MKT3063 AS1 E-PORTFOLIO
3. STRATEGY
A comprehensive strategy involves consideration into how an organisation will achieve its marketing objectives (PR Smith, 2022). Therefore, this campaign plan will adopt Ansoff’s Matrix (Figure 1.4) to identify the most attractive growth strategy for Balenciaga’s objectives and determine any associated strategic risks (Peterdy, 2023).
PRODUCT/SERVICE
Figure 1.4 - Ansoff's Matrix
Figure 1.4 - Ansoff's Matrix
MARKET
3.1 STRATEGY FOR OBJECTIVE 1
To achieve Objective 1; Introduce a bespoke tailoring service to increase online and in-store sales conversion rates for Balenciaga by 3% within 6 months, this marketing plan will follow a product/service development strategy. As the ‘Technology and Tailoring’ campaign aims to develop a new, immersive made-to-measure service (Junming and Calvert, 2023) to design unique products for Balenciaga’s existing target segment of digitally-savvy millennial and Gen Z consumers, the level of risk is moderate. However, the offensive competitive strategies portrayed in the TOWS matrix (Section 1.4 Figure 1.3) reveal how to leverage Balenciaga’s strength in quality design (WARC, 2023) to maximise opportunities in tech-led personalisation and experiential luxury (Sevak, 2023). Therefore, the overall risk to pursue a product development strategy for Objective 1 is low.
3.2 STRATEGY FOR OBJECTIVE 2
Objective 2; Increase awareness of Balenciaga’s brand heritage in tailoring within the consumer segment of 18-34 year olds by 13% before June 2023, requires a market penetration strategy because it involves selling existing products to an existing target demographic in order to build brand salience about Balenciaga. Currently, brand awareness for Balenciaga is 67% in the UK and 63% in the US (Statista, 2023). Therefore, it is recommended that this campaign plan adopts a market penetration strategy in order to fulfil Objective 2 with minimal risk.
3.3 STRATEGY FOR OBJECTIVE 3
To accomplish objective 3; Increase visitors to Balenciaga’s website by 2% within 4 months to educate Gen Z and millennial consumers about the artistic process of clothes design and couture, the suggested strategy to pursue is market penetration. Although a market penetration strategy focuses primarily on increasing sales of an existing product or service to a current market segment (Pallister, 2023), Objective 3 demonstrates the possibility of converting visitors into customers through creating an authentic educational community.