BS3988 Digital Marketing PDF

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Digital Marketing...

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BS3988 Digital Marketing Report T.K. Maxx

Rosie McGee 1604418 Word Count: 2998/3000

Contents

1 1.

Introduction……………………………………………………………...3 1.1 Current Digital Marketing Activities…………………………….3 1.12 5 S’s of Digital Marketing………………………………………..3 1.13 RACE Model……………………………………………………….5 1.2 Similar Web………………………………………………………….6

2. Competitor Analysis…………………………………………………………..8 2.1 Social Media Audit………………………………………………...8 2.2 Porter's 5 Forces…………………………………………………..10 3. Digital Marketing Campaign Proposal……………………………………..10 3.1 Business Objectives………………………………………………10 3.12 Outline of Campaign Idea……………………………………….10 3.13 Target Audience…………………………………………………..11 3.2 Customer Relationship Management (CRM)..........................11 3.21 Customer Loyalty Ladder……………………………………….11 3.3 Content Marketing Matrix………………………………………...12 3.4 Platforms…………………………………………………………….12 3.41 Instagram…………………………………………………………..12 3.42 Website……………………………………………………………..13 3.43 Twitter……………………………………………………………….13 3.44 Winchester Fashion Week Magazine………………………….13 3.45 Email Marketing…………………………………………………...13 4. Ethical Permutations…………………………………………………………..14 5. Conclusion………………………………………………………………………14 6. Reference List…………………………………………………………………..15

Figure No.

Description

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TK Maxx Checkout

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Matalan Checkout

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TK Maxx Twitter Page

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(P)RACE Model

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1.

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Matalan Facebook Page

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Similar Web Total Visits

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Similar Web Social Traffic

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Matalan Similar Web Social Traffic and Total Visits

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Semrush Organic Competition

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Most Popular Fashion and Clothing Brands

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Social Media Audit

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Porter’s 5 Forces

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Customer Loyalty Ladder

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Content Marketing Visual Map

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Uni Looks on TK Maxx Website

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Introduction

TK Maxx is part of the TJX Companies that include, TJ Maxx (USA), Marshalls, Home Goods, Sierra, Winners and Homesense (Tjx.com, 2019). According to TJX (2019) As of February 3, 2018 TJX sales were $35.9 billion, and the Company operated more than 4,000 stores in nine countries, across three continents.Launched in 1994, TK Maxx introduced ‘off-price retailing to the UK. and Ireland’, TK Maxx suggests that they are the only brick-and-mortar, offprice retailer of apparel and home fashions as large as themselves in Europe (TJX, 2019). As well as its physical stores, TK Maxx operates its e-commerce site www.tkmaxx.co.uk. TK Maxx offers a range of products such as ‘family apparel, ‘home decor’, ‘lingerie’, ‘accessories’, ‘luggage’, ‘toys’ and more. 1.1 Current Digital Marketing Activities

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According to Chaffey and Ellis-Chadwick (2015) digital marketing can be defined simply as ‘achieving marketing objectives through applying digital technologies and media’. These can include: ‘search engine marketing’, ‘social media marketing’, ‘online advertising’, ‘email marketing’ and ‘partnership arrangements with other websites’ (Chaffey and Ellis-Chadwick, 2015). 1.12 5S’s of Digital Marketing According to Chaffey (2018) the 5S’s of marketing is a tool that enables marketers to check the whole of digital marketing is being covered. This tool will be applied to TK Maxx below in order to set digital marketing goals that cover a range of different measures to help set, review and control performance across all digital marketing activities (Chaffey, 2018). Sell Sell refers to how the brand aims to make their revenue and profit (Chaffey, 2018). Tk Maxx does this through online sales by offering endless amount of promotions on items, however TK Maxx delivery is expensive in comparison to competitors with £3.99 standard delivery and £6.99 for next day delivery, where as competitor Matalan offers free click and collect service on all orders and free standard delivery for orders over £50. In this case, Tk Maxx could aim to increase sales by offering a free delivery service or free click and collect.

