Impact of Social Media Marketing on Retail Companies

This article explores the impact of social media marketing on retail companies, particularly in the context of the COVID-19 pandemic. It discusses the use of platforms like Instagram, Facebook, and YouTube, as well as the influence of social media marketing on customer behavior. The article also provides recommendations for retail companies, such as New Look, to overcome challenges in social media marketing and enhance customer experience.

INQUIRY BASED
LEARNING
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Table of Contents
INTRODUCTION...........................................................................................................................3
BACKGROUND.............................................................................................................................3
SECONDARY RESEARCH...........................................................................................................4
Primary research..............................................................................................................................6
Primary method...........................................................................................................................6
CONCLUSION................................................................................................................................9
RECOMMENDATION.................................................................................................................10
REFERENCES..............................................................................................................................12
APPENDIX....................................................................................................................................13
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INTRODUCTION
Since last few years, every company is using social media platforms to promote their
products and services. This is because it has enabled in attracting a large number of people.
Besides that, social media marketing has led to reducing cost as well. Covid 19 has adversely
impacted on organization performance in negative way. It is because of lock down sales and
profit of retail companies is negative. Thus, it has become important for retail firm to survive in
market for long term. So, in order to enhance performance social media marketing is being used
by firms. With that they are able to do effectively advertise products.
BACKGROUND
Fast fashion Use of fashion items for short time and dispose it
The taste and preferences are being change with change in time. The fashionable market
is very dynamic in nature that affect the business quit hard. As the taste bird are change fast in
market and company need to analyse the changes before to avoid the losses. UK's market is quite
fast in changes in fashion industry (Binet, and et.al., 2019). All companies like Zara, H&M,
M&S and New Look change their fashion collection in market with change in time. To avoid the
losses for company it shows that company analysis market before any changes occurred in
market. Fashion products are for shot time period in which company are able to maintain
effectively.
Artificial intelligence and machine learning
In era of technological advancement there are many new technologies which is emerging.
These are being installed and used by retail companies in order to gain competitive advantage in
market. Also, technology has provided a platform to reach global level. It is changing way of
operations in retail industry (He and et.al., 2019). Similarly, Artificial intelligence and machine
learning are common technology used in retail sector. Artificial intelligence refers to use of
robots in doing complex tasks. Machine learning means analysis of data that automate process.
The use of both this has benefited retail sector to take effective decisions. The large data set are
stored and then info is analysed. The predictive analysis has helped in taking business decisions.
In fact, it is estimated that $40 billion of additional revenue was driven by Artificial intelligence
in retail in a 3-year span. Artificial intelligence in retail also utilizes behavioural analytics and
customer intelligence to gain valuable insights about different market demographics and improve
many different touchpoints in the customer service sector of business (Lu and et.al., 2018).
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Artificial intelligence is used in almost all areas in retail such as logistic, marketing, customer
relationship management, etc. Along with it, integration of Artificial intelligence with machine
learning has given advantage to forecast future and take decision. Thus, customer needs are
identified and on basis of that new product is developed. Artificial intelligence analytical
capabilities to convert raw data collected from the internet of things and other insights.
Impact of Covid 19 on UK retailers
The pandemic has adversely impacted on overall global economy. It has affected companies
operating in every sector. But the major impact is on retail sector. This is because it provides
necessity products for daily use (Griffith, Levell and Stroud 2020). Moreover, in UK retailers are
affected due to Brexit as well. It has been analysed that due to pandemic there is decline in sales
by 1.9% in 2020 as compared to 2019. Besides, in March sales reduced were 19% as compared
to February 2020. Along with it, in clothing the fall was 21.5% in 2020. However, there was rise
in online sales of 33.9% as more people started purchasing online. In May online sales were 60%
as compared to February 2020. Also, in December total retail sales was 5.8% high with
February. The offline retailers were closed as they were not having sufficient online presence.
For instance- Primark monthly sales went to 0 from £650 million. Furthermore, there was drop
of 35% decline in revenue of clothing shops which is recorded as highest. Other than this, there
is shift from physical to online business (Pantano and et.al., 2020). Hence, companies such as
M&S, H&M, Tesco, Aldi, etc. whose business model is online have benefited from pandemic.
They are able to fulfil needs of customers easily. So, there is boost in their profit and revenue.
SECONDARY RESEARCH
Secondary data analysis
 Strength: The New Look strength is one of the oldest brands in market which help to
increase customer base easily towards company. Older history of New Look brand name
in market aid company to gain loyal customer. High quality Fashionable products is
another one of the strength which pull in more audience toward company and generate
income (Gürel and Tat 2017).
