Digital Marketing of SLG Company - Case Study Example

Digital Marketing Name Date Course Table of Contents Table of Contents 2 1.0 Internal Analysis 4 1.1 Introduction 4 1.2 Business Model 4 1.3 Review of Platforms 5 2.0 Competitor Analysis 5 3.0 Market Analysis 6 3.1 User Profile 6 3.2 PESTLE Analysis 7 3.2.1 Political 7 3.2.2 Economical 7 3.2.3 Social 7 3.2.4 Technological 8 3.2.5 Legal 8 3.2.6 Environmental 9 4.0 SWOT Analysis 9 4.1 Strengths 9 4.2 Weakness 9 4.3 Opportunities 10 4.4 Threats 10 5.0 Key Issues to be addressed 10 6.0 Digital Marketing Objectives 11 6.1 Short-Term Objectives 11 6.2 Long Term Objectives 12 7.0 Strategic Direction 12 7.2 Ansoff Matrix 12 7.3 Penetration and diversification strategy 12 8.0 Integration 13 9.0 Tactics 14 10.0 E-tools 14 11.0 Resources 15 12.0 Conclusion 16 13.0 References 16 1.0 Internal Analysis 1.1 Introduction SLG is a designer and manufacturer of high fashion beauty accessories, toiletry, cosmetics and lifestyle products. The company was formed in 1985 in Gloucester, United Kingdom. The company has since been operating from its United Kingdom Sales office in Cheltenham. The company is family owned and it has a manufacturing plant in Malaysia and a technical office in Shanghai (SLG, 2015). The philosophy of the company is design led and process driven with creativity in different aspects of the company. The company has a portfolio of its designer brand properties and a private label. The products of the company are of high quality and it meets the standards that have been set by the industry. SLG is run by experienced management team that has been able to steer the company to success. The products of the company are mainly sold in UK and it is popular with customers of diverse groups, ages and sex. The paper thus discuses the concepts of digital marketing with regards to the company. 1.2 Business Model The company mainly utilizes the business to business model as it supplies its products to the retailers and wholesalers in the beauty product industry. Although the company has a fully functional website, it lacks the e-shopping functionality. The company still utilizes the traditional business model when dealing with its clients. Information about new products of the company as well as the existing products can be found on the website of the company (SLG, 2015). The company mainly carries out its advertisements through the use of television, newspapers and radio. Currently, the company does not carry out many advertisements through the use of the internet. Digital marketing is useful to the company and it can improve its ability to attract and reach new customers. The business model is an important aspect that determines the ability of an organization to meet its goals and objectives. The current trends in technological advancements require the use of digital marketing to capture new customers from different parts of the globe. 1.3 Review of Platforms The traditional approach is utilized by the company for the purposes of selling its products. The customers have to make order through the use of emails of visiting the offices of the company. Physical branches of the company are also used for the purposes of selling the products (SLG, 2015). The marketing messages of the company are usually delivered to the customers through the use of local radio, television and Newspapers in the United Kingdom. The website of the company lacks an interactive element with the clients and hence making it difficult to contact the customers online. Although the company has been operating in the market for a long period of time, its e-commerce concept is still weak. However, the company can experience a high growth and development with the use of digital marketing and e-commerce. The use of digital marketing and e-commerce has the potential of expanding the customer base of an organization. 2.0 Competitor Analysis The industry is quite competitive due to the high demand for the beauty products in the United Kingdom where the company primarily operates. The international companies are increasingly entering the market which has increased the levels of completion. Some of the major competitors for the company include Nivea, Estee Lauder and Vintage Cosmetics Company. The major competitor for the company is Nivea which operates in all the continents and its products are internationally recognized (Łopaciuk & Łoboda, 2013). Nivea also utilizes digital marketing as well as e-commerce concepts which has increased the market share of the company. This means that it outperforms the company in every way and thus presenting a strong competition to the company. It is currently considered as one of the most profitable companies in the industry. The online stores are also on the increase in the United Kingdom which is increasingly replacing the traditional methods. 3.0 Market Analysis 3.1 User Profile The company has a diverse range of customers for its products. The company manufactures products for both men and women. However, the company mainly targets women who are the major customers. Most women prefer using beauty products as compared to men. Most of the products of the company are usually used by the customers on a daily basis (SLG, 2015). The users of the products of the company range from the high end to the low end consumers in the market. However, some of the products of the company are quite expensive and it targets the wealthy class. In terms of age, most of the customers who use the products of the company are between the ages of 20 to 40 years. In the United Kingdom, this group forms the largest of the population. The company is currently involved in research and development of new products in order to attract a new segment of customers. 