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MadridDigital Strategy   03/01/2013                   Rosa Fernández-Velilla
IntroductionEven thought luxury and digital have different roots, it is possible to successfullycombine them. The challeng...
Index1. Market analysis      –   Market volume      –   New affluent consumer          N     ffl  t      –   Competitors  ...
Market analysis: overview  1     ¿How is the      2   ¿How is the        3   ¿What are our      market evolving?         a...
Market analysis: volume and trendsSales in digital luxury market continue to grow at double-digit pace.Luxury MarketWorldw...
Market analysis: affluent consumer & digital    The affluent consumer is the heaviest user of digital media. This represen...
Market analysis: competitors & digitalLuxury brands are taking different approaches for digital: some consider Internetjus...
Burberry best practiceWhile most of the luxury brands were focused on affluent babyboomers, Burberrysaw the “white space” ...
Market analysis: what is changing in digital?Apart from mobile, social, local, contents, multichannel and big data other s...
Index1. Market analysis      –   Market volume      –   New affluent consumer          N     ffl  t      –   Competitors  ...
Brand analysis: general overviewLoewe has achieved good business results in the last year aligned with a newinterpretation...
Brand analysis: Loewe digital overviewLoewe has made major improvements in recent years and the objective is to keepup thi...
Index1. Market analysis      –   Market volume      –   New affluent consumer          N     ffl  t      –   Competitors  ...
Digital approach: objectivesDigital objectives:                       Increase revenues through a multichannel approach, r...
Digital Approach: strategies for objective 1Estrategia Digital      1         Increase revenues through a multichannel app...
Digital Approach: strategies for objective 1       1          Increase revenues through a multichannel approach  A specifi...
Digital Approach: strategies for objective 2        2           Increase brand awareness and desirability  Strategies:2.1....
Digital approach: Loewe targetAll the digital presence should be aligned with Loewe´s current and potentialtarget.        ...
Index1. Market analysis      –   Market volume      –   New affluent consumer          N     ffl  t      –   Competitors  ...
Digital Approach: strategies for objective 1Estrategia Digital      1         Increase revenues through a multichannel app...
Objective 1: multichannel approachMultichannel approach is customer-centered. It´s all about giving freedom to thecustomer...
Objective 1: multichannel approachWe need to analyse carefully all the different customer journeys to attribute thesale to...
Action plan: 1.1 – optimising e-boutique    Concerning Loewe´s site, some factors are necessary but not motivating. As a l...
Action plan: 1.1 – optimising e-boutiqueOur online presence has to be clearly aligned with our business objectives.       ...
Action plan: 1.1 – optimising e-boutiqueConcerning traffic to e-boutique, Loewe´s is too dependent on search enginemarketi...
Action plan: 1.1 – optimising e-boutiqueIt is crucial for an awesome brand experience to transmit an “I´m taking reallygoo...
Action plan: 1.1 – optimising e-boutiqueThe delivery experience is very important.               Outside                  ...
Action plan: 1.2 – optimising ROPOROPO (Research online, purchase offline) is a very extended consumer behaviour.Loewe nee...
Action plan: 1.3 – mobile presenceMore than 20% of searches for fashion occurs from a non-PC device. The iPad maybe transf...
Action plan: 1.3 – mobile presenceBest practices for mobile presence: Source: http://www.luxurydaily.com
Index1. Market analysis      –   Market volume      –   New affluent consumer          N     ffl  t      –   Competitors  ...
Objective 2        2           Increase brand awareness and desirability  Strategies:2.1. Supporting general rebranding st...
Action plan: 2.1.1 – digital communication Loewe should cover all the target touch points with a 360º degree approach, 365...
Action plan: 2.1.1 – digital communicationDigital is perfect to create awesome integrated marketing campaigns aligned with...
Action plan: 2.1.1 – digital communicationBurberry best practice example of developing a new communication territory:     ...
Action plan: 2.1.2 – social media strategyThe objective is to develop a strong visible social media presence aligned withb...
Action plan: 2.1.2 – social media strategy       Influencer Territory   VS    Brand Territory   Source: Instagram
Action plan: 2.1.3 – innovative in-store experience Loewe should consider the roles of their stores now and in the future....
Action plan: 2.2 – new markets approachEach market requires a different approach. See below China ´s social medialandscape...
Index1. Market analysis      –   Market volume      –   New affluent consumer          N     ffl  t      –   Competitors  ...
Organisational implicationsDigital impacts the whole value chain of a company. One of the keys to success isthe CEO approa...
Organisational implicationsOnce the digital strategy is set and approved, we need to define the functions andthe organisat...