 Weakness: Wide range in fashionable products create confusion to customer about the
quality of product and price charged goes against company. Local street designers are one
of the major competitor for New Look as they also provide with new collection. Also,
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UK is not offering their brands products globally through online international market
while only few countries is being offered.
 Opportunities: Recreating of brand in market is the best strategy to attract more
customers and makes as an opportunities having in market for New look. New creative
design may pull in more customer towards company by offering lower price to customers
but high margin are available. The Latest technology to produce high quality products are
some future opportunities for New Look (Benzaghta and et.al., 2021).
 Threat: Company may face reduce in number of loyal customer over time period. Local
street may gained more attention to customers due to low price and good quality. Reduce
in margin of company in order to offers discounted products to customers.
Pestle of new look
Political – it includes factors that is political change, trade laws, tariff policy etc. New look
operate in various nation, thus, brexit will impact on its operations and growth in negative way.
Economic- the factors are currency rate, GDP, economic growth, etc. due to covid 19, UK
economic growth is impacted on negative way. Hence, New look growth and operations will be
affected due to cvoid 19.
Social – in this factors are taste, needs, culture, ethic, value, etc. due to covid 19 people have
become more health conscious, their needs have changed. Hence, it will impact on their growth
in negative way.
Technological- the use of technology will impact on New look growth in positive way. They can
use AR, VR, etc. this will help in expanding in other nation.
Legal – there are various changes in health and safety laws. Thus, it will impact on New look
operation in negative way as they will have to form new laws for employees.
Environmental- here, New look growth will be impacted in negative way as they will have to
focus on CSR, reduce plastic waste, etc.
Gantt chart
Activity 1 to 2
Week
2 to 3
Week
3 to 5
Week
5 to 6 6 to 7
Week
7 to 8 8 to 9
Week
9 to 10 10 to
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11 to
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Week Week Week
Week Week
Identify
research topic
Introduction
Methodology
Proposal
Primary data
Secondary data
analysis
Recommendati
on and
conclusion
Primary research
ANALYSIS
Primary method
Theme 1 Common platform which can be used in social media marketing
Q-1 What is most common platform which can be used in social
media marketing?
Frequency
Instagram 5
Facebook 2
You tube 3
Total 10
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Interpretation – Here, 5 respondents said that Instagram can be used in social media marketing.
This is because most people are using this platform now a days. Also, in that advertisement can
be done. Besides, its interface is easy and simple to understand. But 2 respondent said that
Facebook can be used as per target audience. This will enable in doing effective marketing. So,
for each target group this thing must vary. The 3 participant said that You tube platform should
be used. It will help in generating large number of leads. With that more sales and revenue is
earned. Also, it enable in creating awareness in market.
Theme 2 Influence on behaviour of customer with use of social media marketing
Q-2 Can there be any influence on behaviour of customer with use
of social media marketing?
Frequency
Yes 7
No 3
Total 10
7

Interpretation – It can be analysed that out of 10, 7 respondent said that social media marketing
can influence on behaviour of customer. It is because customer get product info easily on it.
Also, they are able to compare it with other products. However, 3 participant opinion was that
social media marketing only create awareness in market and does not influence behaviour. Here,
people behaviour can be influenced through word of mouth, etc. Moreover, there are many
people who are not influenced by social media marketing. They think that it is fake and do buy
from retail stores only.
Theme 3 goals can be set for success of social media marketing
Q-3 What goals can be set for success of social media marketing? Frequency
Attract customers 4
Increase customer retention rate 3
Sales and revenue 3
Total 10
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Interpretation- By survey it can be stated that 4 sample said that major goal set in this is to
attract customer. But some of them said that goal should depend on company needs. There are
various ways through which goals can be measured. 3 of them said goal of increasing sales and
revenue can be set. Here, 3 respondent said that goal of increase in customer retention rate can be
set as well. They can compare retention rate to analyse improvement in organization
performance.
Theme 4 New look overcome challenges faced in social media marketing
Q-4 How can New look overcome challenges faced in social media
marketing?
Frequency
Use of technology 5
Enhance customer experience 5
Total 10
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Interpretation- From survey it is found that 5 participants said that new look can overcome
challenge with help of technology. In that they can install new and advance software to monitor
overall social media marketing. This will enable in gathering of real time data and on basis of
that they can make changes in social media marketing tactics. Also, 5 said that company can
enhance customer experience in social media marketing. With that it will be easy for them to
gain satisfaction of customers. They can also interact frequently and retain them.
