Dl part-2

RAINDROPS DIGITAL MARKETING ASSESSMENT

AND PLAN

STUDENT NUMBER: F133896

MODULE CODE: 21BSP064

COURSEWORKCOMPONENT:

CW1

WORDCOUNT: 2376

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Table of Contents

Section-I: Situation review _____________________________________________ 2

Current digital market ______________________________________________________________ 2

Customer interaction in the digital market _________________________________________ 2

Target market and specific characteristics __________________________________________ 3

Review of competitors _______________________________________________________________ 3

Section II: Digital marketing goals _____________________________________ 4

Structure of market _________________________________________________________________ 4

The potential strength of demand ___________________________________________________ 4

Competitor strategies _______________________________________________________________ 4

Brand goals _________________________________________________________________________ 5

Section III: Digital marketing strategy _________________________________ 6

References ______________________________________________________________ 8

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SECTION-I: SITUATION REVIEW

CURRENT DIGITAL MARKET

The jewellery and accessories segment of small-time retailers and big multi-millionaire brands

is being shifted online due to the rising demand for e-commerce. The digital market is a

congregation of customers from every part of the world, and they are all looking for something

cheap yet beautiful. In such a scenario, both small and big businesses are trying to grab attention

by creating something innovative and memorable through their brands. The jewellery and

accessories business is one of the most popular segments of online markets and attracts

considerable traffic. The variety of designs available online and the convenience of shopping

from home make it an attractive and viable business to run online. In 2020, the luxury jewellery

market rose to 22 billion euros globally, and a significant share of the market is owned by

China, followed by the US and India. The value of the jewellery and accessories market is

estimated to grow to 307 billion dollars in 2026 from 230 billion dollars in 2020. The creation

of lab-grown diamonds is set to disrupt the industry and help businesses grow at a rapid rate.

CUSTOMER INTERACTION IN THE DIGITAL MARKET

The online platforms, customers have easy access to a particular brand and its competitors,

due to which brand loyalty is low, especially in the jewellery and accessories market

(LópezGarcía et al., 2019). Customers have high switching rates; however, studies show that

trust is a significant influencer in the customer's decision-making process. They are naturally

attracted to brands that can provide them with attractive designs at a competitive price and

good customer service. Most of the interaction occurs through the brand website and social

media platform; however, a touch of personalization is added by different companies by

employing SMS, live chat, or Email-marketing. The digital medium has been empowering

customers to connect with companies conveniently at any time and through multiple channels,

which are changing the format of customer experience. Physically the in-store experience was

necessary; however, digitally, a brand has to look at many aspects right from online branding,

interactions, social media presence down to the packaging, as all of them are different ways of

interacting with the customer. Proper digital interaction and necessary digital customer service

is a fantastic way of building brand reputation and establishing a company's values that can

provide them with a favourable position among its customers.

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TARGET MARKET AND SPECIFIC CHARACTERISTICS

The most important aspect of the company is researching the market and finding its target

market along with its specific characteristics. This would help increase the sales of the company

and help in product development and research in a way that is customized to the needs of the

customer. The primary criteria considered while selecting the target segment are income, age,

occupation, and location. As Raindrops manufactures contemporary and modern jewellery and

accessories, its target segment would include people in the income bracket of mid-level or

above. However, people with higher incomes would tend to spend money on luxury or

authentic jewellery, which is not the company company's target. Thus, it has to provide a price

range to match the mid-level income bracket.

Further, the target market's age would be around 18 to 60 and would include primarily women,

although unisex jewellery is considered a trend among the same period demographic. The

occupation of the target market would be in a service-based industry in which appearance is

given priority due to which Raindrops can find its target customer here. As the company would

operate digitally, it would have very few geographic limitations (Makrides et al., 2020).

However, as the company is located in the UK, its primary customers would be from the UK

and its surrounding areas. The specific characteristics of Raindrops’ target market are women

with mid-level income among the age bracket of 20 to 40, living in the UK or Europe.

