Digital Marketing Plan for E-commerce Company
Added on 2023-07-20
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LONDON SCHOOL OF BUSINESS AND FINANCE
Digital Marketing Plan for E-commerce
Company
Digital Marketing Communication Assignment
GAMZE YAMAN
21.06.2013
Digital Marketing Plan for E-commerce
Company
Digital Marketing Communication Assignment
GAMZE YAMAN
21.06.2013
Digital Marketing Plan for E-commerce Company 2012
Gamze Yaman
A4052602 Page 2
Executive Summary
Together with the growth of digital media, the intersection of paid, owned and earned media
practices have driven the change in the way business works in recent years. For this reason, this
study critically evaluates effective strategies, tools and approaches for new media for a start-up e-
commerce company focusing on eco- friendly fashion and accessories products. SOSTAC Model is
implemented in order to prepare digital marketing plan for the brand. The first part breaks down into
three main categories; Situational Analysis, Strategies and Objectives with the aim of generally
analyzing the company`s current position and digital marketing communication practices. 5 Forces
framework used to identify e- commerce market`s competitive advantages. 5Ss of digital marketing
implemented to set the business` global goals and KPIs. STP (Segmentation, Targeting and
Positioning) Analysis, identifying web tools providing great opportunities mostly for fashion industry
and e-CRM are used to offer an insight into the second part, where actions, tactics and control are
discussed for further strategies of the brand`s online business. Practices are critically assessed in
terms of 7Ps Marketing Mix supported by new options of e-commerce marketing and suggestions
are given for improvement of these practices.
Gamze Yaman
A4052602 Page 2
Executive Summary
Together with the growth of digital media, the intersection of paid, owned and earned media
practices have driven the change in the way business works in recent years. For this reason, this
study critically evaluates effective strategies, tools and approaches for new media for a start-up e-
commerce company focusing on eco- friendly fashion and accessories products. SOSTAC Model is
implemented in order to prepare digital marketing plan for the brand. The first part breaks down into
three main categories; Situational Analysis, Strategies and Objectives with the aim of generally
analyzing the company`s current position and digital marketing communication practices. 5 Forces
framework used to identify e- commerce market`s competitive advantages. 5Ss of digital marketing
implemented to set the business` global goals and KPIs. STP (Segmentation, Targeting and
Positioning) Analysis, identifying web tools providing great opportunities mostly for fashion industry
and e-CRM are used to offer an insight into the second part, where actions, tactics and control are
discussed for further strategies of the brand`s online business. Practices are critically assessed in
terms of 7Ps Marketing Mix supported by new options of e-commerce marketing and suggestions
are given for improvement of these practices.
Digital Marketing Plan for E-commerce Company 2012
Gamze Yaman
A4052602 Page 3
Page Index
Executive Summary....................................................................................................................................... 2
1. Introduction ............................................................................................................................................. 4
2. Key Findings .............................................................................................................................................. 5
2.1. Situation Analysis .................................................................................................................................. 5
2.1.1 Five Forces Analysis ............................................................................................................................. 5
2.1.1.1. Buyer Power.................................................................................................................................... 5
2.1.1.2. Supplier Power ................................................................................................................................ 5
2.1.1.3. New Entrants .................................................................................................................................. 6
2.1.1.4. Threat of Substitutes ...................................................................................................................... 6
2.1.1.5. Degree of Rivalry ............................................................................................................................ 6
2.1.2. Brand Perception and Customer Insight .......................................................................................... 6
2.2. Objectives ............................................................................................................................................. 7
2.3. Strategies .............................................................................................................................................. 8
2.3.1. Segmenting, Targeting and Positioning ( STP) .................................................................................... 8
2.3.2. Tools.................................................................................................................................................... 9
2.3.3. Integration ....................................................................................................................................... 10
3. Recommendations .................................................................................................................................. 11
3.1. Tactics and Actions ............................................................................................................................. 11
3.1.1. Product and Psychical Evidence ....................................................................................................... 12
3.1.2. Price ................................................................................................................................................. 14
3.1.3. Place and Promotion ........................................................................................................................ 14
3.1.4. People and Process .......................................................................................................................... 15
3.2. Control ............................................................................................................................................... 15
4. Conclusion ............................................................................................................................................. 16
5. References ............................................................................................................................................ 18
6. Appendices ............................................................................................................................................ 20
Gamze Yaman
A4052602 Page 3
Page Index
Executive Summary....................................................................................................................................... 2
1. Introduction ............................................................................................................................................. 4
2. Key Findings .............................................................................................................................................. 5
2.1. Situation Analysis .................................................................................................................................. 5
2.1.1 Five Forces Analysis ............................................................................................................................. 5
2.1.1.1. Buyer Power.................................................................................................................................... 5
2.1.1.2. Supplier Power ................................................................................................................................ 5
2.1.1.3. New Entrants .................................................................................................................................. 6
2.1.1.4. Threat of Substitutes ...................................................................................................................... 6
2.1.1.5. Degree of Rivalry ............................................................................................................................ 6
2.1.2. Brand Perception and Customer Insight .......................................................................................... 6
2.2. Objectives ............................................................................................................................................. 7
2.3. Strategies .............................................................................................................................................. 8
2.3.1. Segmenting, Targeting and Positioning ( STP) .................................................................................... 8
2.3.2. Tools.................................................................................................................................................... 9
2.3.3. Integration ....................................................................................................................................... 10
3. Recommendations .................................................................................................................................. 11
3.1. Tactics and Actions ............................................................................................................................. 11
3.1.1. Product and Psychical Evidence ....................................................................................................... 12
3.1.2. Price ................................................................................................................................................. 14
3.1.3. Place and Promotion ........................................................................................................................ 14
3.1.4. People and Process .......................................................................................................................... 15
3.2. Control ............................................................................................................................................... 15
4. Conclusion ............................................................................................................................................. 16
5. References ............................................................................................................................................ 18
6. Appendices ............................................................................................................................................ 20
Digital Marketing Plan for E-commerce Company 2012
Gamze Yaman
A4052602 Page 4
1. Introduction
E-commerce sector has been growing at a rapid rate in recent years. There are eight unique
features of e-commerce technology - ubiquity, global reach, universal standards, rich messages,
interactivity, information density, personalization/ customization and social technology that both
challenge traditional business and explain the growth in the e-commerce market (Laudan and
Traver, 2012).
