MARKETING ASSIGNMENT. ONLINE SHOPPING Vs SHOPPING LOCAL

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THE NEXT NORMAL

Report for Purple Tag 2021

Alexander Frahm-Fetherston
Student ID: 3055368
Table of Contents

Executive Summary ............................................................................................................................... 2

1. Abstract ......................................................................................................................................... 2

1. Research Questions ........................................................................................................................... 3

2. Research Objectives ........................................................................................................................... 3

3. Background........................................................................................................................................ 4

3.1 Problem definition ....................................................................................................................... 4


4. Influencing Factors ............................................................................................................................ 4

4.1 Post-Covid. Consumer Trends in Ireland ...................................................................................... 4


4.2 Mobile E-Commerce (Mobile vs Desktop Website) ................................................................. 5
4.3 Safety ........................................................................................................................................... 5
4.4 Marketing Channels ..................................................................................................................... 6
4.4.1 Emailing................................................................................................................................. 6
4.4.2 Tiktok & Youtube. Using videos to impact on Millenials....................................................... 7
4.4.3 Youtube & Facebook still standing........................................................................................ 7
5. Shop Local, Shop Irish ....................................................................................................................... 8

6. Culture pays....................................................................................................................................... 8

7. Conclusions & Recommendations .................................................................................................... 9

5. Reference list ................................................................................................................................... 10

6. Appendix ......................................................................................................................................... 12

(Containing Survey results) .................................................................................................................. 12

1
Executive Summary
On March 11, 2020, the Coronavirus (COVID-19) outbreak pandemic was declared. As COVID-
19 evolved and its implications continue to unfold still to this day, uncertainty has struck the
world leaving us to wonder how we can develop and deliver our communications strategy out
to the world using technology not as the dictator of operations, but rather as our supporting
tool to make this happen!

Every business is now a technology business, bringing about ever-changing workplaces and
forces, but most importantly global uncertainties. (Robbins, Coulter and Decenzo, 2020: 37).1
Parallelly, the social unrest and the economic downturn have accelerated consumers’
demands for digitally-driven and authentic brand experiences.

We shall aim to provide further insight into the factors that influence consumers’ purchase
intention towards online shopping, in particular, shoe retail shopping and whether the
current context has had an impact on these. We hope you find the following research and
suggestions useful for any possible decision-making or problem-solving required upon
reading this report. Welcome to “the next normal”.

1. Abstract
The purpose of this report and the subsequent research carried out aims to reveal some of
the factors that influence consumers’ purchase intention towards online shopping. In
addition, elements of Awareness, Trust and Need2 for Irish or locally designed products, as
well as overall brand recognition within the industry nationwide.

To be able to collect this data, a specially designed online survey was distributed. The data
was then gathered and analysed.

The results acquired indicated that four main independent variables; comfort, trust, the type
of product and quality have a significant influence on the consumers’ purchase intention
towards online shopping. It is also worth mentioning that the variable of price also proved to

1
As cited in Fundamentals of Management, 2020, NY: Pearson
2
As per new developments made within the AIDA model seen in Corporate Finance Institute, 2015 to 2021

2
have a significant influence on customers’ likelihood to shop national or locally designed
products.

Keywords: purchase intention, online shopping, survey, mailchimp, quality, comfort, trust,
shop local, shop Irish.

1. Research Questions
In order to have a proper research, it is vital that the candidate has an idea of which areas need to be
worked, the questions that need to be asked and the final presentation of findings and
recommendations based on the results obtained. Some of the questions taken into consideration in
this paper are as follows:

1. Is convenience and comfort determinant factors that influence consumers’ intentions of


purchase?
2. Is supporting local / Irish business embedded in consumers’ behaviour is it dependant on
factors such as price, quality, availability of high-end brands or others?
3. Do factors like trust, referral or reviews influence purchase intentions amongst consumers.

2. Research Objectives
This study is guided by primary and secondary research objectives, which are the following.

1. To decide the key elements that will engage consumers to online shopping.
2. To identify what factors drive consumers to one or another website.
3. To determine if the Irishness will influence customers purchase intentions when choosing an
online shopping platform.
4. To properly analyse the pre-COVID background online shopping is parting from and the
benefits and challenges ahead into the Next Normal.

