Digital Marketing Report: Evaluating Boo.com's Strategies and Failures

This report offers a comprehensive analysis of Boo.com's digital marketing strategies, evaluating their approach to entering the online retail market in the late 1990s. It examines the company's initial blunders, including the decision to launch simultaneously in America and Europe without adequate preparation and market research. The report delves into the shortcomings of their environmental analysis, lack of consideration for internet access limitations, and misjudgment of consumer behavior in online apparel sales. Furthermore, it critiques Boo.com's application of the marketing mix, addressing issues in product, price, place, and promotion. The analysis highlights the importance of understanding market dynamics, technological readiness, and the development of a strong brand identity. The report concludes by presenting successful strategies adopted by other companies such as Dell and IKEA, emphasizing the significance of customer service and integrated marketing approaches. The report references Sheldrake (2011) and Grewal et al. (2011) to support its findings, providing a detailed overview of the factors contributing to Boo.com's failure and offering insights into effective digital marketing practices.

Running Head: MARKETING 0
Digital Marketing

MARKETING 1
Question 1)
Solution 1) Boo.com take the decision to come across with its website in America and
Europe as it wanted a competitive position in online international sports clothes. It was
considered as their first blunder as they capitalize high rather than not waiting for the sales to
create revenues and then expand on other markets.
The next mistake done by Boo.com is that they did not give importance to the environmental
analysis and also not included the fact that in the late ’90s, not every individual has an
internet and people needs of various software to access the website. Other than this, the
organisation expected that clothing has more uniform sizes with less requirement for an
accurate fit than designer wear. However, they mislaid the fact that online attires and
instructors have a higher return rate and their target is also not linked with the mail market.
The company also undervalued the cost of deploying the technology as it requires to match
with the process of distribution and stock control.
Hence, it can be said that Boo.com unquestionably wanted to do too much irrespective they
were not ready for the market. The company surely did not have a competitive edge in
relation with products or price uniqueness like firebox.com and lasminute.com.
Question 2)
Solution 2) Sheldrake (2011) stated that website retailing is least expensive as continuing
website and uploading graphics and pictures in coordination with innovative 7Ps marketing
mix brings out positive result. Below are the aspects on how Boo.com applied the marketing
mix in various areas –
 Product – Premium brands were used to make the price higher. There was no clarity
amid high street fashion and sportswear. The target audience is also limited due to a
relatively narrower scope.
 Price – It was found that there were many issues related to pricing in various regions.
In relation to brand premium positioning, no such consistent discount was made,
however, many e-retail enterprises adopting competitive selective promotions.
 Place – To achieve its reach and targets, Boo.com had global distribution, however,
there was an impact on promotion as it was added to cost base of the enterprise. It was

MARKETING 2
aspiring considering universal launch of a new product and can be compared with a
more conventional approach from the likes of eBay and Amazon.
 Promotion – Boo adopts aggressive marketing campaigns on newspaper and TV.
However, high cost per consumer acquisition and low conversion rates lead to
negative comment on the initial PR campaign being too assertive. At the time their
marketing with online promotional techniques like affiliate marketing, SEO was
limited in its possibilities. As per current market scenario, there are more effective for
organisations.
 Process, people and physical evidence – Majority of the population now can access
web over dial-up modems due to advancement in technology. This headed to a
‘clunky’ experience that rose to low conversation rates mentioned in the article. It can
also be said that cost of giving consumer service was not embedded into the business
model.
Hence, for online retailers, it is essential to develop their marketing mix very effective as it is
not confined to the product, price, place and promotion (Grewal et al, 2011).
Question 3)
Solution 3) Some of the common approaches used were –
 Development of strong brand built on service and quality.
 With using the 3D images have advanced product selection and for example, this
approach is now adopted by Dell.
 Adoption of online consumer service avatar or persona. This tactic is also now
undertaken by IKEA in relation with online sales assistance through their ‘Ask Anna’
facility.
 The building of brand through assimilation and synchronisation of offline
catalogue/newspaper with website. At present, such newsletter is usually carried out
online.

MARKETING 3
References
Grewal, D., Ailawadi, K. L., Gauri, D., Hall, K., Kopalle, P., & Robertson, J. R. (2011).
Innovations in retail pricing and promotions. Journal of Retailing, 87, S43-S52.
Sheldrake, P. (2011). The Business of Influence: Reframing Marketing and PR for the
Digital Age. United Kingdom: John Wiley & Sons.