Digital marketing strategy has become an integral part of marketing strategy in this highly competitive modern world. According to Kingsnorth (2019), the term ‘digital marketing’ first appeared in the 1990s. In 1993, for the first time banner advertisements were initiated. The creation of the first web crawler happened in the next year. After Google started its operations, the blogger was launched in 1999 and little by little e-mail and MySpace services were introduced. However, these innovations were not that successful until the current age of social media takes the charge.
The concept of digital marketing can be summarized in the following points:
Studies have proved that digital marketing helps not only the companies to enhance customer engagement but also helps customers to stay updated with the new products and services, to get proper information of the product in one place (which makes the comparison easier), and enables easy and instant purchase. The content of the company in the digital platform can be easily shared with friends and family which is beneficial for customers as well as the company itself (Yasmin, Tasneem & Fatema, 2015). According to Djakasaputra et. al.(2021), by opting for a good digital marketing strategy the company can enhance the quality of service and sales performance (through the quality service).
The main motivation of this report is to critically analyze the digital marketing strategy of the well-known company ASOS. According to Butler (2018), in 2000, ASOS was launched by Nick Robertson. The acronym ASOS stands for As Screen On Screen. At the start, an abundance of fashion products sported by various celebrities on TV or in the films used to be found in their collection such as pestle and mortar pre-owned by Jamie Oliver and a wallet which was seen in Pulp Fiction. Several years later, after shifting their focus on clothing they became a powerhouse of selling fashionable clothing and wearable. At the current time, they have over 18 million customers in at least 238 territories and countries. In 2004, ASOS launched its own-labeled womenswear for the first time and made 120,000 British pound profit from it. Michelle Obama, singer Rihanna, and many more celebrities were seen to wear the creations of ASOS on various occasions. It has about 850 brands at present (asos.com, 2022).
This paper will provide a step-by-step explanation of the key aspects of the digital marketing strategies from the standpoint of the global coffee company ASOS. This paper has three parts. In part one, the existing digital marketing strategy, company position against its competitors, segmentation, targeting, and positioning strategies of this company are discussed. This paper further delves deep into analyzing the alternative strategies ASOS could use for enhancing its digital marketing operations such as email marketing, mobile opportunities, social media marketing, and use of special keywords. In part three, the paper provides some recommendations which can be useful for the betterment of the company’s digital marketing operations.
Existing digital marketing strategy
ASOS sales revenue was 5.5 billion British pounds in 2012 and it became more than 3.9 billion British pounds within 2021 (Statista, 2022). Their digital marketing strategy had a great part in this successful journey.
Using social media platforms (fig 1) for promotional activities is a part of their successful digital marketing operation. Their Facebook page is followed by over 7,331,799 people. Their Instagram account is named as the brand name ASOS. Their regular activity on Instagram is evident from the number of posts (which is15101) and then the number of followers (over 12.8 million). In 2008, they joined Twitter where they have over 1 million followers. According to tiktokforbusinesseurope.com (U. D.), ASOS took the help of TikTok’s Branded Hashtag Challenge Plus and invited the audience to take part in an outfit showing off challenge. Globally, over 488K videos were created along with over 1.2B views of those videos within just 6 days. Through this campaign, their engagement rate was 15.79%.
ASOS also introduced digital operations (table 1) in other platforms such as ASOS Marketplace which has products from over 900 small companies including vintage boutique and independent brands in over 50 countries and ASOS MAGAZINE. On their Pinterest account, they have 1.3 million followers. On their YouTube channel, they have over 85k subscribers.
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|
https://www.facebook.com/ASOS/ |
|
|
https://twitter.com/asos?lang=en |
|
|
https://www.instagram.com/asos/?hl=en |
|
|
https://www.pinterest.co.uk/asos/ |
|
You Tube |
https://www.youtube.com/channel/UCj_Viyrgtv3nZBT4ButX6uQ |
|
ASOS Marketplace |
https://marketplace.asos.com/ |
|
|
|
|
Vkontakte |
https://vk.com/asos |
Table 1: Digital platforms of ASOS
Fig 1: ASOS Social Media Traffic distribution
Source: Chevalier, (2021)
They have a well-designed website where information about their brands, products, prices are available. The domain name of their website is asos.com. The ASOS website can be accessed from any device such as desktop, iPhone, or iPad Touch. Customers get a sense of security from using their website as it is secured by the ‘https’ secure communication protocol. On their website, the answers to various frequently asked questions along with technical help are provided to help the customers who find their website problematic to manage.
