Friday, April 16, 2010

Mobile Fashion

When researching mobile marketing campaigns, I thought, who better to analyze than my favorite retail store, H&M? H&M is a clothing retailer known for its "fast fashions" for men, women and children. Basically, they offer highly fashionable clothes without the highly fashionable cost. They had two problems they were looking to solve: how do we promote our latest collections and how do we increase membership in our rewards program? H&M turned to mobile marketing agency Mobiento for the answers.

H&M's first mobile marketing campaign appeared in 2006, making it one of the first brand's to really capitalize on this technology. To borrow a term from the fashion world, it really set a trend for other brands to follow. So far, the campaigns have mostly been in H&M's home country, Sweden.



How It Works
Consumers click on a banner ad which takes them to H&M's mobile site (slightly difficult to navigate if you don't speak Swedish). They are then prompted to enter their mobile number to receive SMS alerts and mobile coupons. The purpose of the coupon is to drive them to the store's physical site (H&M does not sell clothing online). It has a time limit on it, usually 3-4 hours, so that consumers will be prompted to go to the store immediately. H&M runs competitions where consumers can create an outfit then write a short essay about why they want to win it. The winner then receives a gift card so they can go buy that outfit. They also release their catalogs via SMS so that consumers have an easier way to view it. This mobile technology also has a viral aspect to it. Consumers can pass offers and new collection alerts along to their friends via text.

A great example of how this can work is how some stores approached their grand opening in Germany. 120,000 people received a picture message prompting them to go to H&M to pick up a free t-shirt. This was so successful that within 48 hours, 78% of the recipients reacted to the message. There was a line of 100 people waiting for their t-shirts before the store even opened.



Who It's For
H&M's target market consists of young, fashion-forward men and women ranging from ages 18-30. However, this mobile campaign is mostly geared towards women ages 20-40. People that take part in this campaign are most likely going to be into fashion, into bargain shopping and mobile technology savvy. While the campaign is mostly geared towards women, there is a portal for men too. When you enter the site, you can choose your gender and the site will then be tailored to you.





Does It Work?

This is a very cool idea but the important question is, does it work? I think that this a great campaign and that it works on many levels. However, I think there are some things that could be improved as well.

The Good
Most importantly, I think that H&M really knows its consumers. Just the fact that they would approach a mobile marketing agency shows that they realize their consumers are young, hip and into new technology. Consumers that shop at H&M are into fashion and it seems that they would really appreciate being alerted when the new collections come out so that they can be the first ones to get it. H&M shoppers are also bargain shoppers. If all they cared about was fashion, they would be shopping in Louis Vuitton and Prada. However, they care about price too. This is why the mobile coupons are a great idea. Very rarely will there be a 20% off sale for the whole store. By sending consumers a 20% off coupon, it will prompt them to go to the physical location and shop 'til they drop! I think this is a great campaign and they should expand to the U.S. for young consumers like me!

The Bad

As great as this campaign seems, I feel it would be much more effective if H&M sold clothing online. Some consumers (like myself) live over an hour away from any H&M locations. If I sign up for SMS alerts and receive a coupon that expires in 3 hours, I am most likely not going to drop what I'm doing and run to the mall. If they sold the clothing online and offered the same type of coupon, I would most definitely hit the net to do some shopping. The mobile site allows you to look at the collections yet you still can't purchase the items. I'm not sure why H&M does not wish to sell their clothing online, but I think it would be a huge success.

Friday, March 5, 2010

Case Study 2-To Tweet or Not to Tweet



Imagine this: one day you walk into work, chipper as can be just like any ordinary day. But today is no ordinary day. In fact, today is a terrible day. When you reach your office you find a memo waiting for you on your desk. But this is no ordinary memo. In this memo, your boss is telling you that you can no longer use Twitter at work unless it serves the company. Oh no! How will you send your tweets out to all your tweeples in twitterverse?!





Well this is exactly what happened to ESPN on-air talent and writers on August 4, 2009. And how might you ask was this information released to the public? Well, thanks for asking. It was released through none other than, Twitter! ESPN NBA Analyst Ric Bucher tweeted: "The hammer just came down, tweeps: ESPN memo prohibiting tweeting info unless it serves ESPN. Kinda figured this was coming. Not sure what this means but…I’m probably violating some sort of policy just by telling you. In any case, stay tuned." ESPN ensured that they were simply providing guidelines to its employees for the use of social media, yet it seemed to be more of a ban of it than anything. Can a company really tell employees how they may and may not express themselves? This case definitely raises questions of free speech and the ownership of a thought or idea. And if you think ESPN is taking this lightly, they're not. ESPN columnist Bill Simmons was banned from using Twitter for 2 weeks for violating the policy.

Why ESPN, Why?
In order to fully understand the decision made by ESPN, one must analyze arguments for and against the ban. In an interview with Sports Business Daily, ESPN VP and Editor-in-Chief Rob King made the case that it is not uncommon for Twitter users to retweet breaking news and later find out it was untrue. This could be a legal issue for ESPN, with the risk of being sued. Another possible reason may have been that ESPN is afraid that if sports fans are getting breaking sports news from their employees' tweets, then they will stop reading ESPN magazine or going to ESPN.com for sports news stories. While this could be the case with some people, most people are going to want to read more than 140 characters. Reading the tweet will most likely grab their attention and increase the likelihood of them continuing on to ESPN.com to read more about it. An argument for allowing the use of Twitter is that when an employee tweets something, they will probably get more followers, in turn increasing their impact. There is a conversation going on in the social media world, so shouldn't ESPN want their employees to be making an impact on it?

