This report has been conducted in order to evaluate Suitshop website and to give them advice on what improvements can be made against the criteria that has been established from the theories which are branding, internet marketing strategies and marketing mix. The report will take into account the internet marketing concept. Suitshop website is not popular among consumers at the moment and is struggling with top competitors like Debenhams and Next online who are leading suit retailers in the marketplace.
Methodology
SWOT analysis
This technique will be used in order to evaluate Suitsho's online presence and a internal analysis enables the Suitshop to identify their strengths and weaknesses which are both internal issues where they can only succeed or fail. The internal areas enable the business to build upon their strengths and opportunities in order to overcome their weaknesses. Strengths can be used in order for Suitshop to be able to work towards their opportunities that have been identified. These opportunities are produced through external elements. Weaknesses might be able to present the business with threats. However, if the business is under performing in certain areas this might be able to lead to a threat, which they are unable to overcome.
Strength: have built up brand awareness
Weaknesses: don't have enough marketing presence online
Opportunity: they can expand further for future success
Threats: a large competitor can wipe them out from the market
Online marketing mix
The traditional marketing mix has been chosen to evaluate Suitshop's website. The main 4P's are product, price, promotion and place this was created by Jerome McCarthy (1960) in order to implement the marketing strategy. Broom and Bitner (1981) suggested the 4P's could be extended to 7P's in which included people, processes and physical evidence.
1. Product: what products and services are offered
2. Promotion: technique to sell the product
3. Price: cost in which the buyer obtains the product
4. Place: channel distribution
5. People: how employees communicate with consumers
6. Processes: techniques used to achieve marketing functions e.g. promotion
7. Physical evidence: the way the product is purchased.
The 7 P's will be related to Suit-shop's website and will have justifications. On page ____ the website will be quantitatively compared to Debenhams, Suit-shop's major competitor, the scale rating will be from 1 : 10 (1 = very good and 10 = excellent)
Internet marketing strategy
Chaffey (2003)
it's an integrated E-Marketing Strategy Model which will be related to Suit-shop.
Chaffey et al (2000)
They suggested that there are six choices that a business can go through online. The model will be related to Suitshop.
Level 1 - No online
Level 2 - Static data
Level 3 - Interactive site
Level 4 - Interactive site supporting transactions
Level 5 - Fully interactive
Deighton(1996)
He identified the following characteristics in which inherent in a digital medium:
Consumer initiates contact.
Consumer is seeking data (pull)
It is a high intensity medium
Can gather data
Individual demands of the consumer can be addressed and taken into consideration
Branding
Aaker and Joachimstahler (2000) both indicate that brand equity is made up of several of areas.
1. Brand awareness
2. Perceived quality
3. Brand loyalty
Suit shop
Offline address : Suit shop, 65 Leagrave road, Luton Bedfordshire, LU4 8HT
Online address - http://www.suitshop.com/
Suit shop core business activity is to clothing designed for men in their store and the business has been established over 30 years ago and is based in Luton. It serves the general public therefore its B2C. They offer online shopping facility to consumers and the business is bricks and clicks. There online activity is used as a marketing and selling tool in order to generate capital. The business has an excellent web site address and stands out and therefore would be easy to remember by the customer.
Current facilities
Above is a screen dump of some of the type of clothes that are offered to consumers.
- List of all products:
- Suit jackets
- Outside leisure wear
- Tee shirts
- Polo shirts
- Stylish jackets
- Trousers
- Outside casual shirts
- Jeans
- Shorts
- Under wear
- Car coats
- Belts
SWOT analysis
Strength
By running the business online there are no running costs involved such as gas, electricity and rent for the building.
Suitshop is global and is competing with large competitors like Next. By being online it provides a potential source of income. There is a larger audience online when compared to there offline store and customers have the flexibility to shop 24 hours a day and 7 days a week.
Suitshop have a strong brand name that is easily recognizable by potential consumers. The brand name provides consumers with assurance of value and assures them that they are purchasing an authentic product. The website address is registered in the goggle search and comes in the top place.
Internet usage has increased over the years, more people are connected to the Internet according to national statistics website (2006) "an estimated 13.9 million households (57 percent) in Great Britain could access the Internet from home between January and April 2006". In June 2006 72.6 percent of the UK population had broadband. The more people who have broadband therefore the price goes down, as the demand is high
Weakness
They don't have enough marketing presence offline such as billboards and online so therefore not all the potential consumers are fully aware what they offer. Some of the webpages looks very dull and boring therefore consumers would be put off visiting the website further. The text is too small and the colour yellow is hard to see for some of the customers as it don't stand out. Some of the web pages contain no images so therefore doesn't look like a real business. There is no information on who owns the company so therefore the consumer doesn't get an in site to the business so therefore it's impersonal. Yellow and blue colour scheme doesn't work together. On all of the webpages it's stated that buy online : the best way to buy security this is very misleading as no security is involved when the consumer goes through the ordering process so therefore consumers' sensitive information can in fact be hacked into. The customers will be put off and will go to the business's competitors. This is potential revenue that the business is losing. The business should get security software installed on their website.