2.1 Website Design
On this website, the customer can choose their country to see relevant country-specific information. The opening page of their website contains images of beautiful people (on their 20+something) wearing modern and designers clothes and happy faces talking with each other which gives mental satisfaction to the viewer. Finding a specific product from their website is not time-consuming as they provide menu buttons for viewing their products on the opening page itself. Customers can choose among the different product options (Fig 2 and 3) such as clothing, shoes, sportswear, and accessories according to their needs. Different call to action buttons are shown on their website. According to Arthur (2017), one interesting feature of this website is that it helps the customers to find similar or look-alike outfits to those sported by celebrities and social media influencers by offering visual search options.
Fig 2: ASOS website front page
Source: ASOS, 2022
Fig 3: Side Menu buttons
Source: ASOS, 2022
Fig 4: Display of offers on ASOS website
Source: ASOS, 2022
The ASOS apps (for desktop, iPhone, or iPad Touch) can be installed from the Google play store as well as from the app store. Their collaboration with renowned brands such as Visa, Maestro, Rupay, Apple pay, and others (fig 5) proves their credibility regarding safer payment options.
Fig 5: Social media links and payment options
Source: ASOS, 2022
They use their website to disclose various discounts and offers (fig 4), which they provide to gain quick attention from the customers (asos.com, 2022). ASOS provides an option of premier delivery to their customers which provides unlimited fastest and free delivery for a whole year (fig 4). ASOS allows their customers to give an ASOS gift voucher to any of their friends, family, and others via some simple procedure. They provide customer care service 24/7 in real-time using their app and website which enhances customer engagement and customer satisfaction.
According to Giomelakis & Veglis (2016), search engine optimization or SEO is a process that is managed systematically for improving the quality and volume of online traffic via search engine visits which leads the user to the particular sites using the algorithm of the search engine. For achieving better SEO, attention towards the following aspects are necessary: 1)different titles for different contents, 2) Meta description, 3) URL or Uniform Resource Locator, 4) Images optimization, 5)Linked sites, 6) loading time of the website, 7)Domain name, 8) Meta keyword tags.
Fig 6: SEO of ASOS
ASOS puts different title tags for different contents with precise Meta descriptions which are helpful to understand the type of content that page is offering. The most used site links are also provided with their shopping websites. As their target group is mainly young generations the links and URLs in search are given on their social media platforms also (fig 6).
ASOS is a leading fashion brand in the UK. There are many competitors of this fashion giant within the UK including direct and indirect competitors. According to Kraus et al (2018), direct competitors of a company are those who sell similar goods or services for the same segment of the market. On the other hand, indirect competitors are those who serve the same market segment but by offering different goods or services. According to the data provided by Chevalier (2021), two top UK companies that give direct and high competition to ASOS is Boohoo and Very (as three of these online cosmetic and fashion retailers sell similar types of products and their marketing strategy is also targeted towards the young generation mainly).
A survey has revealed that, in 2021, 24 percent of the respondents had purchased products from ASOS after visiting their platform while 20% of them visited ASOS but did not buy anything. The numbers corresponding to these two variables (visited and bought, only visited) in the case of Boohoo were 18 percent and 16 percent (respectively) whereas in the case of Very, those were, 15 percent and 20 percent accordingly. ASOS dominated the market in 2021 from this perspective by at least some percentage relative to its competitors. However, the data of annual sales revenue shows a different picture. Very had annual revenue of worth 1.6 billion British pounds and ASOS had the same worth 3263.5 million British pound sterling. In 2020, Boohoo earned revenue worth 367.9 million British pounds (Smith, 2021). Hence, ASOS was lagging behind Boohoo in terms of sales revenue in 2020.
|
asos.com |
boohoo.com |
|
|
Total Visits |
55.7M |
14.9M |
|
Last Month Change |
17.5% |
9.07% |
|
Average Visit Duration |
00:06:31 |
00:05:56 |
|
Pages per Visit |
9.21 |
5.77 |
|
Bounce Rate |
36.47% |
48.26% |
Table 2: Similar Web Comparison
Source: Similar web, 2022
A similar web comparison (2022) between ASOS and Boohoo shows that 55.7 million people have visited the ASOS website in February 2022 whereas the number of visits was only 14.9 million. The average visit duration of the ASOS website is also higher than the same in the case of Boohoo. Even people have visited more pages in the case of ASOS compared to Boohoo. The bounce rate of ASOS website is lower than the same of Boohoo. The above mentioned points confirm that the ASOS website is more interesting compared to Boohoo.
