Digital marketing includes all marketing effort that uses electronics and the internet to market their products and services. (Choi, 2016) Due to the gradual growth of technology the world has shifted into using technology to make work easier and efficient. Since 1990 and 2000 the development of the digital market has brought a huge change in the marketing sector.
Companies are using this platform to expand their business by increasing sales globally. (Costa, 2017) For the last two decade it was difficult to transact business within the global society due to the lack of a platform that supports such an idea, but the t since the development of digital marketing it has made global society to be able to transact business by people buying products from the continent and selling to any continent at any given time. (Kannan, 2017) Digital marketing platform has many methods that are incorporated ta ed in the organization this includes; search engines optimization (SEO), content marketing, search engine marketing (SEM),
influencer marketing, content automation, campaign marketing, e-commerce marketing, social media optimization, e-mail direct marketing, display advertising, e-book and lastly optical disk. (Kelly, 2016) All this method are used to advertise product and services for various companies. This paper will focus on the secondary industry which is involved in manufacturing and offering sales service. (Liu, 2016).
It will major into three companies this is Louis Vuitton company which deals with fashion and luxury commodities, secondly, Dior SE company which is European luxury company and lastly Channel company which is involved in events, media, research, consulting, and sales and marketing services. The channel includes high-tech suppliers and solution providers. (Qian, 2018)This three company earn their sales through digital marketing where they offer free shipping if a customer purchases a product from any corner of the world.
Companies overview
Louis Vuitton
Louis Vuitton is a worldwide company commonly referred to as LV; the company was founded in 1854 by Louis Vuitton in French. (Anido Freire, 2018) It became popular due to their quality luxury products the company sells. The company deals with luxury trunks and leather goods to ran ready to wear, swatches, shoes, jewelry, accessories, sunglasses, and books. (America, 2016) It is one of the first leading fashion house in the world which sells its product through the following platforms this are standalone boutiques, via e-commerce where the company attracts most of its customers, and lastly department store.
The company has many branches across the world to about 460 stores in 50 countries. Since last decade the company has been doing great in its sales, this has made the company to rank as the world most valuable luxury brand. (Steele V. , 2017) The company brands its product with LV label; the label make it distinguish itself with its competitors. This label is worldly known.
Dior SE
Dior SE is a European company that is famously known as Dior. The company is run by a French business person. The company was established in late 1948 by the eponym’s designer. The company is famous across Europe and also other parts of the world. Is one of the biggest competitors to LV company. The company deals with a variety of products by designing and retailing the products. This includes; ready-to-wear, leather goods, fashion accessories, footwear, jewelry, timepieces, fragrance, makeup, and skincare products.
The company products are sold worldwide an through the use of its portfolio of retail store worldwide and use of e-commerce on its online retail shop. (Strauss, 2016) The company is doing well also since the establishment of the online store. this makes the company meet with a variety of customer worldwide hence increasing its sales. (Chernev, 2018) Apart from the online market, the company organizes fashion concert to demonstrate its product. Picture and videos taken during the concert are published into different social media. Through social me the dia people worldwide are able to foresee the kind of products the company produces and if one is interested he/she can purchase the product.
Channel company
Channel company is an American provider of IT channel, which is involved in events, media, research, consulting, and sales and marketing service ices. (Chaffey, 2015) The channel includes high-tech suppliers and solution providers. It was established by CMP media channel group later renamed UMB. It’s a worldwide company which is known for its competence and effective production. (Costa, 2017) The company is mostly involved in the marketing of other company’s product. Through the company webpage, it is able to market itself. Through this marketing, the company is able to gain more customers. (America, 2016)
Digital marketing environment
Pestle analysis is a very effective tool in business if used in the right way and manner. Which falls under environmental analysis. (Chaffey, 2015) We employed this method to determine various external environment variables that affect business performance and prosperity. pestle analysis comprises of political, economic, social-culture, technological legal and environmental. In our analysis we focused on the effect technology has on the three companies, Louis Vuitton, Dior SE company and lastly channel company. (Choi, 2016) We contacted the manager in charge of the marketing sector in all of the company to gather information on the way the company conducts its digital marketing. The three companies have utilized technology to the fullest marketing of their product digitally.
The technology used in the manufacturing industry has made life easier, this gives a great opportunity to the sector to market an expands its sales. The industry is faced with a lot of opportunities. These opportunities include the creation of job opportunities to workers who work in the industry; most people consume finished product hence it creates an opportunity to companies who produce finished goods which can be advertised using digital advertising. It’s easy to expand business under secondary industry sector due to the wide market area covered.
