing.
Reactive marketing.
Accountable marketing.
Proactive marketing.
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Partnership marketing.
• ASOS encourages their customers to repeat purchases to grow their customer base
with the roll out of loyalty programme which focuses on the rewarding engagements
system alongside purchases.
• They set a target of £2.5bn in annual sales by 2020 and they need 9.7 million active
users to buy more stuff. The scheme will offer points for purchases which shoppers
can cash after accumulating certain amount.
ELEMENTS OF CUSTOMER RELATIONSHIP MARKETING
• Customer Differentiation.
• Long Term Emphasis.
• Continuing Transactions.
• Two-Way Communication.
• Retention Focus.
• Share of Values.
THE CHARACTERISTICS OF RELATIONSHIP MARKETING:
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• Part of my role is to make sure their purpose is central to everything we do and to
give their people the support and freedom to achieve it.
• When commitment and trust are executed together, the outcome are efficient and
effectiveness.
SERVICE
• We collaborate with some of the world biggest names like CRAYOLA, THE
SIMPSONS, LAQUAN SMITH, GLAAD and VFILES to design cool collections you
won’t find anywhere else. We do the hard work; you look amazing deals.
• As well as our roaster of ASOS brands, we were also got a a slick range of labels
you won’t find anywhere else.
CUSTOMER CENTRIC ORGANISATION
• Four primary stages comprise relationship marketing. Each stage builds on the
previous one, creating a solid foundation for long-term success in ASOS.
• ATTRACTING CUSTOMERS: Capture customers’ attention using various
methods, including, advertisement, email marketing, and social media, to generate
curiosity and interest in your business.
• CONVERTING CUSTOMERS: Convincing customers to take the next step
requires ensuring that your product or service solves their problem. Customers must
have enough trust in your brand and messaging that they are willing to take a chance
on you.
• RETAINING CUSTOMERS: It’s more difficult to attract a new customer than
keep an existing one. Retaining customers means supporting them along their buying
journey and beyond. Providing excellent customer service goes a long way in making
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customers feel valued. 96% of customers say customer service is an essential factor in
their choice of loyalty to a brand.
• DELIGHTING CUSTOMERS: Express appreciation for your customers by
offering loyalty discounts, recommending complementary products they might like,
or free shipping. Try reaching out when they least expect it – a surprise birthday
discount often makes a customer feel more “seen” than traditional seasonal offers.
BENEFITS OF RELATIONSHIP MARKETING
• ASOS has adopted a cross channel approach by using some paid and organic
channels to promote the brand and product range.
• ASOS is using Twitter, YouTube, Instagram, Facebook, Pinterest and other digital
channels to reach the target audiences.
DISTRIBUTION RELATION
When a customer purchases a product or service, they may have brought it directly from the
business or through a retailer or wholesaler. These ways of purchasing are known as distribution
channels.
· Producer-Customer
· Producer-Retailer-Customer
· Producer-Retailer-Customer
· Producer-Agent-Wholesaler-Retailer-Customer
Shortest and simplest of the 4 main channels (making it economical), no middlemen involved,
producers directly sell their products to consumers. The producer or entrepreneur performs all
the marketing activities himself and has full control over distribution. A producer may sell
directly to consumers through door-to-door salesmen, direct mail or through his own retail
stores. E-tailers like ASOS adopt this channel to cut distribution costs and to sell industrial
products of high value
Marketing
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ASOS’s marketing strategies, which are based on engaging with young consumers through
launching body-positive campaigns such as “#MySenseOfSelf”. ASOS communicates with their
consumers through ten social media platforms, and aims to be ahead of the “twenty-somethings
of today” by focusing on technology (using cloud-based architecture, and agile engineering
methods to deliver value quickly).
Packaging
Over the past year, we’ve reduced our range of product packaging by 45% and we’re on the
look-out for more efficiencies. 100% recycled card in mail boxes and 25% recycled plastic in
mail bags
Financing
Due to the high level of automation and the 24/7 operation planned for the Berlin facility,
electricity was the priority, for which a number of market ready solutions exist.asos focused on
wind turbines, solar PV and combined heat and power, and built techno-economic models for
two sizes of wind turbine, several sizes of solar PV panels, combined heat and power plants with
gas and biomass fuels, and combined heating, cooling and power.
Given the different policy and subsidy regimes in Germany, in-house tools took account of the
realities of such systems in Berlin. This included a review of the current levies, subsidies and
grants from Central Government, and interviews with industry bodies and developers in
Germany for an accurate picture of the landscape to feed into appraisal.
Team has identified a range of cost and carbon slashing renewable energy solutions for ASOS’s
new European distribution centre. Our expertise and flexible approach have equipped ASOS
with key financial and environmental metrics for management decision, investment and
implementation, further securing their position as a responsible, sustainable business.
