Digital Marketing Assignment
Digital Marketing Assignment
Executive Summary
Lesgo is a new online platform designed to connect users with personal stylists around the world.
Our mission is to help our customers to find their best fit, starting with the right stylist and
building their perfect personalized wardrobe for their life. Our stylists will help users to shop
online according to the users’ budget, size and event while incorporating what they already own
to build their perfect outfit of the day. Lesgo invites fashion lovers to become personal stylists
and showcase their “styles” on the platform, allowing users to choose the right stylists that suit
their preferences. Lesgo not only has a wider variety of stylists with different styles, but also
adopts a more affordable pricing strategy allowing the majority of citizens to enjoy this kind of
service. Both competitors, Wishi and Stitch Fix have been in the industry for more than 10 years
and the stylists working with them are professionals from the fashion industry. Therefore, the
pricing of their services are relatively medium to premium pricing. Even though it is still not a
culture to hire personal stylists in Malaysia, demand for hiring personal stylists is increasing as
Lesgo and other competitors will benefit from it. During an economic downturn in a pandemic,
consumers are looking for value purchases, avoiding high prices as they would prioritize
essentials (Wertz, 2020). Consumers tend to buy clothes according to what they find comfortable
or previous purchases, rather than getting stylists to assist. Technology has increased its
importance as the future of fashion is happening online. Lesgo’s digital marketing goals is to
increase exposure of the brand on social media, converting 5% followers into customers. Lesgo
aimed to obtain 200 followers and average 100 impressions for every post on Facebook and
Instagram at the end of the first month. It is expected to increase 10% for both followers and
impressions every following month. As for our website, we aimed to obtain 200 visitors by the
end of the first month with a 10% increment for every following month. Lesgo spent $50,000 on
the development of the platform and $10,000 per year to maintain it. Furthermore, $12,000 per
year is spent on creating quality content on social media to gain awareness. We aimed to target
Generation Z and Millennials as it has the most internet usage among the generations and
accounts for more than 40 percent in the global fashion industry (McKinsey, 2020). There is a
positive trend in size, profitability, and potential growth for both present and future. Lesgo
focuses its positioning on convenience and affordability as their advantages among competitors.
Users consulted by fashion experts no longer need to worry as they just have to wear the clothing
styled by their fashion stylist and “let’s go” to any event. One of the main goals for Lesgo is for
users to enjoy wearing what makes them happy with more affordable and friendly pricing. Thus,
everyone enjoys wearing “fashion” at an affordable price and creating customer value. Lesgo
focused on promoting through owned and earned media because Lesgo has limited funds to pay
advertisements that will satisfactorily cover target audiences. Lesgo builds awareness through
social media amplification by encouraging Generation Z and Millennials to share and discuss our
interactive contents online. Since Lesgo adopts a low-cost affordable pricing strategy, Lesgo
charges stylists with a low commission fee of 10% of the transaction and sets up a pricing tier
system. Another choice users have is to select Lesgo’s official stylists to help them dress up
which grants users wider affordable choices. Lesgo will be utilizing features such as “Poll”,
“Quiz” and “Ask me a question” on Instagram to interact with followers. As for the website,
Lesgo uses “Stylists Leaderboard” and “Sponsored Stylist'' to promote stylists and increase the
platform’s revenue. Lesgo will be utilizing story functions to engage and retain consumers,
stories are posted every 2 days and an Instagram post will be uploaded every week. Infographics
on tips and tricks would be a factor to spread awareness of any causes or generate interest,
differentiating Lesgo from their competitors. Lesgo prioritizes on establishing a professional
website design, 24/7 online presence and Frequently Asked Questions (FAQs). Digital marketing
key performance indicators (KPIs) are quantifiable goals that help Lesgo track and measure the
company’s success. Lesgo emphasizes on quantitative indicators to meet organization goals and
leading indicators to show Lesgo’s impact, even if significant results were not achieved. The
channels do not have the same primary KPI because not all channels are likely to have a direct
impact on revenue or conversions. In terms of correctly conveying the voice of the brand online,
Lesgo will train and provide updated courses to stylists, helping them deliver quality content and
fill gaps in such skills in the industry, especially for stylists without fashion backgrounds which
helps improve our platform's brand reputation. Lesgo allows these freelance stylists to
understand the skills and knowledge they require, how to improve performance and contribute to
organizational success and personal growth. This will make them more committed to learning
and work harder due to the pressure of performance, which ensures company’s quality.
