Research Plan for Consumer Growth Strategies in the Fashion Industry

This research plan analyzes different consumer growth strategies in the fashion industry, with a case study on NET-A-PORTER. It aims to examine the impact of these strategies on financial abilities and brand image.

Research Plan
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[Insert the Title of Assessment here]
Table of Contents
Table of Contents..............................................................................................................................2
Introduction.......................................................................................................................................3
Research Aim................................................................................................................................3
Research Objectives.......................................................................................................................4
Research Questions........................................................................................................................4
Literature Synopsis............................................................................................................................5
Literature 1: different customer growth strategies used by fashion industry.................................5
Literature 2: Impact of adopting customer growth strategies upon NET-A-PORTER within next
6 year.............................................................................................................................................6
Literature 3: Best customer growth strategies for NET-A-PORTER that leads to increases
financial abilities............................................................................................................................7
Research Methodology and Rationale...............................................................................................8
Ethical Considerations.....................................................................................................................10
References.......................................................................................................................................12
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[AN EXAMINATION OF CONSUMER GROWTH STRATEGIES
IN THE FASHION INDUSTRY: A CASE STUDY ON NET-A-
PORTER]
Introduction
In this competitive era, every business wants to be stay competitive and that is why,
they tries to adopt different strategies which helps them to provide better growth
opportunities. In the same way, current research plan is also based upon different consumer
growth strategies which helps them to leads towards success. It is also analysed that growing
customer base basically relies on a growth in sales and even by providing better customer
experience that helps to sustain the brand image of the company. Therefore, current research
plan also describe how to successfully deliver customer experience at all customer channels
in order to increase customer growth and customer loyalty. The chosen firm for this report is
Net-a-Porter which is a top fashion brand for incredible women which serve more than 800
coveted designer brand such as Gucci, Chloe and Saint etc. The quoted firm is a part of
YOOX NET-A-PORTER and it is registered in England & Wales.
Research Aim
The research is all about to analyse different growth strategies in a fashion industry that helps to
generate more revenue options so that it will leads to sustain brand image at global level.
Rationale: The reason for choosing the topic i.e. “an examination of consumer growth
strategies in the fashion industry: A case study on NET-A-PORTER” is such that researcher
have their own interest that helps them to raise their area of knowledge. Further, on
researching this particular topic will help to gain knowledge related to consumer preference
so that it may be apply in their future as well. On the other side, another reason of study on
the particular topic is such that may be university assign this topic and that is why, it is
necessary to do research on it.
Aim: “To examine different consumer growth strategies that creates direct impact upon
Fashion industry: A case study on Net-A-PORTER”
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Research Objectives
In this research plan, researcher describe different consumer growth strategies that
helps a fashion industry to reach their defined aim. The goals are achieved and it can be
analysed when company set benchmarking goals and if these are attained, this shows goal is
attain. In order to accomplish goal, researcher chooses human resource, financial resources,
technological resources. It is attained within 60 days from 20th November onwards.
Research Objective 1: To determine different customer growth strategies used by fashion
industry.
Research Objective 2: To identify the impact of customer growth strategies upon NET-A-
PORTER within next 6 year.
Research Objective 3: To recommend best customer growth strategies for NET-A-PORTER
that leads to increases financial abilities.
Research Questions
Research Question 1: What do you understand by customer growth strategies?
Research Question 2: What are different customer growth strategies opted by NET-A-
PORTER?
Research Question 3: What is the relationship between customer growth strategies and
increases financial performance of NET-A-PORTER ?
Research Question 4: What impact did NET-A-PORTER analyse while implementing
customer growth strategies?
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Literature Synopsis
Literature 1: different customer growth strategies used by fashion industry.
As per the view of Nagle and Müller, (2017) customer growth strategies helps to
attract wide range of public towards it, such that get a website is the best growth strategy that
helps the firm to grab attention of many customers. Statistics shows that more than 1800
fashion stores closed in last year and it is expected that revenue also increases from last year
within next five years only when industry adopted new growth option. On the other side,
Christensen and et.al., (2016) argues that most of the customer find online shopping is more
preferable than going physical location. That is why, most of the top fashion brand have their
own website that helps to attract wide range of customers. For that Customer Relationship
Management as a model used to manage the customer relationship through information
technology, customer's data and customers. This value chain is also established model which
is easily follow and implementing through best CRM strategies.