REVIEW OF COMPETITORS

The major competitor of Raindrops would be brands like Pandora, which sell inexpensive

jewellery and brand like Tiffany and Co, which sell high-end jewellery. The brand would face

the most competition from affordable and mid-range jewellery brands. The segment is highly

commoditized, and businesses have to be operating at a low margin to survive. Brands focus

on creating many designs at a fast rate so that they can attract the attention of customers. The

focus is on creating statement jewellery that is reminiscent of the brand. Most online jewellery

and accessories brands focus on social media to bring in customers. They have to compete for

attention with other similar brands that are targeting the same segment. The brands have to

focus on their product quality and packaging and build a robust and flexible supply chain. The

manufacturing and production costs need to be decreased, due to which sometimes the quality

is compromised.

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SECTION II: DIGITAL MARKETING GOALS

STRUCTURE OF MARKET

The market is highly structured with a clear flow from suppliers to manufacturing plants to the

distribution centres, after which the product is sold to the customer through the D2C model

(Sauraet al., 2019). Digital marketing is an essential part of the process as the entire marketing

strategy relies on it (Bala and Verma, 2018). The market structure is monopolistic competition

with no barriers to entry or exit of sellers. The products are differentiated, although they are

similar in many respects. There is little control over price-based competition and share in the

market. There are many businesses selling jewellery and accessories, and the buyers are also

present in large numbers, which is a significant advantage of the company.

THE POTENTIAL STRENGTH O F DEMAND

Through market research, it can be concluded that demand for the product is there. Focusing

on product attributes like design, quality, durability, longevity, and price point can potentially

disrupt the market. By creating a streamlined supply chain, Raindrops can lower production

costs, allowing it to enjoy more significant profit margins. The demand would also rest on the

ability of the company to create signature jewellery and accessories, which would lead to brand

loyalty among customers.

COMPETITOR STRATEGIES

The competitors of Raindrops use several strategies to attract customers and increase leads,

leading to sales. The competitors conduct market research and customer engagement surveys

which they use to develop products and digital marketing strategies. They also use different

techniques to build a presence on social media. They also utilize influencers to engage new

customers (Mariana and Yusuf, 2021). Focus is also put on old customers who are loyal to a

brand, and promotional strategies and offers are provided to them. It is essential to identify the

competitor approaches to satisfying consumer demand in order to protect a positive rivalry and

gain a competitive advantage in the market.

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BRAND GOALS

According to the market research and the assessment of the products of the company, the goals

can be set for the company Raindrops. The goals are set according to the company’s plans in

the 12 months after the launch of the company.

● To create a database of 100,000 customers in the next four months.

● Increase sales by 20% in the second quarter of the business year compared to the first

quarter.

● Increasing brand engagement on social media by increasing the number of followers by

500 every month.

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SECTION III: DIGITAL MARKETING STRATEGY

Customer engagement is the key focus of digital marketing, and the strategies are customized

according to the target market and its characteristics. Customer engagement depends on three

central pillars, which can be a foundation for selecting and implementing a particular digital

marketing strategy. These three include delivering information, shaping brand identity, and

building customer relationships. All of this is done online since the business operates in a D2C

mode in which fixed costs are lower due to which a lot of resources are directed towards

marketing. Hence it is essential to ensure that the strategies are chosen with care and contribute

toward the goals set by Raindrops.

To deliver information, Raindrops can build their website and social media presence, the

storefront and the location from which customers would shop. Information delivery would

include introducing new products, offers and discounts available to customers, and other

miscellaneous details and facts that need to be stated from time to time. This information is

essential to attracting customers and providing them with the details of the business and what

they sell. The digital marketing strategies utilized include Website, Social media marketing,

Influencer marketing, and Email marketing. These would be the primary mediums through

which customers will be informed about Raindrops and the products and services. The majority

of the information would be conveyed through the website of Raindrops and Social media

handles, where the customers would spend most of their time. Influencer marketing and email

marketing can be used to pitch to customers (Soegoto and Fahreza, 2018). By delivering

information, people can sign up for newsletters or email subscriptions and also follow

Raindrops on social media which can help in the achievement of a dedicated customer database.

To shape brand identity, the strategy of Social media marketing is the most important and

impactful way of reaching out to the customers and conveying the vision of Raindrops to them.