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As with any business, ASOS had a range of drivers to consider.Asos presented four different
scenarios to ASOS, combining different technologies to meet different aims: best financial return
(30% IRR over 20 years), biggest public statement (with large solar array and wind turbine), best
environmental performance (further incorporating biomass CHP), and easiest to implement
(including “off the shelf” gas CHP and solar PV). The company wishes to prioritise solar PV and
is reopening negotiations around wind in the region. ASOS to realise their sustainability
objectives, and expects to see the renewable energy systems at Berlin contributing significantly
to ASOS’s environmental performance and leadership as early as 2017.
Storage
We’ve always been famous for our rapid delivery and hassle-free returns. In 2018/19 we
embarked on two ambitious transformational programs to grow our global infrastructure network
and make our customer proposition even stronger. In the last financial year we have doubled our
facility space, with the opening of our third major Fulfilment Centre in Atlanta, US. The
automation of our Euro Hub site outside Berlin has helped increase storage and throughput
capacities across our estate by more than 60%, through smarter and quicker processing
Delivery
ASOS provides rapid delivery and free returns, however, it does not offer repairs. ASOS is able
to design and deliver an item to the customer in two weeks if it is a simple item manufactured in
the UK. More detailed or embellished products (i.e. “fashion items”) take longer. The average
time to market is around six weeks.
Merchandising
In FY20 we plan to deliver our project to introduce our Truly Global Retail systems. These
systems will completely transform how we buy, plan, merchandise and trade, providing us with
greater visibility and flexibility, enabling us to compete on a global platform and trade as a truly
global retailer.
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– buying and merchandising systems that will enable better decision making by providing more
relevant information;
Personal Selling
Inspiring and selling through compelling content on social media, our app and our global
websites. Inventories are valued at the lower of cost and net realisable value, on a weighted
average cost basis. Net realizable value is the estimated selling price in the ordinary course of
business less applicable variable selling expenses. ASOS adds a lot of value to their product via
personal selling and promotion.
Distribution channels
The ‘place’ element of the marketing mix refers to where products are made available to
consumers. This is also called distribution. Distribution channels are the means by which
businesses get products
To their consumers. Distribution may involve the use of intermediaries, such as retailers. There
may be A series of links in a chain of distribution as products are sold between different
businesses on route to The final consumer. There are three main types of distribution channel:
Direct
Well known examples of businesses that sell direct to the consumer are Direct Line (insurance)
and Dell (computers). These businesses do not rely on shops or other intermediary businesses to
sell their product. As a general rule, low-value mass-market products such as basic foodstuffs are
not usually sold direct. Suppliers need the help of wholesalers and retailers to ‘break bulk’. On
the other hand, more Expensive products, especially niche products with relatively low volume
sales, are more likely to be Sold direct. Direct sales are often through online or mail order. Some
businesses that sell direct may Have their own retail stores. Clothing retailer Zara is an example
of a business that owns retail stores To sell goods that it has manufactured. Many service sector
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businesses sell direct to the consumer. A Notable exception is financial services. Products such
as mortgages and share-based investments are Often sold through intermediaries suchas as
financial advisers.
Larger retailers, such as Tesco, Sainsbury and Morrisons, purchase from manufacturers and sell
on To consumers. This method of distribution is sometimes called modern distribution. Products
reach Consumers via one intermediary. You may think with own-label products that the
supermarket chains Are selling direct to consumers, but these products are usually produced by
other businesses and sold .To the shops. Large high street and out of town retailers such as
Halfords and B & Q have enough buying Power to negotiate low bulk prices with producers. The
producer benefits by being able to concthousand. Primarily on making the product, without
having complicated distribution systems to supply thousands
This type of distribution channel involves at least two intermediaries – wholesalers and retailers.
This Is sometimes called traditional distribution. Wholesalers are businesses that purchase in
considerable Bulk from various producers at a discounted price and then sell smaller batches to
many different retail Businesses. Some wholesalers work like supermarkets, in that retailers
come to the wholesaler and take Goods away. (These are called ‘cash and carry’ wholesalers.)
Other wholesalers deliver to retailers. large national chains do not tend to rely on wholesalers.
However, using wholesalers is an effective way of getting products stocked in smaller retail
businesses without having the transport Costs involved in making small deliveries to them.
Independently owned convenience grocery stores.And pet shops are examples of businesses that
often buy their stock from wholesalers.
Supplier relation
Online fashion retailer ASOS supply chain transparency initiative involves asking its brand
partners to strengthen their commitment to sustainability and responsible action by pledging to
make new ethical manufacturing requirements. Brands with a UK manufacturing presence will
be required to make the pledges as a condition to their products being sold on the ASOS
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website.Third-party brands account for around 60% of the lines listed on ASOS’s website at any
one time. ASOS aims to ensure that they do not list brands which implement lower standards
than it requires for its own-brand suppliers
ASOS will ask suppliers to build on the above pledge by mapping their UK based supply chains,
ensuring they have visibility across all UK-based facilities.