Index1. Market analysis      –   Market volume      –   New affluent consumer          N     ffl  t      –   Competitors  ...
Data measurement cultureConcerning revenue growth, there is a simple formula to optimize:Sales= Visits X Conversion RateX ...
Data measurement cultureIt is crucial to develop a metric system to measure the full cycle of an online customerin the Loe...
Index1. Market analysis      –   Market volume      –   New affluent consumer          N     ffl  t      –   Competitors  ...
Implementation plan 2013 - 2014                                                             2013                          ...
Implementation plan: detailed calendarA detailed implementation plan is necessary once the high level one is approvedwith ...
Index1. Market analysis      –   Market volume      –   New affluent consumer          N     ffl  t      –   Competitors  ...
ConclusionsLoewe online presence is an excellent way to enhance the brand image and makerevenues grow. The real challenge ...
Index1. Market analysis      –   Market volume      –   New affluent consumer          N     ffl  t      –   Competitors  ...
Appendix 1: purchase TrialQuick wins to improve conversion rate  – Create a complete breadcrumb for easier navigation.  – ...
Appendix 1: purchase Trial: SEMReviewing SEM strategy – Almost all the strategy and budget is being spent on brand campaig...
Appendix 2: best practicesProduct launch campaign:–   Burberry´s Body fragance launch (samples through the internet for fa...
Appendix 3: illustrative business plan Illustrative estimated P&L from other company
Appendix 4: new consumer purchase funnelThe Internet has empowered the consumer in three ways: 1.) during thedecision-maki...
Appendix 4: new consumer purchase funnelEach of the phases of the new purchase funnel comprises multiple levers thatactiva...
MadridThank you!   03/01/2013             Rosa Fernández-Velilla
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Loewe digital strategy by @kerriarose

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Loewe digital strategy is a case study for my digital and ecommerce classes
It´s an example of how a luxury company can leverage digital strengths, if they really want to develop a competitive advantage in the market (as Burberry has done)
If you are interested in more in depth analysis, please contact rosafvp@gmail.com
No confidential information is included in this presentation.
Copyright has no meaning for me. Let´s share knowledge. The world will work better!!!!

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Transcript of "Loewe digital strategy by @kerriarose"

  1. 1. MadridDigital Strategy 03/01/2013 Rosa Fernández-Velilla
  2. 2. IntroductionEven thought luxury and digital have different roots, it is possible to successfullycombine them. The challenge is: how can we make it work? Luxury Digital ecosystem Authenticity Elevation y Feedback Consumer control Heritage Uniqueness Interaction Cool featuresTimelessness Craftsmanship Ubiquity Dream Real time Rituals MassificationInnovation Hedonism SegmentationTheatralisation Self distinction Art Huge Storage Sharing Scarcity Brand control Distance Accessibility ¿How can we leverage digital strengths in the luxury world?
  3. 3. Index1. Market analysis – Market volume – New affluent consumer N ffl t – Competitors – Trends2.2 Brand analysis3. Digital approach for Loewe: objectives & strategies4. Action plan for each objective – Sales growth: multichannel approach – Brand awareness and desirability5. Organisational implications6. Data measurement culture7. Implementation plan8. ConclusionsAppendix 1 Purchase trialAppendix 2 Best practicesAppendix 3 Illustrative business planAppendix 4 New consumer purchase funnel
  4. 4. Market analysis: overview 1 ¿How is the 2 ¿How is the 3 ¿What are our market evolving? affluent competitors consumer? doing? The digital luxury Almost all the The affluent market is growing. luxury brands have consumer is very a digital presence. act e the digital active in t e d g ta (+25% - 2011) The diff Th difference is i ecosystem. HOW.