Opportunity
Grove (1996) stated, "The Internet a tyhoon force, a ten times force, it's a force that fundamentally alters are business? The Internet is a very powerful force and if the record company does not offer their products then they will be left behind in the market place and can therefore vanish straight away. The business can diversify their product ranges as this is what their competitors have done such as car insurance, women's wear. They can't introduce more product ranges as they would therefore require more space on the shop floor. Customers will be brand loyal if the products meet their requirements. Can collect email address and send customers marketing promotions. They can target customers regardless to where they are as they would get it. They could offer online tracking therefore consumers can track their order down.
They don't have enough marketing presence offline such as billboards and online so therefore not all the potential consumers are fully aware what they offer. Some of the webpages looks very dull and boring therefore consumers would be put off visiting the website further. The text is too small and the colour yellow is hard to see for some of the customers as it don't stand out. Some of the web pages contain no images so therefore doesn't look like a real business. There is no information on who owns the company so therefore the consumer doesn't get an in site to the business so therefore it's impersonal. Yellow and blue colour scheme doesn't work together. On all of the webpages it's stated that buy online : the best way to buy security this is very misleading as no security is involved when the consumer goes through the ordering process so therefore consumers' sensitive information can in fact be hacked into. The customers will be put off and will go to the business's competitors. This is potential revenue that the business is losing. The business should get security software installed on their website.
Opportunity
Grove (1996) stated, "The Internet a tyhoon force, a ten times force, it's a force that fundamentally alters are business? The Internet is a very powerful force and if the record company does not offer their products then they will be left behind in the market place and can therefore vanish straight away. The business can diversify their product ranges as this is what their competitors have done such as car insurance, women's wear. They can't introduce more product ranges as they would therefore require more space on the shop floor. Customers will be brand loyal if the products meet their requirements. Can collect email address and send customers marketing promotions. They can target customers regardless to where they are as they would get it. They could offer online tracking therefore consumers can track their order down.
Threats
A large competitor like Debenhams can in fact wipe Suitshop out from the marketplace if it continues to further increase market shares worldwide. Capital and resources are required in order to make the online presence a success. They offer online shopping facility then therefore they will be competing with the rest of the world and they might not want to take the risk as the market is too saturated. With their competitors like Next their website is very efficient and user friends as it's easy to navigate.
Chaffey et al (2000) suggested that there are six choices that Suitshop can go through online:-
Level 1 - a stage where there is no online presence unfortunately this does not apply to Suitshop
Level 2 - At the moment Suitshop is simply a static information website as it only contains product details and this is known as brochureware. The major weakness of this stage is online shopping facility is not offered. Not all customers can go to the offline store such as the elderly, disabled and customers are who are ill. So these potential customers will go elsewhere. There are customers who have busy life styles such as man working long hours. There do not have any time to travel to the Suitshop.
Level 3 - is a stage when Suitshop enables consumer to check if the products are in stock and to find out all the prices straight away. However if the product is not in stock the consumer will know this straight away and have the option to come back in a few days and hopefully it will be in stock. Most of the consumers will go to their competitors therefore losing potential customers and money. Consumers can purchase cheap products through dynamic pricing as they're internet auction sites e.g. www.ebay.com which allows different prices to be made but for the same product. This is where consumers can place their own prices in which they're prepared to spend.
Level 4 - is a stage when Suitshop offers an online shopping facility to consumers and an interactive customer service help desk. They can offer online tracking. This can be achieved by having a special barcode on each of the consumers' products, Consumers can then online key in the barcode number in order to track their products; this therefore gives the customer control and at the end they are happy and will come back to the business again
Level 5 - is a stage when Suitshop offer a fully interactive website. They can provide marketing relationships to every potential consumer through the process of personalisation and customisation. Personalisation (Chaffey D et al. 2003) is when Suitshop saves consumers details e.g. body size, purchases and money spent and the consumer can access the data online. The benefit to the consumer is they are gong to feel as though there are being cared for and will get happy and therefore make a purchase. The benefit to the business is they would know what each consumer interests are and can send those with marketing messages through email. Customization is when different menus e.g. colour and layouts are offered by targeting consumers with their individual preference through options. Customers can customize products to the way they want it.