3.2 PESTLE Analysis 3.2.1 Political The United Kingdom has a stable political; environment that supports the growth and development of businesses. The degree of government interference with the businesses is quite low. The political system that is in place is democratic. The fears of political unrest in the country are low due to the high levels of democracy (Mohan, 2014). The businesses can therefore operate without the fears of political unrest which has negative impacts on the business operations. Both the local as well as international companies carry out their business in the country without any fears of encountering political interference. 3.2.2 Economical The United Kingdom has one of the largest economies in the world and this has resulted to a stable economy. The economic conditions support the growth and development of businesses in the country. The employees earn high wages and salaries which enables them to purchase luxurious goods. Although the country suffered during the global economic crisis in 2008, the economy of the country has currently recovered and hence the positive impacts on the business (Mohan, 2014). The levels of inflation are low and hence providing affordable prices for the products in the market. The currency of the country is also among the strongest in the world which positively influences the prices of commodities in the market. 3.2.3 Social The social factors play an important role in terms of influencing the buyer behaviors. In the United Kingdom, the number of women is higher as compared to that of men. Most women care about their looks and they spend huge amounts of money for purchasing beauty products. This has a positive impact on the business as it deals with the beauty products. The high number of women also provides a ready market for the products of the company (Łopaciuk & Łoboda, 2013). Shopping for beauty products is also common among the population and this will impact positively on the business. However, the customers in most case are after high quality beauty products that do not have negative effects on their health. 3.2.4 Technological The level of technological advancement in the United Kingdom is quite high just like the other developed countries. Almost everyone in the country has a Smartphone or other technological gadgets. The level of internet coverage is quite high and almost everyone uses the internet for obtaining information. The internet is also considered as one of the most trusted source of information in the United Kingdom (Chaffey, et al, 2012). Online advertising as well as shopping is widely used in the country by most customers. This means that the company needs to develop a digital marketing platform and embrace the concept of online shopping. 3.2.5 Legal Laws and regulations are in place for the purposes of governing the business operations. Every business is supposed to follow the laws that are in place. Legal action is usually taken against any company that breaks the law. It is however important to note that the laws are applied equally and does not give any advantage to any company (Mohan, 2014). This plays an important role in terms of creating a competitive environment in the market. The laws that are in place promote the growth and development of business as there are fewer restrictions. The laws on taxation are however strict as every company is required to pay taxes. 3.2.6 Environmental The country is currently experiencing extreme weather conditions as a result of climate change (Mohan, 2014). Efforts are in place to ensure that the greenhouse gases are reduced. The companies are therefore required to put in place measures that prevent the pollution of the environment as well as environmental degradation. The company has to comply with the environmental laws when carrying out its manufacturing activities. 4.0 SWOT Analysis 4.1 Strengths The company has a better understanding of the market as a result of its operation for about three decades. The company has an experienced management as well as marketing team (SLG, 2015). The company has a stabled cash-flow that can sustain the digital marketing. The company has creative employees. The company enjoys a good brand image among the customers. 4.2 Weakness The company lacks a proper information technology infrastructure that can be used to support digital marketing. The popularity of the company is still low in some areas despite operating for many years. The company does not have adequate expertise to support digital marketing. 4.3 Opportunities The company has an opportunity to develop new products in order to attract more customers. The rapid growth of the internet can enable the company to market and sell its products to the global market. The digital marketing concepts and e-commerce is an opportunity for the company to increase its customer base. 4.4 Threats The level of competition in the industry is on the increase which may affect the market share of the company (SLG, 2015). The advancement in technology has led to an easy access of beauty products by the consumers directly from the manufacturers. Increasing negative perceptions with regards to the beauty products due to health concerns. 