Electronic Marketing and Singapore Jewelry Website - Case Study Example

Introduction Teen Bling Accessories, online jewellery store is a sole proprietorship based in Singapore. It is aimed at teenage girls allover the world. To Teen Bling Accessories, good value is a combination of high fashion jewellery and affordable prices which is her primary goal. The business comes under the category of business to consumer as jewellery items would be directly sold to customers online. Her slogan, flaunt your style, reflects the confidence that she anticipates customers to show off when they wear the brand. Exceptionally fashionable jewellery collections are designed by professionals every season to keep up with customers expectations. Teen Bling Accessories’ formula for success is a customer-centric approach where customer is treated as a king. She assumes success would result if a low-price strategy is adopted which would be in line with her customer-centric approach. Objective: To increase revenue by 10% each quarter by delivering products in Asia, US, UK, Canada, Australia, South Africa and Europe. Scope: Online jewellery business has a wide scope in today’s highly fashion-conscious world. In this era you can hardly find a female—more specifically, a teenaged girl—who is not conscious about her outlook and hence, wishes to look fashionable. Having internet-savvy and IT-literate people in Singapore presents a gigantic opportunity for Teen Bling Accessories as the rising shift to online shopping, to match the fast pace of life today, has paved way for electronic commerce to flourish in Singapore. A survey conducted in 2006 by Infocomm Development Authority concluded that “74% of homes in public housing and 92% of the homes in private housing had computer access at home” (Economist Intelligence Unit 2007). Segmentation In Segmentation, the potential market is divided into homogenous segments with similar needs, buying patterns or having similar responses to marketing efforts of the firm, etc, which can be done using a Customer Relationship Management (CRM) database system. A good marketer then focuses on a specific segment whose needs it can serve best—that segment is the target market (Hopps 2007). Trendy and affordable jewellery can be purchased by females of all age groups, not necessarily teenagers. Various segments may include women in their 20’s, 30’s, teenaged girls, etc. To reach the decision of selecting her target market, Teen Bling Accessories first analyzed her micro and macro environment. Resource-based Opportunities: Teen Bling Accessories is a trademark of high-fashion at affordable prices. Hence, trendy designs and affordability are the company’s resource-based opportunities which make way for Teen Bling Accessories to become a winner in its market. To incorporate up-to-the-minute fashion in her design collections, Teen Bling Accessories has a league of tasteful young designers in its team. Variety, also, gives Teen Bling Accessories an edge over its online competitors like: www.FJewelryStore.com, www.lushcrystaljewelry.com, www.accessoriesloft.com. These online entities have an elaborate product line but have clearly ignored to add variety to each product range specifically for teenagers. Teen Bling Accessories, on the other hand, offers a large variety in all of its product lines; be it lockets, bracelets, et-al. Moreover, these competitors cater to the needs of women in their 20’s and above and therefore, would have posed direct competition had Teen Bling Accessories selected some other age group of females as her target market. Assessing Opportunity Attractiveness: Teen Bling Accessories has a large market as jewellery business is a very desirable industry and bringing this business online will, ultimately, be fruitful and growth rates will tend to rise but only if done through a proper customer-oriented approach in order to attract the large audience that is, to a major extent, already shopping online. Teen Bling Accessories makes sure that she promises only those products and facilities which can be provided through the technologies that it can support and hence, its dreams are realistic. While assessing the attractiveness of this industry we also need to see the type of competition the company faces. Both offline and online competition exists for Teen Bling Accessories but that threat can be minimized through online loyalty programs and communities that attract and retain clients. SLEPT Framework Socio-cultural Environment: Singapore is an eastern country where traditions and values are followed. Strong family structure prevails in the society. On the contrary, the young generation of Singapore is modern and follows more western culture and values. There are 4 national languages in Singapore, i.e. Mala, Mandarin, Tamil and English (Kwintessential n.d.). Teen Bling Accessories targets young females of Singapore. In the current era of