The product life cycle and online fashion
An asos.com case study

Below is a list of Business Case Studies case studies organised alphabetically by company. To view more companies, please choose a letter from the list below.

Page 4: Promotion

Promotional activity helps a business to provide potential customers with information about its products with a view to making a sale. ASOS.com is a market-orientated company. ASOS.com's Customer Relationship Management system helps it to understand its customers and their buying patterns. This means how different age groups and most importantly, how different attitudes affect what appeals to customers and influences how they will spend their money.

User information enables ASOS.com to target its promotional activity. ASOS.com gathers information about its customers and what types of fashion they like from its website registrations. For example, two women of the same age can have entirely different purchasing habits and fashion styles. This information helps ASOS.com decide where and how it will promote its products. ASOS.com's Public Relations department will target advertising to a broad range of publications simultaneously, such as Harper's Bazarre, Vogue, Elle, GQ or The Times newspaper. As part of online registration, customers provide email addresses. ASOS.com sends out email newsletters with updates about new products and offers twice a week to over 2.7 million customers.

By analysing a database of what its customers typically buy and how often they purchase, ASOS.com is able to target promotions directly at particular segmentsof customers. ASOS.com estimates what products will appeal to individual customers. It then targets promotions to customers on an individual basis. For example:

  • a younger customer who has in the past bought low-rise jeans may also be interested in buying a fitted leather jacket
  • a customer who has bought a dress from ASOS.com's Black range of products may also have the spending power to buy designer shoes and handbags.

Measuring the response to promotional activity is very important. A number of key performance indicators are used to measure effectiveness. When ASOS.com sends customers emails about a new product, such as blazers, it needs to know:

  • how many of these emails are opened
  • whether they are clicked through (read to the end)
  • how many of these convert into sales.

From evaluating these figures, ASOS.com can get a picture of how many customers are exposed to this promotional method and what sales are being generated as a result. Other important measures include the number of people using and purchasing from the ASOS.com website. If use is high and growing, it shows continued growth of the market.

asos.com | The product life cycle and online fashion
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