Competitive Advantage Analytics assignment for Romper & Co
Question
Task: How can Romper & Coutilize Competitive Advantage Analytics assignment research methods to develop effective marketing plans?
Answer
1. Introduction
Research done for this Competitive Advantage Analytics assignment shows that Romper & Co, an Australian retail shop specializing in apparel and accessories for infants and toddlers, has hired me as a consultant. Romper & Co is seeking my assistance on how to improve its digital marketing strategies, especially in light of the changes that many brick-and-mortar stores have had to make in the last two years owing to COVID-19 regulations. COVID-19 measures have had a significant impact on the level of certainty with which retail establishments may operate, including the ability to comprehend changing customer behaviour and how they now choose to purchase. During this uncertain moment of transition, the digital transformation options that Romper & Co chose to explore could lay out a competitive advantage inside the retail and, explicitly, the baby clothes market. Romper & Co is turning to me for guidance on how to plan and implement their ongoing digital transformation to position themselves for future success. The Competitive Advantage Analytics assignment will recommend STP and marketing mix of Romper and Co. Then relevant fixed, variable and marginal costs will be discussed. After that, the Competitive Advantage Analytics assignment will recommend strategies for customer relationship management and acquiring new customers. A/B testing and Multivariate testing for Romper & Co. will also be conducted.
2. Competitive Advantage Analytics assignment Data
The retail business in Australia creates more than $300 billion in yearly consumer expenditure and employs somewhere in the range of 15% and 17% of all Australians (“How digital transformation is revolutionizing the Australian retail industry”, 2021). Barely any organization's areas are impacted by changes in buyer conduct as the retail business. Buyer opinion and household earnings were additionally impacted by the COVID-19 lockdown. The Australian retail industry encountered a critical drop in people walking through during the COVID-19 Pandemic, as purchasers decided to notice the government's warnings and remain at home. Click and Collect accounts for most of the excess traffic.
3. STP
The first step in segmentation is identifying all possible Romper & Co customers. Romper & Co.'s target markets can be segmented in a variety of ways.
Behavioural: Based on how individuals use the product, their loyalty, or the benefits they want.
Geographic: By region, city, country, state, or neighbourhood.
Demographic: Marital status, age, ethnicity, gender, education, sexuality, and occupation are all demographics (Romppanen, 2021).
Psychographic: Risk aversion, personality, values, and lifestyle are all psychographic factors.
I wish to target a geographical segment. With India being home to an expected 120 million children aged 0 to 4, retailers accept the baby wear market's development pace is presently tantamount to that of the kids' wear market (Balram, 2019). Romper & Co. might generate a lot of money due to the big consumer base.
STP's position is tied to creating things and selling them to match a specific geographic marketing segment. It is the most significant. Since the company's marketing strategy will fizzle if we don't get a handle on the best way to promote Romper and Co.'s proposalfor geographic groupings. To decide on the positioning, Romper and Co ought to utilize the accompanying tools:
• Positioning map
• USP (unique selling proposition)
4. Marketing mix
The four Ps of the marketing mix is "product, pricing, promotion, and place” (Singh, 2012).
Product: Romper & Co.'s product line incorporates accessories and apparel for infants and babies (Romper & Co, 2022). A product ought to, in principle, fulfil a current buyer's interest. Romper and Co should comprehend the existing pattern of a product to find lasting success, and business pioneers should have a technique for managing products at each mark of their life cycle.
Price: Price is the sum that clients pay for a thing. Romper and Co should not just connect the cost to the items evident and seen in worth product's true and perceived worth. Yet, they should likewise consider occasional decreases, supply costs, and contenders' costs. They could decrease the cost so that more individuals can test the product. A discount can every so often draw in extra clients.
Place: Romper and Co need to sort out where they ought to sell a product and how to get it to the market. Business chiefs ought to continuously place their things before the clients who are generally disposed to buy them. This alludes to the placement of Romper and Co items in specific Indian retailers.