Brands will also need to provide evidence of visibility to ASOS, as well as identify risks and
provide strategies to mitigate this risk. If necessary, they will also need to share this information
with ASOS so it can support the brand partner in addressing these issues.
The final pledge requires brands to join Fast Forward, the UK-focussed labour standards auditing
methodology. In 2014 ASOS co-founded this with other retailers to tackle issues facing UK
garment manufacturing specifically.
A recent distribution centre fire on the premises belonging to global online fast-fashion and
beauty retailer, ASOS, has brought to light many of the risks to which modern supply chains are
exposed. ASOS keeps 70 percent of its stock in Barnsley, England and it is believed that the fire
could have affected more than $50 million of inventory.
The facility is over 600,000 square feet and the fire, which police believe was deliberately set,
spread to four floors. Although the website is up and running after being disrupted this weekend,
ASOS’s share price fell by two percent before bouncing back, proving just how much disaster
can affect a company.
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Supply chain
ASOS.com the hub of a thriving fashion community. ASOS sells over 75,000 branded and
own-brand items through the facilities of mobile and web. The company delivers from their
fulfilment centres in the UK, US, Europe and China to 240 different countries. ASOS tailors a
mix of their own-label (60%), global, as well as local brands sold through nine local language
websites: UK, US, France, Germany, Spain, Italy, Australia, Russia and China (MarketLine,
2016).
As a purely online fast-fashion retailer, ASOS is able to continuously refresh and rotate a large
part of their collections to increase customer shopping frequency. For instance, the company
adds up to 4,500 products to their website every week, as illustrated by the figure below. This is
a significant advantage compared to traditional retailers .
Primary activities
As an “ultrafast fashion retailer” (Weinswig, 2017:2), ASOS is able to avoid the retailer dilemma
of product shortages, or excessive inventory. ASOS operates an agile supply chain to match
inventory supply with fast-changing demand and tightly control the inventory to balance
undersupply and markdowns.
Furthermore, ASOS is precocious within their operations; initial designs are made in small
amounts to test demand first. If these are successful, more items are quickly produced. ASOS has
a lower markdown level than traditional retailers, as shown below(Weinswig, 2017:3).
ASOS is able to design and deliver an item to the customer in two weeks if it is a simple item
manufactured in the UK. More detailed or embellished products (i.e. “fashion items”) take
longer. The average time to market is around six weeks. ASOS is trying to add even more value
to their product by reducing the lead times on their own-label items. The brand managed to
increase their number of new own-label products launched weekly by 10% in 2016. As a result,
ASOS has seen strong sales growth over the past few years (Weinswig, 2017). The brand offers a
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“Premier Delivery” loyalty scheme as well: for £9.95, the customer will receive unlimited UK
next-day or nominated-day delivery with no minimum order.
The service of ASOS also contributes to its success. The online retailer makes it extremely easy
for the customer to return an item. If the customer is unhappy with a product, they may choose
from eight different post offices to drop off and return their item for free (e.g. Doddle, Royal
Mail) within twenty-eight days of receiving the item. To get a refund, a customer has to do no
more than fill out the form below.
This means more workload for the service teams of ASOS, however, it is a smart move. Through
each return, ASOS receives data from the customer when they justify the reason for their return
(for example, “looks different to image on site” or “doesn’t fit properly”), as demonstrated on the
list below.
This function allows ASOS to track any faults that may occur in their supply chain and trace
customer feedback to further improve their collections, ensuring customer loyalty and
satisfaction. This puts ASOS in an advantageous position and makes ASOS a threat to other
traditional retailers.
ASOS adds a lot of value to their product via personal selling and promotion. The company
successfully addresses young customers in different campaigns, such as the #MySenseOfSelf
positive body image campaign. ASOS launched #MySenseOfSelf together with anti-bullying
charity The Diana Award in 2015 (Mchugh, 2018). The campaign is an interactive programme
aimed at young people who need help managing issues around body satisfaction, self-esteem and
the effect of social media. To date, the programme has been downloaded 2,500 times, and,
according to the ASOS PLC website, it could benefit over 75,000 people (Mchugh, 2018).
Under their Corporate Responsibility statement (CSR, asosplc.com), ASOS claims they do not
“artificially adjust photographs of models to change their appearance”. They are offering clothes
for a wide range of bodies in over thirty different sizes, including petite, curve, and tall for
womenswear, as shown on the table below.