To better determine the importance of different factors such as trust, reviews, engagement and
experience during the consumer’s overall online shopping experience.

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3. Background
3.1 Problem definition
Amid a recovery and “disruption era” it is becoming increasingly harder for consumer-packaged goods
(CPG) and retail brands to make meaningful connections with consumers (Nielsen.com, 2021). Not
only this, but marketers see themselves planning against a legion of shifting trends and changing
cultural events.

COVID-19 has added yet another level of complexity and what were believed to be established
shopping patterns have been completely disrupted, such as a mobile-first approach online retailers
are adopting and which we shall briefly discuss in this paper (see exhibit 4).

As the next normal unfolds, business have a challenge not just to survive, but to succeed. Brands are
pushed into rethinking how to engage and appeal to consumers across every touchpoint, who are now
increasingly looking for a frictionless and seamless digital experience. Therefore, I deem it important
that we consider the following factors to help define or perhaps even determine a way forward:

1. How the economic downturn and social unrest brought about the pandemic have accelerated
the consumer’s demand for a digitally driven and authentic “brand experience”.
2. How we can aim to build marketing strategies that cannot only further support Irishness, but
ones that are resilient to change and ultimately boost sales both online and in store.
3. How focusing on company culture can also help business automatically lead to business
growth (Richards, 2020)3, partnering in new ways to meet consumers’ needs today and
beyond.

4. Influencing Factors
4.1 Post-Covid. Consumer Trends in Ireland

Studies carried out and presented by KPMG (March, 2021), consisting of 18,000 consumers across 16
counties and 829 respondents in within the republic of Ireland, show that 68% of Irish consumers do
more online shopping now than before the pandemic, a 93% say that it is important for the company
to be able to deal with issues and an 88% consumers who are more focused on personal wellbeing.

3
As cited in At Zappos, Culture Pays (Richards, D., 2020) by Magness, A. (2020) Director of Business
development and brand marketing at Zappos

4
However, despite the demand for a more digital experience, we focus on one element that has not
only continued but is being increasingly supported by consumers is the element of customer service.
If there is anything that the research carried out for the purpose of this paper has taught us is that
Irish consumers value human support above all. While it is true that the investment in new
technologies (marketing channels, revamping of websites, amongst many others) certainly promises
to be a game changer for businesses and provide huge opportunities, there is one thing that should
remain central to the design of any new technology, method or strategy; High-quality customer
experience. Similarly relevant, backed up by a considerable 86% of Irish consumers and a 66% of the
personally surveyed (Question 9), there is a trend that is continuing to grow; the increasing support
to shop local and Irish products, the demand for ethically-responsible retailers and the support given
to brands that “give back to society” (Savage, 2021).

4.2 Mobile E-Commerce (Mobile vs Desktop Website)


There is no question that to successfully run an ecommerce website, or any website for that matter,
it must cater for and to mobile users and this, as a result, ought to be a key element within the
marketing strategy. By not doing this, any business is ultimately ignoring a great deal of potential
customers.

Nowadays, it is statistically much more likely that customers will be interacting with a business’s
website from tablet or smartphone rather than a desktop. Figures presented by Outerbox.com (2021),
for instance, showed that a third of all online purchases came from smartphones, including with a
staggering 54% of visitors coming from mobile devices on Cyber Monday 2020.

Both the surveys and the secondary research carried out depict on the highly competitive nature of
the eCommerce industry in general, just as well as how “picky” mobile consumers are becoming.
Statistics provided via Outerbox.com (2021) show that 40% of users will go to the other competitor
after a negative mobile experience, yet a surprising 84% have experienced some difficulty completing
a mobile transaction. (see exhibits 1, 2)

4.3 Safety
As stated in the above survey carried out by KPMG (March 2021) a large 88% pay more importance
on their personal wellbeing and safety than they were before the pandemic. As a result, the
expectation for businesses to keep their customers safe is beyond any other expectation of service.
This is also ratified by Barbara Dunne4, digital Marketing Manager for Purple Tag, who states that the

4
B. Dunne, personal communication, 27 March 2021

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ability for stores to ensure their customer’s safety above all other service expectations, will be key
upon the reopening of retail and businesses.

