Advanced Marketing Strategy and Digital Analytics for Blue Bird Footwear (Essay Sample)

Advanced Marketing Strategy and Digital Analytics for Blue Bird Footwear By Student’s Name Name of the Class Professor Name of the School City and State Due Date Contents TOC \o "1-3" \h \z \u Advanced Marketing Strategy and Digital Analytics for Blue Bird Footwear PAGEREF _Toc165231840 \h 3Introduction PAGEREF _Toc165231841 \h 3Case One: Market Segmentation PAGEREF _Toc165231842 \h 3Assumptions PAGEREF _Toc165231843 \h 3Three Segments Identified PAGEREF _Toc165231844 \h 4Sum Squared Error PAGEREF _Toc165231845 \h 4Recommendations for Case One PAGEREF _Toc165231846 \h 4Case Two: E-Commerce Sales PAGEREF _Toc165231847 \h 4Segment One PAGEREF _Toc165231848 \h 4Segment Two PAGEREF _Toc165231849 \h 5Segment Three PAGEREF _Toc165231850 \h 5Recommendations for Case Two PAGEREF _Toc165231851 \h 5Case Three: Performance Metrics PAGEREF _Toc165231852 \h 5Comparison Between Blue Bird and Boot N’ Shoe Co PAGEREF _Toc165231853 \h 5Recommendations for Case Three PAGEREF _Toc165231854 \h 6Case Four: Pricing PAGEREF _Toc165231855 \h 6References PAGEREF _Toc165231856 \h 7 Advanced Marketing Strategy and Digital Analytics for Blue Bird Footwear Introduction Blue Bird is a shoe-maker business established in 1979. It is headquartered in Northampton, a city with a rich history of shoe-making since the 15th century, and is massively considered the shoe-making capital of the world. The company's strategic position has enabled it to gain immensely and continue to profit in the $1.25 billion market by exporting its shoes to different locations worldwide. However, in recent years, the company has been experiencing complexities in its operations, facing stiff competition from its local and international competitors, which has irrevocably affected sales. Ineffective customer targeting has also played a critical role in the company's current state. To effectively address this issue, the company launched a program campaign to target Generation Z as a potential market audience. Generation Z is an essential market for the company because of the presence of the local university (University of Northampton) and the construction of the western campus with a student base of 12,000+ students. The students provide an integral market that has not yet been explored and which, if pragmatic measures are implemented, can yield immense results for the company. Therefore, constructing an analysis report to examine measures to rejuvenate the company is essential. The objective will be achieved by critically analysing four cases: segmentation, E-commerce sales, Performance metrics, and pricing. Case One: Market Segmentation Market segmentation is a marketing strategy where a company identifies a specific group of consumers, and goods and services are tailored to meet their needs and then presented to the group in a way that appeals to them. Market segmentation leads to increased customer satisfaction as it is an effective marketing strategy (Dolnicar 2022). This approach enables a company to optimise its marketing strategy and resources to meet specific goals. Through market segmentation, there is pragmatic use of resources, avoiding resource wastage since the resources are all used to achieve a particular goal in the organisation (Jaiswal et al. 2020). The variables used in segmentation can be classified into response variables and identifier variables. Generally, response variables explain how existing and potential customers react to the marketing activities, while the identifier variables describe customers based on demographics, geographics, behavioural categories, and psychographics. Market segmentation is achieved through “a priori” and “post hoc.” A priori is used when segmentation variables such as income and age are used before grouping the customers. In contrast, a “post hoc” is used after conducting market research and critical analysis. In market segmentation, a “post hoc” approach was integrated after a research survey was conducted by interviewing 15 individuals to identify customer preferences on price, product, and campaign. The approach ensured pragmatic market comprehension and effective marketing strategies were deployed to meet their needs. Assumptions Different assumptions were held to be true to achieve the desired results in market segmentation. There were three main assumptions in this analysis. First, it was assumed that preference for custom goods would be ranked from 1 to 9, respectively, on the product. Also, in the campaign, it was assumed that preference for traditional media methods over social media methods was ranked from 1-9, respectively. Lastly, it was assumed that price-conscious customers were ranked from 1-9, where 1 was the least conscious customer and 9 was the most price-conscious customer. The assumptions were fundamental to achieving the desired results and ensuring the market segmentation holds up. Three Segments