People

The people variable in the marketing mix reflects the level of customer service, staff training and staff satisfaction. As discussed in previous posts, Net-A-Porter and ASOS both deliver exceptional customer service in a way that builds relationships without any physical contact. This post will focus on the employees of both companies. 

 Employee satisfaction is an important element of the marketing mix for Net-A-Porter. They employ over 800 people in the UK and believe that their 'enviable pool of talented people' have helped Net-A-Porter to become the largest luxury fashion retailer it is today. (Net-A-Porter, 2016a)

Net-A-Porter have their own careers page on their website and have their own internship program called Net Academy. These placements give graduates the opportunity to further their skills in areas such as PR and Product Merchandising. (Net-A-Porter, 2016b)

ASOS are also proud of their employees, but in a different way. ASOS boast on their website the volume of employees that they now have, stating in January 2014 they employed more that 1,500 people which is a 16% increase from 2013. 

ASOS do not have any training program's in place but focus on the company culture, known as 'The ASOS Way'. The four values are Customer Obsessed, Relentlessly Innovative, Collaborative & Respectful and Passionate. ASOS demonstrate these values as they have excellent customer service, are innovative as an eCommerce business and they show passion in this through their social media pages and their connection with customers. ASOS achieve this by training their staff to work to these values. (ASOS, 2014)

ASOS values (ASOS, 2014)

In conclusion, it is clear to see that Net-A-Porter values staff training and long term careers so that their employees will create a great impression for the company. In addition to this, employee retention and motivation is likely to increase as well as employee engagement and productivity.
ASOS focuses entirely on their values to train their staff and their main goal is to increase staff numbers. Employees are less likely build a career with ASOS so it is possible they have a high staff turnover, with less motivation and productivity rates. 

References

ASOS (2014) Our people. Available at: http://www.asosplc.com/corporate-responsibility/our-business/our-people.aspx (Accessed: 21 November 2016).

Net-A-Porter (2016a) Developing our talent. Available at: https://www.net-a-porter.com/Content/careers/talent (Accessed: 21 November 2016).

Net-A-Porter (2016b) NET-academy Internships. Available at: https://www.net-a-porter.com/Content/careers/interns (Accessed: 21 November 2016).

The Websites

For both companies the website is the main place for customers to shop. 

As you enter the Net-A-Porter website, you are faced with the latest issue of The Edit, their free weekly online fashion magazine. This contains the latest fashion trends and interviews with fashion designers and celebrities. You can also shop directly through the magazine by clicking on the images, which saves the customer looking through the website to find the product. 

Just click on the image to see the product (Net-A-Porter, 2016)

Net-A-Porter sells products from a wide range of designers including Alexander McQueen, Balmain, Prada and Valentino. All products on the website are designer, expensive and of high quality and it is clear to see that it aimed at the higher market.

Their website is user friendly and looks sophisticated. Consumers have the option to shop A-Z by designer, or by the product they are looking for. (Net-A-Porter, 2016)

Net-A-Porter have also released their own social network app called The Net Set. Similar to Facebook, you can check the news feed for the latest posts and users can organised into "tribes" for different style preferences. Like the website, the app is fully shoppable. (Lazauskas, 2016)

The Net Set app on IPhone (Lazauskas, 2016)

On the ASOS website, you are immediately faced with sales and student discount offers. Their website is simplistic and easy to use, with options to shop by brand or by the type of product you are looking for.

ASOS sells many high street brands including Adidas, Miss Selfridge, River Island and Office as well as their own line of clothing. 

Customer images using #AsSeenOnMe (ASOS, 2016)

ASOS have created their own hashtag,#AsSeenOnMe which allows customers to post pictures of them wearing ASOS and share it across different social media sites. 

