Technology and its impact in the on-line fashion industry Group 3 Katie Reimer Linda Jacobsen Bill Messick Jimmy Asip
Branding a Lifestyle and an Image <ul><li>Internet advertising is impacting the way fashion retailers market and different...
Causing this trend in high-end retailers <ul><li>Retailers must align e-market place with their business strategies </li><...
Advertising focusing on an image
Big Picture Snapshot <ul><li>Department of Commerce eCommerce sales $86.3 billion for 2005. Forrester Research reports $12...
US Advertising Spending
Website Evolution
Electronic Brochure Site Model <ul><li>Created a visual internet presence for a company </li></ul><ul><li>Described its go...
E-Commerce Site Model <ul><li>Main purpose was to sell merchandise  </li></ul><ul><li>Product catalogue and pricing inform...
Business Application Site Model <ul><li>Site differentiation is achieved by providing: </li></ul><ul><ul><li>Value-added i...
Technologies that Support the Business Application Site Model <ul><li>Broadband </li></ul><ul><li>Flash-ware </li></ul><ul...
Website Evolution Example <ul><li>Brochure Site Model </li></ul><ul><ul><li>Reebok 1996 </li></ul></ul><ul><li>E-Commerce ...
Website Evolution  <ul><li>http://shop.org/video/mov-sm.asp </li></ul>
History of Shopping <ul><li>Local seamstresses and tailors made clothing to order </li></ul><ul><ul><li>Mostly domestic, u...
History of Shopping <ul><li>Catalogs introduced in 1872 by Montgomery Ward </li></ul><ul><ul><li>Sears introduced their ca...
Catalogs Today <ul><li>Sales over the internet have increased three-and-a-half times in the past four years, while turnove...
Applying Technology to branded lifestyles <ul><li>In the beginning, consumers didn’t have a choice between many products a...
Survey Components <ul><li>Used the 2 types of fashion web sites: </li></ul><ul><ul><li>Solely for Brand Marketing: </li></...
Survey Questions <ul><ul><li>How appealing is the web site? </li></ul></ul><ul><ul><li>How user friendly is the web site? ...
Diesel
Diesel <ul><li>70%    4 or 5  </li></ul><ul><li>45%    2 </li></ul><ul><li>55%    4 </li></ul><ul><li>40%    4 </li></...
Diesel <ul><li>Clothing company which produces “premium” apparel for men and women between 18 and 35 years old.  </li></ul...
Prada
<ul><li>46.7%    2 </li></ul><ul><li>73.3%    1 </li></ul><ul><li>46.7%    2 </li></ul><ul><li>80%    Tie between 1 an...
Prada <ul><li>“ Prada sells upscale apparel, shoes, fragrance, and accessories for men and women, as well as its less-pric...
Puma
<ul><li>68.8%    4 </li></ul><ul><li>56.2%    4 </li></ul><ul><li>90.3%    3 or 4 </li></ul><ul><li>43.8%    4 </li></...
Puma <ul><li>“ PUMA has the long-term mission of becoming the most desirable Sportlifestyle company.” </li></ul><ul><ul><l...
Old Navy
<ul><li>87.4%    2, 3, or 4 </li></ul><ul><li>50%    5 </li></ul><ul><li>62.4%    3 or 4 </li></ul><ul><li>68.7%    4 ...
Old Navy <ul><li>“ Old Navy's mission is to offer affordable, fashionable clothing and accessories for the whole family.” ...
“Lifestyle” Conclusions <ul><li>Old Navy has the most sales but less annual growth. </li></ul><ul><li>Diesel had the highe...
Survey Conclusions <ul><li>Technology does not always improve a web site </li></ul><ul><li>The user reaction to a site lar...
Survey Conclusions <ul><li>After analyzing the survey data, we determined that based on our criteria that our sample rated...
Conclusion <ul><li>Technology has greatly impacted the way that companies advertise and market their brand online </li></u...
Future Trends <ul><li>The applications and interfaces users navigate on-line will become more advanced as technology devel...