Online marketing mix
Online marketing mix
Product
Chernatony and McDonald (1992) highlighted that a product should be simple, unique and meaningful so therefore it's easy to identify from the market. Suitshop does have a very strong brand name in the marketplace therefore consumers would make their purchase from a well established business like Debenhams who have very strong brands. Consumers can customise products to a way that they want it such as change the product colour. Portor (1996) highlighted products need to be improved in order to sustain a competitive advantage online. Suitshop need to change their suits design in order to build up a reputation of having up to date designs.
Place
Chaffey D et al (2003) they state the process that involves distributing the products to the consumer by reducing the cost of storage, transportation and inventory. Allen and Fjermestad (2001) identify the Internet for place is vital aspect of the marketing mix as the internet offers a global reach and this is vital as the traditional marketing methods it's difficult to obtain a large audience. On the other hand the Internet enables Suitshop to trade through out the world.
The offline address is Suit shop, 65 Leagrave road, Luton Bedfordshire, LU4 8HT and the online address is www.suitshop.com. Reardon and McCorkle (2002) stated "the main trade-offs that consumers consider when choosing a distribution channel time versus money". When consumers are decided what method to shop for instance go to the Suitshop store or to shop online. Therefore two main factors that determines which method the customer decides to do, the factors that influence this are time versus money. How much time the customer has available to shop versus how much money the customer is prepared to spend on their product (suit). Shopping online is available twenty-four hours a day and seven days a week. Customers can purchase their suit in the comfort of their own home; they do not have to go out in the cold weather. If customers have no time to go to the offline store then they will do it online. Where as, if they had time they would go to the store.
Promotion
Chaffey et al (2003) highlighted that advertising is cheaper than traditional which include television, billboards and newspapers. Suitshop can place banner adds on popular websites such as Yahoo and MSN and when a potential customers clicks upon it, the banner add would take them to the advertised business homepage. They are able to collect customer information such as what the customer has looked at, how long have they spent and how did they get to the website which includes search engine, internet service provider and just typed web address. The business are able to find out what is the common search engine that is used and the popular phrases typed in to the search engine this can actually help the business to be at the top ten of a certain search engine.
Price
Bickerton et al (2000) noted that competition based pricing is very common online. The Internet increases consumer knowledge through price transparency as it has become quick and easy to compare quoted prices from the business. With traditional method the customer would have to visit the store in order to find out prices. However, with the use of the Internet the customer would have to look at each of the business websites. Consumers online demand cheaper prices therefore pricing is vital for Suitshop and with price comparison sites like Kelkoo (www.kelkoo.com) they offer products at a very competitive rate to consumers. Suitshop need to create an online pricing strategy that would enable them to compete with Debenhams in the marketplace and can achieve some profitability at the same time.
Diamantopoulos and Mathews (1993) identified two area of competition that would affect Suitshop's pricing:-
1.Structure of market - there are a number of businesses who offer suits and the visibility of their prices is near to having a perfect competition as Suitshop is unable to control the price and must compete with their competitors pricing strategy.
2. perceived value of the product : Suitshop brand is differentiated from the market this therefore is having a downward pressure on the price has enabled Suitshop to remain competitive but has struggled against Debenhams who offer new suit designs at a discounted rate therefore Suitshop pricing strategy has not made a vital impact on consumer perception to purchase at a low price.
Pitt et al (2001) they showed that when improving pricing strategy the areas will be limited to strengths and weaknesses. The consumers are more keen on purchasing big brand names such as Calvin Clien therefore Suitshop needs to look at their pricing strategy in order to maintain pricing structure and to make improvements with their product design so therefore they can increase their profit margins.
P eople
Chaffey (2002) indicated that a job vacancies online is very efficient, Suitshop can create this so that the potential employee can type in their personal details and sent it off through the use email therefore this would save time human resource department of having to open each of the application forms. Suitshop can have all their vacancies displayed on their website.