On the other hand, the pandemic has also allowed for consumers to feel more comfortable with online
shopping, a safe option, which in every likelihood will only benefit the retail landscape even more
(Dunne, 2021).

4.4 Marketing Channels


Marketers and businesses will need to reassess how new data is analysed and learn how to use it to
better target their campaigns and/or products to customer segments that are becoming increasingly
narrower (Exhibit 4). Analytics is of course core in the tracking of consumer preferences and
behaviours, but it can also allow for a swifter response to opportunities and threats. For example, the
RACE Framework (Exhibit 3) can be a good solution to structure our objectives and tracking granular
KPI, customer-centred data and react on them quickly. Existing analytics may not be as accurate as
desired when predicting preferences and behaviours in the next normal, so, again speed will be key in
“retraining” them in order to help brands create more convenient and useful shopping experiences,
irrespective of where the consumer may be or its everchanging state of mind she/he may be in.
(Exhibit 5)

Lockdown constraints have made communities more important and many community social-media
pages and forums have been created to connect people. Therefore, business looking to further their
connections with consumers could greatly benefit from localising their marketing in an affordable and
effective manner. Examples of this could include tailored messages for different towns and cities via
these new community networks. Alternatively, another good channel would be to use the brand’s
retail footprint to support or even partner with other local businesses.

4.4.1 Emailing
Email marketing is, still today, one of the most trusted channels mainly on account of its impressive
return on investment (ROI). Widmer (2021) pointed out that email marketing remains the only channel
you own 100%. What is more, no matter what happens in the SERPs (search engine result pages) or
ad platform results, your email list can always be relied on, without requiring additional payment,
unlike other channels.

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Furthermore, there is high familiarity with email marketing and, as observed in my interaction with
respondents to surveys, a large percentage of people check their emails at least once a day. So, should
a brand /business wish to do segmentation of customers, predictive personalization, email marketing
will ultimately give great effects on sale. We have already mentioned previously the importance of
customer engagement and experience. Ultimately the customer wants to feel like they are interacting
with you directly and, upon feeling that “connection”, they will consider your offer and most likely do
the purchase. One of the main reasons why it would be highly advisable to keep up to date with trends
in copy writing and email marketing.

4.4.2 Tiktok & Youtube. Using videos to impact on Millenials


Some, if not most of us, are likely to appreciate how important video clip advertising is, to the point
of becoming a crucial element for brands in 2021. Video platforms like Tiktok and Youtube can be the
most effective network to interact and engage with millennials, who take pleasure themselves in
creating and publishing videos. Not to mention the fact that visual content can effectively be quicker
and easier to take in and longer to forget.

4.4.3 Youtube & Facebook still standing


There is a lot to be wary of when it comes to choosing marketing channels. I, myself hesitated to
investigate more effective social media platforms and networks. But, as of today, YouTube and
Facebook essentially have the potential to be considered the channels for online brands 2021.

On the one hand, YouTube, with over 1.8 billion monthly active users promises your brand to gain
thousands or even millions of views in a short time. In other words, a short-cut to increase visibility of
brand.

On the other hand, we have Facebook, with is 2.45 billion monthly active users and despite being
classified as “second best” at times by marketing specialists, still today offers brands, an incredible
opportunity to receive the attention they deserve. Plus, its Facebook business hub, makes it easier for
business to manage any marketing campaign effectively and seamlessly all in one platform. (see
exhibits 7-11)

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5. Shop Local, Shop Irish
For the sake of this report, we deemed it necessary to dedicate a full section to “Shop local, Shop
Irish”, especially after seeing our country’s governments plea of “stay local, shop local”.

