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Unit 2: Developing a marketing campaign
Activity 1
Aims and objectives
Aim-
To create content for social media to provide information about fitness, training programmes and other useful advice in order to increase revenue.
Objectives-
My first objective is to release a new line of sports leggings with pockets after 33 - weeks to accompany their social media page, with discount codes only available through following their content and checking in regularly. These leggings will help to gain interest from a bigger audience, marketing them towards fitness and comfort by adding in pockets and targeting them towards people who do not current exercise frequently- to expand their current target market. I will also include a special newsletter that can be signed up to via the website before the launch of the social media page to send out specific discounts to those who have been our customers for longer and did not come from the social media page. This will show that there are special accommodations for those customers who have been loyal to the brand. My second objective is to increase Decreal Gear’s social media following by 50,000 followers on Instagram and Tiktok in the span of 7 months. Their following should grow using consistent posting and interaction with their followers which will help to increase their brand awareness on the platform and gain interest of people who do not currently know of their company. By making posts tailored to different types of people- active and inactive- it will help draw in a larger audience and help with advertising their new leggings effectively. My third objective is to have a 25% increase in revenue after the launch of the new product following the 33 - week marketing campaign. As they already have a good customer base, a 2 5% increase in revenue is achievable as if they bring in more attention and customers with social media, sales will increase. Using the fitness influencers they have as regular customers; they can use promotion to help draw in new buyers and therefore sell more products.
Research
Target market
Decreal Gear have found that their target market is mainly fitness enthusiasts between the ages of 25 and 35, including a few UK fitness influencers. This is a good demographic as it is easier to target people to buy products if they are already interested in what you are selling. One thing we could do to widen this target audience would be to try advertising to people of an older age category and branch out of the collection of people already enthused with fitness. There has been a recent rise in people over 5 0 ’s showing an interest in their fitness,
possibly due to the pandemic making many people more aware of their health and how they can maintain it. A good way to market towards this demographic could be to advertise the comfort of the products rather than their athletic capabilities as this will help to gain the interest of people older than your target audience, and possibly younger too. Younger people tend to focus more on the look and comfort of their sportswear and loungewear rather than its utility. As you have already secured an audience of those who like fitness, branching out to advertising different aspects of the clothing would be beneficial to increasing revenue.
Market
There is an overall increase predicted in global sportswear at 21% which includes an estimated £6.7billion being spent on sportswear in the UK alone. In 2020, the global sportswear market was valued at $353.5billion, with a predicted rise to $394.21billion in 2023 and by 2026 should be valued at around $439.20. This steady increase is a positive thing for Decreal Gear as they are in a market with a clear high number of consumers available, with most of their interest being placed around running and fitness classes according to Statista in 2020. This means we can target those interested in athletic shorts by advertising clothing made for runners specifically such as the hooded tops and joggers as they are versatile and are needed for someone who takes running seriously. However, the market of people interested in sportswear is not the only people we can target as due to Covid-19, people have begun to wear sportswear casually and in day-to- day life, widening the market for possible customers. According to the market research report, most people exercise 3 - 4 times per week, and this happens at home or at the gym rather than through specific sports. If people are looking for sportswear that they want to wear frequently, quality is very important- as seen by it being the most chosen thing that those interviewed said entices them to purchase from a brand- as they will want their products to last a long time and if they do, they’re more likely to purchase from you again rather than try somewhere else.