(Chernev, 2018) The industry is also faced with threats such them as an economic threat, political threat, social-cultural threat, technological threat, and lastly environmental threats. All these threats if not avoided may bring great harm to the industry such a collapse of the secondary sector. WHO has a lot of concern with the way the secondary sector is affecting the environment. Rules and regulation set by the organization hinder the sector, from growing. (Cawsey, 2016)
Strategic analysis
Luis Vuitton
Louis Vuitton company has an approach of creating a highly customized customer experience platform for targeting market through digital marketing company. (America, 2016)In targeting market, the company uses geographic segmentation in targeting audience that is outside the company region. This help to increase the market of the company globally. The company is targeting to increase its market in Africa and establish some of its branches in different states of Africa more so the fashion groups established in that area.
The company is targeting to increase the time working for the company especially on the website of the company, in order to serve a wide range of market this is by increasing the demographic role of the company. The company targets to use psychographic segmentation to increase its market.
This by evaluating the companies past customers and present one and coming with the aim of targeting a group that is conscious with the budget, these groups are real shoppers, hence by use of digital marketing the company can establish those groups. (Kannan, 2017) By use of behavioral segmentation, the group will be able to determine their loyal customer, frequent one and purchasing pattern. Luis Vuitton company through their sales record they will be able to determine their customer’s, pattern. Through this strategy, the company will be able to increase its sales and marketing.
Dior company
The company is focusing on increasing it sales by use of target marketing, this is by targeting audience who are mostly involved in fashion and design this is by use of demographic segmentation and also targeting states that has high population which creates a wide market for the company this is by using geographical segmentation, Social life of people in the world helps a company t determine which product to produce. (Costa, 2017) Hence through the use of psychographic segmentation, the company is targeting to determine to produce products of different qualities to serve all social groups
Channel company
In targeting market, the channel company uses geographic segmentation in targeting audience that is within and outside the company region especially those from New York. This help to increase the market of the company globally and also in the states. (Underhill, 2016) The company is targeting to increase its market in Africa and establish some of its branches in different states of Africa more so the fashion groups established in that area. (Belk, 2014) The company is targeting to increase the time working for the company especially on the website of the company, in order to serve a wide range of market this is by increasing the demographic role of the company. (Stearns, 2018) To study the behavior of the company is important in determining the customer’s taste, fashion and preferences hence by use of behavioral segment the company will be able to determine the products to produce and market for customers.
Buyers persona
The company has its unique branding and positioning which distinguishes it’s from other competitor is that the company always retain its original style from French heritage and lifestyle. Apart from this attributes the company brand strategy is based on the explore archetype which revolves under traveling. (Reeves, 2015)The main company pillar is the sense of adventure; it’s more of a journey than the destination. The company brand focuses on the importance of traveling and luxury involve in traveling rather than a destination. (Scott, 2016) This brand has established a long-term image on the memory of the Louis Vuitton customers mind this positioning makes the company unique and well known.
Dior company
Branding and positioning are crucial in marketing. Hence the company uses a unique brand to distinguish it from other companies’ market, the brand position the company uses it’s unique and attractive in a manner that attracts customers. (VanderPloeg, 2018) The company has Brands expressing the “goddess” image mostly made use of unreal and timeless backgrounds and the advertisements which are rich in color, texture, and pattern. (Underhill, 2016) This makes the company unique from others. This position helps in attracting customers. The brand is positioned in their product at a strategic position. In their billboard, the company creates a picture that shows a woman who is addicted to one of the company products such as perfumes and necklaces. (Yoffie, 2015) This help in attracting customers
Channel company
The company uses large 3-D letters to brand its product. Because the company is involved in IT and marketing products, the company uses slogans such as ‘THE CHANNEL MEDIA COMPANY, CHANNEL BUILDING COMPANY.’ This is both on their online website and their digital billboards. (Turban, 2016) The images are attractive with the diversity of colors that makes one be attracted to the company’s products. This helps in retaining the picture in customers’ mind and also attracting new markets. (Chernev, 2018)
products
|
Louis Vuitton |
Dior company |
Channel company |
|
Core The core product of the company is producing of luxurious leather bags which worldwide known |
Core The core product of the company is producing brand clothes |
Core The company core product is offering IT services |
|
Actual The company also produces necklaces, bracelets, shoes, and watches. |
Actual The company also produces Jewelry, watches, glasses, women makeup, and women shoes |
Actual The company also is involved in sales and marketing services |
|
Augmented After purchasing the product, the company offers free delivery in every part of the world |
Augmented The company offers delivery of the product and also guiding the user on how to use the product efficiently |
Augmented after offering service to the customer, the company offers a warrant to the customers and offers a free guideline on how to use the company website |