P rocesses and P hysical evidence
Chaffey (2002) highlighted that the Internet saves the environment. Suitshop will be helping the environment as there is no need to cut trees down as products details are virtual. Suitshop only provides clothes for men and could in fact in the near future offer childrens wear. All the costs for each of the products are clearly displayed on the website. If customers do not have to go to the stores in order to do their shopping. This means that their cars won't be in use meaning no petrol wasted and a reduction in damages caused to the environment by car fumes
Marketing mix results (Quantitative)
Suit-shop | Debenhams | |
5 | 5 | Product |
4 | 4 | Place |
2 | 3 | Price |
2 | 5 | Promotion |
1 | 4 | People |
1 | 4 | Processes and physical evidence |
15 | 25 | TOTALS |
Debenhams performed better in the market mix the reason for this they have capital, time and resources
Integrated E-Marketing Strategy Model
1. web : It's more expensive to sell products in their offline store than it is to online the reason for this in the store they have to pay for labour, electricity and rent with being online it is global and any one in the world can purchase the products. With the store they're limitations to when the customer can purchase the products as it has to be within the store opening times and it's expensive to run the business operation offline. By being online Suitshop they have extended their market reach and can give more choice at the moment consumers are not offered a larger range of products and can't request or order the catalogue this therefore means that the business is helping the environment as less trees are cut down. The business can diversify their product ranges as this is what their competitors have done such as credit card. They can't introduce more product ranges in their offline store as they would therefore require more space on the shop floor this is another way to generate capital.
2. e : mail : Suitshop by being online are able to handle their market more easily and efficiently in small pieces. If the business knows that a certain customer gets pink shoes, each time the business has new stock that of which meet a certain customer need then the business can advertise it to the specified customer by email. This process would save time and money having not sent the message to everyone
Deighton(1996).
Consumer initiates contact.- the consumer goes online and views the products
Consumer is seeking data (pull) : Suitshop obtains their stock from their suppliers they need to identify the target market therefore a distribution channel. The marketing department can find out what consumers demands are and act upon it by telling the distribution department who will deliver it to the end consumer. For example if there is a high demand for white suits and they don't offer a large variety of it then the potential consumer will go else where. This process is vital for them as they have a competitive market and therefore need to be ahead of their competitors all the time such as Debanhams. It is a high intensity medium : Suitshop's marketers can focus on the consumer by finding out what products they viewed and whether they made a purchase .Individual demands of the consumer can be addressed and taken into consideration : If the consumer has a certain demand Suitshop must fulfill it otherwise they will loose potential business.
Competitor trends
Chaffey et al (2002) highlighted that businesses can scan their competitors' websites and carry out price transparency and benchmarking in order to enhance their business operation. As Suitshop is small medium sized business it must identify their competitors. As if they don't then their competitors will wipe them out in the market. If their competitors are carrying out half price suits or free delivery Suitshop are immediately forced to carry out the same special offer as then their competitors will take all of their customers.
Customer needs analysis
Lang et al (2000) highlighted that businesses require market research as this builds upon understanding customers' needs such as surveys and questionnaires this can be done online. When the market has been identified the business needs to recognize the factors that influence customers that purchase suits or not. It's vital to understand factors that would effect their customers' motivation such as prices, quality and brand loyalty. If Suitshop's products are too expensive, doesn't last long and it's a new brand the chances are the customers won't purchase it.
Chaffey et al (2002) indicated that businesses can do a competitor analysis; Suitshop can scan their competitors' websites and carry out price transparency and benchmarking in order to enhance their business operation. As Suitshop is small medium sized business it must identify their competitors. As if they don't then their competitors will wipe them out in the market. If their competitors are carrying out half price suits or free delivery Suitshop are immediately forced to carry out the same special offer as then their competitors will take all of their customers.
Branding
Product and promotion from the marketing mix is part of the branding. Leslie de Chernatony and Malcolm McDonald (1992) stated a brand is a "identifiable product or service augmented in a such a way that the buyer relevant unique added values which match their needs more closely"
By having a thriving business a strong brand name is required. Chernatony and McDonald (1992) highlighted a brand should be simple, meaningful and distinctive. Suitshop don't have a strong brand name in the marketplace therefore consumers would want to purchase their suits from a trusted established brand name like Debenhams. In order for Suitshop to build upon their brand name they must produce mass customersation by sending marketing messages to potential consumers. Suitshop is small business and is not well known and are not fulfilling online capabilities which is the reason why they don't have a strong brand
Aaker and Joachimstahler (2000)
4. Brand awareness : Suitshop can further achieve this through marketing communication in order to promote their brand identity. Brand awareness is not vital for informing the consumer about the product but because consumers like familiar and is related through other aspects of brand equity for example a suit that does not require ironing it also provides the idea of technological innovation and quality.
5. Perceived quality : if the consumer has a bad experience of a product. As the quality of the brand is negative perceived this affects the equity as word of mouth will be passed on to other consumers therefore the brand name can be damaged
6. Brand loyalty - If the suit lasts long and meets the consumer expectation then therefore the consumer will remain loyal to the brand but if the consumer is dissatisfied then their will go else where in future to purchase their product
Recommendation
Suitshop are global and are competing with other businesses worldwide therefore they should have their prices competitive. Online is a potential source of capital in order to keep the business surviving? Suitshop should show on their website whether they have the products in stock or not. From a consumer point of view it's an advantage to know if they have the product in stock or not. If the product is in stock then the customer will know that the delivery will be short. However if the product is not in stock the consumer will know this straight away and have the option to come back in a few days and hopefully it will be in stock.