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Section 11 - Technology and Retailing

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  • Read the above thesis statement… Companies today are Branding a Lifestyle and an Image. The advertising of the digital world is much different than the print and even television ads of the past. It is a given that retailers must establish a website regardless of its purpose (which can be b2b or b2c etc.). Depending on the retailer the purpose of the site does change! Each company holds a different strategy which affects the purpose of the site. In our review of many apparel retail online sites we came to the conclusion lower end companies rely on the internet as a second or third point of product ordering for the customer. OldNavy.com works much like a catalog- this aligns with their strategy. Diesel on the other hand - as we will discuss later on, developed a site for B2B purposes- their strategy holds that sales should be limited to high-end merchants and not direct through the internet. We will discuss POWER BRANDS as well.. Companies such as F C U K, Lucky Brand Jeans, Abercrombie and Fitch fall under this category: they have the freedom to market a lifestyle and an image in their sites as well as promote sales. This lifestyle messaging aligns with their corporate strategy as well. Power brands are such because they have a significant following of loyal customers. They have differentiated themselves in one way or another from lower end retailers and therefore must differentiate themselves from each other by branding an image and a lifestyle.
  • We see this trend in high-end retailers emerging due to the overall business strategy and vision intrinsic to the company Depending on the retailer internet marketing will vary. For most high-end retailers marketing online becomes a customer experience not just a chore. They try to imitate the feeling of the companies culture in the cite. Juicy Couture.com offers an interactive user-directed scroll window that browsers can wander through ‘grabbing’ and bringing into focus clothing they might find attractive. When one compares this to Expressfashion.com which simply displays apparel in a uniform ‘catalog style’ easy to navigate experience you can see the differences in the strategies. Additionally, companies find that their well known brand will always be sought after by consumers meaning that they do not have to sell online and thereby make it more accessible- perhaps selling it online will even dilute the value tied to their product Lastly, high-end retailers believe that their products must be seen, touched and tried on for complete customer satisfaction. Diesel may not sell online simply because they do not want to saturate the marketplace but they may want to ensure customer satisfaction in the product, which is often lowered through online-orders. http://outsideinnovation.blogs.com/pseybold/2005/11/the_evolution_o.html http://www.findarticles.com/p/articles/mi_qn4155/is_20060404/ai_n16200623 http://www.webpronews.com/expertarticles/expertarticles/wpn-62-20060918NewOnlineShoppingTrends.html
  • Power-brands allow the wearer to set them selves apart from others- usually consumers are in a higher-economic level (or have serious credit card debt). Facing Fierce Competition retailers must differentiate themselves from the market and one way to do this is creating an line of apparel entwined with a lifestyle and an image that the consumer seeks and may even crave. These two sites Abercrombie and Guess do not even advertise the clothing on their home page, the are advertising a daring, and alluring lifestlye that they hope the target market will become emotionally attached too. http://outsideinnovation.blogs.com/pseybold/2005/11/the_evolution_o.html
  • Now lets take a look at the retail industry today OVERALL.. Which includes the entire spectrum of retailers. Growth is being fueled by more transactions per user as apposed to total users and in 2005 Forrester Research reports $12.5billion was spent on apparel. Online shopping can be broken down into three phases, the browsing phase, compare phase and the buying phase. Not all buyers reach the buying phase. comScore sponsored by Google surveyed 83 million Americans that totaled over 552 million searches limited to 11 product categories and using either one or more of 24 different search engines. (google, MSN, or Yahoo) only 37% purchased online. http://www.ecommerce-guide.com/news/trends/article.php/3524581
  • http://www.emarketer.com/Report.aspx?retail_ind_dec04 E-marketer reports online advertising spending to increase 20.2% in 05 reaching $11.3b by years end. Bill is now going to go a little bit into the evolution of websites. &lt;&lt; Ironically, leading retailers on average spent less than 1% of their budget on on-line advertising. There are many reasons for this which can not all be addressed during this project but its possible leading retailers advertising budgets are so atronomical that &gt;1% is still a significant dollar amount, or maybe they spend this little because they know the demand is unwavering and consumers will continually seek their new lines. &gt;&gt;
  • Created a visual Internet presence for a company that described its goods, its services, and sometimes its corporate history and philosophy Brochure sites just couldn&apos;t do very much. They were restrained by the limitations of their architecture. Sites of this type were cumbersome to modify, lacking the ability to transact business, and unable to produce site differentiation or personalized content, they quickly became technically and functionally obsolete.
