Current Issues in Marketing Strategy

Sports Girl has dipped it's feet into the e-commerce world, offering clients of its Peter Alexander Brand the ability to purchase online. The brand which is already generating about $11 million of their $50 million annual sales from online retailing has seen excellent growth from the Inter-web development and is going to role it out across all brands soon. What is the key to their success?

Firstly the results
AFTER 10 months, Sportsgirl's chief executive, Elle Roseby, says sales from its online store are rising 30 per cent month on month, topping 3 million page views a month and had plans for its e-commerce store to deliver up to 10 per cent of overall revenues within five years.

The Strategy
Unlike many online stores, their operating costs have actually increased because Sportsgirl made a conscious decision to keep the online store separate from its existing retail network. It operates out of the central distribution center and has a separate management team, including marketing, procurement and information technology staff. Was this a smart thing to do?

I have to say their marketing forethought was excellent. Targeting the youth market requires retailers to tactfully target social networks like MySpace & Facebook. As one example, Sports Girl tried to replicate the dressing-room experience, encouraging shoppers to post a fashion item or accessory on their Facebook profile and ask their friends if it is hot or not. I love this as it stimulates conversation about the brand and their products. It is viral without meaning to be viral (See an article by Zac Martin for more on Viral).

Josh Strawczynski's Opinon
The separation of store and e-commerce is the key to their success. Instead of supplementing their current offering and potentially 'short changing their clients', Sports Girl have planned and implemented a stand-alone SBU (separate business unit).

Even though the costs have gone up, the very nature of 'sink or swim' planning forced them to thoroughly plan the strategy, attracting and retaining customers. They went above and beyond a simple website, they integrated an online marketing plan and are now reaping the benefits.

Sam Berringer's Opinion
I like what Kasey Lobaugh from Deloitte professional services firm said: "By 2012, almost half of all retail purchases will in some way involve the internet but many retailers are failing to integrate the web into their operations."

The key to this is that retailers are competing with one another, not on having the most flashy site, but integrated marketing...that's the key.