Executive Summary
ASOS must consider the following three recommendations based on the following themes: 1) New Product Development ; 2) Brand Positioning; and 3) Use social media to create emotional brand attachment. ASOS must prioritize strategies related to new product development.
It is aligned with the need to create a new product line for children. Corporate leaders and the members of the marketing team must work together for the implementation of the said strategies, because it is the only way to sustain its competitive advantage, and increase the company’s profitability in the long run.
In order to enhance value of the company’s brand, ASOS’s corporate leaders must evaluate the impact of three recommendations based on the following themes: 1) New Product Development ; 2) Brand Positioning; and 3) Use social media to create emotional brand attachment.
An overview of ASOS business model reveals the fact that new product development is not a priority for the company (Botha, Strydom and Brink, 2007).. However, it is high time to consider the value of new product development, especially when it comes to the clothing needs of children.
New Product Development
Corporate leaders and the head of the marketing department must seriously consider the application of new product development principles. The purpose of the new initiative runs parallel with the company’s tag line stating that ASOS is a one-stop fashion destination. It can be argued that young parents purchasing clothes for personal use will find it convenient to find clothing merchandise suited for toddlers, preschoolers, and grade-schoolers.
Brand Positioning
After making the decision to create a new product line, the next step is to apply the principles of brand positioning (Gitman and McDaniel, 2009). The main thing to keep in mind is to offer something different. Thus, ASOS must create a new product line that sells clothes with a parent-children theme.
For example, there is a sub-category in the product line wherein parents are able to purchase clothes that matches those for their children. Thus, it is not enough to simply create clothes for preschoolers and grade-schoolers. This strategy is enhanced by the application of brand hierarchy principles that enables the company to differentiate products depending on the target market.
Although the parent-children theme is already evident in the new product line, the company recognizes the need to supply high-end products and affordable products for those looking for top quality wear in an affordable price range.. In this group, the clothes are more expensive with products that were created using more complicated materials and manufacturing techniques. The second group is comprised of customers looking for high-quality products at a more affordable price range.
Social Media and Emotional Attachment
ASOS must develop a clever strategy to leverage the power of social media platforms like Facebook and Twitter, as well as video-sharing websites like YouTube. The appropriate use of social media will enable ASOS to strengthen the emotional appeal of their products. In the past, the use of mass media tactics created an impersonal approach to product distribution and product promotion processes (O’Connor, 2012).
In other words, in using social media, ASOS will make the customers feel that they are valued and that their inputs matter to the company. ASOS must learn to move away from conventional promotion strategies that only promotes the value of the product without considering the needs and aspirations of the consumers.
In the case of ASOS, the company must go beyond the creation of a website in order to satisfy the basic requirements of e-commerce. The next step is to create a link within ASOS’s website that opens to a new portal. The purpose of the new portal is to focus the spotlight on customers’ feedback and how they enjoy the clothes they purchased online. The creation of the said site will create two types of advantages for the company. First, it will make the customers feel that they have a personal connection to the brand.
ASOS must make the customers feel that the company values their feedback. In the new portal, customers can share their ideas on how to improve the product line. ASOS will benefit from this interaction if customer’s feedback are integrated into the development of new products.
Aside from the creation of a dedicated site that enhances the interaction between the company and its customers, the company must develop creative ways in leveraging the power of social media. For example, ASOS will create a Twitter account, and the followers of the said Twitter account will receive exclusive invites from ASOS.
Thus, loyal followers will receive rewards from the company. In a typical invite the company will provide information about a product launch or how to access discount coupons. The company must develop similar promotional strategies, because these strategies will create more endearing moments between the company and the customers.
ASOS must never underestimate the power of social media in its ability to deliver a specific message to a specific target market (Manrai, 2014). Facebook and Twitter possess certain capabilities beyond the reach of traditional promotional strategies that were created on the foundation of mass media networks like Fox News or BBC (Meiselwitz, 2014).
Consider for instance a social media network’s ability to connect people from all walks of life and compels them to interact over a particular image or video (Dennhardt, 2014). Thus, ASOS must create a Facebook page that allows the company to announce a corporate sponsored competition with the exclusive participation of customers. Prizes will be given to participants sporting the latest product from ASOS.
ASOS’s ability to improve certain aspects of customer relationship marketing creates an indirect enhancement of the brand’s value in the eyes of consumers. Creating a new product line strengthens the company’s competitive advantage.
The inspiration for this strategy comes from the company’s mission statement that says ASOS is a one-stop shop when it comes to menswear and womenswear. At the same time, the implementation of these three strategies will make customers feel that the company is doing everything in it power to satisfy their needs in the context of the fashion and beauty industry.
The company will face challenges along the way; however, corporate leaders and the members of the marketing team must never allow the roadblocks and other constraints to force them to stop the initiative in creating better services for their customers. It is the only way to sustain its competitive advantage, and increase the company’s profitability in the long run.
References
Botha, J., Strydom, J. and Brink, A. (2007). Introduction to marketing. Cape Town, South Africa: Juta and Co. Ltd.
Dennhardt, S. (2014). User-generated content and its impact on branding. New York: Springer.
Gitman, L. and McDaniel, C. (2009). The future of business: the essentials. San Francisco, CA: South-Western Cengage Learning.
Manrai, L. (2014). The Routledge companion to the future of marketing. New York: Routledge.
Meiselwitz, G. (2014). Social computing and social media. New York: Springer.
O’Connor, R. (2012). Friends, followers and the future. CA: City Lights Books.