Submission 2: Task 1 & 2 (Ref: DSMMCM1819)

PATAGONIA’S TARGET AUDIENCE

The PSO we chose is WARRANTY.

Possible Target Groups Advantages if used Disadvantages if used
Behavioural:

 

–          ‘Likes’ outdoor sports pictures.

–          Uploads hiking + travelling photos.

–          Patagonia Fashion Tags.

–          Identify Trends (seasonal/fashion).

–          View consumer behaviour.

–          Create strategy using trends.

–          Unpredictable online behaviour.

–          Privacy Concerns.

Geographic/Locational:

 

–          Based on coastal cities.

–          Recently accessed W-IFI zones near camp sites/hiking sites.

–          Specific Area Limited.

–          Locational mobile advertising.

–          Assumes everyone in location has same needs.

–          Alienate potential consumers outside location. (only target specific area)

 

Psychographic:

 

–          Enjoys outdoor/nature and wants to protect it.

–          Enjoys hiking + traveling.

–          Interests in outdoor sports like surfing/mountain climbing.

–          Insight into consumer values/emotions.

–          Connect with consumer.

–          Requires detailed research.

–          More expensive.

Chosen Approaches: Behavioural + Psychographic

Discarded Approach: Locational

After deciding on two main approaches we can narrow the target audience down.

Combined Segmentation Target Group Benefits Drawbacks
Joins environment-friendly group on Facebook and uploads daily pictures of nature/outdoor activities. (1) –          Connect with consumer, increase brand loyalty. (PATAGONIA environment- friendly)

–          PATAGONIA wants consumers who pursues change for the better.

–          Won’t always know full context of behaviour.

–          Not everyone in the group is a potential consumer.

Hashtags Patagonia when uploading pictures whilst wearing brand (fashion influencer) on Instagram. (2) –          Fashion influencer (will increase awareness of brand).

–          Purchases brand already (recommend loyalty schemes).

–          Target younger audience.

–          Wearing PATAGONIA for trend.

–          Non-Practical use of PATAGONIA.

People who are part of a hiking/camping/climbing group on Facebook who Google searches ‘Outdoor Clothing’. (3) –          Can strategize using ‘warranty’ PSO. (Uses clothing for utility purpose).

–          Brand Value is relatable. (Patagonia started by Outdoor enthusiasts)

–          Many competitors. (Google results 952,000,000)

–          Not everyone’s a potential consumer.

 Chosen: (3)

Discard: (1) + (2)

TASK 2

Acquisition Objective

Advantages Disadvantages

Chosen/ Dropped

1. Increase landing page visits organically from 1.08M (Nov) to 1.18M by the end of March 2019. -Improves SEO ranking.

Generates insights/data.

 

-Lack of face-to-face contact compared to in-store experience(Chaffey;229).

-Time consuming to achieve without paying.

Chosen 

Likelier to acquire target audience for PSO.

Risk

Does not guarantee signup/purchases

2. Increase the number of Instagram followers from 3.7m to 3.8m by March 2019. -Increases brand awareness globally.

-Engagement & Insights.

 

-Can be expensive to promote PSO on Instagram e.g. paid ads

-Difficult to organically promote e.g. users will not visit page unless they see paid ad.

 

Dropped

May follow but not convert . Not heavily linked with PSO.

Risk

May miss out on wider target audience.

3. Increase organic search term “Patagonia UK” from 3.56% (Nov) to 8% by March 2019. -Cost effective.

-Competitive edge.

-No Guarantees.

-Search changes.

Dropped

Takes time to organically increase search terms.

Risk

Potentially losing website traffic/potential sales.

 

Conversion Objective

Advantages Disadvantages

Chosen/ dropped

1. Increase Instagram’s mentions from 3.8m to 4.0m by March 2019.

 

 

-Connect with target audience.

-Increase brand awareness.

-Directing to website can be difficult

-No clickable links to website/PSO.

Dropped

Instagram algorithms constantly change. Mentions may not be viewed easily.

Risk 

Potentially losing engagement from target audience.

2. Website account creations increase by +10%

 

-Customer information/interests gained(Chaffey;629). -Data protection and legal issues.

Dropped

May visit site and ignore/no real benefit e.g. no instant discount.

Risk

Losing out on gaining target audience’s data/information for marketing purposes e.g. interests.

3. 20% increase in email newsletter opt-ins -Encourages click-through to website/PSO(Chaffey;525).

-Cost effective(Chaffey;525).

-Resource intensive(Chaffey;525).

-May prefer other communication preference(Chaffey;525).

Chosen

Lead to engagement, customer information & possible retention.

Risk

Renderability; Difficult for creativity(Chaffey;525).

 

Retention Objective

Advantages Disadvantages

Chosen/ dropped

1. Promotions/offers via email. -Customers likely to purchase again(Chaffey;523,524).

-Cost effective(Chaffey;525).

-Deliverability; Email may end up in junk mail(Chaffey;525).

-Requires constant tweaking to keep subscribers engaged.

Chosen

Increases customer lifetime value/loyalty and chances of big purchases & up-sell/cross-sell.

Risk

Viewed as spam/ignored/unsubscribed

2. Increase customer reviews on website based on purchases +15%.

 

-Built customer relationship.

-Free advertising/SEO ranking improvement.

-Negative reviews can affect the business e.g. potential customers do not purchase due to negative review.

-Change customer perception.

Dropped

Requires being up-to-date & relevant.

Risk

Positive reviews will go unnoticed where customer relies on feedback to assist purchase but see’s none.

3. Reward most profitable customers. -Up-sell(Chaffey;207).

-Encourage buyers(Chaffey;220).

-Generate support(Chaffey;77).

-Reduced profit.

Dropped

No guarantees in sales.

Risk

Miss out on returning customers relying on rewards to remain loyal.

 

Lay Houman, 15109564

Nicholas Cheng, 17105505

Abzal Hussain, 16042199

Mohammed Rizwan Hussain, 16041699

Ed Chester Gaviola Martinez, 16039924