MKT4133

Consumer Psychology

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Individual coursework

Yassine El Boucham

 

 

Module Leader: Dr. Athina
Dilmperi

Year 2017-2018

 

Word count: 3204

Table of
Content :
Introduction: 3
Analysis
of the market and competitors: 3
Competitors: 3
Consumer focused strategy: 4
Segmentation: 4
Positioning. 5
Recommendations: 6
Improvement
of digital marketing strategy: 6
Partnerships
with other entities: 8
Discounts
and gifts: 9
Conclusion: 11
References: 12
 

 

 

 

 

 

 

 

 

 

 

 

 

 

Introduction:

Desmond
& Dempsey is a British start-up specialized in premium cotton pyjamas.
Launched in September 2014 by the couple Joel Jeffery and Molly Goddard, the
company positioned itself as a luxury brand for sleepwear for a competitive
price. The business started by being an online brand for the reason that the
founders wanted to test their products, improve them, then expand the business.
Today, the trademark products can be found in many stockists like Selfridges,
Fenwick, Fortnum & Mason and The Keep Boutique in London, Bergdorf Goodman
in New York City and My Perfect Sunday in Hamburg. Customers can also purchase online
and be delivered all around the world. In fact, the company sold 2,000 products
online generating revenues worth almost £200,000 between 2014 and 2016 (Hurst,
2016). Desmond & Dempsey has debuted by manufacturing women clothes only characterized
as ‘his shirt for her’, until Christmas 2016 when it launches the first men
collection (Angelsden.com, 2018). The company realized that the US market plays
a big role because it represents 40% of the annual revenues. Joel and Molly
decided to strategically expand the business in the US and the UK and expand
their product portfolio.

Analysis
of the market and competitors:

Competitors:

The
competition in the market of pyjamas is very high and Desmond & Dempsey
knew how to stand out from its competitors. Indeed, the brand sells pyjamas but
also an international love story behind the goods. The fairy-tale began when the
Londoners Joel and his Australian girlfriend Molly met in Canada and then had
to come back to their respective countries. Afterwards, she moved to London and
had the habit to wear Joel’s shirts. In order to find something specific to
her, they decide to adapt his work shirts to her sleepwear and thereof came the
idea of their business.

Desmond
& Dempsey is considered to be a luxury brand with a competitive price in
the market, which gives it an advantage in the market. While analyzing the
market, Joel and Molly realized that there is a gap in the market and tried to
fill it with excellent quality products at a still accessible price. In fact,
almost all the fashion brands have a nightwear collection nowadays, from the
economical to the luxurious brands. On the other hand, few brands are
exclusively selling nightwear. Some of those brands are Olivia Von Halle, F.R.S
For Restless Sleepers and Alas with different target markets.

Desmond
& Dempsey pyjamas are as good as Olivia Von Halle’s ones in terms of quality;
therefore D&D is less expensive. On the other hand, there are brands like
F.R.S For Restless Sleepers that are better quality and higher price. The
company wants to push prospects to consider its brand as a cluster frontier over
the other choices that they may think about.

To
spot the market gap, we conducted a perceptual map based on two axes: price and
quality. Since we only considered luxury brands, the brands below are all place
above the average quality.

Consumer focused strategy:

Segmentation:

The
company studied the market carefully before launching their products in order
to better match the customer needs. The founders also relied on the website to
shape their collection by analyzing the popularity of each product among the
consumers.

–         
Geographically: The products are for a worldwide urban
audience because the company delivers everywhere in the world. The people
targeted are mainly English speaking customers since the website is only
available in English.

 

–         
Demographically: The segment here is both men and
women between 20 and 35 years old from the upper middle class and upper class
(mainly couples).

 

–         
Psychographically: The goods are well suited for
people looking for luxury quality products at a more affordable price. It is customized
for people who like to relax at home especially on a Sunday

 

–         
Behaviourally: Desmond & Dempsey recorded almost 20%
customers who make another purchase after the first one.

 

Positioning

Brand
positioning is the last part of the process. “The position of a product is the
place the product occupies in the customers’ minds, relative to the
competitor’s products”(Kardes, Cline and Cronley, 2011). Desmond & Dempsey
has chosen to position itself as a maker of luxury nightwear at a competitive
price.  The brand chooses little exotic
patterns in their collection to triggers customers’ memories of holiday travels.
In reality, the brand uses simple painted patterns representing nature like
mushrooms, pineapples, tree leaves, waves, colourful birds, flowers, plants
etc. (The Keep Boutique, 2016). This brings an emotional interest in the brand
because it gives an image of relaxation and nature. The clothes are made of
cotton and are hand-painted; this creates a salient stimulus to stand out from
the other pyjamas in the market. Customers are attracted to D products
because they look different and were made differently (Kardes, Cline and
Cronley, 2011). Moreover, customers are more likely to have a strong positive
attitude towards the brand because of they believe that those clothes bring a
feeling of serenity. D has an image of a brand that provides tranquillity
and distress.

