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May 2015
ADDING DEPTH TO A PR/CELEBRITY ENSORSEMENT STRATEGY TO REINVIGORATE A BRAND A LIPSY CASE STUDY
Colin Gray
INTRODUCTION
• Lipsy is an interesting brand – sales are up, but all the signs suggests the brand is in decline • There’s been a 47% drop in unique visitor numbers to
Lipsy.co.uk since August 2013 • There has been a similar drop (46%) in Google search traffic
between May 2011 (prompted by Mollie King) & March 2015
• In fact, 2014 sales results were the best since Next acquired the brand. Further sales and profit growth are expected from Lipsy in the years ahead.
• The following slides explore how Lipsy might leverage Social Media and Cultural Trends to drive more engagement and reinvigorate the brand
BRAND CONTEXT
Target audience: women aged 18-34yrs old, who are highly motivated to keep up with latest celebrity, beauty and fashion trends but don't necessarily have a huge
disposable income
Source: ComScore & YouGov
BRAND STRENGTHS
• Lipsy has a built strong connection with celebrity culture & the "Heat generation“
• Targeting the right brand ambassadors and drawing them back to the brand
• After losing ground to the likes of ASOS, Lipsy has helped (parent company) Next appeal to younger (16-34) women
• Known for affordable glamour
A STRATEGY NOT WITHOUT RISK
AFTER BUILDING THEIR FASHION CREDENTIALS, THOSE CELEBRITIES CAN LAUNCH THEIR OWN COMPETING RANGES
THERE’S ALWAYS THE RISK OF THOSE CELEBRITIES PUBLICLY FALLING FROM GRACE
AND THE RISK OF BECOMING TOO CLOSELY ASSOCIATED WITH REALITY TV SPECIFICALLY (& ‘ESSEX’)
• Just 20% of 18-34s 'love' or 'like' TOWIE, MIC or GS (compared to just 7% of over 35s)
• Surprisingly, they appeal just as much to men as they do women: 10% of men 'love' or 'like' them versus 12% of women
IT’S A STRATEGY THAT IS ALSO EASY TO COPY
“CRUNCH” rising demand and limited
supplies means that it’s crunch time for key resources such as
energy, food and water
Sustainable business models are becoming a value-added
imperative
“CONNECT” new digital platforms allow people to share information instantaneously. Real-time
exchanges amongst billions of people is fast becoming a
reality
Privacy and security concerns will accelerate and novel forms
of scrutiny will mean that companies are no longer able
to hide from demands for transparency
TRENDS WE COULD CAPITLISE ON TO MITIGATE THESE RISKS
Source: “Future Business: mega-trends that every company needs to prepare for”, Corporate Citizenship, Feb 2013
1 2
“CONNECT”
Down 2.3% (from 488k) on Oct 14 Up 6.7% (from 79.1k) on Oct 14
Community engagement Daily conversa3ons
1
LEVERAGING A LARGE SOCIAL FOOTPRINT
ALTHOUGH NOT AS LARGE AS COMPETITORS 1
30% of Google users also search
for Topshop
35% of Google users also search for River Island
35% of Google users also search
for ASOS
3.5m
841.1k
2m 3.9m
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Easter 18 - 21 Apr
World Cup 12 Jun - 13 Jul
23 Jun – 6 Jul
17 -21 Feb
7 -18 Apr
26 - 30 May
21 Jul - 1 Sept
13 Apr
School holidays
Key
ADDING FURTHER DEPTH TO THE EXISTING SOCIAL STRATEGY
Move beyond sharing photos of new range and retweeting PR coverage to a bigger conversation based On what’s happening in our customers’ lives
1
AND ALSO ADDRESS SIGNIFICANT DECLINE IN WEB TRAFFIC?
*25% of web visitors are Male (& 17% of social men3ons)
*
1
Tulisa’s X Factor return - an opportunity to remind our audience that you sell bikinis?
FOR EXAMPLE 1
• More competitions with the aim of generating content to share with Fans & Followers
• Find your perfect partner
DEEPENING AUDIENCE ENGAGEMENT VIA SOCIAL
• Lipsy loves Pixie and to commemorate her Strictly Come Dancing appearance, we’re giving you the chance to win dancing lessons • Objectives: more interactions, incremental reach), increased social sharing (which impacts on search engine visibility) & prospect data capture
1
• Social can help us identify new brand ambassadors – who do our Twitter followers also follow? who is influential in their Twitter-sphere?
• There is also significant scope to better leverage the social footprint of brand ambassadors using promoted tweets to further extend our reach
• Lipsy has 84.4k Twitter followers; Michelle Keegan has 2.9m. Currently there are only 86 followers in common
• Millie Mackintosh has 812k followers and there are only 97 people in common
• Pixie Lott has 1.7m followers and there are only 104 people in common
HOW ELSE COULD WE DRIVE A CONNECTION VIA SOCIAL?
Promoted Tweet
1
CONNECT: WHO’S DOING THIS WELL?
• “Black Milk Clothing is hard to define. It is as much a community as a business”
• Frequent ‘restock’ updates gives customers a sense of urgency in getting an order submitted
@BurberryService available 24hrs a day 7 days a wk. Dedicated YouTube playlists allows users to interact with all aspects of the Burberry universe (campaigns, shows, beauty, eyewear, childrenswear, events, etc.)
American Apparel tapping into communities (& also appears to recognise that a
significant proportion of their sales come from men)
1
• On 24 April 2014, 10 years after the first Ethical Fashion Show was held in Paris, tens of thousands of people around the world turned their clothing #insideout, calling on brands and retailers to answer the question Who Made Your Clothes? #Insideout became the no.1 global trend on Twitter
• Out of the thousands of requests to brands via phone, email, Twitter and Facebook, only a handful of customers received replies. These mostly indicated the country where their clothes were made, adding in the fact that they adhered to the highest working conditions. Hardly any brands replied to the WHO made your clothes? and missed the opportunity to connect with their customers
“CRUNCH” 2
ASOS (with the largest social footprint) are one
of the few brands to have embraced
#Insideout with positive effect
CRUNCH: WHO’S DOING THIS WELL?
2
CRUNCH: WHO’S DOING THIS WELL?
• Ada + Nik “brings together rebellious British dark matter menswear with Greco Roman Punk - Ancient ideals of masculinity fused with pre industrial revolution silhouettes and the spirit of 70's Punk”
• The brand has a distinct commitment to sustainability with materials as ethically sourced and produced as possible with use of bi-product leather, innovative fabrics and sustainable production and manufacturing techniques.
2
CRUNCH: IS THERE REALLY AN OPPORTUNITY HERE?
78% are willing to pay
about 5% more for a product that is green
89% of shoppers are
concerned about the environmental impact of the products they
purchase
The green demographic crosses all age groups, all income levels and all education levels. However,
Women are significantly more environmentally aware than Men
2
THANK YOU
@ColinInTheBath http://psychemarketing.com