The customer image is shown on the website and also gives other consumers the chance to shop the look. Just click on any image and the products will appear. This is similar to Net-A-Porters The Edit magazine, instead ASOS is using the power of social media. (ASOS, 2016)

Simply shop by clicking on an image (ASOS, 2016)

In addition to their website and hashtag, they also have their own app. The app has many more refining options to help the user find the product they are looking for easily. Customers can create their own account which allows you to add products to your 'wish list', which also syncs with the desktop sites. 
ASOS have created a personalised shopping experience for the customer by adding a wishlist and also saving your details at checkout for a quick and simple purchase. (Moth, 2013)

ASOS App homepage (ASOS, 2016)

In conclusion, both websites social media pages are very different in the way they catch the attention of customers. Net-A-Porter advertise the latest fashion trends through the online magazine and website, targeting the on-trend fashion lover who does not mind spending full price for the newest product. The Net Set demonstrates their commitment to building devoted relationships with their customers. 

The Edit makes it easy for the customer to seek out the new trends and add them straight to their shopping basket.

ASOS, however, promote products they have on offer. It is clear that they are targeting the younger, student market who are looking for the latest fashion at a cheaper price and are not interested in designer names. Their hashtag and social media presence promotes their products in the same way Net-A-Porter’s The Edit, but at little to no cost and allows the customer the share their own photos to be shown on the fashion website. 
The ASOS app creates a personalised customer experience which will more likely lead to repeat shoppers.

References

ASOS (2016) Shop the latest clothes and fashion online. Available at http://www.asos.com/ (Accessed: 21 November 2016)

Lazauskas, J. (2015) The new model: How net-a-porter keeps the fashion industry on its heels. Available at: https://contently.com/strategist/2015/09/03/the-new-model-how-net-a-porter-keeps-the-fashion-industry-on-its-heels/ (Accessed: 21 November 2016).

Moth, D. (2013) ASOS’s new Android mobile app is a dream and a curse for fashion shoppers. Available at: https://econsultancy.com/blog/63583-asos-s-new-android-mobile-app-is-a-dream-and-a-curse-for-fashion-shoppers/ (Accessed: 21 November 2016).

Net-A-Porter (2016) Women’s designer clothes, shoes, bags & accessories. Available at: https://www.net-a-porter.com/ (Accessed: 21 November 2016).

Promotion and Digital Marketing

Digital marketing is the use of any digital media e.g. phones and TV to attract, engage and build relationships with customers and target audiences. This marketing method is beneficial to organisations as it allows them to analyse consumer feedback immediately and to create a relationship with the consumer. Digital marketing can be adapted to any organisation for promotions and advertisements, and more and more organisations are recognizing its potential. (Dibb et al. p27, 2012)

ASOS is an example of an organisation which has used digital marketing to become one of the largest online fashion retailers.
Their various social media channels such as Instagram and Twitter are interactive and designed to keep their customers engaged and up to date with the latest trends and offers, celebrity gossip and fashion tips. One of the key areas that sets ASOS apart from its competitors is the way that they portray the company through social media. ASOS describes itself as ‘more than a shop’ as it posts daily fashion and lifestyle updates, constant social media posts on Twitter and Instagram; sharing information that the 20-something fashion lover would be interested to follow. They have created a personality behind the brand.  (ASOS, 2016)

ASOS has proved to us that they are constantly adapting to the changing environment and are thriving in the digital marking era and as a global brand.
ASOS is very popular among the fashion bloggers on social media. On YouTube, there are many videos of fashion bloggers showing off their 'ASOS Haul' sharing their latest purchases to their followers. In some cases, ASOS will send free products to bloggers to promote for them, but with popular blogger videos reaching 170,000 views (as seen in the video below, (inthefrontrow, 2016)) this is definitely a beneficial way for ASOS to promote their online shop.

Net-A-Porter are also present over various social media site but interact with their customers in a different method. 
In 2014, Net-A-Porter released their own magazine named “Porter”. This is similar the their weekly The Edit magazine, as it contains fashion shoots, interviews with models and fashion icons and the use of old-fashion illustrations. The difference is Porter is being sold for $9.99 individually or $48 for an annual subscription, which makes it clear they are targeting the wealthier, more luxurious market.