The business can offer online tracking. This is normally achieved by having a special barcode on each of the consumers' products. Consumers can then online key in the barcode number in order to track their products; this therefore gives the customer control and the end result they are happy and will come back to the business again. Customers want greater choice so therefore they need to expand their product offering for instance women's wear and children's wear this will then generate more capital.
Job vacancies area should be created so that the potential employee can type in their personal details and sent it off through the use email. As the business is operating in the international markets their website needs to be available in different language and not all potential customers in the world can understand English so therefore the business will be losing potential customers and money. The website needs to have different languages so that it can be understood by every consumer in the world for the business it generates sales.
Competitor trends
Chaffey et al (2002) highlighted that businesses can scan their competitors' websites and carry out price transparency and benchmarking in order to enhance their business operation. As Suitshop is small medium sized business it must identify their competitors. As if they don't then their competitors will wipe them out in the market. If their competitors are carrying out half price suits or free delivery Suitshop are immediately forced to carry out the same special offer as then their competitors will take all of their customers.
Customer needs analysis
Lang et al (2000) highlighted that businesses require market research as this builds upon understanding customers' needs such as surveys and questionnaires this can be done online. When the market has been identified the business needs to recognize the factors that influence customers that purchase suits or not. It's vital to understand factors that would effect their customers' motivation such as prices, quality and brand loyalty. If Suitshop's products are too expensive, doesn't last long and it's a new brand the chances are the customers won't purchase it.
Chaffey et al (2002) indicated that businesses can do a competitor analysis; Suitshop can scan their competitors' websites and carry out price transparency and benchmarking in order to enhance their business operation. As Suitshop is small medium sized business it must identify their competitors. As if they don't then their competitors will wipe them out in the market. If their competitors are carrying out half price suits or free delivery Suitshop are immediately forced to carry out the same special offer as then their competitors will take all of their customers.
Branding
Product and promotion from the marketing mix is part of the branding. Leslie de Chernatony and Malcolm McDonald (1992) stated a brand is a "identifiable product or service augmented in a such a way that the buyer relevant unique added values which match their needs more closely"
By having a thriving business a strong brand name is required. Chernatony and McDonald (1992) highlighted a brand should be simple, meaningful and distinctive. Suitshop don't have a strong brand name in the marketplace therefore consumers would want to purchase their suits from a trusted established brand name like Debenhams. In order for Suitshop to build upon their brand name they must produce mass customersation by sending marketing messages to potential consumers. Suitshop is small business and is not well known and are not fulfilling online capabilities which is the reason why they don't have a strong brand
Aaker and Joachimstahler (2000)
4. Brand awareness : Suitshop can further achieve this through marketing communication in order to promote their brand identity. Brand awareness is not vital for informing the consumer about the product but because consumers like familiar and is related through other aspects of brand equity for example a suit that does not require ironing it also provides the idea of technological innovation and quality.
5. Perceived quality : if the consumer has a bad experience of a product. As the quality of the brand is negative perceived this affects the equity as word of mouth will be passed on to other consumers therefore the brand name can be damaged
6. Brand loyalty - If the suit lasts long and meets the consumer expectation then therefore the consumer will remain loyal to the brand but if the consumer is dissatisfied then their will go else where in future to purchase their product
Recommendation
Suitshop are global and are competing with other businesses worldwide therefore they should have their prices competitive. Online is a potential source of capital in order to keep the business surviving? Suitshop should show on their website whether they have the products in stock or not. From a consumer point of view it's an advantage to know if they have the product in stock or not. If the product is in stock then the customer will know that the delivery will be short. However if the product is not in stock the consumer will know this straight away and have the option to come back in a few days and hopefully it will be in stock.
The business can offer online tracking. This is normally achieved by having a special barcode on each of the consumers' products. Consumers can then online key in the barcode number in order to track their products; this therefore gives the customer control and the end result they are happy and will come back to the business again. Customers want greater choice so therefore they need to expand their product offering for instance women's wear and children's wear this will then generate more capital.
Job vacancies area should be created so that the potential employee can type in their personal details and sent it off through the use email. As the business is operating in the international markets their website needs to be available in different language and not all potential customers in the world can understand English so therefore the business will be losing potential customers and money. The website needs to have different languages so that it can be understood by every consumer in the world for the business it generates sales.
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Electronic journals