  • Main focus at this stage of web sites evolution was the addition of dynamic transaction capabilities (shopping cart function) to handle customer purchases E-commerce sites needed to be well designed with good navigation to ease viewers through the buying process Soon becomes non-competitive in the face a rapidly growing e marketplace Companies need to compete which gives way to the web-based business application model
  • At this point it is critical for individual sites to distinguish themselves from their competitors. Heavy competition creates a demand for sites that attract viewers, convert them into buyers, and retain them as long-term customers. The result is the development of sites that are content-rich, and multi-featured that attract viewers and retain customers through the use of site differentiation and personalization
  • Security is essential in the growth of internet transactions.
  • http://inventors.about.com/cs/inventorsalphabet/a/loom_4.htm?terms=clothing+industry
  • Today Brick and Mortars are being greatly impacted by online sales - Growth in e-tailers - Willingness to shop at new sites increasing - Search engines provide visibility to unfamiliar sites Average on-line customer base 10 years younger, stock different selection in store v. online. (Neiman Marcus) http://inventors.about.com/library/inventors/blshopping.htm
  • http://proquest.umi.com/pqdweb?index=0&amp;did=845950161&amp;SrchMode=1&amp;sid=1&amp;Fmt=3&amp;VInst=PROD&amp;VType=PQD&amp;RQT=309&amp;VName=PQD&amp;TS=1163444977&amp;clientId=29023#fulltext http://www.post-gazette.com/pg/06143/692258-314.stm
  • &gt;&gt;“The consumer can usually associate themselves within a certain group or identity.” Able to “communicate their message very strongly to the target customer and they can stand by their commitment whether it is of design, quality or price.” Enhance customer loyalty and attract more consumers. &gt;&gt;Flash technology is used to help maintain a “unified look and feel.” Holds readily available graphics for fast and easy viewing. (prada.. Nike has a lot of videos of athletes.. Star lifestyle branding) Flash may enhance the company’s “look” and bring in more sales than other software May be a proprietary technology – providing a competitive advantage http://www.windowsfordevices.com/articles/AT2364930496.html http://www.nepalnews.com.np/contents/englishmonthly/obusinessage/2001/oct/fashion.htm
  • Solely for brand marketing  the site exists for the sole purpose of advertising for the company; although it may provide an online catalog, customers cannot order directly through the web site Markets Brands but is Sales Oriented  sites like this are created for the primary purpose of creating a new channel to use to sell to their consumers; The site also exists to advertise for the company and market the brand.
  • -Questions 1-4 were answered on a 1-5 scale with 1 being not at all and 5 being very much -Question 5 was a yes or no question How appealing is the web site? -The goal of advertising is to appeal to your target market. As the target market of this advertising we wanted to gauge its effectiveness of appealing to its target market How user friendly is the web site? -No matter how interactive or how technologically advanced a web site is, it is useless as a way to advertise if people are not able to use the site or navigate around the site How strong is your initial reaction to the web site? -Because an individuals initial reaction usually determines their feelings towards the advertised product, we wanted to know if web site users had a positive or negative reaction to the advertising How effective was the web site in marketing the brand? -We wanted to know from the perspective of a potential customer if they felt that the web site was an effective way to advertise for the brand Did your perception of the brand change after viewing their web site? -The goal of advertising on the web is to attract new customers through a developing, and interactive medium. Companies expect that a variety of customers will visit their web site. Their goal is to create a positive brand image for new customers and increase or maintain current customers perceptions of the brand. Many sites do not achieve this goal because they improperly design their sites.