Recommendations:

Improvement
of digital marketing strategy:

We
are living in a digital era when having a strong online presence is a must. I
will consequently strongly recommend being omnipresent on the internet and
especially on social media. At the beginning, Desmond & Dempsey started to
sell the products via the website only. The website looks modern, sophisticated
and more importantly user-friendly. However, the website must see some
modifications to maximize its profitability. First of all, the British business
is quickly expanding in the US, which represents 40% of the revenues now.
Nonetheless, the website is only available in English while Desmond &
Dempsey proclaims itself to be a brand with international values providing
worldwide shipping. Providing customers with their languages will bring them
closer for the reason that “language actually shapes the worldview of
consumers, their behaviour toward others, and their manners of acting (Kardes,
Cline and Cronley, 2011).

For
a customer to contact the company, there is a rubric “Contact us” where details
like telephone numbers and email address can be found. The company does take
time to answer to emails which is inconvenient for customers. On the other
hand, people are more and more busy and do not have time to write emails and
wait days for the reply, neither call on the phone and wait for their query to
be sorted. It will be then great to add a live chat where people can direct
message the company. Many companies adopted this strategy and it saves time for
both the company and the customer. Adopting new innovative technologies to
facilitate the access to information is crucial in order to satisfy customers’
satisfaction.

The
brand is also present on few social media like Facebook, Twitter and Instagram.
The company relies mainly on Instagram because the Facebook and Twitter accounts
are completely neglected. Facebook and Twitter are one of the most used social
media by Internet users, thus abandoning the pages is even worse than not
having it at all (Mediakix | Influencer Marketing Agency, 2016). The Facebook
page and Twitter profile are not up to date with the latest products since the
last post dates from the beginning of 2017, which is very bad for the brand
image of the company.

On
the other hand, the company posts once a day on Instagram and has 21.2k
followers. The rate of posting was choosing in order not to bother the
followers with spamming posts. Furthermore, the posts showing work locations
and people wearing the clothes are quite inspiring while promoting the
articles.  According to Instagram Business
Advertiser statistics, 75% of Instagrammers take action after seeing an
inspiring post on Instagram, then it is important to make use of the all the essential
features of this free online tool (Instagram For Business, 2018).

For
example, hash tags are essential to reach a maximum of people. The company uses
the hash tag #MyDnD from time to time
on some posts, it will be better to always use it in their catchphrases. This
hash tag used by the company is to make prospects want to buy the products in
order to fulfill both physiological and social needs. The physiological needs, basics
of Maslow’s Hierarchy of needs, are elements we all need as human beings to
survive (e.g. sleep, food, air). In this case, the physiological need involved is
the comfort (Pulkkinen, 2010). Furthermore, the love and belongingness need is
the human beings need to be accepted by a social group or clubs. The brand
tries to satisfy this need of belongingness and love by socially relating
customers to the D&D family.

The
profile could have more videos because it is the most effective form of online
content right now. In 2016, “55% of people watch videos online every day” (Templeman,
2017). According to Cisco’s Visual Networking Index, videos on social media will
represent more than 80% of all consumer internet traffic by 2020 (Cisco, 2017).
Videos are straightforward and effortless to consume even for the laziest
followers. In addition, Instagram stories are a good tool to build a social
media brand, advertise products and interact with customers because “one in
five Instagram stories posted by a business receives a Direct Message reply” (Constine,
2017). Here is how the company could take advantage of it and use its full
potential to improve the digital marketing strategy.

–         
Using polls to engage with the followers:

The questions are
giving the opportunity to the brand to connect with its customers by asking for
their opinion. Those polls are ideal to engage with the audience and increase
the reach of the content. For example, the company could ask the customers which
of the two pyjama prototypes they prefer before launching the chosen one. The
brand will then make decisions according to what their customers’ preferences
in order to reduce the risk of people disliking new products (Shane, 2017).
This will establish a strong brand relationship between the customers and the
brand itself.

–         
Taking follower behind-the-scenes

By doing that, the
company humanizes itself and exposes the good atmosphere within operates the team.  It is a good opportunity to inspire the
followers and show the brand’s culture and values with the intention of getting
them to trust you. People are more likely to trust a human over a brand, so
posting personal content will get their attention. This could also give you an
idea of how much dedicated work it is done to offer the best product to
customers.

