provide a case study analysis on the information given and answer the questions in the question box.

ASOS has pioneered online social shopping and is one of enabled the company to start to bulld a reputation that the most successful online fashion retailers in the United was attractive to young fashion shoppers. Kingdom. ASOS ofters tens of thousands of branded and Despite industry commentators' doubts about sellown-label fashion laems to millions of 20-something men ing clothing online, by 2004 ASOS had introduced its and women around the globe. The brand is constantly own-label women's wear and since has achieved the reviewing the online marketplace for threats or oppor- following landmarks: tunities for expansion and responding accordingly. This case study explores the growth and competitive strategy of this iconic online retail fashion brand. dom to launch online catwalik shows: The ASOS strategic pillars (see Figure 4.18) summarise its business model, including the target audience and the importance of customer experience and Russia and the United States and established sustainability. sites to serve these markets and launched ASOS Nick Robertson and Quentin Griffiths, founders of marketplace: As Seen on Scremn (ASOS), were inspired by watching American TV series Fiends, and these friends set about sites established; building a website that could sell items that potential customers had seen on television. Initially, ASOS sold ing international offices in Sydney and New York: copies of clothing worn by celebrities, but soon the cornpany began developing its own brand. This focus atudent markets: Figure 4.18 ASOS's strategic plllars summarising its business model returns. ASOS has set up systems that enable product ognition to improve social medie applications: lines to be replaced quickly, Operating at this level creates many challenges for ASOS, 50 , in order to deliver able than MBS, the United Kingdom's largest selter of the promise of fast designer-look fashion, and to constantly update product ranges. ASOS has established an clothing: 'in-house' design team in Europe, which creates catwalk investrnent in restructuring and transitions costs led lookalike items that are produced closer to the customers, which aids delivery and helps the higher returns rate to lower decline in overall valuation of the brand: of operating online rather than in-store. the United Kingdom with possible acquisition of one ASOS continues to be one of the top ten online retailof its wholesale partners and leading tashion brand ers globally, but recently other high-street brands. Macy's Topthop. Asos tions to become more significant competiors. in 2018 ASOS has grawn into the United Kingdom's largest faced with growing giobal competition. ASOS's CEO online fashion retailer by deploying a competitive strat- Nick Beghton talked of how the company had invested ogy, which has established a unique market position: heavily in expanding its global plattorm capability in seling a speciaist range of products that have 'the order to improve customers' experience and facilitate designer fastion look'. Nick. Fobertson, the company's global expansion in new and existing markets (Skeldon, co-founder, started selling branded clothing as seen 2019). The increasinoly competive nature of onine tash. the United Kingdom with possible acquisition of one. ASOS continues to be one of the top ten online retaiof its wholesale partners and leading fashion brand es globally, but recently other high-street brands, Macy's Topshop. and Next plc, have grown their e-commerce operations to become more significant competitors. In 2018 , ASOS has grown into the United Kingdom's largest faced with growing global competition, ASOS's CEO online fashion retailer by deploying a competitive strat- Nick Beighton taked of how the company had invested egy, which has established a unique market position: heavily in expanding its global platiorm capability in selling a specialist range of products that have 'the order to improve customers' experience and facilitate designer fashion look'. Nick Robertson, the company's global expansion in new and existing markets (Skeldon. co-founder, started selling branded clothing as seen 2019). The increasingly competitive nature of online fashin films and on television. Not only did this enable the ion means ASOS has to plan for its future growth and company the opportunity to create a market, but it also market development. The company's mission is to be benefited from celebrity endorsements in PR and promo- the world's number one destination for fashion-loving tonal campaigns. ASOS now sells over 100,000 branded 20-somethings (ASOS, 2019). and own-label clothing products and offers a much wider product range than its high-street competitors. ASOS Online value proposition operates as a fast-fashion retaller, which has meant over-. 'Authentic, Brave and Creative' are the key words that coming many challenges to get goods to the customers' sum up ASOS's company values (ASOS, 2019). Product on time and at the same time manage the high rate of choice is at the core of the ASOS proposition: tens of Chapter 4 Dotalinarkotho strabgy 183 thousands of branded and own-labei products available, insights to build digital content. The 'authenticity' of the with hundreds introduced each week. On pricing. ASOS content generated by the Insiders makes this a very pow: is price competitive with its Price Promise (a price-match erful approach to digital communications and also links ofter) if you see a branded (non-ASOS) product cheaper to their own social media accounts in order to extend the on another website, the compary wel match that price. reach and impact of the communications network. These ASOS describes its website as 'evolving constantly as digital intluencers not only share theif tashion favourites we find better ways of presenting our products: but aiso have an 'Outfit of the Day; which heips drive In 2010 Asos.com launched its Marketplace plattorm, sales of specific products. enabling boutiques, vintage coloctors, individuals and The ASOS Foundation is central to the ASOS corpodesigners - established or unknown - to trade from their rate social responsbility strategy, Which again contribown virtual market stalls to customers across the world. utes to the brand s market postioning. The Foundation It differs from other online marketplaces such as eBay seeks to support disadvantaged young adults in the and Amazon in that each vendor can customise their United Kongdom, India and parts of Africa Projects storefront and, for S60 each month, will have access to involve