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Marks & Spencer Onboarding Marketing Plan
- 1. “The fashion market in the Middle East is more than $30bn, and online share is less than 1%” Marks & Spencer Middle East Digital Strategy 2013
- 2. Market Potential, Demand and Attractiveness SWOT – Customers, Competition, Growth Forces Strategic Plan Performance Plan 1 Executive Summary 2 5 3 4 Agenda Immediate Steps and Timeline6
- 3. Executive Summary The strategic opportunity is to develop our MENA region focused digital strategy, resulting in $370K in new e-Commerce revenues by the end of Year 4 (est. 2017) 63% of retail shoppers expect a more digitally integrated experience over the next 2 years, while the MENA e-Commerce opportunity is predicted to be $1.5T by 2016 Strategic Alternatives • Continue on existing path OR • Off load to M&S UK with local support provided OR • Do not enter into e-Commerce arena Strategic Recommendation Allocate $345K in Year 1 towards strategic digital development reaching operating break even by the middle of Year 1 (est. 2014) Source: http://www.mediapost.com/publications/article/190447/consumers-want-mobile-enhanced-retail.html#axzz2HSsgs0FO
- 4. 2013 Market potential 72.5m MENA internet users 66% search for products online 33% make online purchases 6 average purchases per year $230 average price of purchase $21.7B estimated B2C commerce opportunity Existing Market Share Potential Market Share 100 0 47.8m potential customers in the MENA 300m population in the MENA region 100 16 2013 Market Development Index 2013 Share Development Index Source: Market Based Management / Wamda.com Highly attractive opportunity, where our share can develop along side the market
- 5. Signals to enter and operate in the MENA market with confidence Source: McKinsey & GE Competitive Position Unattractive Average Attractive Category Attractiveness Weak Average Strong Cash generator Disinvest Phased withdrawal Proceed with care Proceed with care Try harder Cash generator Growth leader Leader Double or quit
- 6. Snapshot of internal key strength and growth areas – SWOT (1/2) Strengths Committed and knowledgeable executive team Extensive experience launching digital platforms Attractive and loyal customer base Dedicated budget Aggressive growth plans Known and trusted brand to create easier digital conversions Weaknesses ᵪ Limited digital properties in nascent stages ᵪ Lack of dedicated digital team ᵪ Absence of existing benchmarks for measuring success ᵪ Lack of advanced data and analytics Development of a highly engaged target audience through our strategic digital plan will strengthen our competitive advantage in the market
- 7. Snapshot of external key strength and growth areas – SWOT (2/2) Opportunities Internet and mobile internet penetration rapidly increasing in MENA B2C ecommerce to grow by 35% through 2015 In store & offline activation through CRM and integrated profiles Emerging ‘MENA fashion’ community mCommerce & social commerce Threats ᵪ Global entrants into MENA ecommerce opportunity ᵪ Absence of familiarity with online shopping ᵪ Weak payment providers ᵪ Lack of trust in MENA ecommerce (aftercare services) ᵪ Customer hesitation with online payment due to safety concerns Category attractiveness is high; we must remain aware of new entrances, market trends and voice of customer
- 8. Source: http://www.just-style.com/analysis/debenhams-outlines-expansion-plans_id115927.aspx Debenhams Landmark Barneys High Medium Low Perceived threat Description Souq.com MarkaVIP Namshi.com Our competition is aware of the market attractiveness and is entering • Globally better than predicted online sales; locally building eCommerce team since 2011 • Started building web team in 2012, launched UAE eCommerce site in Nov. • Recently expanded its international shipping to over 90 countries, ten of which are in MENA. • The Middle East’s largest e-commerce site, is growing through acquisitions • Private online sales club has announced $15 million in investment over two different funding rounds • In two separate rounds of funding have raised upwards of $20m lead by JP Morgan Asset Management.