The long queues outside retail giants like Penneys or Zara may not be the most reliable proof of change
in consumers’ behaviour and intention of purchase, but the research carried out shows unmistakable
signs that, ever since lockdown, Irish shoppers are shifting towards supporting Irishness and local small
businesses, as well as the fact that people will continue to shop in their local communities in the
future. We shall hope that this shift is what will help us view time, talent and natural resources. Make
them stand out and make us appreciate them all the more.

In support of our findings, member of EY consultancy firm Yvonne Keily (2021) guarantees that we are
likely to experience an increase in people buying local and, even more interest in “transparency
around the maker-to-model journey of our goods”. Simply put, consumers becoming more conscious
about where they buy. And after comparing these results with those in our primary research, we are
confident that the aforementioned is true to fact with over 60% of our surveyed stating that they
“completely agree and fully support” when being asked about shopping local, shopping Irish.

6. Culture pays
In this section we turn to look at Zappos, online shoe retail company that, ever since its beginnings in
1999, has clearly put all their focus on company culture. Not to be confused with customer service. It
does however lead to customer service. The big difference is that the term is not mentioned or spoken.
According to Magness, Zappos’ Director of Business Development and brand marketing (2020),
Customer experience is something they simply “allow to happen on its own by having the right
people”. In other words, “Delivering WOW through service”, which is at the top of Zappos’ values.

Zappos, for instance takes the pulse of its organisation on a monthly basis, measuring the health of
the culture with a happiness survey. Some of the questions that employees were being asked
(Strategy-business 2010) could be considered unlikely, but effective for its purpose, for instance,
whether they believed that the company has a higher purpose than profits or for instance if they
believed their co-workers to be like family and friends.

Beyond research and studies, a company’s ability does not limit itself to the improvements it may be
making on its website or its optimization of its marketing channels. Innovation and PEOPLE should too
be the backbone of a company and they should be instilled in its culture.

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7. Conclusions & Recommendations
Trust, Convenience, Engagement, Local, Irish, Community, amongst others have proven to be some of
the key words and concepts this research hopes to have made more clear. Indeed, standing out from
other brands within the next normal while blending in with people’s shifting concerns and behaviours
will be a challenge for every online business or eCommerce.

All in all, the primary and secondary research illustrated on this report, we expect will encourage
Purple Tag to continue embracing its Irishness as well as its social and corporate values and
responsibilities.

The numbers provided in sections 4.2 and 4.4 respectively show just how much of an opportunity
there is for companies to capitalise on consumer conversion and increase their rate of consumer
interaction with brand by creating mobile-responsive and user-friendly online experiences while
shopping. It is therefore that we would recommend Purple Tag revisits its undergoing redesign of
website, and that it investigates more innovative ways to maintain their online community.

While presenting our findings on general trends and marketing channels, it became apparent that
there could be a greater point that could differentiate any business from its competitors. There is an
increasing use of data, particularly sensitive health data in today’s environment, which use can be
defined as anything but uniform. Ultimately, the way businesses maintain customer trust on data and
privacy concerns could be its ultimate appeal in the eyes of consumers and essentially the
differentiation factor amongst its competitors.

Last but by no means least, we believe it is worth paying special importance to the company culture
as a seamless path towards excellent customer service, rather than just fall into the usual habit of
increasing the latter. We hope that the examples of success provided will encourage other businesses
to consider the often-disregarded side of innovation; People, Culture and how they can pay,
affordably!

With its values and essence still intact, we believe Purple Tag could benefit enormously from taking
all the aforementioned onboard.

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8. Reference list
Thriving Through Disruption Panel: A New Playbook for CPG & Retail Advertisers. Available at:
https://www.nielsen.com/us/en/insights/webinar/2020/thriving-through-disruption-panel-a-new-
playbook-for-cpg-retail-advertisers. (Accessed: 20 May 2021f).

Blackburn, S. et al. (2020) Digital Strategy in a Time of Crisis Now Is the Time for Bold Learning at
Scale. Available at:
https://www.mckinsey.com/~/media/McKinsey/Business%20Functions/McKinsey%20Digital/Our%2
0Insights/Digital%20strategy%20in%20a%20time%20of%20crisis/Digital-strategy-in-a-time-of-crisis-
final.ash. (Accessed: April 3, 2021)

“AIDA Model - Understand the Steps in the AIDA Model Hierarchy.” Corporate Finance Institute,
https://corporatefinanceinstitute.com/resources/knowledge/other/aida-model-marketing/
(Accessed: 17 May 2021).