Digital marketing strategy, as well as web page designing and other factors, have a great impact on the online sale of products and/or services (Flavian, Gurrea, & Orus, 2009). Their web page designs can be compared to understand the commonality among these three company’s digital promotion strategies. Three of these fashion giants have two similarities in their web page designing which is: visibility of the navigation bar and the discount offers is at the top of the web page. Therefore the pictures and options for products can be visible. Though there are many differences as well. Boohoo and ASOS, both segregate their total products into two main types based on gender and provide two options: men and women above all the other options on their webpage whereas Very.com.uk shows various options based on various dimensions (gender, product type, and others).
ASOS offers a wide variety of products including clothing, accessories, and beauty products targeting young customers. Hence, considering any other company that serves the same market segment but offers different products or services can be difficult and misleading. However, the products of ASOS are expensive and thus the retailers that sell fashion products at cheaper prices targeting the same market segment can be considered the indirect competitor of ASOS. For example, Matalan (domain name Matalan.co.uk) can be considered as an indirect competitor of ASOS. The above claim can be supported by three reasons:
1) Matalan also sells fashion brands for both men and women but the prices are lower than ASOS.
2) The products of Matalan are sustainable and can be considered as a substitute for ASOS products.
3) As per the definition of indirect competitors both companies should serve the same market segment. Matalan also serves the young population as ASOS. Hence, ASOS should try to understand the potential threats from its direct and indirect competitors and prepare an alternative strategy to protect itself from those threats and enhance its business performance.
According to Camilleri (2018), market segmentation helps you to focus on one segment of the market at a time and plan business strategy accordingly. A set of individuals, organizations, or groups is considered a market segment if they share the same taste and preference, interest, expectations, and characteristics. Once the market segment (s) is chosen, the next step is targeting. The business can target that (those) particular segment (s) while making their branding, promotional and other strategies. It is important that the company chooses the most profitable segment and decides upon the best way that segment can be served.
The market segmentation strategy that ASOS has chosen is based on the demographic of its audience. Its targeted audience is a group of young people. According to Narving & Nilsson (2016), ASOS has chosen the 20+something or the young population as their target market segment. Mainly models from the young generation can be seen in their promotional and advertising pictures also. Even their digital marketing strategy is also more concentrated on the young generation. They use their social media accounts, various campaigns, and hashtags to influence the youngsters’ minds and to create an even greater engagement. There is another proof that their marketing strategy is focused more on the young generation. Presently, according to the website information (2022), discounts are provided to the below graduation level students for purchasing the products of ASOS. They also target other sections of the audience in different ways. For example, ASOS’s premier delivery option was initiated to position itself as the fastest delivery option to the audience who would like to receive their ordered items fast. Similarly, discounts offers and gift vouchers (such as discounts for purchasing products worth an amount that exceeds a given amount) are given to target that market segment who would like to buy extra to get that discount (asos.com).
The last part of the marketing strategy is product positioning. Product positioning is mandatory as the customers always compare among the products of the different companies and thus companies need to place themselves in a position of the market from which the companies want to target their chosen market segment relative to their competitors. ASOS positions itself as a trendsetter in the fashion world. ASOS.com (2022) displays a variety of unique and trendy products mostly worn by young models. Their website designs also make their company position interesting. These positioning strategies expand social identification and greater brand loyalty among the customers (Narving & Nilsson, 2016). Part two of this report talks about the alternative strategies that can be used by ASOS to improve its performance.
Fig 7: ASOS’s Perceptual Map
Keywords
According to Nagpal & Petersen (2020), Keyword tags are an integral part of SEO. Keywords selection is important for the firms as it influences the search rank as well as impacts the ranking process that is used by the search engine to show the links in order. The authors has found that the high authority should focus on broader keywords whereas the low authority websites should focus on more specific keywords to enhance their organic clicks.
In the case of ASOS, it has much broader as well as specific keywords. Some of them are common in the case of ASOS and its competitors. The good keyword suggestions for ASOS can be segregated like this:
1) Where clothes are produced (in the UK), are kept or stored, washed, ironed, where clothes did come from, shopped online, that fit your body.
2) How clothes are produced (in the UK), clothes are dry cleaned, shrink.
3) Can clothes be available in the UK, recycled, shrink in a dryer or washing machine.
4) Which clothes shops are good, near me, which clothes shops sell trendy clothes online, which clothes are made in the UK.
5) Who sells clothes online, who sells fashionable clothes near me, who makes fashionable shoes near me.
6) What accessories go with which cloth, what are the price of clothes/accessories/handbags/shoes/beauty products in the UK, what is the best online website for fashionable clothes in the UK. The next section discusses the alternative strategies that can be used by ASOS for their social media marketing.