Figure 1. TK Maxx Checkout

Figure 2. Matalan Checkout

Speak According to Chaffey (2018) speak refers to the ways in which a brand ‘gets closer to the consumer through dialogue and participation’. The ways in which TK Maxx ‘speaks’ to their consumer is limited, Tk Maxx does not operate a blog, nor do they have an offline magazine that could gain traction to the brands website. However, TK Maxx do have a YouTube channel that has content such as ‘Beauty Blogger Tips’ and ‘Last Minute Shopping Tips’. This enables the consumer to gain ideas and inspiration of TK Maxx, which then leads them to the shop with them without having to look through a website or in store. Chaffey (2018) explains that ‘digital channels work best when joined with other channels’ therefore a goal should be to prompt online visits through use of ‘traditional offline media’. Serve Serve is a way in which brands can ‘add value’. According to Kotler, Kartajaya and Setiawan (2017) ‘customers already have limited time to consider and evaluate brands’ therefore, it is vital for brands to have ‘help pages’ that are easily accessible. Chaffey (2018) suggests that an important goal is to assess how good your are at customer service, then improve it further. With reference to TK Maxx, they currently have a Twitter page for customers to voice complaints, queries and general ‘help’.

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Figure 3. TK Maxx Twitter Page (Twitter, 2019). Save Save is ways in which brands can cut their costs on marketing such as magazines (print) and post (Chaffey, 2018). As TK Maxx does not currently have a magazine, it is likely that the brand are already saving on these costs, however utilising these budgets for online content instead of print, can ‘build your brand and social media engagement’. Sizzle The sizzle element of the 5 S’s is about building your brand online to make a positive online brand experience for the audience and the brand with the success of this, ‘the visitor will want to use your online services again, and tell their friends and colleagues about it’. In order to gain a ‘Sizzle’ of TK Maxx, there are ways in which improvements can be made, be it through enabling the customer to order with Free Delivery, or creating an online blog that can inspire the customer and give them ideas throughout the year, this in turn is saving in costs of ‘print’ and will gain traffic on the TK Maxx website. 1.13 RACE Model The RACE model is a ‘mnemonic that summarises the key online marketing activities that need to be managed as part of digital marketing’ (Chaffey, 2017). This model will be applied to T.K. Maxx below.

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Figure 4. (P)RACE Model (Chaffey, 2017). Reach

According to Chaffey (2017) reach involves building awareness of a brand, its products, and services on other websites and in offline media in order to build traffic by driving visits to different web presences’ for example Tk Maxx website and social media platforms that reach out to consumers. TK Maxx currently utilises digital marketing through their website, social media platforms such as Instagram, Facebook, YouTube, Pinterest and Twitter. However, TK Maxx reach is limited as there is no use of a blog, whereas competitor Matalan uses an ‘Inspire Me’ page with ‘Top Trending’ products and ‘Bridal Guide’ which give the consumer a better of idea of how to choose their products.

Act

Act is about ‘persuading site visitors or prospects to take the next step’ (Chaffey, 2017). TK Maxx gives the consumer to sign up to E-Newletters via email once they have added an item to their basket. However an option could be having a ‘pop-up’ that the consumer sees as they access the website, asking if they want to sign up and if they do they can receive ‘10% off your first order’. This is one way in which TK Maxx could move their customer from Reach to Action.

Convert

Convert is where the consumer is converted into sale. This is something that can be improved for TK Maxx as currently the only option for the consumer to action their transaction is from their website.

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Figure 5. Matalan Facebook (2019). Matalan have used the function on Facebook so that consumers are able to click on the post that has been put up and be directed straight to the website, this makes the transaction more efficient and easier for the customer wishing to buy from Matalan Engage

Engagement refers to ‘developing a long-term relationship with first-time buyers to build customer loyalty’ (Chaffey, 2018) this can be done through ensuring that the customer is satisfied with ‘after care’ and there are sufficient platforms to reach out to TK Maxx for example their Twitter ‘help page’ and ensuring that the brand is replying to comments and queries. A satisfied customer will encourage word of mouth and increased engagement with the brand.

1.2 Similar Web Similar Web is a digital market intelligence platform that enables marketers to view valuable statistics such as ‘total visits’ to a web page and ‘social traffic’ on the companies social media platforms. Similar Web has been used below to understand these factors for TK Maxx and compared with a competitor, Matalan. TK Maxx

Figure 6. Similar Web total visits (2019).