  5. 5. Market analysis: volume and trendsSales in digital luxury market continue to grow at double-digit pace.Luxury MarketWorldwide luxury goods market revenues will grow by 10 % in 2012, and pushing total luxury goodsrevenues to an estimated € 212 billion By market Main drivers – Asia‐Pacific sales, driven by China, have a growth projection  – Accessories have become the core category in personal  of 18 % this year luxury goods (27 % of sales.) – Americas region is also projected to post strong gains, with  – Tourists now account for 40 % of global luxury spending now account for 40 % of global luxury spending. revenues rising by 13 % by year’s end. – E‐commerce is an important driver of the growth. – Growth in Europe will approximately halve versus last year,  expected to grow by 5 % this year.Luxury goods market will grow, in real terms by 4% to 6% per year between 2013 and 2015, pushingthe market between €240 and €250 billion by the middle of the decade (Bain´s estimation)Digital LuxuryDigital Luxury MarketEcommerce is continuing to grow at 25 % per year, while sales at off-price outlets will see 30 %growth. Together, these emerging channels amount to €20 billion. – Disparities between brands that are not keeping up with the quickening pace of change in the market Source: Luxury Goods Worldwide Market Study, Bain & Company, 2012
  6. 6. Market analysis: affluent consumer & digital The affluent consumer is the heaviest user of digital media. This represents a new paradigm for brands that seek deeper relationships with them. Social  Search  Strategic approach  media  Information around  value for  to social media influenced the product (origin,  money /influencer /i fl fabrics) Mobile presence as  Heavy user  Experiences,  Experitional  of mobile  of mobile 1st priority i it luxury l services,  i and tablets personalisation Product &  Seamlessly  &  S l l & Use  Online as 1st Content  Content and visual coherent experience  different  source of  consumer  channels (audio   oriented site in all channels information and visual) Coherent SEO/SEM strategy – Young consumer: seeks uniqueness over heritage, 24/7 access over exclusivity, and  Entry level products entertainment over mere shopping. Being part of the elite is their dream. Consume the dream – Aspirational consumer – Super wealthy Unique experience: VP members only
  7. 7. Market analysis: competitors & digitalLuxury brands are taking different approaches for digital: some consider Internetjust as a communication channel (or have poor presence) and others aree b ac g d g taembracing digital with a strategic approach. t st ateg c app oac Tactical approach Strategic approach 2012 Digital IQ Index: Fashion– Brands: – Lack of digital strtegy – Poor image on their site – Poor branding image on the Internet – Lack of strategy in social media – No integrated marketing campaigns – No transaction features Source: 2L2thinktank.com
  8. 8. Burberry best practiceWhile most of the luxury brands were focused on affluent babyboomers, Burberrysaw the “white space” on wealthy Millenials, especially in emergent markets. Fromthat moment on, the company focus has been on digital. STRATEGY Clear vision on digital  approach h FRONT END BACK END INTEGRATION BIG DATA Social CRM company culture  Marketing campaigns (70% budget) (salesforce.com) (salesforce com) E‐commerce Operational excellence Predictive analysis Mobile Organization: Social media  “Retail Theatre” department, mobile department,  insight and analytics department 6 YEARS Source: Interbrand, 2012
  9. 9. Market analysis: what is changing in digital?Apart from mobile, social, local, contents, multichannel and big data other specifictrends are having a forceful impact on the market. Lines between brands, retailers and Digital as a service publishers are blurring Seek for a content partner Provide services to engage customers “Pinterestly” web designs Super wealthy consumers Redesign according to new tastes Create more unique experiences
  10. 10. Index1. Market analysis – Market volume – New affluent consumer N ffl t – Competitors – Trends2.2 Brand analysis3. Digital approach for Loewe: objectives &strategies4. Action plan for each objective – Sales growth: multichannel approach – Brand awareness and desirability5. Organisational implications6. Data measurement culture7. Implementation plan8. ConclusionsAppendix 1 Purchase trialAppendix 2 Best practicesAppendix 3 Illustrative business planAppendix 4 New consumer purchase funnel
  11. 11. Brand analysis: general overviewLoewe has achieved good business results in the last year aligned with a newinterpretation of the brand, maintaining its roots. “We are a company “We are art, not just more productive, our styling factories are more The creator is in the efficient and the product center of the brand” is perfect. Sales will Bernard Arnault, grow grow” Lisa Montague, Montague LVMH Chairman and Loewe CEO CEO The griffle The luxury brand The upper range brand pp g The brand Pyramid Brand: The New Strategic Brand Management, 2011, J.N Kapferer “Loewe: passion, authenticity and excellence” “This is a great time to reinterpret the DNA of a noble House to which so many Spaniards have a deep emotional attachment. There’s a p p pulled together, almost aristocratic sexiness to Spain that g , p I’m trying to do a provocative take on. I want people wherever they are to say, ‘That’s really Loewe!’ Everything starts with a delight to the senses. Loewe – where one touch tells the story”. Stuart Vevers, Loewe Creative Director
