pfl-dcs individual assignment

Amelia Simpson i7671997 Level I Advertising

DCS: Individual Assignment: Competitive Review

Word count: 2730

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Page of Contents

Section 1: Screwfix and its Competitors Activity page 4-6

Section 2: Incorporating Parts 2 or 3 of the Brief: Website Analysis of ‘www.toolstation.com’……………...……..page 7-11

2.1: Purpose…………………………………………..page 72.2: Objective for Using the Channel………………page 7-8 2.3: Target Audience………………………………...page 8-92.4: Brand Identity……………………………….......page 9 2.5: Type of Content…………………………………page 9-102.6: Tracking and Measurement…………………...page 10-11 2.7: Engagement with Customer…………………...page 11

Section 3: Incorporating Parts 2 or 3 of the Brief: Website Analysis of ‘www.twitter.com/ToolstationUK’……….page 11-14

2.1: Purpose………………………………………….page 112.2: Objective for Using the Channel……………...page 11-12 2.3: Target Audience………………………………..page 122.4: Brand Identity…………………………………...page 13 2.5: Type of Content………………………………...page 13 2.6: Tracking and Measurement…………………...page 13-14 2.7: Engagement with Customer………………......page 14

Section 4: Recommendations........................................page 14-16

Appendix……………………………………………………page 17-20

References………………………………………………....page 21-22

Executive SummaryThe following report provides a competitor analysis for the client Screwfix. Through the analysis of two Digital platforms used by the competitor Toolstation, recommendations for new communicational strategies have been outlined to the client. The two digital platforms Twitter and the main website of Toolstation have been used to create an in-depth analysis of the communicative strategies used by the competitor, supported by the theorist David Chaffey. Chaffey states that the decisions made about how to use a particular channel, contributes towards exploiting the brands strengths, and managing its weaknesses (p.192, 2012). This means that online presence needs to come in various different forms (Chaffey, p.21-22, 2012).Following Chaffey’s theory, the report develops the understanding of how different communicative tools used on the two channels integrate to produce an overall consumer experience.

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1. Screw Fix and its Competitors ActivityOwned by the umbrella company Kingfisher, Screwfix is the largest direct and online supplier of hardware tools and accessories in the United Kingdom (Screwfix, 2015). Starting as a catalogue company, Screwfix later expanded into trading units in the UK, beginning in 2005. More recently it has entered into the German market with 4 new trading stores in the country (Screwfix, 2014). Screwfix has recently launched a new mobile app, contributing to its digital platforms receiving over 1.9 million visitors a week (Screwfix, 2015).

Mintel reports that the leading brands within the specialist DIY sector are B&Q, Homebase, and Wickes, collaboratively holding 65.1% of the total sales in 2014 (Mintel, 2015).

‘The impact of digital in the marketing function has increased significantly in recent years and the Internet is no longer considered as ’just another channel to market’’ Chaffey (p.197, 2012).

A report commissioned by Cisco states that in recent years consumers have become increasingly willing to shop around for the best price, as it becomes ever the easier to compare product prices with advances in technology and shopping apps (Cisco, 2013). The leading brands are under pressure from newer, online-savvy brands like Screwfix and Toolstation.

Figure 1: Specialist DIY stores estimated percentage of sales online in 2014 (Mintel, 2015)Figure 1 demonstrates that Screwfix and Toolstation have a far greater online presence to the leading market competitors. The Mintel report also tells how Homebase shut 27 of its stores in 2014, and describes how their portfolio is largely out-of-date. In order to attract new customers to the stores it has added Argos concessions (Mintel, 2015).

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Figure 2: The market leading specialists in DIY; the annual % change in sales (Mintel, 2015) Figure 2 demonstrates that in 2014 while the market leaders are making little profits, and in Homebase’s case a loss, the brands that are online-savvy were making profits of up to 25% (Mintel, 2015).

Product Range

Price

Update Frequency

Accessibility

Quality

Speed of Service

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ToolstationScrewfix

Figure 3: The comparison of the client and the competitor attributesFigure 3 shows how Screwfix and Toolstation are both very similar brands. They are both online-savvy, and both made large improvements in the DIY Specialist market during 2014, which justifies Toolstation as a highly reasonable competitor. Toolstation supplies over 11,000 products made up from tools, building supplies and accessories. Home diy'ers, self-builders and the professional trade can access Toolstation via its multi-channel experience with over 200 branches across the United Kingdom, an online store, a dedicated ordering phone service and a mobile web page (Toolstation C, 2015).