- 9. Our immediately addressable customer spends with discretion and expects a high level of customer service Home 1% Ladies 28% Lingerie 25% Mens 23% Childrens 13% Foods 5% Beauty 5% Other 23% Title Based on internet averages marksandspencerme.com is visited most by the following demographic: • Gender: Females • Age group: 35 - 44 • Education level: College educated • Additional: Browse the site from work Source: M&S Internal / Alexa.com Potential MarketTotal Market Accessible Market Realistic Share 1.45M potential M&S e- Commerce customers 72.5M MENA Internet Users
- 10. Growth facilitation is necessary for apprehensive consumers in this young and growing segment 7 key forces that restrict a market from realizing its potential 5 customer adoption forces affecting new market penetration 1. Feel the need 2. Observation 3. Buying Decision 4. Mitigate Risk 5. Trail-ability Target Customer adoption 1. Lack of awareness 2. Lacks desired performance 3. Consumers lack skills to use 4. Insufficient infrastructure 5. Unaffordable 6. Unrecognized need 7. Unavailability Source: Market Based Management
- 11. Multifaceted digital strategy to be integrated across departments Our strategic plan will create tactical touch points to build extensive customer profiles and use robust monitoring, analytics, and data to facilitate decision making Offline/In Store Community building Mobile Direct digital Paid placement Branded web properties Marketing Public relations In store management Buying Visual merchandising IT/Agency Lifetime Customer StrategyResult Department High awareness
- 12. Community Building - Maneuver digital awareness of M&S to a top consideration for MENA retail shoppers Tactical examples and tools used include: Visual Content Blogger/Magazine Outreach Article Marketing Social Media channels Link building 44% of users are more likely to engage with brands if they post pictures Tactically position community building to effect • ‘Free’ and Paid Social Media • Search Engine Optimization • eCommerce conversions by creating third party vetted and internally developed awareness, trust, and conversions Source: ROI Research
- 13. Paid Placement - Expand our market share with observable brand placements to create measureable, predictable, and instant awareness Tactical examples and tools used: Ad Words Mobile Ad networks Ad Sense display ads Social promoted stories Social display ads
- 14. Enhanced with QR codeStandard magazine Ad Offline/In-store - Create the strongest interconnected experiences bring customers closer to our brand and ultimately a buying decision Tactical examples and tools: In-store item pick up VR/Augmented Reality Unique Campaign Landing Pages Coupons or check-in offers On-site Interactivity Mobile ‘gamification’ Source: http://pushsci.com/2011/10/01/mobile-what-not-to-measure/#.UPKGkaHF00w Drives Information Capture and mCommerce Opportunities Mobile is estimated to influence $230 Billion of total brick & mortar and online sales
- 15. Tactical examples and tools used: Internal fashion blog Live customer chat Live customer phone support Customer feedback section On-site & off-site search engine optimization Multi-fulfillment option shopping cart Couponing Customer capture Community management Mass media integration Source:http://www.emarketer.com/Article.aspx?R=1009585 Branded Web Properties - Develop to a MENA online market share player maximizing reach, customer service, and sales The highest response measured at 48% of online shoppers said they trusted brand websites over all other forms of digital media. Our site goals: High performing Customer friendly Encourages trialability
- 16. Tactical examples and tools used: Social media promotions Mobile applications Mobile notifications Text messaging Email marketing Direct Digital - Improve retention and increase repeat purchases for customers of Marks & Spencer Can be used in conjunction with Seasonal, Product Releases & Anniversaries Source:https://www.emarketer.com/Coverage/Email.aspx 67% of CMO's still rated email the most successful digital marketing tactic
- 17. E-Commerce financial projections show promising new revenue stream from our immediately addressable market Year 1 Year 2 Year 3 Year 4 Year 5 Traffic Needed @ 1% 117,935 130,908 145,307 161,291 179,033 Total Transactions 1179 1309 1453 1613 1790 Average Net Checkout $230 $230 $230 $230 $230 Sales Revenues $271,250 $301,088 $334,207 $370,970 $411,777 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 Year 1 Year 2 Year 3 Year 4 Year 5 eCommerce Sales Revenues
- 18. Fixed Costs Database Programmer $ 4,632.15 Front-End Developer $ 4,087.19 Community Manager $ 3,269.75 Advanced Analytics $ 2,043.60 ME Audience Tool $ 2,043.60 Hosting $ 190.74 Variable Costs Paid Ad Spend $ 4,904.63 Graphic Design $ 2,452.32 Mobile App Development $ 2,179.84 Campaign Related Mobile/Web/Email dev $ 2,997.28 Monthly cost $ 28,801.09 Annual cost $ 345,613.08 The right mix of fixed and variable costs will determine break even and payback periods $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 Series1 Series2 Source: Industry Average Pay Scale and Marketing Spend Revenue Fixed Costs
- 19. Performance will be measured using industry best practice and internally developed metrics Monitoring and measuring thorough data and analytics New customer acquisition Customer Retention Traffic Database growth Social metrics Sales