|
Louis Vuitton |
Dior company |
Company 3 |
|
The company pricing strategy depends on the production cost, tax policy, expenses, and profit to be yield. The Louis Vuitton company has no fixed price for their product due to the above aspects change according to the various company. |
Dior products are for high class and high earning customers. With the help of quality assurance and exclusive creation, the company produces of high quality hence making them very expensive. They target on middle and high social level in quoting their price |
Channel company depends on company sales. During the peak period, the company raises its prices, while during the off-peak period the company lowers its price. This strategy helps the company to survive in both seasons. |
Distribution
|
Louis Vuitton |
Dior company |
Channel company |
|
The company sells and distributes its product through the following platforms. This is standalone boutiques, via e-commerce where the company attracts most of its customers, and lastly department store. For the overseas customer, the company uses shipment and through air transport |
The company products are sold and distributed worldwide through the use of its portfolio of retail store worldwide and use of e-commerce on its online retail shop. The company delivers products through shipments and use of air transport. |
The company does its distribution through online means by use of their webpage |
digital marketing strategy
louis Vuitton company
louis Vuitton company uses Facebook, Instagram and website channels as a tool of marketing strategy. The company uses the Facebook platform to market their products; the company has created a Facebook page where the users of Facebook can be able to view the products of the company and also the price of the product. This tool is effective because it is able to reach many customers worldwide. (Belk, 2014) .
The disadvantage of this tool is whereby if one is not on Facebook it’s hard to view the company’s products. Instagram a recent social media platform where most of the companies are using in advertising their product. (Costa, 2017) Louis Vuitton company post attractive picture of the company’s products and fashion concert that the company hosts. The method is effective because it helps in attracting the viewers and persuading them to purchase the product, apart from the two social media product the company also uses internet advertisement, especially into different search engines. This is whereby the company uses popping advert on web pages. This advert is effective as they serve a wide range of the market.
Paid
the company pays for every advert that pops on the search engines; this is by use of promotion site from the main Facebook company, the cost depends on the duration of the advert.
earned
The platform is earned through an agreement with the social media company and the Louis Vuitton company after signing the contract the company is allowed to advertise its products. through this adverts, the company is able to expand its market.
Dior company
The Dior company also uses Facebook, search engines and Instagram as a means of advertisement. They post their products on the Facebook page (Costa, 2017). This enables Facebook users to view the activities and products of the company hence increasing the market area served. Search engines are effective tools when it comes to an advertisement by use of search engine such as opera mini the company advertises its product. (Chernev, 2018) This enables the users to view the advert while browsing. The Instagram platform is also vital when it comes to the advertisement, most of the youth concentrate more on Instagram posts hence the company uses the platform to post their products picture and videos demonstrating their product. this strategy helps the company to cover a wide range of the market.
Paid
For an advert to take place in Instagram and Facebook the company needs to pay for them depending on the duration of the popping advert, this takes place after the company has agreed with the advertising company on their terms and payments.
Earned
to earn the platform, the company needs to contact the advertising company through emails, then is given terms and condition of the advertising company after agreeing with the advertising company the company is then given a platform to advertise their product
Channel company
The world is changing, and social media platform are taking roots. This helps the channel; company to advertise its product by use of Facebook and Instagram platform. (Turban, 2016) This involves the posting of companies services and how efficient is the company. this helps in reaching a wide range of market worldwide. (Kannan, 2017) The company also uses search engines such as opera mini to advertise their product. Example when one is browsing there popping advert on the web pages. this tool reaches a wide range of market though many users dislike interruption by the popping adverts.
paid
the company pays for every advert that pops on the search engines; this is by use of promotion site from the main Facebook company, the cost depends on the duration of the advert.
Earned
To earn the platform, the company needs to contact the advertising company through emails, then is given terms and condition of the advertising company after agreeing with the advertising company the company is then given a platform to advertise their product.
Conclusion
We concluded that digital marketing is taking roots in the marketing sector as most of the companies worldwide are using digital marketing to market their goods, the digital market is not costly and is user-friendly. (Belk, 2014) On our analysis, we found out that most of the companies have expanded due to the use of digital marketing because of its ability to offer a wide range of marketing all over the world. (Chaffey, 2015) The sites that are used for marketing are providing areas in websites where consumers can purchase the product and give feedback about the products. The world is shifting to easy means of doing things especially in secondary sectors in the industry it’s shifting to technological means such as the use of digital marketing to market their products.
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