Who Else is Banning Twitter?
If you think ESPN is the only company restricting the use of Twitter, you're wrong. The NFL first banned the use of Twitter in the locker room and has now expanded that ban to the press box, sidelines and even the stands. The Miami Heat no longer allow their players to tweet while at work, whether home or away. Texas Tech football players are no longer allowed to Tweet after an incident where a player tweeted that the coach was late to a team meeting. Not just American sports teams are banning Twitter, even European soccer teams. Manchester United recently banned the use of Twitter by its players while at the field. The banishment of Twitter is becoming an increasing theme in the sports world and is something that continues to make some athletes very sad.


The Solution-Is There One?
So is a ban of Twitter the answer? I don't think so. I think Twitter is an incredible tool that allows people of importance like athletes or sports commentators to have a more personal connection with their fans. Fans like to know what their favorite football star had for breakfast, it makes them feel like they know the player personally. Should players be able to tweet during a game? That's questionable. If it is taking their focus off the game, then no. But if they aren't playing in that game or if it is before or after the game, then I don't see a problem with it. Allowing the players to tweet is only going to increase public interest in the team and even the sport itself. I think companies like ESPN must realize the importance and growing impact of Twitter before they lose out on a great social media tool that could really help them.

Tuesday, February 2, 2010

Case Study 1-NikeiD vs. Puma Mongolian Shoe BBQ

Nowadays, you can customize everything from your food, to your computer, to your car. So why not your shoes? Many large shoe companies have realized this and put a lot of effort into their sneaker customization websites. In today's web 2.0 world, companies can't have a boring website that simply allows consumers to order a product. They need impressive sites with high functionality that offer an incredible customer experience. Nike has the NikeiD site and Puma has the Puma Mongolian Shoe BBQ site. These sites aren't for the occasional/average shoe shopper. On both of the sites, all the types of shoes are over $100. People that would use sites like these are serious shoe shoppers. They don't mess around. Below I will discuss my experience using both sites to customize a shoe, my evaluation of the approach that each company has taken towards this type of site, and the overall customer experience provided by each site.

NikeiD
The first thing I noticed about the NikeiD website is that it looks very clean and professional, which you can see in the picture below. This is not surprising because Nike is a global company so it makes sense that they would put the effort into making their website sleek and functional.


Nike definitely has a more straightforward approach than Puma. They do employ some interesting strategies in order to increase interest in their product. They offer a shoe called the Zoom Kobe. Their tagline is "Made for Kobe. Designed by You." I think the most interesting thing about this strategy is the exclusivity. Only 24 pairs are sold per day worldwide. This creates a desire because the consumer feels that it is a scarce product and they are lucky if they can even get a pair. The use of a celebrity endorsement is also a key factor. People may think that if they dress like Kobe, they will play like Kobe. That said, Nike's target market seems to be more the athlete type, whether they play a sport or wish they did.


As far as my experience with this site, I really liked the amount of options you were given for shoe style. There were several types of shoes to choose from. When browsing for a shoe, I was able to see detailed product information for each shoe to help me make my decision. Once I chose a shoe, I was given the option to purchase it already customized or to do it myself. I chose to start from scratch. A great feature of the site is that you can click on the part of the shoe you want to change the color/material of and it allows you to do so. You can even add your own ID to the shoe. I think this is a great feature because people want people to ask where they got their cool shoes and they can answer, "I designed them. You can see right here on my shoe what I named them." Below you can see the NikeiD shoe that I ended up with!



The Down Side
Unfortunately, Nike does not allow for the use of many different materials on the shoe, usually just 3 types. I would like to see more options for that. The views available to look at the she you are customizing are limited. I would like a more functional option for looking at the shoe. With NikeiD, it is more like you are just choosing colors, rather than "building" your shoe.

Puma Mongolian Shoe BBQ
I had never been to this site before and WOW it is so cool! I love the approach that Puma has taken with this site. It makes the whole experience more enjoyable and fun. Pum takes the idea of designing a shoe and compares it to mixing up ingredients to make Mongolian BBQ. The home page sets the tone for the rest of the site. You are greeted by a very excited chef who tells you to grab your chef hat and "taste the art of shoemaking."


The different "ingredients" are actually the different colors and materials available for your shoe. The options seem to be endless. I decided to have fun and go a little crazy with the colors. With all of the options, i was really able to do this. For women, this site offers more options than Nike as far as colors and materials. Nike's target seems to be more athletic while Puma seems to be targeting people interested more in fashion than functionality. Puma offers 13 parts of the shoe to customize, which is more than Nike. The different views available to look at your shoe is also a great feature. You can really look at it and imagine what it will look like when you can finally hold it in your hands and admire it. My favorite part of the site is your "doggy bag." Instead of calling it a shopping cart, Puma keeps in line with the restaurant theme and puts the products you want to purchase in your doggy bag. You can see my crazy shoe below.


Here are some of the other views that I think are really cool.


The Down Side
With this site, I really feel that there are so many good things about it that the not so great things aren't a huge deal. One thing that could definitely make the site better is a wider array of types of shoes to choose from. Right now, there are only 3 types of shoes to choose from. They might increase their online market share if they expand the options.

Wrap-Up
Drumroll please! And the winner is.... Puma Mongolian Shoe BBQ! Although NikeiD is a very professional looking, highly funcitonal site, it simply does not provide the fun customer experience that Puma does. Standing out in the digital world is hard because it is so huge, but I think Puma is unique and really does stand out. It not only wins for its unique approach, but it also wins for its vast array of color and material options for the shoes. I think that you can really come out with a more original product by using Puma's site.