When Porter was first released, it was sold in 6,000 shops in the UK and 10,000 in the US and available in 58 countries around the world, as well as being available to purchase on their website. (Leitch, 2013)

A page from The Porter magazine (Binkley, 2014)

A digital version of the magazine is also available which allows consumers to easily click on products which takes you to the online. The printer version has little to hint that it is “shoppable”. However, customers who have the Net-A-Porter app can take a picture of the item they like and the app will take you directly to the shop, both the Net-A-Porter site and the official brand websites.

Releasing a paper magazine seems like a step back as online fashion shopping continues to grow in popularity. Natalie Massenet, founder and chairwoman of Net-A-Porter explains that women still prefer looking through a glossy magazine. She said ‘these are women who love fashion magazines, but 60% of their purchases are online.”

They have made it clear that this is not a shopping catalogue, but a way for Net-A-Porter to connect with the consumer who has an interest in the latest fashion. This marketing strategy targets the right customers and shows again that Net-A-Porter is an exclusive, sophisticated brand.
By making the magazine digitally available through their app, this gives consumers choice in which format they prefer. (Binkley, 2014)
Both companies use their online presence in a different way. ASOS has the advantage of being able to interact with their target market more online because the 20-something customer is more likely to use social media more often. Net-A-Porter has a slightly older customer base meaning they are more likely to be drawn to their digital and printed magazine options. 

References

ASOS (2016) How we do it. Available at: http://www.asosplc.com/how-we-do-it.aspx (Accessed: 26 October 2016).

Binkley, C. (2014) Net-a-porter launches magazine. Available at: http://www.wsj.com/articles/SB10001424052702303442704579362900001314062 (Accessed: 16 November 2016).

Dibb, S., Simkin, L., Pride, W.M. and Farrell, O.C. (2012) Marketing Concepts and Strategies. 6th edn. United Kingdom: Cengage Learning EMEA.

Inthefrow (2016) ASOS UNBOXING, HAUL AND TRY ON. Available at: https://www.youtube.com/watch?v=GW2nBoZ-ZfU (Accessed: 19 November 2016).

Leitch, L. (2014) Porter magazine: Enter the gatecrasher-telegraph. Available at: http://www.telegraph.co.uk/luxury/womens-style/23888/porter-magazine-enter-the-gatecrasher.html (Accessed: 16 November 2016).

Lovelock, G. (2013) ASOS: The simple secrets behind its success. Available at: http://www.thedrum.com/opinion/2013/04/30/asos-simple-secrets-behind-its-success (Accessed: 17 October 2016).

Mintel (2015) Designer Fashion UK. Available at: http://academic.mintel.com/display/754875/?highlight#hit1 (Accessed: 14 November 2016).

Place and Distribution

The place and distribution variable deals with having enough products available for consumer demand and being able to supply these efficiently to the customer, at the same time keeping transport, inventory and storage costs as low as possible.  
ASOS is an e-commerce business so their online shop is the best place for their customers to access the retailer. However, ASOS has utilised the place variable by thinking about where to distribute their brand and their introduction to the overseas markets.

ASOS have became a global retailer now have offices all over the world in the US, Australia and Germany.  (ASOS, 2016)

For their UK customers, ASOS now offers a click-and-collect service through 61 Boots branches and with plans to add to this in 2017. (Mintel, 2016)
ASOS Premier Delivery is also available, which offers free next day delivery to your house on unlimited items on a yearly subscription for only £9.95 a year.

For their international customers, ASOS has introduced unlimited free next day deliver to store for Premier Delivery subscribers in France and next day home delivery to German and Irish Premier customers. ASOS also offer next day delivery in Austria, Luxembourg, Poland and Portugal. EU countries currently do not have free returns but ASOS are planning to extend this policy across all EU countries later in 2016. (Mintel, 2016)
By giving customers these options, ASOS has conquered the issue of online shopping, of not being able to try before you buy. Customers can now have an experience close to trying something on in store, receiving the item the next day and without having to pay extra to return the item if it is not suitable.