On the other side, Kowalkowski, Gebauer and Oliva, (2017) states that joining
through social media is the best customer growth strategy that helps fashion brand in the best
and absolute way. Social media is that platform where more than 90% of the people engage
and business used this site to promote their brand and new offers because it garb attention of
many customers and also leads to generate better revenue sources too. For instance, NET-A-
PORTER may use Instagram, Facebook in order to promote its new variety of clothes to their
customers so that it may raise the financial performance. Beside this, Chan, Ngai and Moon,
(2017) examine that personalize everything is another important customer growth strategy
such that around 43 percent of the purchases are influence by personalised items and around
75 percent of the customer wants that company should provide personalise message, offers as
well as experience. Therefore, it is also analysed by author that personalizing the things
creates good and positive impact upon customers and through this, they also determine the
preference of users and then promote the same (Impact of customer growth strategies, 2018).
Further, the company also creates successful fashion marketing campaigns in order to attract
wide range of customers.
In addition to this, Zhang, Liang and Wang, (2016) state that by focusing on visual is
creates a positive impact upon the business and that is why most of the fashion brand also opt
the same customer growth strategy, in which company uploads their USP items in order to
attract customers, but make sure that it is based upon high growth qualities such that images
should not be blurred. As fashion industry is almost based upon online system because they
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deal at international level and most of the people did not prefer physical stores as it takes lot
of time. Thus, this shows that it is directly related to the research aim.
Literature 2: Impact of adopting customer growth strategies upon NET-A-PORTER within
next 6 year.
According to Chae and Ko, (2016) by adopting different growth strategies, fashion
industry will definitely get positive impact in the form of raising the financial performance. It
is so because by adopting growth strategies, the company will increase the revenue option
because it helps to attract wide range of public and as a result, the company get high
competitive advantages as well. Such that by adopting latest technologies strategies, will help
to save the time and provide greater financial viability of a business. Therefore, it reflect that
it creates positive impact upon business. On the other side, Todeschini and et.al., (2017)
stated that by adopting best growth strategies, fashion industry also stay ahead in the
competition and also leads to raise resources and stock. Further, this helps to sustain the
brand image at global level. For instance, if NET-A-PORTER will adopted the same
customer growth strategies, then it may reach to new customer or market as well as help to
reduce the external risk as well.
As per the view of Nagle and Müller, (2017) fashion industry must select the best
model that helps to generate different sources of income and for that user generated content
growth model is best which analysed that many website and application is relies on user
generated content such that most of the public uses social media for creating an awareness
among users that so that it will help to generate income. This model is consider one of the
most successful because it is able to thrive a business by creating a sustainable ecosystem and
is simple to use. On the other side, Christensen and et.al., (2016) critically analysed that using
different growth strategies also creates negative impact upon business because to implement
new strategy, company has to invest a lot and there is no surety whether the company gets
low or high amount in return of it. Therefore, it is analysed that it affect the financial
performance of the company.
Moreover, Kowalkowski, Gebauer and Oliva (2017) stated that adopting growth
option will provide new option within a firm which will leads to increases innovation skills
among company's employees. For instance, NET-A-PORTER may use social media as a
customer growth option in which they post about new trend within Facebook in order to let
people know about the new option available so that it will directly attract wide range of
public. However, it creates positive impact upon the business performance and leads towards
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business growth that increases overall stock and regular flow of cash that helps to generate
more future options.
Literature 3: Best customer growth strategies for NET-A-PORTER that leads to increases
financial abilities.