Figure 7. Similar Web TK Maxx Social Traffic (2019). As shown above, TK Maxx has recieved 24.77 million visits to their website over the period of December 2018February 2019 where as recieved significantly less with 17.72m visits on their website. However, social traffic shows

7 that Matalan have had more traffic on their Facebook, Youtube and Pinterest pages in comparison to TK Maxx, this may be down to a number of factors identified in the 5’S Model, RACE Model and the Social Media Audit below. Matalan

Figure 8-9. Matalan Similar Web Social Traffic and Total Visits (2019). 2. Competitor Analysis

Figure 10. SemRush Organic Competitors (2019). According to the SemRush SEO (Search Engine Optimisation) tool T.K.Maxx competitors include Matalan, House of Fraser, Next, Debenhams and Zalando.

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Figure 11. Most popular fashion and clothing brands in the UK (Statista, 2019). 2.1 Social Media Audit Social Media Audit has been designed to enable marketers to identify the purpose of the platforms they are operating on. It also helps marketers to see brands as a consumer shifting their mindsets from ‘control to engagement’ (Quesenberry, 2015). Below, a social media audit has been applied to identify improvements TK Maxx can make. Who

Where

What

When

Company

Instagram

Sharing photos ● Product imagery ● Promotional images ● Lifestyle scenarios

Infrequent posts

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1 post per 5 days

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Infrequent Last post 3 weeks ago

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Seeking help ● Sizing issues Praising images ● Praising money raised for Red Nose Day

10-50 comments per post

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Facebook

Queries ● Questions about items TK Maxx stock ● Praise of images

Little engagement, some posts have just 2 comments.

Instagram

Sharing photos ● Modelling

500-2000 likes on each image

TKMaxx

Twitter

Consumer

Competitor

Instagram

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Promotions Red Nose Day Images

Why

Opportunity Engage followers Gain likes Drive sales/to website

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Informative of charity work Promotions Links to website

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Gain information Vent issues and concerns

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Ask questions Praise images

4 Opportunity to grow engagement with consumers.

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Engage and inspire

4 Opportunity

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Opportunity to post more frequently

Opportunity to use the platform more effectively

Opportunityas evidently receiving engagement on posts.

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Matalan ● ●

garments Homeware in real life situations Use of followers images

Post 3x per day ● ● ●

Facebook

Sharing photos and videos Use of ‘featured products’ function (1 click takes customer to webpage).

2 posts per day

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followers Lead them to website Encourage purchasing Styling ideas

Matalan are using Instagram successfully and gaining a lot of engagement.

Advertisement videos-inform consumer Inspiration shoppable

4 Positive comments Informative posts.

Figure 12. Social Media Audit applied to TK Maxx (Quesenberry, 2015). The social media audit has shown that there are a few ways in which TK Maxx can improve their social media strategy. Social media is an important marketing tool as it is ‘voluntary and accessed on demand, which means customers choose to consume content whenever and wherever they want’ (Kotler, Kartajaya and Setiawan, 2017). The ease of using social media for consumers means that it is crucial for brands to use platforms to their full potential increasing the chance of content turning into a sale and increased profitability of the brand. The main factors for Tk Maxx to focus on are as follows, use Instagram and Twitter more effectively in order to increase engagement, as currently TK Maxx are posting content infrequently, which means that they are not at the forefront of consumers minds. Similarly, there is poor use of Twitter with minimal posts daily, this limits the opportunity of consumers following up posts and visiting the website to make a purchase. It would be beneficial for TK Maxx to follow competitor Matalan where there are frequent posts throughout social media platforms such as Facebook and Instagram. Matalan posts on Instagram at least 3 times per day and 2 posts per day on Facebook which is a significant amount more than TK Maxx. 2.2 Porter's 5 Forces Bargaining Power of Buyers

Bargaining Power of Suppliers

Threat of Substitute Products and Services

Barrier to Entry

Rivalry Between Existing Competitors

According to Chaffey and Ellis-Chadwick (2015) the power of online buyers is increased as they have a wider choice and variety. Prices are likely to be decreased due to increased customer knowledge and price transparency. Therefore consumers are easily able to find a cheaper alternative.

