MKT4133 Consumer Psychology
Yassine El Boucham
Module Leader: Dr. Athina Dilmperi
Table of Content :
Analysis of the market and competitors: 3
Consumer focused strategy: 4
Improvement of digital marketing strategy: 4
Partnerships with other entities: 6
Discounts and gifts: 7
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:
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 for 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.
Consumer focused strategy:
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).
– Psycho graphically: The goods are well suited for people looking for luxury quality products at 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.
Brand positioning is the last part of 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 tropical pattern in their collection to triggers customers memories of holidays. In reality, the brand uses simple painted patterns representing nature like mushrooms, tree leaves, waves, colourful birds, flowers, plants etc. This brings an emotional interest to 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 by D&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.
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 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. 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 a 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 fulfil 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 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 about 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 permits to live broadcast videos. This tool might be used for questions/answers sessions (Q), 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. This means that the company can redirect followers to the website where they can shop online.
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.
The company 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.
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 product and post it on Instagram with the popular hash tag.
Discounts and gifts:
Providing discounts always pleases customers and there are many ways to apply it. Discounts are usually there for 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” (www.tutorialspoint.com, 2018). Special prices increase the arousal of customers and motivate them to act.
The company could provide a sale in 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).
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 as loyal customers.
Free customisation can be offered for a specific period of time. The customer may have the choice to embroider initials on the products to make it unique.
Desmond & Dempsey can offer customers to post pictures of them with the hash tag #MyDnD
Loyal customers can be rewarded by free products or free personalization on their products. These kinds of gestures will keep customers pleased and happy to buy again from the same brand.
The brand could organise 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.