- 20. • Market potential Highly attractive market with growing demand • Identifying Opportunities through SWOT analysis Market forces will provide signals to convert customers • Develop digital strategy to capitalize Create awareness and facilitate new revenues • Costing and Projections Invest to grow our market share • Performance Measurement Development measurement to gauge effectiveness To recap - here is how we will sell the strategy to management and M&S UK
- 21. Digital strategy will roll out to compliment 2013 regional store openings Reach ▪ Internal team ▪ Internal team ▪ Various stakeholders ▪ Management, M&S UK ▪ Internal team ▪ Management ▪ HR 60-90 Days 60 Days Remaining of 2013 ▪ Budget released ▪ Performance standardsResources required Desired outcome ▪ Leverage previous M&S best practices in new strategy ▪ Introduction of M&S digital campaign to MENA market ▪ Build strong audience profile ▪ Talent acquisition Focus ▪ Internal data review ▪ Determine benchmarks ▪ Set performance goals ▪ Complete handover of existing tactical campaigns ▪ Develop tactical campaigns in-line with 2013 store openings and agreed goals ▪ Capture local data (Ipsos, Nielsen) ▪ Begin sourcing process ▪ Obtain management sign off on strategy Prelaunch Roll out Stabilization 2 1 ▪ Strategy sessions ▪ Personnel plan ▪ Digital team
- 22. Mobile commerce (m-Commerce) is estimated to grow globally to $31 Billion by 2016 Social commerce expected to reach $30 billion in the next 5 years Source: http://money.cnn.com/gallery/magazines/fortune/2013/01/10/2013-social-networks.fortune/5.html http://www.strangeloopnetworks.com/resources/infographics/mobile- infographics/the-growth-of-mobile-commerce/ Position our workplace, team, and brand as the most forward thinking and innovative retailer in the MENA region
- 23. Thank You & Questions
- 24. Appendix
- 25. Snapshot of internal key strength and growth areas – SWOT (1/2) Development of a highly engaged target audience through our strategic digital plan will strengthen our competitive advantage in the market Strengths Committed and knowledgeable executive team Extensive experience launching digital platforms Dedicated budget Aggressive growth plans Known and trusted brand to create easier digital conversions Weaknesses ᵪ Limited digital properties in nascent stages ᵪ Lack of dedicated digital team ᵪ Absence of existing benchmarks for measuring success ᵪ Lack of advanced data and analytics
- 26. Snapshot Improving our digital competitive position through creating more value Superior Technology Superior Offering, Branding & Positioning Superior Operations Superior Target Superior Customer Superior Access Superior Inputs Superior Collabora- tors Superior Data & Insights Integrated eCommerce 72% of existing product mix is driven by highly sought female demographic Strong & customer focused MENA distribution Apply M&S Customer Values to our digital channels Best in Class CRM & Analytics
- 27. Snapshot of external key strength and growth areas – SWOT (2/2) Category attractiveness is high; we must remain aware of new entrances, market trends and voice of customer Opportunities Internet and mobile internet penetration increasing in MENA at exponential rate B2C ecommerce to grow by 35% through 2015 In store & offline activation through CRM and integrated profiles Emerging ‘MENA fashion’ community mCommerce & social commerce Threats ᵪ Global entrants into MENA ecommerce opportunity ᵪ Absence of familiarity with online shopping ᵪ Weak payment providers ᵪ Lack of trust in MENA ecommerce (aftercare services) ᵪ Customer hesitation with online payment due to safety concerns
- 28. Value is destroyed through substitutions, obsolescence and new entrants Power of Buyers HIGH Substitution & Technological Obsolescence HIGH Threat of new entrants HIGH Competitive rivalry HIGH Power of Suppliers LOW Attractiveness of MENA ecommerce opportunity will create extensive new competition Consumer preferences are shifting, but at what rate? Will online ever overtake the shopping mall in MENA? • Compliment in-store purchases while still driving revenue • Competition is entering
- 29. http://searchenginewatch.com/article/2232614/10-Reasons-Why-Public-Relations-is-a-Must-do-for-SEO-in-2013 The latest Google changes have put a real emphasis on high quality, unique content that is linked to by quality sites. "The future of SEO is not in the technology, it’s in the ability to tell stories that readers and Google will find interesting… and that’s public relations.” “Authentic and relevant link building, aimed at driving engagement, informing publics and building mutually beneficial relationships should be a part of every public relations and SEO effort," Public Relations Society of America (PRSA) Promotions will provide tremendous ROI effecting; social media, SEO, SEM, written & visual content, and eCommerce to drive conversions Online fashion community deep dive
- 30. http://www.forbes.com/sites/chrisperry/2012/01/23/why-every-cmo-should-celebrate-cmad/ Social Media Tactical Deep Dive Community Management Strategy/ Investor in Customer Relationships 1. Channels informed based on community insights 2. Outreach and involvement w/ active and influential members of community? 3. Is your content in line with known market needs and expressed community interests 4. Community building online and in-person participation in major events 5. Actively design and manage it as customer insight and service outpost Pinterest is 4 largest generator of traffic and offers affiliate links – revenue generation - the act of pinning can signal buying “intent.”