  12. 12. Brand analysis: Loewe digital overviewLoewe has made major improvements in recent years and the objective is to keepup this pace.Area Score CommentsDigital Strategy N/A The job description indicates that defining it is one of the job objectives Organization & culture CEO support. Digital manager position. Collaborative cultureCorporate & brand presence Visual impact. Content focus on product/ craftsmanship/  art& culture& historyE‐shop  = Room for improvement ‐ Visits = Too much dependency on search engines Too much dependency on search engines ‐ Conversion X Poor site performance, usability  can improve,  lack of payment options. Not very  transactionally oriented ‐ Processes N/A Lack of information to evaluateRelational strategy N/A Lack of information to evaluateMobile X No mobile version of the webSocial Media l d Good focus on brand awareness. Lack of real engagement and service df b d k f l dSEO & SEM X Lack of optimized strategyInbound marketing N/A Lack of information to evaluateDigital store experience = No digital brand experience in the store. Pick up in‐store option
  13. 13. Index1. Market analysis – Market volume – New affluent consumer N ffl t – Competitors – Trends2.2 Brand analysis3. Digital approach for Loewe: objectives &strategies4. Action plan for each objective – Sales growth: multichannel approach – Brand awareness and desirability5. Organisational implications6. Data measurement culture7. Implementation plan8. ConclusionsAppendix 1 Purchase trialAppendix 2 Best practicesAppendix 3 Illustrative business planAppendix 4 New consumer purchase funnel
  14. 14. Digital approach: objectivesDigital objectives: Increase revenues through a multichannel approach, representing: 1 – O li Online boutique: 3 M. € * i 2014 ( 200% vs 2012) b ti M in (+200% – ROPO (Research Online Purchase Offline): a significant % of all revenues** Increase brand awareness and desirability with deep focus in 2 international markets***Initial estimate which will be subject to a detailed analysis of economic/financial data and web analytics** To quantify the objective , it will be necessary to see the type of reports made by Loewe
  15. 15. Digital Approach: strategies for objective 1Estrategia Digital 1 Increase revenues through a multichannel approach Strategies: 1.1. Optimising the e-boutique enhancing usab ty, e pe e ce a d se ce Opt s g t e e bout que e a c g usability, experience and service 1.2. Increasing traffic to stores through ROPO (Research Online Purchase Offline) 1.3 Developing a mobile presence that serves as engine to increase sales 1.4 Developing the digital experience in store to leverage sales 1.5 Connecting all the “dots”
  16. 16. Digital Approach: strategies for objective 1 1 Increase revenues through a multichannel approach A specific strategy for the digital p p gy g presence should be necessary in every different market: y y – China – Japan – Other emerging markets – Rest of Europe p – US Topics to consider: – ¿How can we optimise revenues: through Loewe e-boutique or through wholesale? – ¿Is it necessary a multichannel approach or just a online focused approach? – ¿Which is the main traffic source in each country? – ¿How are the special characteristics of the digital consumer in this country? – ¿Do we have to adapt the product offering? – ¿Which is the better pricing policy? – Etc.
  17. 17. Digital Approach: strategies for objective 2 2 Increase brand awareness and desirability Strategies:2.1. Supporting general rebranding strategy through a consistent and innovative digitalcommunication approach 2.1.1. Defining and developing digital communication campaigns 2.1.2. Optimizing the social media strategy to generate brand awareness and engagement 2.1.3 Developing innovative experiences in stores Coherence and a seamless experience are the best way to create a brand (objective 1)2.2. Developing specific strategies for new markets 2.2.1. Analyzing specific characteristics of target in each market 2.2.2 Putting focus on digital PR and social media strategies adapted to each market
  18. 18. Digital approach: Loewe targetAll the digital presence should be aligned with Loewe´s current and potentialtarget. Baby Multiple dimension analysis according to: Seniors Boomers Generation X Millenials – market – demographics – product purchase h bit d t h habits – relation with technologies and passions/interestsIllustrative Example: USA Millenials Celebrity addictsSource: Kenan Flagler Business School, 2012
  19. 19. Index1. Market analysis – Market volume – New affluent consumer N ffl t – Competitors – Trends2.2 Brand analysis3. Digital approach for Loewe: objectives &strategies4. Action plan for each objective – Sales growth: multichannel approach – Brand awareness and desirability5. Organisational implications6. Data measurement culture7. Implementation plan8. ConclusionsAppendix 1 Purchase trialAppendix 2 Best practicesAppendix 3 Illustrative business planAppendix 4 New consumer purchase funnel