technology, most of the people are internet literate which makes it easier for Teen Bling Accessories to carry out its business in a favourable environment. The average nominal earnings per employee by industry in the second quarter of 2010 are 4310 Singapore Dollar (Central Provident Fund Board 2010). The products that Teen Bling Accessories offers are, thus, affordable by an average Singaporean. The young teenagers of Singapore are modern and tag along the latest trends which are being followed at national and international level. They adapt easily to change as 93% of teenagers in Singapore are willing to acquire new skills (State of family in Singapore). In the recent years, the trend of online shopping has relatively increased. As a result, teenagers find it more trendy and convenient to shop online. Legal Environment: SPRING (Standards, Productivity and Innovation Board) is an enterprise development agency of Singapore that helps in the growth of innovative companies and fosters a competitive SME sector (SPRING Singapore 2010). The Competition Commission of Singapore ensures implementation of fair and healthy policies of competition (Competition Commission Singapore 2010). The Ministry of Finance, Singapore builds policies which will make Singapore a world-class financial and business hub. MOF focuses on building a business environment that facilitates growth. Moreover Singapore is ranked first throughout the world for having the best intellectual property protection. It is considered to be the least bureaucratic place in Asia where business could be conducted (EDB Singapore 2010). The laws and regulations of Singapore are such that promote businesses and thus, there exists a favourable opportunity for Teen Bling Accessories to carry out business in Singapore. Economic Environment: The economy of Singapore is ranked first for having the most open economy for international trade and is the easiest place for carrying out a business. It is ranked second for having the best investment potential for 16 consecutive years. It is the most competitive country across the globe (EDB Singapore 2010). Singaporeans of all age groups, however, face credit card defaults as a very common default, so it is a threat for Teen Bling Accessories (Jethnani, 2010). As People of Singapore have a high cost of living, by charging affordable prices Teen Bling Accessories make it appealing for Singaporeans (Yahya 2010). Political Environment: Singapore is, in general, a politically stable country. The government has a highly centralized or bureaucratic style which is typified by top-down style. Meritocracy is strongly observed which helps to reduce the rate of corruption in the country. Singapore is popular for having a high quality government which has helped the country to grow and develop swiftly. It is one of the few countries in the world which has coped to enter into first-world country from a third world country due to the firm policies of her government (Qiu 2010). Most Economists classify Singapore as a “Hybrid” state having characteristics of both democratic and bureaucratic systems. Singapore has demonstrated to be a politically stable country and has been repeatedly rated to have the least rate of corruption in Asia by Transparency International (Easy Expact 2008). Since political factors have a huge impact on the operations of a business, the stable political environment and favourable policies will help Teen Bling Accessories carry out her business without any hassle. Technological Environment: Technological advancement all over the world is very rapid and it is, therefore, a challenge for Teen Bling Accessories to adapt to the changing technological trends. Singapore is expected to become a regional hub for e-commerce owing to her sound financial sector and reputation as a safe haven (Economist Intelligence Unit 2007). So, improvements in technology are sure to come frequently and adapting those new trends is the way to go for Teen Bling Accessories. In fact, the comprehensive structure of IT has already helped Teen Bling Accessories carry out its operations more effectively. Target Market Teen Bling Accessories targets all the teenaged females available online, not restricted to Singapore, in order to fulfil their unmet and underserved needs that used to frustrate them. Teen Bling Accessories offers a wide variety of jewellery specifically designed for teenaged girls at affordable prices, with up-to-date designs and fashion news updates. The designers at Teen Bling Accessories design jewellery using different embellishments, materials, colours and styles that match the respective age group which they’re meant to attract. Marketing Mix Once segmentation has been done, many target groups may exhibit potential but the main task is to focus all your energies on one or two segments which can be picked using the help of the 4 marketing mix elements (Kyle n.d.). A strong focus on the marketing mix elements—product, price, place and promotion—is a prerequisite for building strong brands, which is imperative to the success of any business. 