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Section 2: Incorporating Parts 2 and 3 of the Brief: Website Analysis of ‘www.toolstation.com’ 2.1: PurposeToolstations main website is an e-commerce channel that features a click and collect service as well as delivery. The primary use of e-commerce websites is to enable online transactions, allowing consumer to purchase products at any time of day. The website shows a full selection of over 11,000 products the company stock. It is also used as an advertising tool for latest deals, products and competitions. The channel also acts to support consumers who prefer to buy products offline, by providing relevant information about store locations, and clear links to company information (Chaffey, p.22, 2012). It has relevant links to corporate sites including their umbrella Travis Perkins plc. (Toolstation A, 2015). The website is accessible 24/7, and allows the consumer to shop and browse at anytime of the day.

2.2: Objective for Using the ChannelThe channel is convenient for easy shopping and product search, with a mobile friendly version. The websites accessibility means it is available to a to anyone who has Internet access. The website features ‘free delivery over £10’, and a returning customer login. The channel is the centre of all the latest deals and products available from the hardware company.

Figure 4: The online presence of ‘www.toolstation.com’ (Alexa A, 2015)Figure 4 shows how over the past year Toolstation’s online presence has increased by 1,231 globally, and the UK brand is now receiving recognition in Europe and in America (Appendix E). Chaffey (p.3, 2012) states there are specific measures to assess the effectiveness of a website. Using the Analytics tool ‘Alexa’, the websites online presence can be assessed:

- The average stay is 5.30 seconds- There is average of 5.5 page views per visit- A bounce rate of 27.3%(Adapted from Appendix C)

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A bounce rate of below 40% is considered ‘excellent’ (Bitly B, p.4, 2015); these findings suggest that browsers coming from the other online stores, are satisfied by their visit at Toolstation (Appendix D).

2.3: Target Audience

Figure 5: Browsing locations of ‘www.toolstation.com’ (Alexa A, 2015)Figure 5 shows that the two browsing locations are at home and at work, this is evidence that Toolstations target audience is the home diy’er and the trade professional.

Figure 6: The gender of browsers viewing ‘www.toolstation.com’ (Alexa A, 2015)Figure 6 demonstrates that the majority of visitors are male. The website has direct links to work-wear, encouraging a Professional workman to shop with the brand. The website also features advertisement for a ‘bonanza competition’ with a prizes applicable to a builder (Toolstation A, 2015). The website also features a branded product search tool, something that the home diy’er may use during purchasing to familiarise themselves with products.

2.4: Brand IdentityChaffey (p.584, 2012) writes that the consistency in format is crucial in securing customer interest. Using a format that is familiar to the customer means the website is easy to use and cements a strong ‘look and feel’ adding to the quality of the site and browsing experience. The brand is consistent with its use of blues, reds and whites across its website that feature in the brand logo. The home background is constructed

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using the same simplistic colours and has a patriotic relevance to the UK brand (Toolstation A, 2015).

2.5: Type of ContentThe content of a main website needs to be up-to date, in order to meet the demand of customer expectations, as ‘stale’ content does not motivate the browser to return (Chaffey, p.579, 2012).The Toolstation website is a hub of the latest prices and information from the brand, and links to 5 social platforms (Toolstation A, 2015). Chaffey states that content shared on so many platforms needs to be consistent, and that price and product updates need to be accurate on all platforms for the brand to be trusted and reliable. However posting exactly the same information on all sites can become dull, and leave the customer unresponsive (Chaffey, p.582, 2012). This means Toolstation has to constantly form new strategies to keep the consumer engaged.

2.6: Tracking and MeasurementAppendix B shows how 86% of other websites are slower than Toolstation; its fast loading speed is a positive contribution to the strong accessibility of the Website.