  • Brand image site that offers no direct to consumer selling Serves as a hiring tool, store locator, and online catalog Positive aspects  Very interactive, a lot of flash throughout the site makes it a very appealing site, very intense graphics, overall a very interesting and complex site Negative aspects  long loading times, not very user friendly
  • appealing-very appealing Not very user friendly Strong initial reaction Effective at marketing the brand Perception of brand did not change
  • www.wikipedia.com
  • 2 sites Main site is a brand image site that is simply a title page Popup site is a brand image site that offers no direct to consumer selling and focuses on Prada’s fragrances Contains an appealing store locator, a perfume catalog, and information about up coming events; contains information on “Thunder Perfect Mind” which is a movie that Prada is making with Ridley Scott that they will use to launch their new fragrance Positive aspects  interactive site, interesting design Negative aspects  Prada requires a plug in to launch the second site so many people miss out on even visiting the fragrance site; Prada has no online presence of their own other then for their fragrances; Have not yet taken advantage of new advertising medium
  • Not very appealing Not at all user friendly Not a strong initial reaction Not effective at marketing brand and neutral Perception of the brand did not change
  • http://www.hoovers.com/prada/--ID__56418--/free-co-factsheet.xhtml
  • Site that markets the Puma brand, but is focused on selling its products directly to the consumer Contains an extensive online catalog, current news on Puma, employment opportunities, new items and an online shop Positive aspects  Interactive site; interactive online shopping for consumers from extensive online catalog; very user friendly site with easy navigation Negative aspects  The color scheme and the few sill images on the main page limit the extent of the users initial reaction
  • Appealing User friendly Neutral to a strong initial reaction Effective at marketing brand Perception of brand did not change
  • http://www.puma.com
  • Sit that markets the Old Navy brand, but is focused on selling its products directly to the consumer Contains an extensive online catalog, online sales, promotions and sweepstakes, a store locator, and news and events Positive aspects  extensive online catalog and online shopping, very user friendly, provides easy site navigation, online sales and promotions attract customers Negative aspects  not very interactive; not very appealing  no wow factor
  • Ranged from not very appealing to appealing Very user friendly Neutral to strong initial reaction Effective to very effective in marketing the brand Perception of brand did not change at all
  • www.oldnavy.com
  • Technology does not always improve a web site The Prada web site that requires a plug-in to open up their flash site, ranked the lowest out of the 4 sites across the board  many people don’t even visit the fragrance site Although the technology that Diesel uses in its site, such as intense graphics and an interactive flash set up, made it the most appealing site; the technology makes navigating around the site very difficult and makes it not very user friendly People are not likely to change their own perceptions of a brand based on their web site Across the board, the results indicated that very few people said that their perception of the brand changed after viewing the companies web site This may be because the companies we selected have established themselves in the market and are focusing on maintaining their customers current perceptions (not developing new divisions or lines????) Raises questions as to how effective can a website be in attracting new customers The degree of a persons initial reaction in our 4 surveys always represents how appealing and how effective they find the web site These results go back to the fact that a persons initial reaction tends to be the basis that they use to determine how they feel about the brand or web site
