SPDMC Ms Marketing Communication
Msc Internet Retailing Assessment
Unit 5G41 SPDMC
Strategic Planning for Digital
Alice Barat : 11073006
Alice Barat 11073006
SPDMC Ms Marketing Communication
Section 1: Challenges and Objectives
Section 1a: Challenges within the Business and Marketing communication 1a (I) Business Challenges - The Economy
The UK economy has been affected hugely by the recession since 2009. The current economic down turn made consumer behaviour change their shopping habits, and they priorities their spending on necessities. The changes in consumer behaviour that we have seen have a wide-ranging set of implications for businesses and public policy. They also raise new opportunities for those that are either well positioned or who reposition themselves to serve consumers’ new needs. Some examples of key issues and implications include:
ƒ Spending Time at Home and reductions in eating out have resulted in sharp declines in restaurants’ performance—additional declines are imminent.
ƒ Shopping Frugally, Consumers continue to be brand loyal in categories of high personal value (e.g. personal care, liquor), though many are willing to try private labels or value brands or more broadly change their retail outlet choices. Moreover, consumers may stick with these choices if satisfied.1.
1a (ii) Business Challenges - Market Penetration Vs Market Consumption Handling today’s environment in the economic world and recession, a business plan may come across as a difficult task, but it’s also the appropriate time to show that retailers are up for the challenging task. Fashion retailers are facing a difficult time due to the sudden crash in the economy, which has led higher prices, consumer spend as well as their disposable income.2. Other aspects include those who suffer from job loss and redundancy. Also increases in clothing prices between the high street retailers in the UK and online promotions could affect Monsoon/Accessorize growth and potentially cause brand damage. Since government increased the VAT by 2.5%.3. Retailers had to increase their prices too, which caused Monsoon to lose 12% of their loyal customers due to increased products prices and changes on the some garment’s fabric composition from 100% silk to 20% silk and 80% polyester. Retailers and brand owners must work hard to provide value-branded alternatives and solutions that better suit consumers’ new shopping preferences. 4. 1a (iii) Consumer spends and interest
In the last decade, UK consumers have learnt to adapt themselves with fast growth, digital communication and technology. The world of e-commerce has been growing and expanding at a significant pace. New technology has allowed UK consumers to purchase their favourite things with just a click. Effective m arketing communication is vital for any retailer to be successful in today’s highly competitive online retailer, and e-shopping experience is vital, as typical consumers are becoming busier and having less time to “shop around”.
“Consumer behaviour has changed greatly over the last 25 years, but it has been evoluti onary and the seeds of change have been apparent for generations” . (Kar 2010).5. Consumer shopping habits have changed enormously over the last few years; a typical day out shopping can take up to 6 hours. The purpose of online shopping is to reduce shoppi ng time and the hunt for the right size, which can be tedious if you’re going from shop to shop trying to find what you need. In the recent years, consumers tend to be spending more money on the latest trends from fashion to electronics, rather than the necessities of food. The amount of disposable income that consumers have is forever changing due to legislation and the economy. It has become desirable to have the latest in everything, rather than having the sufficient amount of necessit ies such as rent, food,...