In this current era of the internet, social media marketing has become an integral part of business especially companies like ASOS whose almost entire business operation occurs via digital platforms (asos.com, 2022). According to Ahmad, Salman, & Ashiq (2015), Social media has started to be used as an effective tool for marketing over the last decade. Social media marketing provides an opportunity to spread brand awareness among the audience over the world as in the current period, every small town and city are connected through social media and the internet. Consumers can get information and communicate with the company as well as share information among their friends and family in real-time. Hence, Social media offers a speedy spread of information and any promotional message to all the social media users across the world. The authors have shown in their study that social media has a significant positive impact on generating brand awareness among the consumers and social media marketing enhances the performance of the fashion industry.
According to Jayasuriya & Azam (2017), Smith has introduced a honeycomb model which shows seven building blocks of social media namely Identity, relationships, presence, conversations, reputation, groups, and sharing. However, only by marketing via a combination of all social media platforms can achieve all of these blocks. The reason is all of these above-mentioned aspects can’t be found on one social media platform. The picture below shows the structure of the Honeycomb model.
Fig 8: Social Media Functionality
Different social media platforms help to build different blocks which are shown in the next picture:
Fig 9: Functionality of different social media platforms
From the above picture, it can be noted that Facebook marketing covers at least five of those building blocks of social media marketing to the great extent. Additionally, Facebook also allows the audience to form a group or operate a community page (such as fan pages) where the customers can interact with each other and share information on those pages.
|
Social Media Application |
Brand Awareness |
Brand Engagement |
Brand Awareness |
Brand Engagement |
|
ASOS |
Boohoo |
|||
|
Social Network: |
7300579 likes |
63014 people are talking about this |
3851672 likes |
821095 people are talking abiut this |
|
Microblogging: |
233.3K tweets 1 Million followers |
1 Million followers |
54.1K tweets 572.5K followers |
572.5K followers |
|
Video and post sharing YouTube and Instagram |
172 videos and 89.8K subscribers on YouTube 15.1K posts and 12.8 million followers on Instagram |
89.8K subscribers on YouTube 12.8 million followers |
201 videos and 11.3k subscribers on YouTube 16.5K posts and 11.1 million followers on Instagram |
11.3l subscribers on YouTube 11.1 million followers on Instagram |
|
Visual discovery, collection and storage |
1.3 Million followers |
179.4k followers |
Table 3: ASOS vs. Boohoo: Social Media Comparison
Social media marketing is very important for ASOS as the targeted market segment of this company is youngsters who spend a lot of time on social media platforms. From the table 3, it can be understood that the performance of ASOS compared to Boohoo is better in terms of brand awareness generation and engagement through social media platforms. However, to retain this advantage, there is always scope to improve this performance. The suggested steps are as follows:
The introduction and innovation of email have connected businesses with businesses as well as businesses with consumers throughout the world. A person just needs to have an active internet connection along with a computer or mobile device to communicate with anybody in the world. However, the same infrastructure is also a must on the other side. According to Sahni, Wheeler & Chintagunta (2018), personalization of advertisements can affect the effectiveness of email ads positively. Personalization of ads could imply providing consumer-specific information in the content such as the inclusion of the consumer’s name and her workplace or something related to her. They have studied some companies’ promotional activities as a part of an experiment and found that the inclusion of the recipient’s name in the subject of the email raised the probability of viewing the email by the recipient by 20%. The effect of this personalized email sending is also reflected in the 31 percent rise in sales leads. Not only that, even the number of people unsubscribing from the ad campaigned through email decreased by 17 percent. They have also shown that the company does not need to bear a lot of pain in terms of the increasing cost of sending such emails. However, the gains from opting for these personalizing policies can benefit the company by a significant amount. Thus, it is economically justified for the company to start such an ad campaign.
In the case of ASOS, the personalization of email ads will be a good option. To do this, consumers’ search history and purchase history can be used to send consumer-specific recommendations via emails. As ASOS targets the young generations, trending topics or eye-catching lines on the subject of the email should be used.