Competitors
JD sports and Sports Direct are the two leading sportswear retailers in the UK, proving a range of products, including shoes, loungewear and activewear. JD sports had a $1.6billion worldwide revenue and Sports Direct had $3.9billion, showing they are successful in what they do. Due to an increase in people shopping online (55%), websites have been used a lot more frequently as people did not have access to stores during Covid and it can be a lot easier to shop online rather than in person. Another competitor would be Gymshark, a UK brand that is solely online and only recently released plans to make a store. They sell the same types of products and sell mainly through their website. A thing we could cooperate into Decreal Gear that Gymshark already has is increasing the amount of sixing options of our clothing (they have xl-xxl) as it will bring in customers of different sizing, reinforcing the message that fitness is for everyone. To make sure they show their intentions when it comes to who they sell for, they have a
Economic:
During Covid-19, all businesses have struggled to keep their number of customers at the same level and retain revenue, even Nike took a massive hit as seen by them only getting $2539million in 2020 compared to over $6000million the previous year. To keep your audience interested in your products, you will have to tailor your clothing advertising to fit the current climate. This can be by posting home workout videos for people to follow along so they can exercise while the gyms are not accessible. These videos can be at different difficulty levels to help involve different people into trying them out without feeling that they are too hard for them. By having free shipping and free returns it could mean that you receive less revenue through having to pay these fees yourself, but I believe it is a necessary sacrifice as free shipping is something that people are very enticed by, especially in a time when the only way you can receive things is by post. The free returns aspect will also help as it will make people more likely to buy the products as they know that if they do not fit or they don’t like them, they can send them back free of charge and often if they buy them, they are more likely to return and buy another size if they know they can do it without a fee. Another economic influence could be taxes as they can change depending on how much money is being made and if any tax evasion is present, it could jeopardise the legitimacy of the company.
Social:
A big current social trend is a focus on diversity, inclusivity and comfort within sport. By marketing your products to a wider audience as well as towards your current customer base, you will be able to gain the interest of different types of people. A way to gain this interest can be through modelling your clothing on people of different sizes, races and body types. If a prospective customer is browsing the website and all the clothing shown is displayed on athletic and thinner people, it will likely put them off wanting to purchase If they do not fit these criteria. Enforcing the idea that exercise is for everyone will help encourage those who do not currently work out to want to be included by buying the products, even if they do not use it to exercise. This is important through who you choose to be an influencer for your brand online, as picking people of the same race, weight or fitness level could limit the people whoa re interested and you want to be hitting as many different follower bases as possible. By diversifying your representatives, you are showing that your brand is for everyone, and anyone can wear the clothing.
Technological:
Having a social media campaign is a crucial aspect in advertising products if the aim is to increase revenue. Social media marketing is going to be the best option for your company as you sell through a website and not a store. This means you can include hyperlinks to the website within your page, can pay to promote the page so more people will see it and pay for influencers to wear and advertise your products to their audience. As these influencers have already built a strong, loyal
follower base, their opinion on certain products will mean a lot to those who follow them and a positive review of clothing from the brand will mean a lot for the company. If these influencers already purchase your products without the offer of payment for promotion, they are very likely to agree as their opinions will be based on the fact they use and like the brand rather than the money they are receiving for it.
Legal:
The most important legal factor in producing and selling clothing is abiding by tax regulations. Some companies may look to cut costs by hiding income to retain more profits, using illegal equipment that may harm the staff or even lying about where their products come from to dodge import tax. These are all things that will save money but will damage the name of the brand and if discovered, may mean that the company cannot run anymore and could use a lot of your customer base. It is also important to list every material used in the production of the clothing on the labels in order to avoid lawsuits if someone is allergic to one of them. It is a small aspect that can save a lot of hassle in the future.
Environmental:
A current trend that has been popular amongst different types of companies is sustainability. People are starting to care more about where their clothing is coming from, who is used in the process and if their purchasing of the product is damaging to the environment. By using sustainable materials to make the new released pocketed leggings, it brings in another aspect that will entice people to buy them. It can be difficult to find sustainable clothing as mass production factories are so commonly used in large companies such as Nike and Adidas as this method will bring them the most money. Although using these types of materials may be more costly, the interest from those who care about eco- friendliness will offset the costs of the manufacturing as loyalty to a brand is likely to increase if they have a selling point that is unique.