With this comes an increase of orders and ASOS are required to keep up with this increase in demand. They have recently expanded their warehouse in Barnsley, Yorkshire, and added an extension approximately 150 thousand square feet. According to the ASOS website, this new space will allow them build the business that is capable of handling £2.5bn global sales demand and will double the stock capacity to 22 million units. (ASOS, 2016)

To tackle the growth of popularity in the European market, ASOS began work on a new European distribution centre in January 2016 in Germany. This new hub will be large enough to hold 20 million units of stock, the warehouse will enable ASOS to extend the next-day delivery option to more European countries. (Mintel, 2016)

Net-A-Porter offers a wide range of delivery options to their customers. The company offers express worldwide shipping in more than 170 countries. Including same-day delivery to Manhattan, London and Hong Kong and next day delivery to the UK, US, Germany, France, Australia and Singapore. (Suarez, 2014) If your item is not suitable, you won't even have to leave the house to return it. Net-A-Porter will arrange to have the package collected from your door. However, express delivery will cost you £20 in most countries, which is not cheap for the average consumer. 

Net-A-Porter has two distribution centres and two head offices; London and New York. These warehouses use 'robot pickers' instead of staff which speeds up the selection process of items, moving at speeds of up to 30 mph. 
Orders are processed on the website then the information is passed to the robot pickers. Goods are then passed to staff on another floor where they are processed for packing to meet their high quality standards. 
Net-A-Porter have improved their customer service by bringing in robots to speed up delivery times and process orders quicker. They still use staff as the final point of processing the order to make sure the package is of high quality to meet customer expectations. (Graham, 2012)

Both companies offer next day delivery to various countries and easy return options. By offering this to customers, both companies have conquered the issue of online shopping, of not being able to try before you buy. Customers can now have an experience close to trying something on in store, receiving the item the next day and without having to pay extra to return the item if it is not suitable.
Net-A-Porter has tackled the problem of increased demand by using a robot picker system, while ASOS uses employees for all stages of the distribution process. At the moment, ASOS are coping well with demand and keeping to their next day delivery promises, but this is unlikely to continue if orders increase over time. 

References

Graham, F. (2012) Logistics: Rise of the warehouse robots. Available at: http://www.bbc.co.uk/news/business-20754979 (Accessed: 16 November 2016).

ASOS (2016) How we do it. Available at: http://www.asosplc.com/how-we-do-it.aspx (Accessed: 26 October 2016).

Suarez, F. (2014) PowerPoint presentation. Available at: https://www.net-a-porter.com/alfresco/nap/webAssets/webPage/advertise-with-us/desktop/common/NAP_Media_Kit.pdf (Accessed: 31 October 2016).

Mintel (2016) Executive Summary - Online Retailing UK. Available at: file:///C:/Users/fionaclark/Downloads/Online%20Retailing%20-%20UK%20-%20July%202016%20-%20Executive%20Summary.pdf (Accessed: 14 November 2016).

Packaging

The packaging of a product is an important part of the product variable, especially for online retailers. The issue with online shopping is the lack of physical contact with the consumer and the delivery of the product is, arguably, the only point of physical interaction the buyer has with the company. It is exciting to receive a package that you have ordered even when you know the contents, which makes product delivery and this part of the product variable essential to communicate and engage with the customer.

Net-A-Porter is a luxury brand and has a relatively exclusive market. This also shows in their packaging of their products. Customers have the choice of three packing options for their order:
Basic packaging is a brown box, with your goods wrapped in tissue paper.
Signature packaging is the Net-A-Porter signature black box and luxuriously tied with a ribbon (shown in the image below (Limited, 2016)
This expensive looking packaging looks expensive and luxurious.