  20. 20. Digital Approach: strategies for objective 1Estrategia Digital 1 Increase revenues through a multichannel approach Strategies: 1.1. 1 1 Optimising the e-boutique enhancing usability, experience and service usability 1.2. Increasing traffic to stores through ROPO (Research Online Purchase Offline) 1.3. Developing a mobile presence that serves as engine to increase sales 1.4. Developing the digital experience in store to leverage sales 1.5. Connecting all the “dots”
  21. 21. Objective 1: multichannel approachMultichannel approach is customer-centered. It´s all about giving freedom to thecustomers to be able to shop wherever and whenever they want. It embraces thewhole bus ess so it s ou d be o t e C O age da o e business t should on the CEO agenda. ¿What is multichannel shopping? Shopping across a number of Buying goods from the same Using a number of different different channels (B&M, online, retailer but doing it across channels to make a singlecatalogue, etc.) depending on the different channels depending on purchase category/ brand the product The impact is on the whole value chain. It implies new processes, new organizational structures, and an expanded investment commitment Loewe multichannel approach – Deliver online purchase in-store – Holistic customer analysis and single view of the – Drive traffic to store (ROPO) customer: social CRM – Supply management processes: share – Synchronize multiple databases (sales, financial, inventory, integrated return policies, etc etc.) – Provide a similar experience online & offline ff – New organizational structures – Develop mobile strategy – New incentives – Combine on & off in marketing campaigns
  22. 22. Objective 1: multichannel approachWe need to analyse carefully all the different customer journeys to attribute thesale to the accurate channel to avoid conflicts between them. Research Delivery at P&L & incentives Buy online online home online channelPC, mobilePC mobile, tablet PC, mobile PC mobile, tablet Yes P&L & incentives ¿Stock of Research Delivery in the product store (100%) Buy online in the store? online store No P&L & incentivesPC, mobile, tablet PC, mobile, tablet online channel Yes P&L & incentives ¿Stock of Research Book the product store (100%) in the store? Buy in t B i store online appointment No P&L & incentivesPC, mobile, tablet PC, mobile, tablet online channel Research P&L & incentives Buy in store store (100%) onlinePC, mobile, tablet P&L & incentives Research online channel Buy online store (100%)
  23. 23. Action plan: 1.1 – optimising e-boutique Concerning Loewe´s site, some factors are necessary but not motivating. As a luxury brand, to gain real engagement, we need to deliver an awesome experience, aligned with the business objectives and the expectations of our target. – Around Innovation –> something newMotivating Experiences – Services – Personalization – ART – More content: partnership (Creativity/ Art / Innovation) – Visual impact – Pictures in context of use – Product catalogue Design Content – More product information (ie.: Product Page) – “Pinterest design” – Content related to stores – Minimum nº of clicks – Multiple payment options – Clear call to action Usability – Simple check-out processNecessary – High page speed Performance P f – C Capacity t support high volume of concurrent t ffi it to t hi h l f t traffic – Quick solution to performance failures Excellent product Consistent price As a minimum, we need to replicate the physical store experience to be consistent. ¿What are our strengths in our stores? – Sensorial recreation – Visual merchandising – Uniqueness – Product availability – Service
  24. 24. Action plan: 1.1 – optimising e-boutiqueOur online presence has to be clearly aligned with our business objectives. $$$ VS Branding
  25. 25. Action plan: 1.1 – optimising e-boutiqueConcerning traffic to e-boutique, Loewe´s is too dependent on search enginemarketing traffic (58% of traffic vs 37% industry average). A more diversifiedstrategy is required. Phase 1: Push Phase 2: Pull ry rand Territor – SEO & SEM strategy – Social Media for site traffic generation Br – Email marketing INBOUND MARKETING Loewe as fashion luxury target destination point ritory of 3rd parties – SEO strategy – Digital PR: influencers Terr p
  26. 26. Action plan: 1.1 – optimising e-boutiqueIt is crucial for an awesome brand experience to transmit an “I´m taking reallygood care of you as a customer” culture. In order to achieve this, back officeoperations optimisation is a key factor Technology infrastructure & systems Content Delivery: Logistics & Order management Customer service management transportKey Factors for Loewe – Product availability – Accurate & integrated inventory system – Order tracking culture & systems – Agreements with different transport agencies – Picking and packing optimised services – Easy return policy – Professional customer service center
  27. 27. Action plan: 1.1 – optimising e-boutiqueThe delivery experience is very important. Outside Outside Inside
  28. 28. Action plan: 1.2 – optimising ROPOROPO (Research online, purchase offline) is a very extended consumer behaviour.Loewe needs to address it proactively.Important things to consider – Develop more “call to actions“ for the “book an appointment” functionality call actions book appointment – Develop more content related to Loewe´s Peter Marino stores Example: “The Homes” by Dunhill – Develop a more user friendly list of stores locations – S Special marketing campaigns t d i t ffi t stores i l k ti i to drive traffic to t – Search engines optimisation for store location