According to Berman (2016), the use of mobile devices as the principal gateway to the internet is rising and exceeding the use of computers and laptops. Mobile devices have so many advantages compared to desktops, and laptop computers: 1) first of all mobile is easy to carry 2) consumes less power 3) consumes fewer internet data, 4) easy to access, understand and many more. A Deloitte study has shown that mobile devices especially smartphone devices helped to grow sales. Another study has shown that over 58% of the retailers put their highest priority on mobile marketing. Mobile marketing has the below-mentioned advantages over the other marketing programs:
Fig 10: ASOS App for mobile
ASOS can improve its mobile marketing by optimizing its app usage. AI technology should be used to provide personalized and customer-specific advertisements and notifications. Different customers can be provided different discount offers based on their preferences. For example, a person who has searched for a shoe more than once on the ASOS website can be shown a special discount offer on that shoes and related products that is valid for a few hours only. Thus, customers can be influenced by generating a call to action type of notifications (such as “why wait longer”, “hurry up!”, “grab this opportunity”). Such notifications can be generated by using the past search histories and purchase histories of particular customers. ASOS can wish their regular customers (who have membership or subscription) on their birthdays using automated technologies to gain more brand loyalty from their customers. In the next section, some recommendations are indicated for the betterment of the digital marketing strategies of ASOS.
Digital marketing has great advantages such as wide-ranging or far-reaching promotional activities, enhanced customer satisfaction, awareness generation, and many more. However, it also has one disadvantage. Customers from different countries have different preferences regarding online shopping. For example, the consumers of the United Kingdom are more careful regarding payment security and privacy policies when they engage in online shopping. Whereas, the customers of the United States are driven by emotional advertisements and emotive calls to action. Hence, ASOS needs to plan its digital marketing strategies in a smart way that is according to the market type and customers’ preferences (Low et. al., 2020).
One of the most important marketing strategies of ASOS is free shipping to every corner of the world (asos.com, 2022). This system is undeniably lucrative for every customer. Although it can create some cost disadvantages for the company especially in the future, as the price of non-renewable fuels is on the rise (Partington and Davies, 2021). ASOS should think about the ways to implement better and more cost-effective production and distribution channels (beforehand) to survive in the long run. A disadvantage of relying only on digital platforms and online shopping is over-dependency on the internet and digital devices (access to ASOS products is possible via digital platforms only) (asos.com, 2022). If for some reason (such as natural calamities, technical problems, and war), the internet server is down through the UK or in other countries the loss to their business will be huge. Hence, ASOS should have backup plans for such situations.
Regarding SEO, one innovation can be done by ASOS like many other leading brands (such as Starbucks and Amazon) in the UK. Geographical targeting can be done by using different URLs and different Title tags for different countries. ASOS’s social media posts should be more customer retaining. ASOS can put catchy captions along with the product descriptions (associated with recent trends and news) which encourage the customers to communicate with their friends and family via comment sections by adding tags and post sharing. To target different markets, ad campaigns featuring local social media influencers may be helpful.
According to Lee et al (2019), AI technology is used by many reputed companies to improve personalized recommendations on their website as the customer-specific recommendation is likely to improve the sales performance of the company. However, the provision of popularity information along with personalized recommendations can do the opposite. Hence, it’s better to avoid the use of popularity information with the recommended products. Moreover, ASOS has an opportunity of doing market segmentation based on gender using mobile applications and notifications as studies have found that men are more likely to be affected by the personalized recommendations compared to women (Linzmaje et al, 2015).
According to Teona, Ko & Kim (2020), social messages via promotional video and ad campaigns can be helpful. The highly-involved customers can be influenced by providing substantive claims regarding environmental stability and sustainability. ASOS can use the following concept in their ad campaigns.
Conclusion
The purpose of this paper was to provide an analytical discussion on the digital marketing strategies of ASOS. From the above discussion, it can be concluded that ASOS plans its digital marketing strategy very well. The entire business operation of this company is through online platforms. ASOS’s target market segment is the twenty-plus-something population and thus ASOS uses the popular social media platforms for greater consumer engagement and doing their promotional activities. They even do hashtags and other challenges to spread brand awareness among the users of the social media platforms. This paper also discusses the SEO aspects of ASOS. Therefore, the market position of ASOS has been revealed. The two direct competitors of ASOS are Boohoo and Very within which Boohoo gives the toughest competition to this company in terms of the number of website visits, web designing, and sales. The indirect competitor of ASOS is difficult to identify as ASOS sells a wide range of products including accessories and beauty products. The existing digital marketing strategies have been discussed along with the possible alternative strategies (via better keyword suggestions, social media marketing, email marketing, and mobile marketing) that can be helpful for this company. The alternative options for ASOS in the case of mobile marketing and email marketing by applying personalized recommendation technique is discussed. Therefore, some general recommendations to strengthen its digital marketing and promotional strategies have been provided at the end of the discussion. Thus, the paper concludes by discussing the current digital marketing strategies and unfolding the further scopes of enhancing the digital performance of ASOS.
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