–         
Live streaming:

On top of the usual
stories, there is the possibility to use the live stories which permit to live
broadcast videos. This tool might be used for questions/answers sessions (Q&A),
big announcement, events, etc. Based on the statistics, a “video of a live
event increases brand favourability by 63%” (Ahmad, 2017).

–         
Insert embedded links:

Instagram platform
gives the opportunity to users to insert hyperlinks in their stories. Users can
indeed swipe up in a story to be redirected to the embed link. This means that
the company can lead followers to the shopping part of the website where they
can see the prices and make purchases.

Partnerships
with other entities:

Desmond
& Dempsey can expand its business by partnering with other companies
related to the business. The company uses the expression “we aim to own the
bedroom” because in addition to the sleepwear, it will soon offer bed linen and
childrenswear (Angelsden.com, 2018). I would recommend to partner up with companies
manufacturing bed mattresses and give promo codes on mattresses for people who
purchase the pyjamas and vice versa. The start-up Simba Sleep would be a
perfect example since it targets young couples as well.

Desmond
& Dempsey could also partner up with brands selling bedside lamps like
Ocean Lighting which is positioned as a UK-based luxury brand for bedroom
furniture, specialized in lighting. This will help the brand get more reach and
more recognition in the market. D&D might also think about developing a
range of lamps with Ocean Lighting with patterns matching their pyjama
collection.

Joel
and Molly can consider the option of celebrity or social influencer
endorsements. Nowadays, many fashion brands use the services of influencers
because they are effective. The brand could give pyjama sets to social media
influencer for free in exchange for a post of themselves wearing it, giving
good reviews about the quality of the products and utilizing the hash tag
#MyDnD. Influencers have a huge impact on social media users because of their
large number of reached followers. If the company chooses this strategy,
Desmond & Dempsey pyjamas might become the new trend when everyone will
want to purchase a D&D product and post it on Instagram with the popular hash
tag. Using the balance theory, the brand can then be associated with other
successful brands or personalities and be likeable by the loyal consumers of
those brands and by the fans of those celebrities.

 

Discounts
and gifts:

Providing
discounts always please customers and there are many ways to apply it.
Discounts are usually there for a specific period of time; this is why people
tend to buy more during this period in order not to miss the opportunity to
save money. A study says that “35% of consumers state that they are more likely
to shop at a store where special promotions or discounts are available” (Tutorials
Point, 2018). Special prices increase the arousal of customers and motivate
them to act.

–         
Sales

The company could
provide a sale on special occasions like Black Friday, Thanksgiving, Christmas
and during winter and summer sales’ period. Since Desmond & Dempsey targets
mainly couples, it can use special dates like Valentine’s Day for it biggest
discount. Last year, more than £700 million were spent for this lover’s day in
the UK (Anon, 2017).

–         
Offers:

At the bottom of the
website, a little offer is noticeable: “GIVE
£20 | GET £20”. It basically gives the opportunity to an existing customer
to get £20 credit by refereeing someone. This referee will then benefit from a
£20 off the first purchase. Discounts offers are usually to acquire new
customers but to keep the existing one as well and turn them into loyal
customers. In addition to that, the company could offer discount on the second
item purchased. Furthermore, free customization can be offered for a specific
period of time, when the customer will have the choice to embroider initials on
the products to make it unique. Also, customers can be offered to customize the
whole pyjama with their own patterns. Thus, offers increase customer
satisfaction and influence futures purchase (Kardes, Cline and Cronley, 2011).

–         
Gifts:

Loyal customers can
be rewarded with free products or free personalization on their products. Subsequently,
Desmond & Dempsey can promise to give gifts to customers who post pictures
of them with the hash tag #MyDnD. These kinds of gestures will keep customers
pleased and happy to buy again from the same brand. It will be profitable for
both the client and the company.

–         
Giveaways:

The brand could
organize online contest or competition on Instagram. This technique is often used
to involve people by liking, commenting or sharing a post. A winner is selected
at the end of the contest and will win D&D products. This practice guarantees
a large total of reached people thanks the information spread on social media.

–         
Special products:

Moreover, special
items can be developed just for special occasions and causes. For example,
special Christmas patterns can be offered in December but also new product
lines like pompom Christmas hats. Also, Desmond & Dempsey can create
special items for social causes like HIV/AIDS with companies like (RED). This
symbolizes the creative values and corporate responsibility of the company and
improves the brand image.