1. Product not only comprises of the good or service being offered by the company, it also includes the whole experience that the customer gets when shopping from a store. The total offering (brand name, features, packaging, guarantees and the like), in other words, makes up the product (Gilbert 2003). Teen Bling Accessories is a brand that teenagers can relate to since today’s teenaged girls are very fashion-conscious and trendy. Teen Bling Accessories with her several product lines—necklaces, rings, earrings, bracelets, hair pieces, brooches—each having a wide product range to cater to the likes of teenaged girls all across the world, offers wide variety to match different tastes and styles, from rocker to glamorous. The product, unlike competitors’ goods, comes under the category of artificial jewellery instead of using expensive diamonds, crystals, gold or silver. The product packaging is done by wrapping the jewellery in soft tissue paper, which is then put into solid boxes that ensure safe delivery of products to its customers; any damaged products delivered are replaceable with no additional costs to customers. Thanks to technology, now repeat customers can be identified and offered incentives to promise loyalty in future. Owing to Teen Bling Accessories’ user-friendly, fast and convenient website, shopping at Teen Bling Accessories is a hassle-free experience. Payment of goods can be done easily through credit cards (Visa, MasterCard, Amex, Paypal, ATMs). The most important question from the technology point of view is whether the company’s site responds effectively or not as it is very important for an online business to ensures a quick, user friendly and effective website that is supported by available technology or will be supported by even better upcoming technologies. Teen Bling Accessories answers all these questions in affirmation and has dreams that coincide with the available and upcoming technologies that are in its reach. 2. Price: What the customer is willing to pay in exchange for the total offering makes up the price (Gilbert 2003). As Teen Bling Accessories is targeting teenaged girls the world over, the only fruitful pricing strategy would be to go for economy-pricing and product bundle-pricing strategies. Since teenagers do not wear very expensive jewellery made from diamonds, gold, platinum, etc, nor can they afford to buy highly priced jewellery items like those offered by Teen Bling Accessories’ online competitors. Discount vouchers at volume purchase, seasonal pricing and product bundling offer valuable discounts that will attract as well as retain customers. 3. Place or distribution explains how a company distributes her products to customers (Volker 1998) that includes all the intermediaries that are, actually, our partners in selling a final product to our customers. Demand should be forecasted accurately so that business is not lost due to shortage of supply. Simply put, distribution should be done at the right place and time, both efficiently and effectively, if success is desired. At Teen Bling Accessories, jewellery is designed by young professional designers hired by the company. A physical store can be located at Geylang which is the central business district in Singapore and has a couple of jewellery stores located there for the same reason. A secure online payment mechanism is mandatory if customer trust is to be gained as personal information of customers, such as credit card information, if leaked to third parties can have serious legal implications for the company. Teen Bling Accessories, thus, has policies that certify that the data collected from customers are protected from unauthorized persons. Once orders are placed, goods are thoroughly examined for any defects and are packed individually ensuring excellent wrapping to prevent any damage during shipment. The items are then mailed through registered mailing services which results in traceability of items as a tracking number is allotted through which delivery status of goods can be checked online at Teen Bling Accessories’ page. Shipping charges do not apply within Singapore, but outside the country shipping charges vary with varying levels of purchase and urgency levels of customers, plus any damaged products delivered are replaceable with no additional costs to customers. 