UK has the second largest e- retailer market behind the US, with the forecast to see double-digit
growth year-on-year between 2012 and 2016 (Key Note, 2013). Besides, E-commerce is also
significantly thriving in Australia and Canada, when it comes to English speaking markets (Allen,
2012).
On the others side, The power of digital communication changes how the advertising works and
the key differences of new from traditional media have been defined with five main elements:
Digitality, Interactivity, Hypertextuality, Dispersal and Virtuality (Singh et all, 2012).
Trevz is a new South African brand specializing on eco fashion and accessories. They are
looking for growth globally by targeting Millennials in English speaking countries. Trevz see
digital as the obvious route to international expansion, and they want to allow people to shop
online from anywhere in the world knowing that a % of profits gives back to charity for
vulnerable children in South Africa and creates a job.
In this case, the study analyses the targeting market of the company and creates a strategy and
plan in order to build and leverage their community of loyal followers online with a limited
budget.
Gamze Yaman
A4052602 Page 4
1. Introduction
E-commerce sector has been growing at a rapid rate in recent years. There are eight unique
features of e-commerce technology - ubiquity, global reach, universal standards, rich messages,
interactivity, information density, personalization/ customization and social technology that both
challenge traditional business and explain the growth in the e-commerce market (Laudan and
Traver, 2012).
UK has the second largest e- retailer market behind the US, with the forecast to see double-digit
growth year-on-year between 2012 and 2016 (Key Note, 2013). Besides, E-commerce is also
significantly thriving in Australia and Canada, when it comes to English speaking markets (Allen,
2012).
On the others side, The power of digital communication changes how the advertising works and
the key differences of new from traditional media have been defined with five main elements:
Digitality, Interactivity, Hypertextuality, Dispersal and Virtuality (Singh et all, 2012).
Trevz is a new South African brand specializing on eco fashion and accessories. They are
looking for growth globally by targeting Millennials in English speaking countries. Trevz see
digital as the obvious route to international expansion, and they want to allow people to shop
online from anywhere in the world knowing that a % of profits gives back to charity for
vulnerable children in South Africa and creates a job.
In this case, the study analyses the targeting market of the company and creates a strategy and
plan in order to build and leverage their community of loyal followers online with a limited
budget.
Digital Marketing Plan for E-commerce Company 2012
Gamze Yaman
A4052602 Page 5
2. Key Findings
2.1. Situation Analysis
2.1.1. Five Forces Analysis
Porter (2008) claimed that Five Forces Model focusing on five aspects is a useful analysis to all
the business and organizations when overall scanning the industry`s current profitability
structure and determining the industry competition intensity (Porter, 2008). Trevz is a new brand
which wants to enlarge its business globally. That is why, despite of some limitations of the
model such as focusing on only external factors and assuming static market structures, Five
Forces is a powerful framework to show how attractive the industry to the Trevz company in an
international environment. Furthermore, the model applying for online retailing sector is also
valuable for the company to implement long- term digital marketing strategy in order to build and
maintain competitive advantage in the long-run.
2.1.1.1. Buyer Power
In our case, the key buyers will be taken as end-consumers. As shown in the Appendix 1, high
tendency to switch in the sector is one of the important drivers to increase the buyer power.
Although price sensitive shoppers search for the cheapest product, concerns about misuse of
financial and personal data increase their loyalty to trusted retailers. Furthermore, offering wide
product range in different sectors helps to decrease total power because of increased customer
base (Market Line, 2012).
2.1.1.2. Supplier Power
While analyzing e-retailing sector, Information Communication Technology (ICT) systems are
taken as key suppliers. Furthermore, Trevz is a startup company aiming promotes its local
designs to a worldwide audience by giving them an online exposure. Therefore, they will not
only be considered as players but also will be taken as suppliers by selling their products to
other online retailers.
As shown in Appendix 2, high importance of quality/ cost because of need to have reliable ICT
increases the providers` powers.