2. Introduction
Fashion trends have been changing rapidly in today’s century. People who are stuck in a busy
working culture slowly start to lose and forget their own taste of fashion (Jiang et al., 2018).
“Lesgo” is a new online platform that is designed to help connect users with personal stylists
around the world. Our mission is to help our customers to find their best fit, starting with the
right stylist and building their perfect wardrobe personalized for their life. Before choosing a
stylist, users can check out different stylists’ feeds and decide on one that matches their
preference. Stylist experts will help users to shop online according to the users’ budget, size and
event while incorporating what they already own to build their perfect outfit of the day.
3. Situational Analysis
The demand for personal stylists has grown over the years in asian countries such as China and
Malaysia, supported by the rise in social media’s influence (CompareHero, 2017; Fashion China,
2019). Ordinary people in China with greater wealth are spending more and more money in this
type of service, are not just trying to look for the right clothing for them but are looking for real
image advice (Fashion China, 2019).
Competitor Analysis with SWOT
Strength - An open platform that - Senior and Experienced - Senior and Experienced
connects fashion Professional Professional
enthusiast to - In the industry for a long - In the industry for a long
professionals (Wider time time
selection of stylists) - One-time and monthly - Collaborated with
- Affordable pricing: can subscription to secure thousands of brands and
be afforded by majority customer advise the styles you prefer
- Wide variation including,
men, women, and kids
Threat - Not a culture to hire - Not a culture to hire - Not a culture to hire
personal stylists in personal stylists in personal stylists in Malaysia
Malaysia Malaysia
Lesgo’s direct competitors include Wishi and Stitch Fix. Both platforms connect users to their
expert stylists to help them to look and shop for the clothings that best suits them. Both of the
competitors have been in the industry for more than 10 years and the stylists that they are
working with are professionals from the fashion industry. Therefore, the pricing of their services
are relatively medium to premium pricing. On the other hand, Lesgo is an open platform that
invites fashion lovers to professional stylists to become a personal stylist and showcase their
“styles” on the platform and allow users to choose the right stylists that suit their preferences.
Lesgo does not just have more variety of stylists with different styles, but also adopts a more
affordable pricing strategy so that the majority of the citizens can enjoy this kind of services. The
targeted market is mainly focusing on millennials and Gen Z who are familiar with the Internet
and social media, and people in this era are more fashionable and trend conscious. As a result,
our target audience has become limited, and promotion may become more difficult. Even though
it is still not yet a culture to hire personal stylists in Malaysia, the demand for hiring personal
stylists is slowly increasing and Lesgo and other competitors will benefit from it.
Indirect Competitors
Lesgo’s indirect competitors include freelance personal stylists on platforms such as Fiverr and
Truelancer. They are individuals that are enthusiastic in fashion or have studied or worked in the
fashion field. The price ranges from affordable to premium pricing as it includes both
professionals and purely enthusiasts. What differentiates Lesgo from freelancers on Fiverr and
Truelancer is that these platforms focus on providing all types of freelance job opportunities
whereby Lesgo focuses on providing opportunities to become personal stylists only. Therefore,
Lesgo’s platform provides different features that are designed for personal stylists such as
features that allow them to showcase their “styles'' on the feed.
PESTLE
Economic Social Technology
- Economic Downturn (Avoid - Lifestyle/ Buying Habit - Accessibility
Unnecessary Spending) (Income)
Not every consumer is able to afford the luxury of affording a fashion stylist to design a luxury
and fashionable set of clothes, shoes and hair. During an economic downturn in a pandemic,
consumers are looking for value purchases and avoiding high prices as they would prioritize
essentials. (Wertz, 2020). This has caused consumers to avoid unnecessary spending and keep
their priorities to themselves. During the pandemic, Malaysia’s fashion industry has taken a new
turn as more and more shoppers have purchased online. In 2020, when Malaysia first went into
lockdown, studies showed that there are 29% of Malaysians still buying clothes online. The main
customer segments are Generation Z and Millennials ranging from age 24 – 31 (Benedict, 2021).
Consumers tend to buy clothes according to what they find comfortable or previous purchases,
instead of getting stylists to assist. Technology has increased its importance as the future of
fashion is happening online. Stylists are able to easily execute their task at the ease of a few
buttons. Stylists are able to showcase their designs and outcomes to attract more and more
consumers to engage them (Blake, 2020).
Website
- Obtain 200 Followers by the end of the first month, Obtain 100
Impressions & 3% - 5% Engagement Rate for every post
- Increase sales by converting 5% followers into customers
Website
- Obtain 200 visitors to the website by the end of the first month
- Converting 5% site visitors into customers
- Obtain 200 followers and 100 impressions for every post at the end
of the first month.