Figure 7: The tracking of click made to make a purchase on ‘www.toolstation.com’For tradesman who are on the go, having a quick and easy process saves unnecessary time, however Figure 7 shows the seven clicks made to the purchase on the website if you are a registered member. Relevant products appear immediately by typing a keyword into the search bar. However, Toolstation is not optimizing on the ‘fast track services’ provided on other digital platforms (Toolstation A, 2015).Appendix D is evidence that before browsing on Toolstation, 6.4% of visitors directly came from the client Screwfix. It also shows that whilst these product specific brands are leading the digital sector, consumers are also using other platforms like Ebay and Amazon. This supports the report Cisco published stating how consumers are continuously becoming ‘shopper-savvy’, and are far more willing to shop around for the best product and price (Cisco, 2013).

'www.toolstation.com' 'Screwpack 570 piece' 'Add Trolley'

'Trolley' 'Checkout' 'Payment'

'Confirm Order'

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2.7: Engagement with CustomerAs stated in 2.1: Purpose, the site is used as an e-commerce website, resulting in there being no display of customer interaction. It contains features for ‘Frequently Asked Questions’ and a ‘Customer Service’ form, where the consumer initiates individual engagement with the brand (Toolstation A, 2015). The informal mode of address (such as ‘check-out the latest low prices’), suggests the brand does not take itself too seriously, communicating with the audience as a peer (Toolstation, 2015).

Section 3: Incorporating Parts 2 and 3 of the Brief: Channel Analysis of ‘www.twitter.com/ToolstationUK’3.1: Purpose The brands Twitter page can be seen to provide a ‘service-orientated relationship-building website’ as Chaffey states that the main function is to provide ‘e-news’, process general enquires and to support existing customers, by providing them with detailed information (Toolstation B, 2015).

3.2: Objective for Using the Channel

Figure 8: Twitters global ranking relative to other sites (Alexa, 2015)Figure 8 shows how Twitter is ranked 9th in the globe for site traffic. This makes it an optimal channel for Toolstation to communicate with its target market. As the platform is primarily designed to be a social activity, the channel can also be used to access the consumer during hours when they aren’t actively browsing for DIY hardware. Twitter has 320 million active monthly users, of which 80% are using mobile devices. Because twitter is free it works as a cost effective tool for Toolstation to use, and twitters huge audience not only means they can directly communicate with its customers, but it can also advertise itself to potential consumers as well (Twitter, 2015).

3.3: Target Audience

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Figure 9: The audience demographic of the website ‘www.twitter.com’ (Alexa, 2015)Figure 9 denotes that males and females use Twitter in various locations, and the education graph suggests the platform is used by a variety of age ranges. These findings suggest that Toolstation’s channel has the potential to target the younger demographic of home diy’ers, and trade professionals. For instance, apprenticeships are a popular way of working within the building trade and asserting a relationship with the consumer early, could instigate brand loyalty.

3.4: Brand Identity The channel follows key iconography of the main website and logo, as to not disassociate the customer with the brand, however features a yellow background. This is in keeping with the POS at Toolstations offline buying services on trading estates. The yellow is punchy and is a simple communication tool for making it stand out on an otherwise bland social platform (Toolstation B, 2015).

3.5: Type of ContentThe Twitter page is a mini hub of stored images and videos also posted on the website and YouTube page (Toolstation B, 2015). The videos are handy tips for home diy’ers, and have on-site videos of tools for trade professionals. It is also used to make customers aware of the latest competitions, deals and product range. Chaffey (p.196, 2012) highlights one of the major issues organisations have in digital marketing as the coordination between different channels, in conjunction with other marketing teams being maintained by different management within the company. The channel posts un-related content to the customer, for instance an image of a monkey captioned “this is my weekend face” (Appendix G; Toolstation B, 2015). Chaffey’s explanation is resonant here as the communicative tool’s language is not consistent to Toolstations main website. It uses informal techniques and doesn’t take itself too seriously as it reads “…please excuse us its Monday morning… think its time for a coffee!” in response to a customer complaint. Although the channel can be seen to be using humour to build a social relationship with the customer, it’s questionable

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about whether the company’s image is tainted by inconsistent language on different platforms (Toolstation B, 2015).