  • Its effectiveness in marketing the brand and degree of user friendliness make up for what it lacks in appeal and failure to create a strong initial reaction Results are relatively even across the board, making it a very good overall site in marketing their brand Despite its intense graphics and extensive use of flash, the long loading times and its failure at being a user friendly site hurts the overall rating of the site The main problem with the site is that Prada does not have a site devoted to marketing its brand, and only has a site to market its fragrance department; It lacks in user friendliness, fails to effectively market the brand, and creates a poor initial reaction in the mind of the readers
  • Section 11 - Technology and Retailing

    1. 1. Technology and its impact in the on-line fashion industry Group 3 Katie Reimer Linda Jacobsen Bill Messick Jimmy Asip
    2. 2. Branding a Lifestyle and an Image <ul><li>Internet advertising is impacting the way fashion retailers market and differentiate their brands by further developing their corporate images and accompanying messaging in accordance with their business strategies. </li></ul>
    3. 3. Causing this trend in high-end retailers <ul><li>Retailers must align e-market place with their business strategies </li></ul><ul><ul><li>Business Strategies may prohibit online sales, promote ‘online-catalogs’ or encourage lifestyle marketing </li></ul></ul><ul><li>Retailers with durable brands and corporate images find customers find them regardless </li></ul><ul><li>Many of these products not sold online </li></ul><ul><ul><li>Need to feel, wear, see product before purchase </li></ul></ul>
    4. 4. Advertising focusing on an image
    5. 5. Big Picture Snapshot <ul><li>Department of Commerce eCommerce sales $86.3 billion for 2005. Forrester Research reports $12.5b spent on apparel. </li></ul><ul><li>Latent Buying, shop and buy later. </li></ul><ul><ul><li>Browsing, compare, buying phase. </li></ul></ul><ul><li>4 th quarter most important draws population to eCommerce more than any other </li></ul><ul><li>Jupiter Research: more than 80% of shoppers browse online before in-store </li></ul><ul><li>comScore 63% of online browsers purchases off </li></ul>
    6. 6. US Advertising Spending
    7. 7. Website Evolution
    8. 8. Electronic Brochure Site Model <ul><li>Created a visual internet presence for a company </li></ul><ul><li>Described its goods, services and sometimes corporate philosophy </li></ul><ul><li>Labor-intensive and time-consuming to modify </li></ul><ul><li>Minimal cohesive visual consistency and user interface design. </li></ul><ul><li>No site differentiation or personalized content </li></ul>
    9. 9. E-Commerce Site Model <ul><li>Main purpose was to sell merchandise </li></ul><ul><li>Product catalogue and pricing information </li></ul><ul><li>More complex than brochure site. Addition of: </li></ul><ul><ul><li>Style sheets </li></ul></ul><ul><ul><li>Forms </li></ul></ul><ul><ul><li>Shopping cart functions </li></ul></ul>
    10. 10. Business Application Site Model <ul><li>Site differentiation is achieved by providing: </li></ul><ul><ul><li>Value-added information (reviews, suggestions, advice etc. ) </li></ul></ul><ul><ul><li>Interactivity </li></ul></ul><ul><ul><li>Frequent, useful content updates </li></ul></ul><ul><ul><li>Information personalized for specific users or user groups </li></ul></ul><ul><li>Converts users from passive viewers into active participants. </li></ul>
    11. 11. Technologies that Support the Business Application Site Model <ul><li>Broadband </li></ul><ul><li>Flash-ware </li></ul><ul><li>Secure transactions </li></ul><ul><ul><li>Authentication (name and password) </li></ul></ul><ul><ul><li>Digital signatures </li></ul></ul><ul><ul><li>Encryption </li></ul></ul><ul><ul><li>Secure servers </li></ul></ul>
    12. 12. Website Evolution Example <ul><li>Brochure Site Model </li></ul><ul><ul><li>Reebok 1996 </li></ul></ul><ul><li>E-Commerce Site Model </li></ul><ul><ul><li>Reebok Store 2002 </li></ul></ul><ul><li>Business Application Model </li></ul><ul><ul><li>Reebok 2006 </li></ul></ul>
    13. 13. Website Evolution <ul><li>http://shop.org/video/mov-sm.asp </li></ul>
    14. 14. History of Shopping <ul><li>Local seamstresses and tailors made clothing to order </li></ul><ul><ul><li>Mostly domestic, usually not much “stock” on hand </li></ul></ul><ul><ul><li>Sometimes sold at town shops </li></ul></ul><ul><li>Exporting - 1831, George Opdyke, later Mayor of New York, began the manufacture of clothing on Hudson Street, which he sold largely through a store in New Orleans. </li></ul><ul><ul><li>Increased Southern Trade Market </li></ul></ul><ul><li>Mass Production – 1851 – Singer sewing machine was invented </li></ul><ul><ul><li>Strong enough to sew leather – shoemakers used quickly </li></ul></ul><ul><ul><li>Larger scale production of clothing products was made possible </li></ul></ul><ul><ul><li>Cheaper labor costs because machine saved time </li></ul></ul><ul><li>More Choices </li></ul><ul><ul><li>1856 – first synthetic dye invented – more color options </li></ul></ul>