The signature packaging available at Net-A-Porter (Limited, 2016)

Net-A-Porter pride themselves on giving the best customer experience in terms of luxury.
For first time buyers, their first item also includes a measuring tape and a card to note your measurements so that customers can accurately log their size. So the customer can quickly and easily order the correct size without having any doubt if it will fit.
This is a clever customer retention strategy as it will create a good reputation for Net-A-Porter and the consumer will be more likely to shop with them again.
This provides the customer with a high quality, more physical shopping experience, without actually going into a store. (Moore, 2015)

Measuring and thank you note (Keala, 2014)

Recently, ASOS have been sending the majority of their orders in a bag rather than a box as seen in the image below (Melion, 2016)). This is for environmental reasons, as this means more items can fit into a van to reduce CO2 emissions. ASOS have come up with this effective solution to continue quick delivery to customers but also with the least impact on the environment.  (ASOS, 2016)
in addition to this, Asos have taken the opportunity to create and eye catching, memorable design to capture the buyers attention.
They have also included social media logos to advertise there presence online. This will encourage consumer engagement online and is an effective way to help build customer relationships. (Melion, 2016)

An example of ASOS' eye catching packaging (Melion, 2016)

It is clear to see that ASOS have taken a different approach to their packaging than Net-A-Porter. ASOS have taken a social marketing approach, which still attract customers as they will be satisfied with the idea that they are considering the environment in the shipping process. ASOS advertise their brand as affordable for anyone, so those ordering and receiving their items packaged in this way is not disappointing for the consumer as they don’t shop at ASOS for a luxurious shopping experience. The clever package design engages and attracts customers to their extensive online platform.

On the other hand, Net-A-Porter is focused entirely on the up market customer. Net-A-Porter attracts the rich consumer looking for high quality products. These customers are paying a lot for the product and want luxurious packaging, and are willing to pay for it. Net-A-Porter simply have their website address on the box as their target market is unlikely to use online social media as much as an ASOS customer. The free gift of a measuring tape and thank you note shows a high level of customer service by giving the customer something extra to make them feel special and more likely to shop with Net-A-Porter again.
They are an exclusive brand and pride themselves in having the reputation for being expensive and luxurious and not for everyday purchases.

References

ASOS (2016) Packaging and waste. Available at: http://www.asosplc.com/corporate-responsibility/our-business/environment/packaging-and-waste.aspx (Accessed: 31 October 2016).

Limited, C.L. (2016) Construct London. Available at: http://www.constructlondon.com/projects/net-a-porter (Accessed: 14 November 2016).

Melion, P. (2016) Packaging and its role in eCommerce. Available at: http://cartcraze.com/blog/packaging-and-its-role-in-ecommerce (Accessed: 14 November 2016).

Net-A-Porter (2016) NET-A-PORTER.COM. Available at: https://www.net-a-porter.com/au/en/Help/Contact-Us (Accessed: 31 October 2016).

Keala (2014) ‘First time with net-a-porter’, Gummy Vision, 23 March. Available at: http://gummyvision.com/gummyvision/2014/3/23/first-time-with-net-a-porter (Accessed: 16 November 2016).

Introduction

This portfolio will look at ASOS and Net-A-Porter, two of the most successful online fashion retailers, and will highlight the diverse ways in which the marketing mix is utilised and how they use the marketing mix to target different markets. This will include the marketing mix variables and the use of digital marketing and the growth of globalisation.

The fashion industry is one of the most thriving and profitable industries in the UK and in the world. The increase of globalisation has led to more of the population having an awareness and interest in fashion. Today, there are many designer brands in the UK including Burberry and Vivienne Westwood. (British Fashion Council, 2016)

UK is one of the pioneers in the fashion industry, and the nation is accredited with numerous innovations in the industry segment. A research study conducted on the fashion industry in the UK states that consumer spending on fashion apparels in UK saw a growth rate of 6.5% in 2009 with sales figures reaching £2.5 billion. According to a report carried out by Mintel in 2015, £12.4 billion was spent on fashion online in the UK, up 16% from £10.7 billion in 2014 (London Fashion Week, 2016).