Promotion: Romper and Co.'s target market is through smart and targeted advertising. To contact its audience in the proper area and with impeccable timing, the organization ought to utilize an email campaign and a P.R. effort that features its products.
5. Marketing costs
The expression "fixed cost" alludes to an expense that doesn't change how much labour and products are created or sold in increments or diminishes (Liu and Tyagi, 2017). Fixed costs are costs Romper and Co. should pay no matter what the special organization tasks. Therefore, fixed costs are frequently aberrant, as they don't have any significant bearing on the manufacturing of any items by Romper and Co. Variable costs will be costs that vary corresponding to the volume of things delivered by Romper and Co. They are, all in all, charges that change in light of the degree of movement. Costs ascend as the number of exercises develops and fall as the quantity of exercises declines. Marginal cost is the gradual expense of creating another unit of a product. In the marginal costing approach, just variable production costs are reflected in the unit cost. Period costs are charged in full to the Profit and Loss Account for fixed costs. The marginal cost of production is utilized to calculate the change in the cost of an item because of delivering an extra unit of the result. After Romper and Co. have arrived at its optimal production level, producing more units would expand the cost of production per unit.
6. Customer relationships
The Competitive Advantage Analytics assignment also finds that Customer Relationship Management (CRM) is a method for effectively dealing with customers (Nashwan and Hassan, 2017). The following are the recommended strategies for Romper& Co regarding customer relationship management and acquiring new customers:
Track data: Romper and Co should keep up with track of purchase history and demographic data to demonstrate that it is focusing on its clients. The company can acquire a superior comprehension of its clients' needs and inclinations by tracking this data (Forth and Mohr, 2021).
Protect customers' rights: Romper and Co should cater to not only customers' wants but also their rights (Dhingra, 2021). Abusing the rights of customers is not acceptable. They should be treated well by Romper & Co. to gain their trust.
Offer discounts: Utilizing deals and discounts to lure new customers is an incredible procedure to break into a cutthroat area. Individuals appreciate discounts since they save money while likewise feeling as though they are getting unique and confined admittance to something. Romper & Co should post coupon promotions on its social media sites. Social media presence: Romper and Co should have an online presence for its brand on major social media platforms such as “Twitter”, “Instagram”, and “Facebook”. Albeit social media is best for expanding brand awareness and marketing influence, it might likewise help with the procurement of new customers.
7. A/B testing and Multivariate testing
• A/B testing
The method of comparing two or more variables under similar circumstances is known as A/B testing (Silva, 2017). A/B testing can be a powerful method for expanding Romper and Co sales.
• To legitimize investment, test in-store merchandise teams. Calculating the return-on-investment from in-store visits vs adjacent competitors' stores, for instance.
• Evaluating two different product collections. For instance, deciding the best ways of introducing Romper and Co items and increasing sales.
• Scrutinizing two kinds of packing. Sending off another type of packing, for instance, to see which is more powerful.
• Multivariate test
A multivariate test analyses the connections between numerous variables (Sullivan, n.d.). However long the right factors are picked, this type of examination can upgrade all parts of Romper and Co.'s business. Multivariate test for product pricing: Competitive Advantage Analytics assignment research shows that clients won't return if they can't find the things they expect at a price they can bear once they enter the store. The impact of Romper and Co. discounts, price structures, and special sale occasions will be tested utilizing a multivariate investigation. Multivariate test for advertising: Various sorts of promotions and dissemination stations, for example, T.V. and print, will be tested utilizing a multivariate test. This might require surveying Romper and Co. customers to figure out how they found out about the brand. When the fundamental components are still up in the air, the organization can help its visibility by venturing into national media outlets or putting more cash into successful advertisement crusades.