  29. 29. Action plan: 1.3 – mobile presenceMore than 20% of searches for fashion occurs from a non-PC device. The iPad maybe transformative for luxury fashion brands, as the device enjoys twice theconversion rate of PC (and twenty times that of smartphones).Different options1 Responsive Web 2 Mobile web 3 Mobile AppsA single site that rebuilds itself for Specific web design for mobile Specific app development.all devices phone and tablet. Download needed. – Stella McCartney – 2011.dconstruct.org – M-lanvin.com – Amble by LV – Balenciaga.com – Armani EXX – Swarovski Multifaces app – Uniqlo U i l ¿Which is the best option for Loewe? Not recommended in phase 1
  30. 30. Action plan: 1.3 – mobile presenceBest practices for mobile presence: Source: http://www.luxurydaily.com
  31. 31. Index1. Market analysis – Market volume – New affluent consumer N ffl t – Competitors – Trends2.2 Brand analysis3. Digital approach for Loewe: objectives &strategies4. Action plan for each objective – Sales growth: multichannel approach – Brand awareness and desirability5. Organisational implications6. Data measurement culture7. Implementation plan8. ConclusionsAppendix 1 Purchase trialAppendix 2 Best practicesAppendix 3 Illustrative business planAppendix 4 New consumer purchase funnel
  32. 32. Objective 2 2 Increase brand awareness and desirability Strategies:2.1. Supporting general rebranding strategy through a consistent and innovative digitalcommunication approach 2.1.1. Defining and developing digital communication campaigns 2.1.2. Optimizing the social media strategy to generate brand awareness and engagement 2.1.3 Developing innovative experiences in stores Coherence and a seamless experience are the best way to create a brand (objective 1)2.2. Developing specific strategies for new markets 2.2.1. Analyzing specific characteristics of target in each market 2.2.2 Putting focus on digital PR and social media strategies adapted to each market
  33. 33. Action plan: 2.1.1 – digital communication Loewe should cover all the target touch points with a 360º degree approach, 365 days/ year and in an interactive way. LOEWE UNIVERSE 3rd 3rd 3rd 3rd Consumer Potential consumer Aspirational consumer 3rd 3rd 3rdEven more, Loewe should become a destination point for affluent consumers
  34. 34. Action plan: 2.1.1 – digital communicationDigital is perfect to create awesome integrated marketing campaigns aligned withstrategic objectives as following:Source: http://www.luxurydaily.com/top-10-multichannel-campaigns-of-2012/
  35. 35. Action plan: 2.1.1 – digital communicationBurberry best practice example of developing a new communication territory: Tradition Tradition Innovation HIGH END BRITISH + COATS + TRENDY PRODUCTS Millenials Acoustic Music
  36. 36. Action plan: 2.1.2 – social media strategyThe objective is to develop a strong visible social media presence aligned withbusiness goals. Brand awareness Engagement Purchase Services – Tell stories – Feedback culture – Drive traffic to e- – Customer services – Showcase products – Engagement specific boutique or stores – Post –sale service (i.e: – Amplify PR events campaigns (Currently: maintenance) – Show celebritiy interaction with Facebook:1.294 visits/ the product month: 0,6% vs 4% – Product vs lifestyle messages average of the industry)Key Factors for Loewe– Easy to spread “Loewe World” to the whole digital ecosystem (ie: share buttons in the product page).– Different objectives for each social platform planned calendar for all of the different networks– Focus on driving traffic to e-boutique (i.e: Pinterest)– Deeper engagement in marketing campaigns (i.e: “The art of the trench”)– Strategy for reputation challenges.– Visually focused presence: Instagram, Pinterest, Youtube– Social presence in influencers ecosystem
  37. 37. Action plan: 2.1.2 – social media strategy Influencer Territory VS Brand Territory Source: Instagram
  38. 38. Action plan: 2.1.3 – innovative in-store experience Loewe should consider the roles of their stores now and in the future. Are they flagships for the brand? Are they a combination of flagship and technology emporiums? Are they showrooms for product display? What future role will p y p p y digital play in the retail store? 1 2 Showroom f i i ti Sh for inspiration Convenient Transaction Point C i tT ti P i t Loewe general strategy will determine the role that digital will play in stores: – Terminals in the store to shop the web if there is no in-store inventory – Interactive windows – Shop assistance ipad enabled ipad-enabled – Smartphone check-out – Immersive and interactive digital experiences
  39. 39. Action plan: 2.2 – new markets approachEach market requires a different approach. See below China ´s social medialandscape. Marc Jacobs Sina Weibo presenceSource: L2thinktank, 2012
  40. 40. Index1. Market analysis – Market volume – New affluent consumer N ffl t – Competitors – Trends2.2 Brand analysis3. Digital approach for Loewe: objectives &strategies4. Action plan for each objective – Sales growth: multichannel approach – Brand awareness and desirability5. Organisational implications6. Data measurement culture7. Implementation plan8. ConclusionsAppendix 1 Purchase trialAppendix 2 Best practicesAppendix 3 Illustrative business planAppendix 4 New consumer purchase funnel