- Increase 10% for every following month
Website
- Obtain 200 visitors to the website by the end of the first month
- Increase 10% for every following month
Lesgo aims to obtain 200 followers and average 100 impressions for every post on Facebook
and Instagram at the end of the first month. It is expected to increase 10% for both followers and
impressions for every following month. We aimed to have a 3% to 5% engagement rate for every
post as it will be considered a satisfactory standard (Bora, 2018). As for our website, we also aim
to obtain 200 visitors to visit the website by the end of the first month with a 10% increment for
every following month. It is aimed to convert 5% of the followers and site visitors from
Facebook, Instagram and website into customers that use our services as it will be considered
higher than the average global website conversion rate of 4.31% (Saleh, 2020). Setting goals will
encourage the employees to create good interactive contents on our social media page and on our
website which will attract visitors to view, engage and follow our company to achieve the target.
Increasing our visitors and followers will then assist in generating higher sales for the company.
Furthermore, through creating different interactive contents on social media and the website, the
company is able to get closer to the customers during the engagement.
According to Paldesk (2021), the costs for building an online marketplace is approximately
$41,200. As the features of Lesgo platform is slightly more than a typical online marketplace, we
have set the budget slightly higher which is $50,000 for the development of the platform.
Furthermore, according to Fierce Wireless (2012), the industry norm for software maintenance is
15% to 20% of the original development costs. Therefore, the budget for maintaining the
platform per year is set at $10,000. Lastly, we have set the budget for creating contents and
running the company’s social media at $12,000 per year. This will total up to $72,000 for the
development and maintenance of the platform and social media content creation for the first
year.
5. Strategy
Segmentation
Lesgo is an online fashion sharing platform that provides consultation service from stylists
around the world. It has split its customers into three segments and aims to focus these customers
as our primary segment groups.
Behavioral Geographic
Urban Professional
Demographic Psychographic
- Middle to High Income - Wants to wear good, but busy working life
- White-collar professionals
Behavioral Geographic
Fashionista
Demographic Psychographic
- Highly knowledgeable in fashion - Explore new fashion style and latest trend
Behavioural Geographic
- Seek for quality and trendy clothing - Developing and Developed Country
Targeting
According to Global Web Index (2019), Generation Z and Millennials have the most internet
usage among other different generations. Moreover, Total Retail (2021) conducted a survey
(Generation Z and Millennials) that shows that due to Covid-19 pandemic, 43% of the
participants are likely to decrease shopping in-store while 27% of the participants surveyed will
stop in-store shopping even after the pandemic ends. Apart from that, Generation Z and
Millennials account for more than 40 percent in the global fashion industry (McKinsey, 2019).
As a result, many big fashion firms are trying to understand and meet the expectations of these
consumers as it has become one of the big portion consumers for both present and future
(Translate Media, 2020). In short, Lesgo will like to target Generation Z and Millennials as it
shows positive in size, profitability and potential growth for both present and future.
Positioning
Lesgo focuses its positioning on convenience and affordability as their advantages among other
competitors. Its name alone demonstrates the main aspect of Lesgo’s marketing positioning:
convenience. Users who consult our personal stylists no longer need to worry about what to wear
or what makes them look better as they just have to wear the clothing that is styled by their
fashion stylist and “let’s go” to the event they are going to attend. One of the main goals for
Lesgo is to provide all their users to enjoy wearing what makes them happy with more affordable
and friendly pricing. Thus, everyone is able to enjoy wearing “fashion” with an affordable price
and customer value was created.
Lesgo focuses on promoting through owned and earned media because Lesgo is a new company
with limited funds to pay for advertisements that will satisfactorily cover the target audience.
For owned media, Lesgo will be having their own official website for users to check out different
stylist’s feeds and choose one of the stylists to dress for them. Additionally, Lesgo will also be
having their official social media page on Facebook and Instagram. The purpose is to build
awareness for this new company through social media amplification by encouraging Generation
Z and Millennials to share and discuss our interactive contents online. We also encourage the
users to share their thoughts with us by writing a review online after they have tried our service
which will contribute to user-generated contents (UGC) creation. By having interactions and
engagement with our customers online, it helps to promote this new company in an effective and
cost-effective manner. After developing a bond with the visitors, we will also be able to slowly
convert these visitors into our customers and increase sales.