SWOT
Strengths:
One strength of the business is that they already have a strong customer base of people who are passionate about what they sell. The customers they currently sell to have a passion for fitness and as they sell sportswear, they are the perfect market. They even have influencers buying from them often and this will make it easier to promote the clothing as they have a genuine interest in the product rather than interest in the money. They also have many products already on their website, meaning people can browse it while awaiting the release of the leggings ad possibly buying items beforehand to try on to get a feel of sizing before the launch. They also give free shipping and free returns which are very useful in an online store as it gives ease to the customer to buy and return if something isn’t right
now come in the same time span as another company may provide. This could lose them some of the selling points and they may even have to take away the promise of free shipping to accommodate this.
Activity 2
Marketing Mix
Product:
The product is a new pair of sustainably made leggings with pockets to be released onto the website after an 8 - month marketing campaign on social media. These leggings will be advertised across 2 social media platforms, as well as on billboards and through a newsletter. As well as this, Decreal Gear sell sportswear and activewear on their website such as hooded tops, joggers and t-shirts, mainly marketed towards those with a passion for fitness.
Price:
The price their sports leggings are currently selling for are between £35-£45 and these new leggings will be around £50. As they will be highly anticipated with new pockets installed and made of all sustainable materials, they will need to be slightly more than the other products to offset production costs. However, a perk of the social media page is that you receive a discount the day before the release if you keep up with posting times and know when ad where to look for the code. This discount is likely to influence people into wanting to buy them even if the original price is over budget as they will have been waiting for them for a while and know they are limited in first stock.
Place:
Decreal Gear is a UK based company and sell online via their website. As well as this, they have a social media page on Instagram and Tiktok where videos of clothing, workouts and recipes are posted. They can also be found being featured on many influencers accounts where they are wearing the products they sell and advertising the release of the new leggings. Sportswear is a global market, but Decreal Gear is focusing on growing their audience in the UK before going international.
Promotion:
Most promotions are done online via social media pages and influencers where the sportswear sold is advertised and shown on different bodies doing different activities. Some of these promotions are videos made and posted about the new product release as well as their current clothing to get people excited for the new leggings while also exploring the website to see what they currently offer. As well as online, there are billboards in town centres that can be seen in the 6 weeks before the release advertising the social media page and the discount offered.
People:
The people involved in the marketing campaign are the 10 influencers that have been hired to promote their clothing as well as the new release. Half of these influencers specialise in fitness content such as running, gym and home workouts, showing how the clothing can be used in different sporting activities
Short videos- total: £11, 700 I will make 2 short 1 - minute videos to post onto Tiktok and Instagram. One will be to show our current product range, displayed on different body types and skin colours which will highlight the diversity of our company. It will show all 5 of our products, focusing mainly on the leggings and t-shirts as they are the most multi- use items of clothing. The second video will be a teaser video, showing what our new sustainable leggings with pockets will look like. In this video it will show them being worn in different scenarios, such as running, cycling, hoovering, shopping and wearing as part of a normal outfit. As filming normally costs around £2000 and minute and I am making 2 videos it will cost £4000. Billboards- total: £19, I will also put up 5 billboards of our products with the focus being the launch of the new leggings and the social media name in large text across the top. As the only way to receive the discount for the leggings is to follow along with the activity on the social media page, the name will be the focus of the billboard, with images of the leggings in different colours and on different size bodies. I will put it up in a busy town centre to gain as much attention as possible, which will come to around £5 00 for 2 weeks and I plan on having these billboards up for 6 weeks, it will be £ 5 00x5=£2,500 and then x3 will be £7,500.
Time scale
Months 1 2 3 4 5 6 7 8 Release of newsletter sign up on website Launch of social media page Posting home workout videos Posting influencers wearing our clothing Posting of healthy recipes Teasing of release of leggings through video Put up billboards Release of discount code for newsletter Release of discount code Release of leggings The social media page will be launched in the second month of the campaign so that there is time for the loyal customers to sign up for the leaflet discount before the people coming from social media. The workout videos and recipes will be posted throughout the campaign to draw attention from different audiences and expand the target market. The teasing will occur in the final 3 months as it brings in a smaller time span for people to have to wait for the product’s release.
In the final month, the discount code will be released the day before the leggings launch, to make it feel more special for those who receive the discount, and it will also mean they can use it on other products too so hopefully people buy more than one item.