- 31. Paid visual content will provide us with awareness for potential brand followers to connect with our brand in a meaningful way http://www.slideshare.net/TheOnlineProj/how-much-does-a-facebook-fan-cost-in-the-arab-world-15809461 Social Media Tactical Deep Dive Paid Social Strategy December 2012, 44 million Arabs are using Facebook. Nielsen predicts fb reaches its intended audience 90-95% of the time compared to 35% on average Qatar has the highest average cost per fb fan, while Eqypt has the lowest average cost. Fashion industry has one of the higher average costs per fan compare to most major industries
- 32. SEO & Content Strategy Development 14 APPROACHES TO CONTENT 1. Research important questions. 2. List good / bad examples. 3. Passionately tell a story. 4. Highlight recent trends. 5. Survey best practices. 6. Compile proven tips. 7. Point out a problem. 8. Recognize who. 9. List what. 10. Warn when. 11. Show where. 12. Debate why. 13. Demonstrate how. 14. State the so what?
- 33. Paid digital placement (ex. banner ads & ad words) will provide instant awareness, strong analytics and a highly measurable marketing spend Tactical examples and tools include Ad Words, Mobile Ad networks, Ad Sense display ads, social promoted stories and social display ads
- 34. Integrating digital components to real world and offline (In-store, ATL/Mass Market campaigns) will increase the all campaign effectiveness, maximizing return on investment Many people prefer using their mobile devices for shopping even while at home... mobile isn’t just about ‘on-the-go’ convenience when it comes to shopping 63% of consumers expect more mobile shopping experiences in the next two years 72% use a smartphone to locate a store 66% use a smartphone to look up/compare pricing According to one study, 92% of mobile video viewers also share videos with others. http://www.mediapost.com/publications/article/190447/consumers-want-mobile-enhanced-retail.html#ixzz2HqfH2zvV http://www.emarketer.com/Article/Nearly-All-Mobile-Video-Viewers-Mobile-Video-Sharers/1009586
- 35. Brand websites are the content online shoppers trust most Live chat can boost conversion rates 10-20% 92% of companies who blog multiple times per day have acquired a customer from their blog. On-site testimonials have been shown to improve conversion rate by 34%. http://www.emarketer.com/Article.aspx?R=1009585 http://conversionxl.com/53-ways-to-increase-conversion-rate/ Speed and usability, 400 milliseconds could mean a 5-9% increase in visitor retention for your business.
- 36. Proper placement and awareness is vital in the vast expanse of the internet http://www.slideshare.net/HubSpot/the-state-of-seo-and-internet-marketing-in-2012 3 billion searches per day in Google 75% + of all clicks go to organic results not paid ads More than 50% of search queries have no ads at all Google bought Twitter’s data and pulls Facebook ‘s API, social signals are a much bigger part of the Google algorithm
- 37. Email marketing is still the most effective direct digital marketing tactic Tactical Deployment Practices Build and segment your contact list for better results Craft strategic content and offers that increase your response rates Leverage your email content across multiple marketing channels Measure of email marketing success is vital not only to understand e-Commerce but also offline effectiveness. Email marketing is a great tool to drive more in-store conversions and tracking this is important