Through interactive and thought-provoking social media posts, the digital marketing strategy

will attract customers and provide them with something of value (Muresan and Sinuraya,

2018). Images and videos can also help in shaping the brand identity according to the aesthetics

and vision of the brand. The messages that are put in these social media posts, images, and

video content will be coherent with the strategy of Raindrops. Ultimately the focus will be on

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content marketing which will not only provide something meaningful to the customers but also

help in creating a brand story that would resonate with the brand identity that is being

established. Content will be targeted at the three stages of the customer buying journey, which

includes the awareness stage in which customers would come to know of the brand, the

consideration stage where customers would compare it with other businesses, and the decision-

making stage that would ultimately lead to the purchase (Jotikasthira, and Onputtha, 2018).

Shaping brand identity can help increase brand engagement and boost the sales of Raindrops.

To build customer relationships and drive engagement, digital marketing strategies of Search

Engine Optimization SEO and paid advertisement campaigns will be used along with social

media and content marketing to increase traffic and interaction among the customer base

(Minculete and Olar, 2018). Paid advertisement campaigns like Pay-per-click can help

Raindrops increase visibility among its competitors. The Initial months are the most critical,

and they can make or break the company, due to which this strategy needs to be followed in

the initial 3 or 4 months according to the requirements. Once a sizeable customer database has

been created with the help of content marketing, a switch can be made to SEO which would be

more organic and lead to decreased marketing costs. An SEO-friendly website could increase

the reach of Raindrops and allow it to position itself as an affordable jewellery and accessory

business easily. While content would define the company, SEO and paid advertisement

campaigns would help attract customers who are willing to watch the content and decide

whether they would want the product or not. The combination can help in boosting sales of

Raindrops.

A digital marketing strategy would be created with the combination of paid advertisement,

social media, and influencer marketing and sales through an interactive website. Customer

engagement can be driven by making the right kind of posts for the target market and helping

them reach the segment selected by the company. Further, as the company enlarges its customer

base, affiliate marketing can be introduced as a cost-effective expansion method and add to

influencer marketing. Raindrops can be successful if appropriate content is marketed to the

right audience in a medium that is relevant to them, and it could increase leads and conversion

to sales. The digital marketing strategy would be highly effective and cost-friendly for

Raindrops which has a particular segment to sell to and only needs a proper marketing plan.

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REFERENCES

Bala, M. and Verma, D., 2018. A critical review of digital marketing. M. Bala, D. Verma

(2018). A Critical Review of Digital Marketing. International Journal of Management, IT &

Engineering, 8(10), pp.321-339.

Jotikasthira, C. and Onputtha, S., 2018. Factors associating with purchasing decision of gems

and jewellery and possible implication of online marketing to empowering entrepreneur's sale

performance. International Journal of Applied Computer Technology and Information

Systems, 7(2), pp.47-55.

LópezGarcía, J.J., Lizcano, D., Ramos, C.M. and Matos, N., 2019. Digital marketing actions

that achieve a better attraction and loyalty of users: An analytical study. Future Internet, 11(6),

p.130.

Makrides, A., Vrontis, D. and Christofi, M., 2020. The gold rush of digital marketing: assessing

prospects of building brand awareness overseas. Business Perspectives and Research, 8(1),

pp.4-20.

Mariana, C.D. and Yusuf, D., 2021. Building Timeless. co Brand Awareness Through

Influencer and Internet Marketing. Management and Sustainable Development Journal, 3(1),

pp.75-92.

Minculete, G. and Olar, P., 2018, June. Approaches to the modern concept of digital marketing.

In International conference Knowledge-based organization (Vol. 24, No. 2, pp. 63-69).

Muresan, D. and Sinuraya, R., 2018, August. Relation between internet and social media to

support sales in business. In IOP Conference Series: Materials Science and Engineering (Vol.

407, No. 1, p. 012062). IOP Publishing.

Saura, J.R., Palos-Sanchez, P.R. and Correia, M.B., 2019. Digital marketing strategies based

on the e-business model: Literature review and future directions. Organizational

transformation and managing innovation in the fourth industrial revolution, pp.86-103.

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Soegoto, E.S. and Fahreza, T.H., 2018, August. Email Marketing as a Business Promotional

Media. In IOP Conference Series: Materials Science and Engineering (Vol. 407, No. 1, p.

012182). IOP Publishing.

Tran, H.T., 2020. The Influence of Digital Marketing on Consumer Purchase Decisions toward

Fast Fashion Products.