  41. 41. Organisational implicationsDigital impacts the whole value chain of a company. One of the keys to success isthe CEO approach to digital and the organisational model.¿Where is Loewe right now?, ¿What is the ideal model? Nivel O Nivel 1 Nivel 2 El CEO no tiene claro/ no cree en la ventajas El CEO cree que la digitalización se El CEO es consciente del impacto de la Liderazgo/  de la digitalización para su empresa. No está circunscribe a la generación de una página digitalización en toda la cadena de valor de la presente en la estrategia de la empresa. web o similar o a la automatización de empresa y ha realizado el análisis pertinente Estrategia procesos. La digitalización es un apartado (o está en ello). La digitalización está colateral de la estrategia de la empresa empresa. incorporada en la estrategia de la empresa No existe responsable concreto del área El área digital tiene un responsable y está El área digital es una función horizontal que digital. Las acciones se ponen en marcha de integrado dentro de un departamento concreto depende directamente del CEO y está al Modelo  manera desorganizada dentro del área que (generalmente marketing o sistemas) mismo nivel que el resto de direcciones corresponde según la coyuntura específica. generales organizativo Existe una norma que prohíbe el acceso a Está permitido el uso de redes sociales. Se fomenta el uso de la Intranet y de redes sociales externas. No existe una Existe una intranet pero no se incentiva herramientas colaborativas para transmisión Cultura de  intranet, ni herramientas colaborativas para demasiado su uso. de información y recogida de feedback de trabajos de equipo /multidisciplinares empleados. Se utilizan redes sociales para empresa procesos críticos (ej: recruiting)Source: WINK TTD, 2012
  42. 42. Organisational implicationsOnce the digital strategy is set and approved, we need to define the functions andthe organisational model to support them. DIGITAL GENERAL STRATEGY MARKETING WEB CONTENT MANAGEMENT • Strategic Plan • Digital Marketing Plan • Create, update, translate and maintain web , p , • Business Plan  • Marketing campaigns content • Strategic plan for each market • E‐PR • Contribute with web solutions for our internal • Follow –up  • SEO &SEM customers according to the communication • Governance model • Social Media needs • Email marketing • Oversee suppliers for web support projects • Team management • CRM • Web optimisation ORDER MANAGEMENT &CUSTOMER  E‐BOUTIQUE PURCHASES LOGISTICS & DELIVERY CARE • Wholesale order management • Order tracking management • Daily orders management • Inventory  management Inventory management • Incidents resolutions Incidents resolutions • Customer care Customer care • Service optimisation • Sales • Post‐sale • Cross‐selling REPORTING MOBILE OTHERS• Web analytics • Mobile strategy • Technology infrastructure & systems• Dashboard follow ‐up & action plan • Mobile action plan • In‐store experiences
  43. 43. Index1. Market analysis – Market volume – New affluent consumer N ffl t – Competitors – Trends2.2 Brand analysis3. Digital approach for Loewe: objectives &strategies4. Action plan for each objective – Sales growth: multichannel approach – Brand awareness and desirability5. Organisational implications6. Data measurement culture7. Implementation plan8. ConclusionsAppendix 1 Purchase trialAppendix 2 Best practicesAppendix 3 Illustrative business planAppendix 4 New consumer purchase funnel
  44. 44. Data measurement cultureConcerning revenue growth, there is a simple formula to optimize:Sales= Visits X Conversion RateX Average Purchase Initial Focus for Loewe
  45. 45. Data measurement cultureIt is crucial to develop a metric system to measure the full cycle of an online customerin the Loewe marketing funnel and follow the achievement of the objectives.
  46. 46. Index1. Market analysis – Market volume – New affluent consumer N ffl t – Competitors – Trends2.2 Brand analysis3. Digital approach for Loewe: objectives &strategies4. Action plan for each objective – Sales growth: multichannel approach – Brand awareness and desirability5. Organisational implications6. Data measurement culture7. Implementation plan8. ConclusionsAppendix 1 Purchase trialAppendix 2 Best practicesAppendix 3 Illustrative business planAppendix 4 New consumer purchase funnel
  47. 47. Implementation plan 2013 - 2014 2013 2014 General Digital analysis strategy General definition 2013/2014s strategic plan Markets Conversion optimisation E-boutique Web innovative experiences SEO/SEM optimisation ROPO Specific ROPO plan1.1 Increase revenues Mobile Mobile Mobile implementation Strategy International Pending strategic roadmap markets Corporate Content web Support to branding campaigns & develop new contents aligned with digital strategy (inbound marketing) Plan Social 2013 Social Traffic to store & e-boutique action plan 2014 Social Services oriented action plan1.2 Increase media Media Plan Brand awareness & preference action plan Media Plan brand Mobile awareness Mobile Mobile implementation strategy &desirability In-store & “Digitail” plan and implementation digital International Pending strategic roadmap marketsData culture Balanced scorecard plan and implementation Quick wins
  48. 48. Implementation plan: detailed calendarA detailed implementation plan is necessary once the high level one is approvedwith the strategic priorities.
