Digital Marketing

Paper details:

Graduate level assignment (3800 words)
–
Shirts Direct
2016
Some of the data provided is ‘estimated’, as company
-specific data cannot be provided due to
confidentiality.

Make any realistic assumptions you
have to, but do not forget to specify your assumptions in
writing.

No associated company should be contacted regarding this case.
.
The company and the products

Shirts Direct entered the market in 2012, selling ‘affordable’ shirts online. Their proposition is to provide both men and women with a good selection of high-quality
formal and casual shirts in the widest possible range of colours. Shirt styles range from formal to casual, long and short-sleeved shirts. Prices range from £25-£70.
Whilst still a relatively small online business, Shirts Direct has built up a good reputation with their proposition of quality, style, choice and value.

Their ecommerce website features
•The full range of styles and colours (1,000 +)
•Search facility
•Secure
web server facility for credit/debit card transactions
•UK Delivery options
o3-day delivery:
£3.50
FREE on orders over £50
o£5.50 for next day delivery

•A telephone hotline for orders and queries, open 7 days, 8.30am
–6.30pm

Competitors include classic shirt providers such as Charles Tyrwhitt, Joseph Turner and Thomas Pink, through to niche online retailers. It also competes with high
street stores, such as John Lewis who are renowned for selling affordable, quality ‘basics’.
Shirts Direct have never considered their market in detail but research has indicated that customers are:

•Broadly aged 25 –45
•Working professionals
•Even split between males and females
•Average household income £50,000 +

Promotional history

The company was launched via both display and press advertising. Ads featured a 3 for 2 offer. The activity was very successful and generated c. 10,000 new customers
in their first year. Over the last 4 years this has grown to c.30,000.

In line with other retailers, Shirts Direct have experienced significant seasonal peaks in demand both around the changes in seasonal wardrobes and special events,
particularly Christmas. From the outset they have produced seasonal catalogues that feature about 70% of the full range: ‘Spring-Summer’ is mailed out in April and
‘Autumn-Winter’ in September. This is sent to customers and any enquirers who have requested a printed edition.

The 3-for-2 offer, after extensive testing remains the most effective purchase incentive for new customers, however this seriously
impacts on both revenue and Gross Profit.

They have recently tested a PPC campaign across a few broad keywords. ‘Shirts’ and ‘business-shirts’ with a cost on average £1.40 PPC, results show 1 in 20 converting
into a purchase.
They have not yet used any affiliates or social media advertising. They only use Twitter, reactively, to manage queries.

The Database growth

Year Added-Total customers

2012-10,000
2013-18,000
2014-25,000
2015-30,000

The numbers

Financial years run January to December. Last year’s order numbers are shown below:

2015 Results –all orders

2015 orders Total value AVG O/V Total Items
Total 10,750 801500 74.56 35,5000
•10,750 customer orders (mix of new and existing)
•35,500 individual items
•Average order value (AOV) -£74.56

#Note: this includes the 3 for 2 offer (run on two campaigns in 2015)
#AOV ex offer is c. £70.00 (slightly lower)
#AOV from the catalogue is c £90.00

•Turnover just over £800,000

•42% of all orders are placed during the 6-week run up to Christmas
Shirt Directs challenges and targets

Acquisition rates have started to slow, with only 5,000 new customers being recruited in 2015.

The business wishes to address this and has targeted to recruit 10,000 new customers in 2016.

They forecast that 5,000 will come from ‘business as usual’ activities and ÕÉ≠†Њ†as such, have allocated further budget to recruit the additional 5,000 new customers.

They’re aware that they’ve been relying on the same acquisition activities for too long. And that they don’t really know enough about the customers they have got –and
why they bought.

But they do know they’re not testing new routes to market, and not getting the best return on their marketing budget.

They don’t (yet) want to risk cannibalising the business coming from catalogue sales –bearing in mind the higher AOV they achieve from this channel. Until they can
find a more cost effective way to recruit new, valuable customers.

They know they need to develop retention activities. But their primary focus, at this point in time, is to explore how digital channels can better support their
acquisition aims.

They understand the need to test and learn, so have allocated sufficient budget and expect it to be part of this proposal.

Your Task

Your agency has been briefed to develop a digital marketing campaign to acquire an additional 5,000 NEW customers, and increasing online AOV from £75 to £80.

The budget is set at £150,000 for Jan –Dec 2016

Your digital marketing plan should include:

•An analysis of the business situation, key issues that demonstrate how your findings are influencing your strategy, and SMART campaign objectives (25 marks)

•Targeting. Messaging and Channel Strategies. To cover identification of target market/s and development of audience personas, key proposition/s and messaging, and
rationale for channel choices. (25 marks)

•Tactical media plan, to include: channel details, examples of how they will be used, integration, testing and timing–bearing in mind the seasonality (40 marks)

•A budget allocation that demonstrates how your plan will deliver against your campaign objectives. Show performance by channel through to sales (customers), AOV,
value and ROI (10 marks)

Graduate level assignment
–
Shirts Direct
2016
Some of the data provided is ‘estimated’, as company
-specific data cannot be provided due to
confidentiality.