Bargaining power of suppliers for a fashion brand like TK Maxx is relatively low due to the vast amount of suppliers available to the industry.

Due to the speed of new products and services being created, this threat is relatively high. It is important that TK Maxx stays aware of new technologies and digital services to offer their customers when they are available so that they are not left behind competitors.

Barriers to entry into a digital marketing business is low. Creating a website and offering products and services in a retail environment is easy to start up. However, it is likely that start up’s will gain the amount of engagement and ‘following’ TK Maxx has having been around for almost 50 years.

Rivalry between existing competitors is high, due to retailers adopting new technologies and striving to be ahead in terms of digital activities. Chaffey and EllisChadwick (2015) explains that ‘the internet facilitates the move to the global market, increasing the number of competitors’.

Figure 13. Porter's 5 Forces applied to TK Maxx 3. Digital Marketing Campaign Proposal

10 This section of the report will outline the omni-channel digital marketing campaign proposal for TK Maxx, analysing ways in which digital media can grow for the business. The proposal will outline the business objectives of this proposed campaign, crucial factors such as target audience, the way the campaign success will be measured and finally the proposal will be critiqued in order to understand the pros and cons of the campaign. 3.1 Business Objectives According to Dodson (2016) there are different types of objectives when creating a campaign, these are business, audience, product, brand and marketing objectives. It is important when planning a campaign to pick one to focus on on depending on ‘what exactly do you want to achieve from your digital marketing campaign’ (Dodson, 2016). For the present campaign being proposed for TK Maxx, ‘Audience Objectives’ has been chosen, to ‘focus on adding new audiences or making an existing one more aware of your product’ (Dodson, 2016). As TK Maxx offers a range of products, from Homeware to menswear, womenswear, pet care e.t.c, it is understood that TK Maxx will target a wide audience in order for all of their departments to be successful and profitable. For this campaign, TK Maxx will be targeting students which will be discussed further in section 4.13 Target Audience. This will be an omnichannel campaign which can be defined as ‘an emerging concept with an emphasis on channel integration for providing seamless customer experiences across various channels (Piotrowicz and Cuthbertson, 2019). 3.12 Outline of the Campaign Idea Clark (2018) explains that by the middle of the next decade, shopping centres will be redesigned as providers of ‘novel and inspiring experiences’ rather than simply places the purchase items’. Based on this factor, the campaign will involved TK Maxx operating at Winchester Fashion Week, an event which takes place 29th April-4th May 2019. University of Winchester is headline sponsor of the Fashion Week, therefore it is highly likely that there will be a number of students attending the event. As the aim of this campaign is to ‘focus on adding new audiences’ in particular, students, this is a prime event for TK Maxx to take part in. TK Maxx will take part in Winchester Fashion Week by becoming a sponsor and taking part in the catwalk with ‘University Looks’ representing their ‘Big Labels, Small Prices’ creating budget, luxury looks for students day to day outfits for a ‘day in the library’ or ‘presentation day’. These ‘looks’ will be available in store, online and advertised on social media platforms leading up to the Winchester Fashion Week event for 6 months. 3.13 Target Audience/Persona The main aim for this campaign is to target a new audience. The new audience chosen is students as TK Maxx often target an older age group due to the price point and items they sale, it can be assumed that it is ‘too expensive’. The age of the audience the campaign will be targeted at is university students aged 18-25. This consumer age group are the largest percentage active on social media platforms such as Instagram (Chaffey, 2018) therefore this platform will be used in this campaign. The main event from this campaign is situated in Winchester, surrounded by university students, therefore this campaign will be easily accessible to this age group. 3.2 Customer Relationship Management According to Aka, Kehinde and Ogunnaike (2016) companies need to shift from transaction marketing which involves the exchange of values between two or more parties to relationship marketing which involves building a long-term satisfying relationship between the parties involved in a transaction. This is how TK Maxx will steer their marketing campaign by creating a relationship with students who will then resonate with the brand and continue to purchase with TK Maxx through their adulthood ...