    15. 15. History of Shopping <ul><li>Catalogs introduced in 1872 by Montgomery Ward </li></ul><ul><ul><li>Sears introduced their catalog in 1888 </li></ul></ul><ul><li>Department Stores – Bloomingdale’s was founded in 1872 </li></ul><ul><ul><li>Choices led to the growth of specialized clothing stores & more chain/department stores </li></ul></ul><ul><li>Malls – the first mall was built in 1922 in Edina, Minnesota </li></ul><ul><ul><li>Another outlet for purchasing the latest fashions </li></ul></ul><ul><li>Internet stores began around 1995 </li></ul><ul><ul><li>Sales from Brick and Mortars impacted greatly </li></ul></ul>
    16. 16. Catalogs Today <ul><li>Sales over the internet have increased three-and-a-half times in the past four years, while turnover from catalogues has declined </li></ul><ul><ul><li>What such surveys do not fully take into account is the impact that catalogues have on online sales. </li></ul></ul><ul><li>Retailers that still carry and distribute catalogs are making them thinner and are still investing in them to spark customer interest and direct them to purchasing and browsing online. </li></ul><ul><li>Limited size and color selections in stores force people to order online or use catalogs, especially for plus sizes and petites. </li></ul>
    17. 17. Applying Technology to branded lifestyles <ul><li>In the beginning, consumers didn’t have a choice between many products and therefore companies didn’t focus on their target market. </li></ul><ul><li>On-line Technology matches “lifestyle” image to corporate values </li></ul><ul><ul><li>Flash </li></ul></ul><ul><ul><li>Graphic/video selection </li></ul></ul><ul><ul><li>Proprietary Technologies </li></ul></ul>
    18. 18. Survey Components <ul><li>Used the 2 types of fashion web sites: </li></ul><ul><ul><li>Solely for Brand Marketing: </li></ul></ul><ul><ul><ul><li>Diesel </li></ul></ul></ul><ul><ul><ul><li>Prada </li></ul></ul></ul><ul><ul><li>Markets Brand but is Sales Oriented: </li></ul></ul><ul><ul><ul><li>Puma </li></ul></ul></ul><ul><ul><ul><li>Old Navy </li></ul></ul></ul>
    19. 19. Survey Questions <ul><ul><li>How appealing is the web site? </li></ul></ul><ul><ul><li>How user friendly is the web site? </li></ul></ul><ul><ul><li>How strong is your initial reaction to the web site? </li></ul></ul><ul><ul><li>How effective was the web site in marketing the brand? </li></ul></ul><ul><ul><li>Did your perception of the brand change after viewing their web site? </li></ul></ul>
    20. 20. Diesel
    21. 21. Diesel <ul><li>70%  4 or 5 </li></ul><ul><li>45%  2 </li></ul><ul><li>55%  4 </li></ul><ul><li>40%  4 </li></ul><ul><li>70%  No </li></ul><ul><li>Overall appeal of the site </li></ul><ul><li>User friendliness </li></ul><ul><li>Strength of initial reaction </li></ul><ul><li>Effectiveness in marketing the brand </li></ul><ul><li>Did your perception change </li></ul>
    22. 22. Diesel <ul><li>Clothing company which produces “premium” apparel for men and women between 18 and 35 years old. </li></ul><ul><li>Privately Owned. </li></ul><ul><li>Sales: $1,227.6 Million </li></ul><ul><li>1 Year Sales Growth: 61.5% </li></ul>
    23. 23. Prada
    24. 24. <ul><li>46.7%  2 </li></ul><ul><li>73.3%  1 </li></ul><ul><li>46.7%  2 </li></ul><ul><li>80%  Tie between 1 and 3 </li></ul><ul><li>80%  No </li></ul><ul><li>Overall appeal of the site </li></ul><ul><li>User friendliness </li></ul><ul><li>Strength of initial reaction </li></ul><ul><li>Effectiveness in marketing the brand </li></ul><ul><li>Did your perception change </li></ul>
    25. 25. Prada <ul><li>“ Prada sells upscale apparel, shoes, fragrance, and accessories for men and women, as well as its less-pricey Miu Miu apparel line.“ </li></ul><ul><li>Privately owned </li></ul><ul><li>Sales: $1,991.4 Million </li></ul><ul><li>1 Year Sales Growth: 16.7% </li></ul>
    26. 26. Puma