Identified Through market segmentation, three groups of customers were identified. The groups include Generation Z, working professionals, and traditional customers. Bluebird uses different customer personas to determine customer segments based on various factors. Through a pragmatic understanding of each market segment, the company can produce different brands tailored to each segment. This approach will enable the company to meet the needs of all its customers, which will significantly boost its objective of maintaining dominance in the market and fighting off competition. Sum Squared Error Sum squared error is the difference between the predicted value and the sample mean. It measures variations within a cluster by summing minimum distances between a data point and the group's mean (Hodson 2022). The initial sum squared error value was 14.06, but after calculating the mean of each cluster point, the mean was drastically reduced to 7.78, indicating effective market segmentation. The sum squared error illustrated how practical the market segmentation approach was, guaranteeing more success for the company as it will be able to meet the needs of its customers. Recommendations for Case One After identifying each market segment for Bluebird footwear, it is prudent to develop strategies to maximise market returns and increase financial returns. The segmentation illustrates customers with varying product demands, reactions to price changes, and campaign responses. Therefore, the company should now strive to meet all the needs of the three market segments to ensure it maximises its market returns, increasing its financial returns. Case Two: E-Commerce Sales E-commerce is a marketing method involving buying and selling goods and services online. It can be achieved either through the use of one own website or the use of established online markets such as Amazon to drive up online sales. In the case of Bluebird, three market segments have been identified in case one, and they are being used to predict sales information for their digital sales campaign. The company has a fiscal year’s sales forecast of 140,000 GBP, divided into three segments: segments 1, 2 and 3, contributing 50%, 30% and 20%, respectively. To effectively drive-up sales in its digital campaign, it uses a different medium, which includes newsletters, pay-per-click (PPC) and social media. The three advertising channels enable the company to reach its potential customers, increasing online sales efficiently. Segment One In segment one, 280 orders were received, with 84 orders emanating from newsletters, 84 from PPC and 112 from social media marketing. This shows that social media marketing is the most effective marketing strategy of the three. Also, in the different campaigns held up in segment one, campaign C had the most sales at 28,000 GBP, while both campaign A and B had 21,000 GBP in sales each. Finally, the forecasted sales for the remainder of the fiscal year are at 70,000 GBP. This portrays the strength of the market segmentation and how effective the marketing modules are in ensuring the company achieves its goal of market dominance through an effective marketing strategy. Segment Two A total of 167 orders were received in segment two, with PPC and newsletters having 50 orders each and social media marketing having 67 orders. Campaign C, the social media marketing, had the most sales at 16,800 GBP, illustrating the strength of social media marketing. PPC marketing was the most cost-effective campaign, with the lowest budget-to-sales ratio of 27%. The sales forecast for the remainder of the fiscal year is 42,000 GBP. Segment Three Segment three received 113 orders, with newsletters and PPC culminating in 34 orders each and 45 from social media channels. For segment 3, the budget was 12,768 GBP, and the sales forecast for the fiscal year was 28,000 GBP, which translates to a 48% cost-to-sales ratio. Similarly, the PPC approach was the most cost-effective in segment three. Recommendations for Case Two Based on the market analysis and the Excel calculations, it is evident that PPC is the most cost-effective marketing method. PPC has the lowest cost-to-sales ratio of 27%, followed by social media marketing, which has 28%. Therefore, in the future, Bluebird should heavily invest in PPC and social media marketing strategies. Focusing on these two channels will gradually increase the company's sales return while significantly reducing the cost burden. Case Three: Performance Metrics Various performance metrics are used to determine the performance levels of Bluebird and its competitor, ‘Boot N’ Shoe Co.’ The use of performance metrics is paramount as those indicators help decide which sectors of a company are performing poorly and which are performing at their optimum best. Determining the level at which each sector performs will help management make informed decisions on different measures to improve the poorly performing areas and maintain the bes...