Gamze Yaman
A4052602 Page 5
2. Key Findings
2.1. Situation Analysis
2.1.1. Five Forces Analysis
Porter (2008) claimed that Five Forces Model focusing on five aspects is a useful analysis to all
the business and organizations when overall scanning the industry`s current profitability
structure and determining the industry competition intensity (Porter, 2008). Trevz is a new brand
which wants to enlarge its business globally. That is why, despite of some limitations of the
model such as focusing on only external factors and assuming static market structures, Five
Forces is a powerful framework to show how attractive the industry to the Trevz company in an
international environment. Furthermore, the model applying for online retailing sector is also
valuable for the company to implement long- term digital marketing strategy in order to build and
maintain competitive advantage in the long-run.
2.1.1.1. Buyer Power
In our case, the key buyers will be taken as end-consumers. As shown in the Appendix 1, high
tendency to switch in the sector is one of the important drivers to increase the buyer power.
Although price sensitive shoppers search for the cheapest product, concerns about misuse of
financial and personal data increase their loyalty to trusted retailers. Furthermore, offering wide
product range in different sectors helps to decrease total power because of increased customer
base (Market Line, 2012).
2.1.1.2. Supplier Power
While analyzing e-retailing sector, Information Communication Technology (ICT) systems are
taken as key suppliers. Furthermore, Trevz is a startup company aiming promotes its local
designs to a worldwide audience by giving them an online exposure. Therefore, they will not
only be considered as players but also will be taken as suppliers by selling their products to
other online retailers.
As shown in Appendix 2, high importance of quality/ cost because of need to have reliable ICT
increases the providers` powers.
Digital Marketing Plan for E-commerce Company 2012
Gamze Yaman
A4052602 Page 6
On the other hand, together with high player dispensability in the sector, selling products to a
diverse variety retailers boost supplier`s power. However, losing revenues from big player could
considerably affect supplier`s profit.
2.1.1.3. New Entrants
Although competition in the market is increasing day by day, high supplier and distribution
accessibility, low fixed costs and little regulation shows that there are a few entry blocks to the
sector (see Appendix 3). Also, there are not many differentiated products in the in the sector.
Therefore, smaller firms may enter the market with niche products. Moreover, despite current
recession, there is an attractive opportunity to potential new entrants as consumers spend low
at these times.
2.1.1.4. Threat of Substitutes
Online retailing does not provide direct interaction of customer and seller and bargaining does
not exist. That is why, many customers prefer to buy physically compare to online so as to enjoy
the benefits of trying the product, like clothes etc. Also, another disadvantage of e-retailing is the
fact that delivery time can be in days or weeks which one cannot wait for the ordered product.
Nevertheless, low cost switching; cheap alternative and beneficial alternatives increase daily
number of customers buying online (see Appendix 4).
2.1.1.5. Degree of Rivalry
Market is strongly fragmented with several numbers of big brands having powerful online global
presence. Strong position of these players, as well as the low switching costs and low cost of
sales capacity are the main drivers that increase the rivalry, whilst low fixed and storage costs
and dynamic market revenues in recent years decrease rivalry to an extent (see Appendix 5).
2.1.2. Brand Perception and Customer Insight
To create a sustainable business model, Trevz use recycled materials for their products and
they aim to create jobs and give back to charities by selling their products. They, additionally,
target conscious “New Generation” profiled to be between the ages of 16 to 29. They also use
Gamze Yaman
A4052602 Page 6
On the other hand, together with high player dispensability in the sector, selling products to a
diverse variety retailers boost supplier`s power. However, losing revenues from big player could
considerably affect supplier`s profit.
2.1.1.3. New Entrants
Although competition in the market is increasing day by day, high supplier and distribution
accessibility, low fixed costs and little regulation shows that there are a few entry blocks to the
sector (see Appendix 3). Also, there are not many differentiated products in the in the sector.
Therefore, smaller firms may enter the market with niche products. Moreover, despite current
recession, there is an attractive opportunity to potential new entrants as consumers spend low
at these times.
2.1.1.4. Threat of Substitutes
Online retailing does not provide direct interaction of customer and seller and bargaining does
not exist. That is why, many customers prefer to buy physically compare to online so as to enjoy
the benefits of trying the product, like clothes etc. Also, another disadvantage of e-retailing is the
fact that delivery time can be in days or weeks which one cannot wait for the ordered product.
Nevertheless, low cost switching; cheap alternative and beneficial alternatives increase daily
number of customers buying online (see Appendix 4).
2.1.1.5. Degree of Rivalry
Market is strongly fragmented with several numbers of big brands having powerful online global
presence. Strong position of these players, as well as the low switching costs and low cost of
sales capacity are the main drivers that increase the rivalry, whilst low fixed and storage costs
and dynamic market revenues in recent years decrease rivalry to an extent (see Appendix 5).
2.1.2. Brand Perception and Customer Insight
To create a sustainable business model, Trevz use recycled materials for their products and
they aim to create jobs and give back to charities by selling their products. They, additionally,
target conscious “New Generation” profiled to be between the ages of 16 to 29. They also use
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