    27. 27. <ul><li>68.8%  4 </li></ul><ul><li>56.2%  4 </li></ul><ul><li>90.3%  3 or 4 </li></ul><ul><li>43.8%  4 </li></ul><ul><li>81.2%  No </li></ul><ul><li>Overall appeal of the site </li></ul><ul><li>User friendliness </li></ul><ul><li>Strength of initial reaction </li></ul><ul><li>Effectiveness in marketing the brand </li></ul><ul><li>Did your perception change </li></ul>
    28. 28. Puma <ul><li>“ PUMA has the long-term mission of becoming the most desirable Sportlifestyle company.” </li></ul><ul><ul><li>focusing on bringing distinctive designs and a global outlook to each product range by blending influences of sport, lifestyle and fashion. In order to achieve these goals, our brand template emphasises PUMA’s distinctiveness, individualism, spontaneity, internationalism and sporting heritage. An important part of our brand strategy is maintaining vigilant watch over our distribution channels, ensuring that we maintain the high level of desirability necessary for sustainable growth. </li></ul></ul><ul><ul><li>PUMA focuses on creating a differentiating yet unmistakably clear brand message that resonates with our consumers </li></ul></ul><ul><ul><li>Above all, PUMA’s marketing will always strive to surprise, stimulate, entertain and engage. By constantly delivering the unexpected and challenging perceptions, PUMA aims to continue to be a defining voice in the world of Sportlifestyle </li></ul></ul><ul><li>Markets brand but is also sales oriented. </li></ul><ul><li>Sales: $2105.1 Million </li></ul><ul><li>1 Year Sales Growth: 0.9% </li></ul>
    29. 29. Old Navy
    30. 30. <ul><li>87.4%  2, 3, or 4 </li></ul><ul><li>50%  5 </li></ul><ul><li>62.4%  3 or 4 </li></ul><ul><li>68.7%  4 or 5 </li></ul><ul><li>100%  No </li></ul><ul><li>Overall appeal of the site </li></ul><ul><li>User friendliness </li></ul><ul><li>Strength of initial reaction </li></ul><ul><li>Effectiveness in marketing the brand </li></ul><ul><li>Did your perception change </li></ul>
    31. 31. Old Navy <ul><li>“ Old Navy's mission is to offer affordable, fashionable clothing and accessories for the whole family.” </li></ul><ul><ul><li>Sales oriented: Recently added features to make online shopping easier and faster </li></ul></ul><ul><ul><ul><li>Pop ups to view clothing and add to cart and not leave the homepage so you can continue to browse. </li></ul></ul></ul><ul><ul><ul><li>Quick confirmations of added apparel </li></ul></ul></ul><ul><li>Sales: $6,856 Million </li></ul><ul><li>1 Year Sales Growth: 1.6% </li></ul>
    32. 32. “Lifestyle” Conclusions <ul><li>Old Navy has the most sales but less annual growth. </li></ul><ul><li>Diesel had the highest annual growth which seems to suggest that their marketing efforts have begun to be accepted and will continue to be successful. </li></ul><ul><li>Prada has a high growth rate as well. </li></ul><ul><li>Puma needs to enhance their efforts to gain more market share. </li></ul>
    33. 33. Survey Conclusions <ul><li>Technology does not always improve a web site </li></ul><ul><li>The user reaction to a site largely depends on the purpose of the web-site </li></ul><ul><li>The degree of a persons initial reaction in our 4 surveys always represents how appealing and how effective they find the web site </li></ul>
    34. 34. Survey Conclusions <ul><li>After analyzing the survey data, we determined that based on our criteria that our sample rated the sites as follows: </li></ul><ul><ul><ul><li>Old Navy </li></ul></ul></ul><ul><ul><ul><li>Puma </li></ul></ul></ul><ul><ul><ul><li>Diesel </li></ul></ul></ul><ul><ul><ul><li>Prada </li></ul></ul></ul>
    35. 35. Conclusion <ul><li>Technology has greatly impacted the way that companies advertise and market their brand online </li></ul><ul><li>As more people continue to use the internet, it will continue to grow in value as an advertising medium </li></ul><ul><li>Promoting lifestyles around a brand image is the current trend in many fashion companies and is likely to continue to grow as more companies work to expand their web presence </li></ul>
    36. 36. Future Trends <ul><li>The applications and interfaces users navigate on-line will become more advanced as technology develops. </li></ul><ul><li>Number of users on-line shopping will continue to grow as well as on-line revenues. </li></ul><ul><li>3D web technologies are being developed and more users will shop in the metaworld. </li></ul>

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