The ASOS PLC website quotes Naomi Shimada from The Observer: “ASOS is one of the few
retailers that has finally figured out that size 18 girls just want to buy what all the other girls are
buying”. ASOS states that they are committed to stocking the same products from their
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own-label range at the same price, regardless of size. By expanding their product range portfolio,
ASOS reaches out to the plus-size community, as well as any customer who is tackling body
image issues. This gives ASOS credibility and leads to new customers, as well as customer
loyalty.
Support activities
EMPLOYEE RELATIONSHIP
• ASOS employees are encouraged to get more involved with their communities and
offers them in various ways to donate, fundraise and volunteer.
• The ASOS foundation is setup to make a positive difference to young people’s lives.
• They want to help young people to overcome their face in fulfilling their dreams and
their potential.
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EMPLOYEE GIVING
• ASOS Active are sporting or challenge events that ASOS employees can take part
into raise money for the ASOS Foundation and their partner charities.
• ASOS employees raised over £14,000 for their ASOS Foundation during the last
year.
GIVE A DAY AWAY
• Their scheme encourages everyone at ASOS to take one day each year out of the
office, fully paid, to give time to a charity or voluntary project of their choice or to
one of the organized charity events championed by ASOS. Over the year our
employees volunteered 4,643 hours and supported over 60 different charities.
GIVE A WEEK AWAY
● In 2019, they gave 16 employees from our London, Leavesden, Barnsley, Paris, Berlin
and New York offices the opportunity to volunteer at some of the udayan care’s Indian
children’s homes. Volunteers are chosen by the strength of their written applications,
which must demonstrate an understanding of and commitment to the aims of Udayan
Care and the ASOS Foundation.
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It was incredible to see how much of a positive impact we have on so many lives, by working
with Udayan Care through the ASOS Foundation. The individual workshops we ran allowed us
to share our own experience and knowledge with the children, however, by the end of the week, I
think we learnt as much as they did!
CRM stands for Customer Relationship Management. It's a technology used to manage
interactions with customers and potential customers. A CRM system helps organizations build
customer relationships and streamline processes so they can increase sales, improve customer
service, and increase profitability.
Online fashion retailer ASOS.com has partnered up with marketing software provider
smartFOCUSin order to implement a CRM strategy and a more sophisticated approach to
customer segmentation in order to help with its goal of aggressive growth.
ASOS.com is the second most visited online fashion store in the UK, according to Hitwise. The
website attracts over 2.6 million shoppers a month.
ASOS.com hopes to increase customer numbers and to encourage existing customers to spend
more. Planned campaigns include ‘refer-a-friend' viral activity, a reactivationstrategy to
re-engage former customers and loyalty programs to reward ASOS's best customers.
ASOS target market are audience from age 16-34. Audience of age 20’s are harder to keep as
they keep on hopping to different sites to check the latest trends. ASOS launches new collection
every once in a day. They update their style every 2 times a day, once in a.m. and once in p.m.
This way the customers find new collection very often and they stay loyal to the brand ASOS.
· ASOS’s majority of their newest recruit are their longest and loyal customers.
· Product designers are given full freedom to bring new innovative designs.
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· ASOS’s annual report says ‘We reach out to them by producing great content, which
makes us much more than just a place to shop. By becoming a fashion destination
offering a unique customer experience, we turn a sale into a loyal customer, who
returns to us frequently’.
· They believe that customer experience is more important than the product and price.
So they offer free delivery, free return and speed delivery (4 to 10 days) to all of the
customers irrespective of the plan they are subscribed to.
· They give equal importance to all the reviews and suggestions they get from the
consumers.
· ASOS says mobile orders went above 50% (to 54%) in the UK for the first time ever
in August. Globally 60% of its traffic and 44% of orders are now on mobile devices.
· ASOS’s new mobile feature update works on base of a shoppers’ saved history,
purchase history, price and favorite brands. This helps them in suggesting and
showing of products which is very connected to their personal style.
· It has also launched “As Seen On Me” – which lets users share selfies of themselves
wearing products. All of this is aimed at driving interest and engagement with the
brand and helping customers make smarter purchases.
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· Don’t underestimate
the potential of
low-margin customers
Everything we do at ASOS starts with our purpose and what’s important to the people whose
lives we touch. This enables us to create truly amazing products and customer experiences for
20-somethings all over the world.
The way our target age group lives and thinks creates enormous opportunity for our business
globally.
· 31% of British 15- to 24-year-olds agree that social media is a good source of
inspiration for buying clothes.
· Millennials spend three hours a day online on their phones.
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· 80% of millennials are online shoppers
· 70% of US Gen Z consumers say it’s important that products align with their beliefs.
· 62% of millennials have visited YouTube on their phones in the last month.
· On average, millennials are on seven different social media networks and are
actively using four of them
Total
£ - 1,876.5m
· UK - £698.2m
· US - £261.6m
· EU - £544.1m
· RoW - £372.6m
ASOS AT A GLANCE
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ASOS CONSUMERS