Net - A - Porter

TEAM

CHETHANA MANJUNATHMATTHIAS HOLCAPEK

SAKET TOSHNIWALARSHAD WAHID

Question 1 – Consumer’s profile

Victoria (38 years old)

Sex :Female

Job: Senior executive at Apple

Annual Household income : £180,000

Annual spend on luxury fashion : £14,400

Marital Status: Married/living with a partner

Activities: Shopping, Travelling, Lead Company Role

Interests: Job, Recreation, Reading Fashion Magazine, Music, Technology

Opinions: Economics, Culture, Social Issues

Lifestyle : Urban, Professional, Luxury

Life motto: “Live Life Queen Size”

INSTRUMENTAL VALUES (core values/personal traits)

●ambitious●independent●competitive●fashionable

TERMINAL VALUES (desirable state of existence)

●Freedom●Excellence●Self-challenge●Inner-harmony●Curiosity

Learning Through Observations and Conditional

Other Personality Traits* Risk Aversion * Innovation * Self Eversion *Emotional * Multi-Cultural

Question 1 continued – Consumer profile (Net-A-Porter Watcher/ Seldom User)

Jenny (27 years old)

Sex : Female

Modelling and Part time Job at Loreal

Her Income : £60000Annual Household income : £170,000 * (Her Father is rich)Annual spend on luxury fashion : £5,900

Marital Status: Unmarried / Open relationship

Activities: going to the gym, online shopping, travel,

party going, modelling

Interests: music, dancing, relationships, modelling,

trying new clothes Opinions: Fashion, Culture, Lifestyle

Lifestyle : Urban, Luxury, Young-Adult

Life motto: “Variety is the spice of Life!”

INSTRUMENTAL VALUES (core values/personal traits)●creative/artistic●imaginative●independence

TERMINAL VALUES (desirable state of existence)●freedom●self-respect●inner-harmony●sociableLearning Through Observations, Conditional and Experimental

More Personality Traits*Emotional * Projection* Extrovert* Self Esteem* Ambitious * ‘Love The Show’ - ‘Love the Magic’

● Net-a-Porter.com –An Online retailer specializing in luxury and exclusive designer apparel and accessories.

● When the company launched 10 years ago, it faced positioning difficulties as it was new to the world and change is generally not accepted well.

● But, there was continued growth due to a coherent strategy using extensive product differentiation and market diversification.

● On the company side- It was very difficult to set up eretail company a decade ago and hiring high end brands to sell products online.

● On the consumer side- The main focus was to create an online experience that was just as indulgent as the process of buying a luxury goods in stores. Company main focused on convince, choice and customer service to help meet the needs of high end luxury buyer.

Question 2- Positioning on Net A Porter

● The main focus while positioning the company was “time”, building the website at desired time and being able to help customers to access a high end department store unrestricted by geographical constraints.

● In this era, in order to consolidate its position and establish itself, not only as the pioneer but also as an influential player , Net-A-Porter focuses on customer retention and updated trends . Main aim of the company was to retain customers and laterally expand into gaining new customers.

● Adding to relationship, they developed custom designed to suit customers exact preferences.

What is in Fuuture for Net-a-Porte.● In our opinion, with a strong coherent strategy in place that is already

addressing market divarication, new revenue sources and increase in demand , the odds that Net-a-Porter will remain a big player in this market are high.

Positioning on Net A Porter - contd.

Question 3: Role of Reference GroupsNet-a-porter´s target group are● females (women in relationship, wifes/mothers and singles)● which are busy and mobil, highly fashion orientated with ● limited time capacity for shopping

The role of reference group:

woman in relationship wifes/mothers singles (female)

Influencer influenced by partner, peers & friends influenced by family, peers & friends pressure from peers, friends

Gatekeeper mainly close friends, but to certain extent also peers (shopping advices, discussions about fashion, etc)

User the woman herself the woman herself the woman herself

Decision maker the woman herself & BFF-> wants also to appeal to her boyfriend

the woman herself & BFF-> wants also to appeal to her spouse

the woman herself & BFF-> wants to look good in front of

others

Purchaser mainly the woman herself the woman herself, in some cases the spouse -> payed withfamily income

the woman herself

Question 4 : Net-a-porter and Social Media● Advantages:

○ Two way conversations - Customers and Net-A-Porter○ Real time feedback○ Better targeting and targeting ads to newer audience(aspirational)○ Re-targeting of ads○ Increase brand loyalty through engagement○ Gain deeper insight into the customer's mind○ Relatively inexpensive form of advertising

● Disadvantages:○ Difficult to see quantify financial returns○ Negative word of mouth can cause severe damage to the brand○ Luxury on Social media do not get sales, it only helps customer engagement

Q5- How net-a-porter overcame consumers´s potential perceived risks

● Security of payment online: Security certificate and secured payment gateway provided by Datacash Ltd.

● Quality of products: Only luxury goods are sold. So quality of the product can’t be questioned

● Privacy: Client information will only be shared with third parties where they abide by applicable data protection legislation. Consumer Privacy is taken seriously

● Delivery: The package is insured against theft and damages by Net A Porter

Source: https://www.net-a-porter.com/gb/en/Help/FrequentlyAskedQuestions

THANK YOU

CHETHNA MANJUNATHMATTHIAS HOLCAPEK

SAKET TOSHNIWALARSHAD WAHID

Created by Saket

CHETHANA MANJUNATHMATTHIAS HOLCAPEK

SAKET TOSHNIWALARSHAD WAHID