4. Promotion is done to “inform, persuade and remind customers” about your product. Promotional strategies are devised in order to do the aforementioned tasks of promoting your product in consumers’ minds to achieve the company’s marketing goals (Lake 2009). Online businesses, like Teen Bling, mostly use the medium of internet, alone, in order to promote its products. Awareness of Teen Bling Accessories’ products through internet can take the form of online web (including attractive banner ads, inclusion in business directories of online jewellery stores, et-al), social networking sites (like Twitter and Facebook) and subscription e-mails (alerts on arrival of new stock, fashion news updates, etc). Through Bling Chat, an online chat space and forum on Teen Bling Accessories’ webpage, not only immediate solutions to customer’s queries can be provided but also other kinds of information that the user needs according to the products or new trends in the market, etc, can be given out to customers to develop a long-term bond with them and hence, creating a Teen Bling Accessories community which will eventually develop a sense of loyalty. With the help of this forum a lot of feed back regarding customer tastes, likes and dislikes can be assessed over time. Another important promotional strategy is to exercise good search optimization techniques through which ranking can be improved in key search engines (Lake 2009). It would be beneficial to publish press releases on the internet and hold contests with exclusive prizes for winners on the Teen Bling Accessories website. It is extremely important to review and evaluate the company’s online marketing performance by applying analytical tools to “measure leads, sales and brand involvement” being delivered by search engine marketing, banner ads, email marketing, etc (Chaffery, et-al 2006). Positioning Teen Bling Accessories, through her various marketing efforts, is trying to communicate her image as a trendy and affordable jewellery store for teenaged girls. The branding strategies and e-marketing techniques employed are such that are consistent with the positioning that she desires to create in her customers’ minds. Branding Strategies Globalization has led to intense competition, both offline and online, all around the world. In such competitive situations, businesses thrive to stand out in the clutter and offer more than just a great product (Gwinnett Business Journal). Today, businesses cannot work solely on their products and expect their goods to automatically get purchased by interested buyers. Instead, what any business needs is to develop a great brand which promises only those brand attributes that the brand is able to deliver (Roll n.d.). Through recognizable logos, taglines, clear and consistent messages, Teen Bling Accessories can stand out within her industry. Trendy designs and affordability are her brand drivers which will be perceived by customers to offer extra value compared to competitors’ offering. Teen Bling Accessories should direct all its efforts towards its target market—teenaged girls—and engineer consistent marketing messages according to that segment’s preferences and lifestyles. Teen Bling Accessories has an eye-catching pink, funky logo that would appeal to teenaged girls and simultaneously, communicate the trendy and girly image that she wants to communicate. The brand has a confident tagline: flaunt your style, which is in line with the image of Teen Bling Accessories where inexpensive, trendy jewellery is made available to teenagers who can now flaunt their style with sheer confidence without spending a fortune on jewellery. Conclusion Teen Bling Accessories aims to provide high fashion jewellery at affordable prices to teenagers through consistent marketing efforts directed towards teenaged girls. Having tasteful young designers in its team, growth rates of Teen Bling Accessories will rise only if coupled with a proper customer-oriented approach. Hence, a community is developed online through loyalty programs at Teen Bling Accessories’ website—appearance in social networking sites (Twitter and Facebook), subscription e-mails (new stock alerts, fashion news updates, etc) and online chat forum on its website—that instil loyalty which helps attract and retain clients. Similarly, affordable prices with discount vouchers at volume purchase, seasonal pricing and product bundling offer additional value that also attract as well as retain customers. For international growth it is important for Teen Bling Accessories to continue with customer-centric marketing efforts that ensure ultimate loyalty and retention. Works Cited: Central Provident Fund Board. 2010. Earnings and Wages. Available: http://www.mom.gov.sg/statistics-publications/national-labour-market-information/statistics/Pages/earnings-wages.aspx. Last accessed 27 November 2010. Chaffey, D. Ellis-Chadwick, F. Mayer, R., (2006). Internet Marketing: Strategy, Implementation and Practice . 3rd ed. Financial Times: Prentice Hall. Competition Commission Singapore (CCS)., 2010. CCS International Affairs. [Online] Available at: [Accessed 26 November, 2010]. Easy Expat. 2008. Overview: Politics of Singapore. [Online] Available at: [Accessed 26 November, 2010]. EDB Singapore, 2010. 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