CONCLUSION
From the above analysis and interpretation, New Look is being operating quite well in
market. But in order to gain more customer base in market and increase the loyal customer
towards company. Some strategies are being recommend to increase the customer and generate
revenue in company. These strategies can help company to work smooth in market and attain the
company's goal and target that is being set. It also maintains the smooth flow of work in market
and meet the customer demand and need.
RECOMMENDATION
 New Look should offer more attractive offers to customers with effective price that
attract more of customers toward company. Company can also publish new collection
more of fashionable products frequently in market that shows the company is using
producing with new market trends. It enhances the customer line and new customers are
also willing to purchase the products from New Look. Further, company can also
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introduce their new collection magazine in market that is being used by Top blogs and
articles. It increases the brand name in market and increase the demand of consumer to
purchase New Look new collection available in company's store (Besimi and et.al.,
2020).
 New Look need to increase their customer experience line that provide with customer
service to enhance the customer satisfaction. It builds brand name and goodwill in market
that shows customer satisfaction level to other and increase the customer to purchase
more from company. It also builds loyalty in customers towards company which makes
to achieve the customer target and company's objective. These strategies also help to
attain the regular targets of company and increase the market share which company is
operating.
 New Look should more focused on online sector of marketing that enhance the customer
reach and engagement more border. Online marketing is one the major tools that is being
used to promote the brand name and generate leads. There are high chances for company
that convert leads into sales. It also saves cost and time of company and increase the sale
volume of New Look. It also shows in market that company is adapting new trend and
technology for selling of goods in market (Khandual and Pradhan 2019). It also increases
the selling of goods through website or apps available and make it easy to purchase for
customers. Further website attract the customer most and should be used as a key
marketing factor that increase the chances of company to gain more audience toward
company.
 New Look strategies should be more on online campaign of marketing which increase the
market base of company. By entering into new market, various opportunities will be
provided by market to company that help to gain large number of customer in new
market. Wider range of market increase the company sales and revenue and ultimately
high turnover of company. It helps to achieve monthly and quarterly target and ultimate
goal of company.
Conclusion
Hence, it is being concluded that Artificial intelligence and machine learning is being
used by companies to remain update in market use of the latest technology for effective
operating. Brexit affects the UK economy and retail and overcome through various sources
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through they can operate easily. Fast fashion model is also being used that change the taste and
preference of customers rapidly. Primary and secondary research is being seen in research that
shows the behaviour of customers to company through survey of five respondent that shows their
different market and SWOT analysis of New Look. Lastly some of the recommendation that can
be followed by New Look and help to achieve the target of company.
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REFERENCES
Books and journals
Griffith, R., Levell, P. and Stroud, R., 2020. The Impact of COVID‐19 on Share Prices in the
UK. Fiscal Studies, 41(2), pp.363-369.
He, J. and et.al., 2019. The practical implementation of artificial intelligence technologies in
medicine. Nature medicine, 25(1), pp.30-36.
Lu, H. and et.al., 2018. Brain intelligence: go beyond artificial intelligence. Mobile Networks and
Applications, 23(2), pp.368-375.
Pantano, E. and et.al., 2020. Competing during a pandemic? Retailers’ ups and downs during the
COVID-19 outbreak. Journal of Business Research, 116, pp.209-213.
Gürel, E. and Tat, M., 2017. SWOT analysis: a theoretical review. Journal of International
Social Research, 10(51).
Benzaghta, M.A., and et.al., 2021. SWOT analysis applications: An integrative literature
review. Journal of Global Business Insights, 6(1), pp.54-72.
Besimi, N., and et.al., 2020. Evaluation of Machine Learning Techniques for Research Articles
Recommandation. International Journal on Information Technologies and Security
(IJITS), (1).
Khandual, A. and Pradhan, S., 2019. Fashion brands and consumers approach towards
sustainable fashion. In Fast fashion, fashion brands and sustainable consumption (pp. 37-
54). Springer, Singapore.
Binet, F., and et.al., 2019. Fast fashion and sustainable consumption. In Fast fashion, fashion
brands and sustainable consumption (pp. 19-35). Springer, Singapore.
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APPENDIX
Survey questions:
Q-1 What is most common platform which can be used in social media marketing?
Q-2 Can there be any influence on behaviour of customer with use of social media marketing?
Q-3 What goals can be set for success of social media marketing and how it can be measured?
Q-4 How can New look overcome challenges faced in social media marketing?
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