How do social media and consumer-generated content change the way marketers operate?| Nicole Mack|
1.0 Executive Summary2
2.0 An Introduction to Kathmandu Holdings Limited3
2.2 Target market and key financials3
2.3 Analysis of key financials4
3.0 An investigation of Kathmandu’s Facebook page6
3.1 Marketing on the Kathmandu Facebook page6
3.2 Engaging their customers through Facebook7
3.3 What Kathmandu could do to improve their use of Facebook8
4.0 Building and maintaining customers using Facebook9
4.1 Why consumers ‘Like’ pages on Facebook9
4.2 Consumer Trust on Facebook9
4.3 Conecting customers through Social Media9
5.0 Three key things for a small company to consider when building a Facebook12
5.1 Using interactivity to engage customers12
5.2 Measuring reach and frequency13
5.3 Mutually supportive online and offline customer experience14
1.0 Executive Summary
The purpose of this report is to answer the question: How do social media and consumer-generated content change the way marketers operate?
To answer this question this report uses an analysis of the outdoor clothing company Kathmandu who uses retail stores and an online presence including a Facebook page for marketing their products. The report found that with the increase in media fragmentation, companies like Kathmandu that build an online community of customers engaged with their Facebook page; help ensure their customers are more attentive and favourable to their brand. The report reviews why consumers befriend (‘like’) a company on Facebook and found that the key reasons are to receive discounts and show brand support to their friends. The findings also show that consumers are more likely to trust a brand that has been recommended by their friends or networks on social media. Within the discussions around social media, the report found that there is an increase in consumer generated information from online social media sites such as Facebook, resulting in a need for companies to be customer centric in order to maintain a good reputation or risk damaging their brand. The findings also show that for marketers to make the most out of marketing through Facebook they need to understand why their customers use the site, for instance Facebook is not yet used widely as a place to shop but instead as a place to socialise, connect with peers, share information, photos, organise events and promote what is important to them. Companies that take advantage of this are most likely to gain the best result through marketing on Facebook. Using the findings the report offers three key guidelines for small companies looking to develop a Facebook page. They include; the need to have an interactive page for their customers to keep them engaged; realising the true value of Facebook by increasing their reach and frequency and lastly making sure their online experience is mutually supportive of their offline retails outlets to increase brand awareness and sales.
Overall this report found that companies that engage their customers through Facebook and use it as a connection hub to other online and offline marketing initiatives, are likely to gain the greatest impact from using social media as a marketing tool.
2.0 An Introduction to Kathmandu Holdings Limited
Kathmandu Holdings Limited is a New Zealand-based company with operations in New Zealand, Australia and the United Kingdom. The company was founded by John Pawson and Jan Cameron in 1987 following their sale of the ALP Sports Clothing label. The company set up its first retail outlets in Australia whilst manufacturing most of its original clothing range in New Zealand.
The companies head office is based in Christchurch, New Zealand and employs approximately 150 staff and includes departments from design to supply chain, marketing to finance,...