5.0 Key Issues to be addressed The SWOT and PESTLE analysis indicates that the following key issues have to be addressed. An online shopping system needs to be developed y the company for the purposes of expanding its customer base and meet the needs of the customers who are increasingly embracing e-commerce. The website of the company requires frequent updates in order to ensure that it is able to support digital marketing. More information with regards to the products of the company need to be provided which may require the website to be redesigned. The company needs to expand its customer base beyond the United Kingdom in order to improve on its profitability as well as competitive advantage. 6.0 Digital Marketing Objectives When developing the marketing objectives, it is important to ensure that it is specific, realistic and time bound (Chaffey, 2012). This is for the purposes of ensuring that it can be assessed after the implementation process to determine whether it was successful or not. The digital marketing objectives of the company will have both the long term as well as the short term objectives. 6.1 Short-Term Objectives To improve on the popularity of the company and awareness of the products within a period of six months. To improve on the distribution system of the products of the company within three months. To improve o the customer loyalty and retention. To increase the sales and profitability of the company within a period of six months in order to support the digital strategy. To develop a new website that supports the digital marketing concepts within a period of 3 months. To improve on the process of launching new products of the company. To develop an e-commerce infrastructure within a period of 6 months in order to sell the products through the use of online methods. To improve on the rates of customer satisfaction within a period of three months. 6.2 Long Term Objectives To be able to supply the products of the company to the global market through e-commerce within a period of 18 months. To increase the market share of the company within a period of 18 months through the market penetration strategies and digital marketing. 7.0 Strategic Direction 7.2 Ansoff Matrix The Ansoff Matrix is a useful tool that is used by decision makers during the process of making strategic decisions. It has four options which include market penetration, market development, product development and total diversification (Ryan, 2014). Market penetration mainly involves the existing product and market. However, the market development involves the existing products and new markets. Product development involves the new products in an existing market. Total diversification involves new product and new market. The SWOT analysis indicates that the company requires a penetration strategy in order to ensure that it is more competitive. A total diversification is also required by the company in terms of its marketing processes as well as the delivery of the products to the customers in the market. This considering that the company currently utilizes the traditional methods of marketing and selling its products to the customers. 7.3 Penetration and diversification strategy The company should increase the sale of existing products in the existing market. This is for the purposes of increasing its profitability as well as the number of customers. The PESTLE analysis indicates that the existing market has a huge potential and it providers a conducive environment for the growth and development of businesses. In order to support the growth and development of the company, diversification strategy is also required in terms of the marketing tools that the company is using. The company has to embrace digital marketing alongside the traditional marketing techniques. This will enable the company to attract more customers who are using the digital platform. The diversification strategy will also enable the company to develop new products for different customer group such as the elderly and the young. The digital marketing technique as well as the internet currently has a high customer reach as compared to the other techniques (Ryan & Jones, 2012). An online shopping system has to be developed in order to allow the customers to purchase the products of the company at any time. The social media should also be used by the company for interacting with the customers. This is unlike the current method where emails are commonly used. The penetration as well as the diversification strategies can therefore play an important role in terms of ensuring that short term and long term strategies of the company are achieved. 8.0 Integration A Linux operating system is required for the integration purposes and ensuring that the organization is able to put in place an online system for digital marketing. The system will enable the customers to register online and pay for goods and services through the use of online methods. This will enhance the customer experience and is also convenient to most of the customers. The company will also be able to reach the global customers through the integration. Search engine optimization is also required in order to enable the customers to easily access the products of the company. In terms of the interaction with the customers, the company will use the social media which includes Facebook, Twitter and YouTube. The social media is considered as one of the leading Marketing tools as it has a high number of users (Charlesworth, 2014). The company should therefore open a social media page for the purposes of posting pictures as well as videos with regards to the products of the company. 