As per the view of Chan, Ngai and Moon, (2017) using social media is the best
strategy that helps to increase financial abilities. It is so because majority of the customer
uses social media platform that includes Facebook, Instagram and Twitter that helps to
generate high profit. In this customer growth strategies, fashion industry may increase brand
awareness, such that this strategy allow the firm to market a business in which thousands of
people get interacted within a brand so that it will force them to visit the website at least for
once. For instance, if NET-A-PORTER tweets about latest products and gets shared by 20
people who has average followers around 500, then up to 10000 people have an ability to see
the post. Thus, it clearly shows that social media directly influence large variety of customer
towards it. The same is also applicable on other social sites such that Facebook, Instagram
etc.
In addition to this, Zhang, Liang and Wang, (2016) stated that social media is best
customer growth strategies because it increase relationship capital and even the brand on
social media definitely increase the target market and as a result, it build community as well.
Moreover, it also improve audience insights and better customer service such that social
network also allow company to analyse what potential customer are looking for so that it will
help in customizing them as well. As a result, it will help to increase customer loyalty as well.
As per Forbes, 70% of the customers who receive quick responses on social media and it also
increases the fan base as well. Moreover, social media also post an image of their new trend,
so that the customer may comment about the same that helps to determine whether they like
the products or not. On the other side, Chae and Ko, (2016) stated that if NET-A-PORTER
uses this growth strategy, then it helps to grow long term audience as well as increase brand
equity. For instance, if the company have a fan base, it is definitely sure that all the post
about a particular products an services will be converted into sales and as a result, it creates
positive impact upon business growth as well as increases financial performance as well.
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Research Methodology and Rationale
1. Select one of the methodological approaches from the following options for your
research
a. Observation
b. Interview
c. Questionnaire
Questionnaire is considered to be as an effective tool which helps in determining the attitude,
behaviour, opinion, preference and intention of the respondents which helps in gaining better
and in- depth results on the subject matter (Mackey and Gass, 2015). The researcher of the
study will use both primary and secondary source of data collection where the research will
be carried out through questionnaire which in turn is useful in gaining better insight on the
different consumer growth strategies that creates direct impact upon Fashion industry.
2. Justify why your selected method of primary data collection is most suited to answer
your research topic. Consider how this is informed by your Research Objectives and
Literature Synopsis.
Primary source of data collection is best suited to carry out this research as it helps in
grasping new and relevant information with the help of polls, interview, experiments,
observation, and questionnaire (Bresler and Stake, 2017). Primary source of data collection
will help the researcher in gaining new information which helps in mitigating the aim and
objectives of the research. This is fresh and new information which has never been used
before helps researcher in gaining better insight and helps in bridging the gaps on the subject
matter associated with the different consumer growth strategies that creates direct impact
upon Fashion industry.
3. Consider how many respondents/ participants you intend to involve in your research,
10-20 participants are recommended if you use questionnaires or observations and 5
participants are recommended if you use interviews. Specify where you will be
collecting your data.
The researcher of the study will carry out research by selecting 20 managers of the Net-
A-PORTER with the help of random sampling method. The data will be collected in
company office of Net-A-PORTER which is very useful in determining different customer
growth strategies used by fashion industry and also recommend best customer growth
strategies for NET-A-PORTER that leads to increases financial abilities.
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4. Consider the limitations of your selected methodological approach
The major limitation faced by the researcher while carrying out the research is associated
with the time constraint. The researcher tends to focus on preparing a timeframe according to
which all the activities will be carried out. This in turn helps in completing all the task and
research study within the stipulated time (Bresler and Stake, 2017). Obtaining informed
consent from the respondents was also considered to be the major limitation while carrying
out the research study. Another major limitation associated with the selected methodological
approach is that respondents denying to give proper justification for answering the particular
answer to the question. Understanding the answers of the respondents is also the major issue
faced by the researcher while carrying out the research study.
5. Consider the limitations of the research Literature Synopsis and Methodology.
Lack of reliable data is considered to be one of the greatest limitation of the research
literature which in turn might hamper the reliability if the data collected. But the researcher of
the study has collected all the information from the valid sources and all the information
collected is well cited (Mackey and Gass, 2015). This is in turn helps in ensuring that the data
collected are from valid and reliable sources in order to gain wider perspective on the best
customer growth strategies for NET-A-PORTER that leads to increases financial abilities.