8. Conclusion
Romper and Co. should target the geographic segment of marketing.It should comprehend the existing pattern of a product to find lasting success. They should decrease the price so that more individuals can test the product.Romper and Co need to sort out where they should sell a product and how to get it to the market. To contact its audience, the organization ought to utilize an email campaign and a P.R. effort that features its products. Romper and Co should keep up with track of purchase history and demographic data to demonstrate that it is focusing on its clients. The company should treat well the customers to gain their trust.Romper & Co should post coupon promotions on its social media sites. Romper and Co should have an online presence for its brand on major social media platforms such as “Twitter”, “Instagram”, and “Facebook” to acquire new customers. A/B testing should be conducted to scrutinize two kinds of packing and evaluate two different product collections.The impact of Romper and Co. discounts, price structures, and special sale occasions will be tested utilizing a multivariate investigation. Various sorts of promotions and dissemination stations, for example, T.V. and print, will be tested utilizing a multivariate test.
9. Statement of Intent
The target audience is the founder of Romper & Co.This Competitive Advantage Analytics assignment offers insight into how they should plan and implement their continuing digital transformation to ensure future success. This paper offers tips on how to improve their digital marketing strategies, especially in light of the changes that many brick-and-mortar stores have had to make in the last two years as a result of COVID-19 regulations. I have used peer-reviewed articles and the company’s website to improve the readability of my Competitive Advantage Analytics assignment.
Reference
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DC Encompass. 2021. How digital transformation is revolutionizing the Australian retail industry. [online] Available at:
Dhingra, S., 2021. Driving success for Australian retail with digitalization. [online] Google. Available at: https://blog.google/around-the-globe/google-asia/australia/driving-success-australian-retail-digitalisation/ [Accessed 20 May 2022].
Forth, P. and Mohr, S., 2021. The Success Formula for Australian Companies to Digitally Transform. [online] Boston Consulting Group. Available at: https://www.bcg.com/en-au/publications/2021/digital-transformation-in-australia [Accessed 20 May 2022].
Liu, Y. and Tyagi, R.K., 2017. Outsourcing to convert fixed costs into variable costs: A competitive analysis. International Journal of Research in Marketing, 34(1), pp.252-264. https://doi.org/10.1016/j.ijresmar.2016.08.002
May, R. and Cockburn, G., 2020. Solomon Lew’s Premier Investments says high rents could close 350 stores. [online]
news.com.au.Competitive Advantage Analytics assignment Available at: https://www.news.com.au/finance/business/retail/premier-investments-says-high-rents-could-close-350-stores/news-story/2bf2d045e24bb272e6a8d2b9e904f46c [Accessed 20 May 2022].
Nashwan, S.A. and Hassan, H., 2017. Impact of customer relationship management (CRM) on customer satisfaction and loyalty: A systematic review. Journal of Advanced Research in Business and Management Studies, 6, pp.86-107. https://www.researchgate.net/profile/Haslinda-Hassan-2/publication/318206357_Impact_of_customer_relationship_management_CRM_on_customer_satisfaction _and_loyalty_A_systematic_review/links/595c80b5aca272f3c088a099/Impact-of-customer-relationship-management-CRM-on-customer-satisfaction-and-loyalty-A-systematic-review.pdf
Romper & Co. 2022. ABOUT US. [online] Available at: https://romperand.co/pages/hello [Accessed 20 May 2022]. Romppanen, J.M., 2021. Segmentation, Targeting & Positioning (STP). DOI:10.13140/RG.2.2.26266.16322/1 Silva, M., 2017. A/B Testing: How Retailers Can Optimize Their Sales With Experimentation. [online] Shopify. Available at: https://www.shopify.com/retail/ab-testing-how-retailers-can-optimize-their-sales-with-experimentation [Accessed 20 May 2022]. Singh, M., 2012. Marketing mix of 4P’s for competitive advantage. IOSR Journal of Business and Management, 3(6), pp.40-45. www.iosrjournals.org
Sullivan, D., n.d. The Uses of Multivariate Analysis in Retail. [online] Chron.com. Available at: https://smallbusiness.chron.com/uses-multivariate-analysis-retail-80553.html [Accessed 20 May 2022].
”Woolworths is launching its online marketplace Australia-wide, as the supermarket giant seeks to compete with Amazon”Competitive Advantage Analytics assignment: https://www.businessinsider.com.au/woolworths-marketplace-australia