Price
Lesgo adopts a low-cost affordable pricing strategy so that the majority of the people are able to
enjoy the service of a personal stylist. Our target audience, generation Z and millennials who are
enthusiastic about what they are wearing are also price sensitive as most of them are still
receiving allowances from their family or they have just only started earning money. Our
platform wishes to let them experience things that are once only afforded by the upper class at a
low price. Our platform will allow stylists from all around the world to create an account and
upload their photos to exhibit their style free of charge. After a user chooses a stylist to help
them dress up, the stylists will only be charged for a fee of 10% of the transaction. To allow the
majority of the stylists to set their fees at an affordable range, Lesgo has set up a pricing tier
system. Every stylist begins with tier 1 and they will only be able to charge fees from RM1 to
RM40. After 100 success orders with an average rating of 3.5 and above, they will unlock tier 2
and they will be able to charge up to RM60. After 300 successful orders with an average rating
of 4.0, they will unlock tier 3 and they will be able to charge up to RM80. At this tier, they will
need to maintain an average rating of 4.0 or they will drop back to tier 2. Another choice users
have is to select our official Lesgo stylists to help them dress up. Our stylists are professionals
and will listen to what they need and only make recommendations. A flat fee of RM50 will be
charged for all our professional Lesgo stylists. By having the pricing tier system and our official
Lesgo stylist will allow the platform to maintain the fees at an affordable price.
Promotion
Lesgo has developed a range of promotional formats to build its awareness and revenues. As
stated above, Lesgo will be using social media, Facebook and Instagram to generate awareness
and create engagements with our users. Lesgo will be using interactive contents to interact with
the users and promote the company through social media amplification. Some contents Lesgo
will be doing are infographics relating to fashion and tips for dressing up. We will be creating
interactions by showing 2 fashion styles side by side on Instagram story and setting up a poll
asking the users which is their preference. Furthermore, we will also be asking what kind of
fashion style’s tips they would like to see in the future using the “Ask me a question” feature and
hosting mini quizzes relating to fashion using the “Quiz” function on Instagram story. As for the
website, Lesgo will use “Stylists Leaderboard” and “Sponsored Stylist” to promote our stylists
and increase the platform’s revenue. The leaderboard will be placed at the website’s home page
and it will feature the top 30 trending stylists of the week for users to check them out. The
platform will also have a “sponsored stylist” spot at the home page for stylists that wish to
promote themselves. These formats will allow the users to explore outstanding stylists on the
platform which increases the chance of them hiring a stylist on Lesgo which will contribute to
higher revenues.
Plans for social media and website
As mentioned in the promotion section, Lesgo will be utilizing Instagram and Facebook to
promote our business as these applications allow the company to engage and form a personal
connection with our consumers more easily. Lesgo will first begin by creating a business account
for the two social media platforms and will mostly be using the story function to engage with
consumers by posting “Ask me a question” or set up quizzes for consumers to participate.
Instagram stories will be posted every 2 days to continuously interact with consumers and an
Instagram post will be uploaded every week. Posts are mostly infographics on tips and tricks
regarding fashion that will be used to attract and retain both new and old customers. As
Instagram is owned by Facebook, all posts will be linked to allow consistency of posts at real
time to allow users of both platforms to obtain information posted by Lesgo. Both platforms are
also extremely beneficial in helping to make the most of new trends as it helps to spread
awareness of any causes or generate interest by posting the most trending topic at the moment
(Bose, 2018). Visual feeds are important as it reflects Lesgo’s brand uniqueness in differentiating
themselves from competitors.
As the world is in our hands and information is right under our fingertips, it is without a doubt
that more people spend most of their time on the internet buying products, using a service, or
searching for relevant information. Considering the time people nowadays spend browsing the
internet, most businesses have shifted online. As Lesgo has our very own website, there are a
few areas the company must plan carefully to maximize the utility. Lesgo will first establish a
professional design for the website, displaying images and clips of our fashion stylists. Having a
professional website helps attract more consumers and they will not get bored easily. The next
step would be establishing a 24/7 online presence or customer support. Online customer support
is the backbone to any successful business as it helps the company engage with consumers and
assist them in case they encounter any issues. Lesgo will be implementing Frequently Asked
Questions (FAQs) as it is among the most commonly utilized mediums. Our company will post
questions most consumers encounter when engaging any of our platforms and they could enquire
further information through the customer support service (Waykar, 2020).