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Ethical Considerations
The research will be carried out in ethical manner by citing all the information collected.
You will need to complete the Ethics Approval Form below. You will need to consider and
are not limited to the following areas which may affect your research:
- The number and type of proposed participants
- The researcher of the study will carry out research by selecting 20 managers of the
Net-A-PORTER.
- The limitations on those participating in the research (e.g. do they have to be
employed to complete your questionnaire?)
Cultural biases is considered to be one of the major limitations which is considered to be the
major limitation with those participating in the particular research (Kumar, 2019).
- How are you seeking permission from the participants?
- Yes, the researcher of the study will seek permission from the participants.
- How is the participants’ anonymity being preserved?
- The anonymity of the participants which helps in protecting personal information
related with the name, email, address, phone number, etc.
- What UK Laws and Research Guidelines are you considering in conducting your
research/ involving participants and why?
- The researcher of the study also comply with the General Data protection regulation
(GDPR) which helps in protecting all the personal information which in turn helps in
improving the performance of the company (Kumar, 2019). Compliance with Data
protection Act, 2018 helps in protecting the personal data which in turn helps in
protecting all the personal information.
- Are you proposing any financial payments or payments in king to participants?
- No, I am not proposing any financial payments to the participants.
- The ethical issues and risks around the selected. Consider areas such as
confidentiality, bias, leading questions, participant’s health or wellbeing
- The ethical issues associated with cultural biases, safety of the researcher, compliance
with the regulation and practice while carrying out the study are considered to be
some of the major issues while carrying out the research study.
- Explain how you propose to deal with these issues and risks.
- The researcher of the study will collect all the information from the valid sources and
all the information collected is well cited. The researcher will face issue associated
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with the time constraint by preparing timeline to carry out all activities systematically.
The researcher will carry out research study by effectively utilizing all the resources
which leads to long term sustainable growth and efficiency. The researcher also
focuses on maintaining all the financial resources which helps in smoothly carrying
out all the activities.
How will you disseminate your findings in this submission?
The researcher will disseminate the findings to the target audience by effectively analysing
the set data and analysing the results. The researcher will disseminate the findings by gaining
in- depth knowledge on different consumer growth strategies that creates direct impact upon
Fashion industry.
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References
Books and Journals
Bresler, L. and Stake, R.E., 2017. Qualitative research methodology in music education.
In Critical Essays in Music Education (pp. 113-128). Routledge.
Chae, H. and Ko, E., 2016. Customer social participation in the social networking services
and its impact upon the customer equity of global fashion brands. Journal of Business
Research.69(9). pp.3804-3812.
Chan, A. T., Ngai, E. W. and Moon, K. K., 2017. The effects of strategic and manufacturing
flexibilities and supply chain agility on firm performance in the fashion
industry. European Journal of Operational Research.259(2). pp.486-499.
Christensen, C. M. and et.al., 2016. Know your customers’ jobs to be done. Harvard
Business Review. 94(9). pp.54-62.
Kowalkowski, C., Gebauer, H. and Oliva, R., 2017. Service growth in product firms: Past,
present, and future. Industrial marketing management. 60. pp.82-88.
Kumar, R., 2019. Research methodology: A step-by-step guide for beginners. Sage
Publications Limited.
Mackey, A. and Gass, S.M., 2015. Second language research: Methodology and design.
Routledge.
Nagle, T. T. and Müller, G., 2017. The strategy and tactics of pricing: A guide to growing
more profitably. Routledge.
Todeschini, B. V. and et.al., 2017. Innovative and sustainable business models in the fashion
industry: Entrepreneurial drivers, opportunities, and challenges. Business
Horizons. 60(6).pp.759-770.
Zhang, H., Liang, X. and Wang, S., 2016. Customer value anticipation, product
innovativeness, and customer lifetime value: The moderating role of advertising
strategy. Journal of Business Research.69(9). pp.3725-3730.
Online
Impact of customer growth strategies. 2018. [Online]. Available through:
<https://ulearn.yalieastafrica.org/blog/Business-and-Social-Impact/79>.
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