Conclusion:

            Desmond & Dempsey is a brand which
stood out by providing a luxury product made differently at a more affordable
price on an online platform. The co-founders Joel and Molly took advantage of
the market gap by acquiring customers who are looking for washable cotton and
silk pyjamas that give them a special feeling of comfort of appeasement. The
brand has strong competitive advantage and effective marketing strategies to
attract new customers and keep the existing ones. However, there are many ways
to improve the current strategies and follow the trends. In fact, the digital
marketing world is constantly evolving and a tool can easily become outdated if
a company does not keep up. Having a bad management of social media profile and
website can have a negative impact on the brand image. For that, the company
should use the latest features in the market to always be close its clients. In
addition, the association of a brand with the right element has been proven to
be very valuable because of cognitive dissonance of consumers who associate
products with a good cause, a high-quality brand or a successful personality. Moreover, discounts
any special offers are a way to keep the current customers satisfied but also
to acquire new potential customers from all around the world.

 

 

 

 

 

 

 

 

 

 

References:

Hurst, S. (2016).
Luxury Sleepwear Brand Desmond & Dempsey Seeks £100,000 on Angels Den |
Crowdfund Insider. online Crowdfund Insider. Available at:
https://www.crowdfundinsider.com/2016/10/90821-luxury-sleepwear-brand-desmond-dempsey-seeks-100000-angels-den/
Accessed 27 Jan. 2018.

Angelsden.com. (2018).
Desmond & Dempsey. online Available at:
https://www.angelsden.com/en-gb/project-view/desmond—dempsey/ Accessed 27
Jan. 2018.

Kardes, F., Cline, T.
and Cronley, M. (2011). Consumer behavior. 2nd ed. Mason: South-Western
Cengage Learning. p.58.

The Keep Boutique.
(2016). Desmond & Dempsey — The Keep Boutique. online Available at:
https://thekeepboutique.com/desmond-dempsey/ Accessed 27 Jan. 2018.

Kardes, F., Cline, T.
and Cronley, M. (2011). Consumer behavior. 2nd ed. Mason: South-Western
Cengage Learning. p.402.

Mediakix | Influencer
Marketing Agency. (2016). How Much Time Do We Spend On Social Media?
Infographic. online Available at: http://mediakix.com/2016/12/how-much-time-is-spent-on-social-media-lifetime/#gs.223aJM4.

Instagram for
Business. (2018). Hitting 500,000 advertisers. online Available at:
https://business.instagram.com/blog/500000-advertisers/ Accessed 26 Jan.
2018.

Pulkkinen, L. (2010).
Paths to successful development. Cambridge u.a.: Cambridge Univ. Press,
p.357.

Templeman, M. (2017).
Forbes Welcome. online Forbes.com. Available at:
https://www.forbes.com/sites/miketempleman/2017/09/06/17-stats-about-video-marketing/#39748feb567f
Accessed 26 Jan. 2018.

Cisco. (2017). Cisco
Visual Networking Index: Forecast and Methodology, 2016–2021. online
Available at: https://www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index-vni/complete-white-paper-c11-481360.html
Accessed 28 Jan. 2018.

Constine, J. (2017).
Instagram Stories turns 1 as daily use surpasses Snapchat. online TechCrunch.
Available at: https://techcrunch.com/2017/08/02/instagram-stories-anniversary/
Accessed 28 Jan. 2018.

Shane, D. (2017). 5
Creative Ways to Use Stories to Build Your Social Media Brand (and Sales).
online Inc.com. Available at: https://www.inc.com/dakota-shane/how-to-use-snapchat-instagram-stories-to-increase-your-sales.html
Accessed 28 Jan. 2018.

Ahmad, I. (2017). 50
Social Media Video Marketing Stats for 2017 Infographic. online Social
Media Today. Available at: https://www.socialmediatoday.com/social-business/50-social-media-video-marketing-stats-2017-infographic
Accessed 28 Jan. 2018.

www.tutorialspoint.com.
(2018). Consumer Behavior Quick Guide. online Available at:
https://www.tutorialspoint.com/consumer_behavior/consumer_behavior_quick_guide.htm
Accessed 25 Jan. 2018.

Anon, (2017).
online Available at: https://www.express.co.uk/life-style/life/762090/Valentines-Day-2017-lovers-spend-millions-shopping
Accessed 28 Jan. 2018.

Kardes, F., Cline, T.
and Cronley, M. (2011). Consumer behavior. 2nd ed. Mason: South-Western Cengage
Learning. p.254.

 

 

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