3.6: Tracking and MeasurementChaffey (p.191, 2012) explains that an organisation must understand its marketing activities, in order to integrate effectively with other activities taking place, all contributing toward its business objectives.Toolstation use the analytic tool Bitly on their social media platforms, for instance ‘bit.ly/tsEdinburgh’ (Appendix A). ‘Bitly’ is used to provide brands with internal analysis and insights into their digital platforms. This allows them to easily gather data on audience interaction, and what media platform the browser accessed it from (Bitly A, 2015). The marketing tool helps to tell Toolstation what strategies are working, and what tactics are not worth implementing (Chaffey, p191, 2012).

3.7: Engagement with the CustomerChaffey outlines customer engagement as a key challenge for marketers. He states that customer engagement is a primary tool used to ‘…strengthen the emotional, psychological and physical investment a customer has is a brand’ (Chaffey, p.43, 2012).Posting every 0.5-1 hours daytime, Toolstation have a frequent interaction with its followers, regularly replying to customers and posting news and information about the brand, including new store openings in order to continuously trigger acknowledgement about the brand in the audience (Appendix A). They use a friendly mode of address that is consistent throughout the posts to their 2,984 followers on the channel (Toolstation B, 2015).

Section 4: Recommendations Chaffey states that one of the external components in constructing an effective integrated communications strategy is analysing the competitor’s strategies, and gaining strengths in their weaknesses (Appendix F).The Alexa analytics revealed that many people accessing the channel are accessing this from school (Refer to Figure 9). Screwfix can optimise from this insight, by comprising certain promotions to target a younger demographic. The educational leaving age increased from 16 to 18 in 2015, meaning that at the age of 16 adolescents can enter into skills based apprenticeships (BBC, 2014).By comprising a long-term marketing strategy, offering the student sector (adolescents in Apprenticeships) ‘NUS’ or other student discount the client will be advertising their products to a new consumer, that has not yet been targeted in the sector.Toolstation and Screwfix share two target audiences, the home diy’er and the trade professional. Chaffey (p.584, 2012) writes that inconsistencies in the material posted between different channels leads to the demise in browser interest. Toolstation’s platforms have communication methods designed toward both sectors, meaning either consumer receives e-news and promotions not necessarily designed toward that target audience (Appendix A). Chaffey states that irrelevant content, or the same content posted on sites

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can become dull, and loose customer reception (Chaffey, p.582, 2012). For Screwfix to optimise on this weakness, it can be proposed that the brand divides its marketing tools to communicate with its target audiences on separate channels. Screwfix currently have 4 apps on the Apple app store (Appendix H). By reconstructing these platforms and creating two apps, one designed to communicate with the home diy’er, and one for the trade professional, it opens the opportunity to use more precise tactics to communicate to either target audience. The home diy’er is likely to be far more receptive to image based communication with more descriptive information about various products and news, as they are more likely to have limited product knowledge. The trade professional would be more inclined to only be interested in the core use of the channel, and a select few promotions outlined in 2.3: Target Audience. Elaborating on the proposal, the division of channels can also act to incorporate features already available to consumers including a ‘quickshop’ and ‘tool box’ that are current apps for the brand.It can be suggested that having 2 very strong communicative tools instead of 4, allows the consumer not to loose interest in the brand due to information saturation. The proposal also works to optimise on Toolstation’s weaknesses by being functional on Android and Apple, as the current competitor app is only available to customers if they’re Android users. The Alexa analytics of Toolstation’s consumer base shows that the majority of the browsers are male (Refer to Figure 6). The offline market leaders, B and Q and Homebase have a wide product range that includes furnishings appliances for the home. This encourages a target market for females, who are more inclined to make small home improvements. By Screwfix dividing their marketing tools into home DIY focused and trade professional focused it provides an applicable platform to provide and advertise products designed for the female home designer. Using the free social media platform Twitter would be a highly receptive platform to integrate into the proposed strategy, as the channel has an above average usage of females (Refer to Figure 9). The proposed reconstruction of the integrated marketing communicative tools means that the website would be divided into two separate domains, one focusing on each audience. This is supported by the evidence that strong, consistent communication across all channels is a major component in achieving a receptive, returning customer (Chaffey, p.584, 2012).

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Appendix A

Appendix B

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Appendix C

Appendix D

Appendix E

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Appendix F

Appendix G

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Appendix H

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