Digital marketing KPIs or key performance indicators are quantifiable goals that can help Lesgo
track and measure the success of our company. In this rapidly changing marketing environment,
short-term and long-term KPIs have become particularly important. Lesgo will emphasize on
quantitative indicators which meet the goals of the organization. In shorts, these quantitative
indicators include potential customers. Since Lesgo is a start-up company, it may be too early to
evaluate potential customers, but we can still evaluate the ongoing interactions between Lesgo
and customers, offered by the company and chosen by the customer. In addition, leading
indicators are also important for reporting because it can show that Lesgo has begun to have an
impact, even if it has not yet achieved significant results. For example, the company might
measure how many people have spent over 3 minutes on Lesgo’s site even if they have not filled
in the contact form.
Leading Tertiary KPI Secondary KPI Primary KPI
Indicator
The charts above show different KPIs and leading indicators for Lesgo digital marketing
channels. The channels do not have the same primary KPI because not all channels are likely to
have a direct impact on revenue or conversions. For example, we do not expect the social media
can directly impact on Lesgo’s revenue, but it can impact on “reach”. Moreover, major changes
in PPC budget will have a critical impact on revenue, but this does not mean that PPC activities
of Lesgo will proceed smoothly. It was best to measure the cost of each purchase, as this can
avoid budget changes. We will make our social media and website more diversified and make
more choices to attract customers to stay on our website and social media for longer, and
optimize the publishing method of prices or promotions, so as to convert 5% of our followers
into customers.
Recommendations and Future Plans
Lesgo advocated freelance personal stylists, so it will be more difficult to communicate the brand
concept of the company. In terms of correctly conveying the voice of the brand online, Lesgo
will train these stylists on the platform to deliver quality content which helps improve our
platform's brand reputation. Moreover, as the requirements for new skills continue to change,
Lesgo will provide the stylists with updated courses to help fill the gaps in such skills in the
industry, especially for stylists with non-fashion backgrounds. Lesgo will provide a platform for
all freelance personal stylists to continue to generate and exchange their knowledge and
experience, which is also a kind of training we provide them. Training will be an ongoing
process that includes regular evaluations of stylists on the platform and provides them with
opportunities to fill performance gaps. Lesgo will let these freelance stylists on the platform
understand the skills and knowledge they lack or need to improve, and how to improve
performance and contribute to organizational success and personal growth. This will make them
more committed to learning and due to the pressure of performance, they will work hard with
every order, so that it can also ensure the quality of the company.
In the future when Lesgo starts to have more followers, we will start to put more focus on email
marketing so that the company can engage and convert every potential customer through email
marketing. The company can then better communicate with customers and potential customers
what a personal stylist is and what they are like. Lesgo will determine the identity of the recipient
and the characteristic of distinguishing basis. These characteristics can be simply demographic
information such as age, gender, geographic location, buying habits, and interest via email. For
example, eBay often chooses audiences based on buying habits and sends the promotion
information of car care products to individuals who have previously purchased car care products
on their website by email. Lesgo can also do the same by customizing the emails and engaging
with the customers differently based on their different characteristics.
References
Blake, M. (2020). The Fashion Industry Is Ready For A Makeover: 4 Changes We’ll See In The
Future. Forbes. https://www.forbes.com/sites/blakemorgan/2020/12/03/the-fashion-
industry-is-ready-for-a-makeover-4-changes-well-see-in-the-future/?sh=211eeafd914a
Bora, K. (2018). 6 Important Instagram Metrics for Your Brand (with Tips to Track Them).
Campaign Monitor. https://www.campaignmonitor.com/blog/how-to/6-important-
instagram-metrics-for-your-brand-with-tips-to-track-them
Fashion China. 2019. Personal stylists find a growing demand for advice in China. Retrieved
from https://fashionchinaagency.com/personal-stylists-find-a-growing-demand-for-advice/
Paldesk. (2021). How Much Does it Cost to Build an Online Marketplace?. Paldesk.
https://www.paldesk.com/how-much-does-it-cost-to-build-an-online-marketplace/
Total Retail. (2021). How Gen Z and Millennials Are Influencing the Future of Shopping.
https://www.mytotalretail.com/article/how-gen-z-and-millennials-are-influencing-the-
future-of-shopping/
Translate Media. (2020).Gen Z and Millennials: How Younger Consumers Are Shopping for
Fashion. https://www.translatemedia.com/guides/gen-z-and-millennials-how-younger-
consumers-are-shopping-for-fashion/
Wertz, J. (2020). Consumer Spending And Demand Has Changed Due To The Pandemic. Forbes.
https://www.forbes.com/sites/jiawertz/2020/05/25/consumer-spending-and-demand-has-
changed-due-to-the-pandemic/?sh=67330f4c7b47