“Define Effective Digital Marketing KPIs to Achieve Your Goals.” Smart Insights, 27 Apr. 2021,
https://www.smartinsights.com/goal-setting-evaluation/goals-kpis/choosing-effective-digital-
marketing-kpis/. (Accessed: 14 May 2021).

“Marketing Objectives to Support Your SMART Goals.” Smart Insights, 1 Mar. 2021,
https://www.smartinsights.com/goal-setting-evaluation/goals-kpis/define-smart-marketing-
objectives/. (Accessed: 29 March 2021).

Glassman, B. (2013) What Zappos Taught Us About Creating The Ultimate Client Experience. Forbes,
https://www.forbes.com/sites/advisor/2013/05/13/what-zappos-taught-us-about-creating-the-
ultimate-client-experience/?sh=22686e0020fb. (Accessed: 19 May 2021).

Frue, Kiesha. PESTEL/PESTLE Analysis of The Retail Industry. https://pestleanalysis.com/pestel-


analysis-of-retail-industry/ (Accessed: 18 May 2021).

Importance of PPC Tracking | Blog | Whatagraph. https://whatagraph.com/blog/articles/ppc-


tracking (Accessed: 20 May 2021).

Sales Training, Consulting, Research and Technology | Our Story. Miller Heiman Group. Available at:
https://www.millerheimangroup.com/about/ (Accessed: 20 May 2021e).

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Schiff, J.L. (2012) 10 Ways to Use Smartphones to Grow Your Sales. CIO. Available at:
https://www.cio.com/article/2395613/10-ways-to-use-smartphones-to-grow-your-sales.html
(Accessed: 18 May 2021).

Mobile ECommerce Statistics (Updated 2021) Percentage of Mobile MCommerce Shopping Trends.
Available at: https://www.outerboxdesign.com/web-design-articles/mobile-ecommerce-statistics
(Accessed: 17 May 2021).

Online Retailers Adopt Mobile-First Approach as Smartphone Shopping Grows | Retail Dive.
Available at: https://www.retaildive.com/ex/mobilecommercedaily/online-retailers-adopt-mobile-
first-approach-as-smartphone-shopping-grows (Accessed: 20 May 2021).

Mobile Accounts for 65% of All Ecommerce Traffic - so Why Are Mobile Sales Still Lagging?. The
Drum. Available at: https://www.thedrum.com/opinion/2020/02/19/mobile-accounts-65-all-
ecommerce-traffic-so-why-are-mobile-sales-still-lagging (Accessed: 20 May 2021).

PRESS

Irish Online Retail Sales Soar by 159% in 2020. (2021) Available at:
https://www.rte.ie/news/business/2021/0218/1197855-wolfgang-digital-report/ (Accessed: 14 May
2021).

Pope, C. Shopping Locally: What Difference Does It Make?. The Irish Times. Available at:
https://www.irishtimes.com/news/consumer/shopping-locally-what-difference-does-it-make-
1.4281400 (Accessed: 16 May 2021).

Savage, N. (2021) Irish Consumer Trends Post-COVID - KPMG Ireland. KPMG. Available at:
https://home.kpmg/ie/en/home/media/press-releases/2021/03/retail-consumer-trends-covid.html
(Accessed: 19 May 2021).

Richards, D. (2010) At Zappos, Culture Pays. strategy business. Available at: https://www.strategy-
business.com/article/10311?gko=849d6 (Accessed: April 24, 2020).

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9. Appendix

(Containing Survey results)

Exhibit 1

Exhibit 2

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Exhibit 3

Exhibit 4

Exhibit 5

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Exhibit 6

Exhibit 7

Exhibit 8

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Exhibit 9 Exhibit 10

Exhibit 11

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SURVEY RESULTS

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