ASOS logo (Belding, 2016)

ASOS was launched in 2000 and was one of the first online retailers, selling high street brands such as River Island, Nike and New Look. Their online store offers over 60,000 branded and own label products across womenswear and menswear. The company was founded in 2000 and is now valued at £2.9 billion pounds, with annual sales of £1.15 billion.  (Strijbos, 2016)

"More than just an online retailer, we want to be as synonymous to fashion for twenty-somethings as Google is to search and Facebook is to social networking."  

- (ASOS, 2016b)

Their target market, according to the ASOS website is the '20-something fashion lover: an avid consumer and communicator who is inspired by friends, celebrities and the media.'(ASOS, 2016a) This generation has instant access to the internet, phones and TV, and has grown up in a society which communicates with friends and family online and posting updates of their lives to social media. This makes digital marketing the best way for ASOS to communicate and build relationships with their customers.

Net-A-Porter logo (Ikure, 2016)

Launched in 2010, Net-A-Porter is a world leader in the luxury fashion online fashion industry selling luxury brands including Chloé, Christian Louboutin and Stella McCartney. Net-A-Porter prides itself on their excellent customer service and describe their values as 'not just a tick in the box exercise'. (Net-A-Porter, 2016) 

"At the heart of our business, our core values stand for everything we do.

• Be the best
• Lead not follow
• Exceed expectations
• Smart and stylish
• Service starts with yourself"   

• - (Net-A-Porter, 2016) 

The online market for luxury products has increased, with research showing 50% of shoppers have bought designer fashion online. Over 30% of designer shoppers buy from third party websites like Net-A-Porter, where less than 25% of designer shoppers purchase from official brand websites.(Mintel, 2015)
According to a report carried out by Mintel 2015, men aged 16-24 and women aged 25-44 are the most likely to buy from the designer’s website. 
The Net-A-Porter website receives 85 million page views a month and is on 9 social media platforms to interact with customers.

Although the majority of customers are in the USA (26%) and the UK (17%) (Suarez, 2014), Net-A-Porter also delivers their customers in more than 170 countries including Germany, France, Australia and Singapore.

Their main target market is women in their 30’s, with an average annual income of £170,000. 6 million women read, browse and shop every month with Net-A-Porter. (Suarez, 2014)

Net-A-Porter also produce their own digital magazines, The Edit and PORTER. which includes world-class fashion shoots and celebrity interviews. The magazine also comes in four different languages; English, French, German and Mandarin. (Suarez, 2014)

It is clear to see that ASOS and Net-A-Porter have different target markets and different branding strategies. This blog will compare both companies in more detail to see how their marketing strategies help attract the right customers.

References

ASOS (2016a) Our ambition & strategy. Available at: http://www.asosplc.com/our-ambition-and-strategy.aspx (Accessed: 21 November 2016).

ASOS (2016b) How we do it. Available at: http://www.asosplc.com/how-we-do-it.aspx (Accessed: 26 October 2016).

Belding, S. (2016) Amazing customer service demonstration from ASOS. Available at: http://customerthink.com/amazing-customer-service-demonstration-from-asos/ (Accessed: 16 November 2016).

British Fashion Council (2016) News. Available at: http://www.britishfashioncouncil.co.uk/News (Accessed: 15 November 2016).

Ikure (2016) Net-A-Porter Portfolio Page. Available at: http://www.ikure.co.uk/portfolio_page/net-a-porter/ (Accessed: 16 November 2016).

London Fashion Week (2016) The British fashion industry & London fashion week facts & figures. Available at: http://www.londonfashionweek.co.uk/news_detail.aspx?ID=779 (Accessed: 17 October 2016).

Net-A-Porter (2016) Careers in fashion. Available at: https://www.net-a-porter.com/Content/careers/culture (Accessed: 21 November 2016).

Strijbos, B. (2016) UK fashion industry statistics. Available at: https://fashionunited.uk/uk-fashion-industry-statistics (Accessed: 17 October 2016).

Suarez, F. (2014) PowerPoint presentation. Available at: https://www.net-a-porter.com/alfresco/nap/webAssets/webPage/advertise-with-us/desktop/common/NAP_Media_Kit.pdf (Accessed: 31 October 2016).