  49. 49. Index1. Market analysis – Market volume – New affluent consumer N ffl t – Competitors – Trends2.2 Brand analysis3. Digital approach for Loewe: objectives &strategies4. Action plan for each objective – Sales growth: multichannel approach – Brand awareness and desirability5. Organisational implications6. Data measurement culture7. Implementation plan8. ConclusionsAppendix 1 Purchase trialAppendix 2 Best practicesAppendix 3 Illustrative business planAppendix 4 New consumer purchase funnel
  50. 50. ConclusionsLoewe online presence is an excellent way to enhance the brand image and makerevenues grow. The real challenge is to embrace digital as a meaningful part ofLoewe s strategy.Loewe´s strategy – Innovative communication approach to digital space carefully aligned with Loewe´s brand image p y g g – Focus on international markets – Strong link to younger potential consumers g y g p – Multichannel approach – Online store as flagship store g p
  51. 51. Index1. Market analysis – Market volume – New affluent consumer N ffl t – Competitors – Trends2.2 Brand analysis3. Digital approach for Loewe: objectives &strategies4. Action plan for each objective – Sales growth: multichannel approach – Brand awareness and desirability5. Organisational implications6. Data measurement culture7. Implementation plan8. ConclusionsAppendix 1 Purchase trialAppendix 2 Best practicesAppendix 3 Illustrative business planAppendix 4 New consumer purchase funnel
  52. 52. Appendix 1: purchase TrialQuick wins to improve conversion rate – Create a complete breadcrumb for easier navigation. – Wh changing th l When h i the language, maintain th current page. i t i the t – The filters are not easy to remove. – The bac bu o does always work. e back button doesn´t a ays o – In the basket resumé, differences between links and data are not evident. – The format of the shipping method is not aligned with brand image. – The check-out process is too long and the end is confusing Important . – The list of regions has misspellings.
  53. 53. Appendix 1: purchase Trial: SEMReviewing SEM strategy – Almost all the strategy and budget is being spent on brand campaigns with low activity related to generic searches for luxury goods. – Few customised ads are used by keywords. – They don´t use the title in the copies. – They don´t use extensions on ads : telephone information, store location, social (google +), etc. ( l ) – The landing page for ads is always the home of the store, when more specific landing pages could be used (i.e.: L ld b d (i Loewe h db handbags). )
  54. 54. Appendix 2: best practicesProduct launch campaign:– Burberry´s Body fragance launch (samples through the internet for fans Buzz, feedback)Social media campaign:– Burberry: artofthetrench.com– Hermés: Paris, mon amiShare functions:– www.balenciaga.comCatalog:– www.dunhill.com– www.tourneau.com– www.lyst.comPage product:– www.outlier.com www outlier com– www.ofakind.comWeb design:– www.dazeddigital.com g– www.anothermag.com– www.whitewallmag.com– www.outlier.com– www.pinterest.com– http://www.vogue.co.uk/– www.net-a-porter.com– www.fab.com
  55. 55. Appendix 3: illustrative business plan Illustrative estimated P&L from other company
  56. 56. Appendix 4: new consumer purchase funnelThe Internet has empowered the consumer in three ways: 1.) during thedecision-making process leading to the purchase, 2.) at the actual moment ofppurchase and 3.) throughout the product ownership period (including product ) g p pp ( gpdelivery, maintenance, and return) BEFORE Fuente: Purchase funnel basado en la teoría tradicional de Procter & Gamble AFTER Fuente: Purchase funnel basado en la teoría de Google, The Zero Moment of Truth, 2011Source: Wink TTD , 2012, based on on Google Theory: The Zero Moment of Truth, 2011
  57. 57. Appendix 4: new consumer purchase funnelEach of the phases of the new purchase funnel comprises multiple levers thatactivate purchasing decisions with greater or lesser order of importance. STIMULUS ZMOT FMOT SMOTSource: Wink TTD , 2012, based on on Google Theory: The Zero Moment of Truth, 2011
  58. 58. MadridThank you! 03/01/2013 Rosa Fernández-Velilla
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