finding ways to develop sustainable improvean account manager at ASOS and some premium pro- ments in these areas: a social enterprise in Kenya that motional epots on Marketplace. works trom an eco-tactory producing Atrican-inspired ASOS service fashion designs; education in artisan skets in remote parts of Atrica; and working with the Prince's Trust in the designers - established or unknown - to trade from their rate social responsibility strategy, which again contrib. own virtual market stalls to customers across the worid. , utes to the brand's market positioning. The Foundation It differs from other online marketplaces such as eBay seeks to support disadvantaged young aduits in the and Amazon in that each vendor can customise their United Kingdom, India and parts of Africa. Projects storefront and, for 550 each month, will have access to involve finding ways to develop sustainable improvean account manager at ASOS and some premium pro- ments in these areas: a social enterprise in Kenya that motional spots on Marketplace. works from an eco-factory producing African-inspired ASOS service fashion designs; education jn artisan skills in remote ers is a critical success factor. By offering same-day they need to get jobs. delveries the company has increased sales by 23 per cent in the United Kingdom and even more in the EU. Search marketing Underpinning these improvements in sales is an inno- ASOS generates interest in the brand from different vative ethos that is evident across the company. ASOS sources: direct tratfic to ASOS sites brings almost half Invested in a customer contact management system that (48.12 per cent), organic and paid search ( 40.65 per cent) enables staff to respond to customer care emails more and social (5,11 per cent (Similanweb, 2021). quickly and efficiently. Working with Clipper Logistics, The range of terms ASOS targets for search are eviit has introduced an innovative reverse logistics system dent from the ctitles and description tags on the home called Boomerang, which provides quick turnaround on page, which are also used to communicate key brand inventory whn products are returned. A primary strate- messages: gic objective is to continually innovate to "add convenence and choice for ASOS shoppers: Partnershipsemetaname="Description"content="DiscoverFFreeDelivery&Refums/titites ASOS tocuses on its target market and looks for strategic the latest in women's fashion and men's clothopportunities and initiatives that can strengthen its posi- ing online. Shop from over 40,000 styles, including tioning. Promotional tie-ups and associations are very dresses, joans, shoes and accessonies from ASOS and important to ASOS. In 2018, the company launched a over 800 brands. ASOS brings you the best fashion global new-to-market label, Collusion. The label was designed to represent collaborations with stand-alone designers and ASOS creative experts (Singh, 2018). Social media marketing The promotion recelved media coverage, including two The growth of the company in recent years has largely full-page features in the national press. The collection been driven by social media. ASOS has contributed a sold out in minutes. The ASOS Fashion Discovery pro- great deal to the digital high streot. Apart from showgramme, launched in 2016, continues to create opportu- ing that it is possible to sell tashion online protitably, the nities for young designers and students to work on their company has also pioneered social shopping, where own labe's, which are then stocked by ASOS lor at least customers use online social network sites to share two seasons: product ideas betore they buy. Asos has successtuly Marketing communications I used social media to build a community of fashicnistas to leverage advantage through links to celebrities and what to wear, giving its young shoppers fashion insplfashion using the ASOS Insider community, which is a ration. With many milions of fotlowers on social media marketing initiative that uses individuals and their tashion sites, the company has made a significant commitment ifi 184 Part 2 Digtal marketing strategy development to community on its own site through the ASOS blogs previously shopped onllne for designer and high-street and the social network sites where it has over 1.3 million clothing Likes on Facebook. It runs regular promotion events integrated across the social networks but focuses on stories. Customer communications Its instagram strategy links directly to its influencers and To encourage loyalty, for many years ASOS produced in doing so widens the reach of the brand. a popular branded magazine. However, it now relies on Basket analysis more cost-eftective email and social media communications to engage customers. ASOS's basket analysis approaches were described in an interview with former Marketing and Operations Direc- ence for its products through the use of digifal media tor. Hash Ladha: and it is able to communicate new product ideas very One of the most interesting things we found was eftectively to keep customers interested. AsOS's innovathat men tend to buy for their partners as well as tive use of social media has enabled it to influence the themselves. We previously thought this might work way young shoppers interact with online fashion retalers. the other way around. Using this dafa, emair content ream. Generic content included a round-up of cur- wo shop for the foreseoable future. Always keen to be was generated by the company's in-house editorial rent fashion trends and 'best buy' recommendations. ahead of the competition, the main thing for the ASos. The personansed content took into account favounte team is being where their customers are and being able brands and budget, recommending items below a to engage in the dialogue. certain price liment Emaiss were sent twice a week. Other strategies, such as encouraging customers to refer a friend to the company, and sending wiral campaigns, were arso used at this time. Our best Questions customers visit the site every day. Shopping habits do vary, but most customers hike to browse the site 1 Appiy the SOSTAC model to ASOS and highight bofween sponding A twice-weeky emall gives them why it has become such a successtul oniline a direct link straight to the sife and keeps it fresh in tashicn brand. corstomers' minds. 2 Describe how ASOS uses digita channels to engage its customeri. ASOS also wanted to lure iapsed customers back 3. Discuss how Asos has used digitat marketing to its website. it targeted these indiylduais with taito develop iss ditferentiated market position. lored content that aimed to remind them why they had