9.0 Tactics The company will deliver additional value to the products and services offered to the customers through the digitalization process. The digital marketing concepts will enhance the communication process with the customers as well as the promotional activities of the products of the company. The mobile applications as well as the optimization engines will be used for the delivery of marketing information regarding the products and services of the company. Market promotion through the internet will also be utilized by the company for the purposes of attracting more customers and improve on the customer loyalty. The development of new products will mainly be based on customer focus. The company will also recruit employees who have some levels of expertise in the field of digital marketing and e-commerce. Cost saving measures will also be put in place by the company for the purposes of reducing wastages. This will provide the company with an opportunity to finance the digital marketing concepts. The marketing tactic used determines the success of the strategies that have been put in place (Wertime & Fenwick, 2011). 10.0 E-tools The e-tools will mainly be used for the purposes of supporting the digital marketing process. The blogs is one of the e-tools that will be used for the purposes of interacting with the customers as well as promoting the products of the company. The use of blogs is popular among most of the organizations that utilizes the digital marketing concepts (Ryan, 2014). The social media is also an important e-tool that will be used for the purposes of interacting with the customers. This tool will enable the company to interact with the global market as opposed to the current United Kingdom market that the company is restricted to. The website analytic tools will be used for the purposes of measuring the performance of the digital marketing concept. This will play an important role in terms of enabling the company to make future changes where necessary in order to achieve its goals and objectives. 11.0 Resources The company will be required to recruit employees with experience and expertise in e-commerce and digital marketing. The employees will then form an in-house team for the purposes of handling the online shopping system. Training of the staff members will also be required in order to familiarize with the digital marketing concepts. Training is useful in providing the employees with more information that is required to deal with any new challenges (Wertime & Fenwick, 2011). Financial resources will also be required for purchasing the software and hardware that will be used for running the systems. The company will also require financial resources for maintaining the system once it is operational. The social media platform of the company will also be handled by the employees of the company. This does not require many resources but some employees will be allocated the task on a full time basis. The human and financial resources will therefore be useful in terms of ensuring that the digital marketing process is carried out successfully. 12.0 Conclusion In conclusion, it is evident that the company is not fully utilizing the digital marketing concepts. The website of the company does not provide interactive platform or online shopping. It is however evident that the company has been operating for a long period of time and it has experience of the market trends. The PESTLE analysis indicates that the United Kingdom has a conducive environment for the growth and development of the business. However it is evident from the SWOT analysis that the company requires a digital marketing concept as it is being used widely by the competitors such as Nivea. The digital marketing concept will enable the company to expand its market share and improve on its profitability. It is evident that the company will require a market penetration strategy as well as diversification strategy. Social media, blogs search engines and analytical tools will be required for the digitization process. The human resources as well as financial resources will be required for the implementation of the digital marketing concept. The company is likely to experience more benefits as result of implement 13.0 References SLG, 2015, Who we are, Retrieved on 7th August 2015 from, . Chaffey, D, et al, 2012, eMarketing eXcellence: Planning and optimizing your digital marketing, Routledge. Chaffey, D, 2012, Digital marketing, Pearson Higher Ed. Ryan, D, 2014, Understanding digital marketing: marketing strategies for engaging the digital generation, Kogan Page Publishers. Ryan, D, & Jones, C, 2012, Understanding Digital Marketing: Marketing Strategies for Engaging the Digital Generation. 2, painos. Lontoo: Kogan Page. Charlesworth, A, 2014, Digital marketing: A practical approach, Routledge. Wertime, K, & Fenwick, I, 2011, DigiMarketing: The essential guide to new media and digital marketing, John Wiley & Sons. Mohan, J, 2014, A United Kingdom: economic, social and political geographies, Routledge. Łopaciuk, A, & Łoboda, M, 2013, Global beauty industry trends in the 21st century, In Management, Knowledge and Learning I international Conference (pp. 19-21). Read More