Use of Digital Marketing to increase Sales and Market Share

An exploratory on online shopping industry in Pakistan

A Project submitted in Partial Fulfillment of the Requirements

for the Award of Degree of

MBA (Marketing)

By
Muneeb Ahmed
(S13A14U07012)

Riphah University Faisalabad

Session 2013-19
 DEDICATION

This thesis is dedicated to ALLAH who enables me to achieve this goal and

to Prophet (P.B.U.H) and to my beloved parents and my friends who helped

me throughout the study.

 ACKNOWLEDGEMENTS

In the name of ALLAH, the most Merciful and Beneficent is the entire source of all

knowledge and wisdom gifted to mankind who bounteously blessed me such

environment and resources that enabled me to complete this research successfully.

My all Thanks to the Almighty ALLAH.

I have to thank my parents for their love and support throughout my life. Thank you

for giving me strength to reach for the stars and chase my dreams. My whole family

deserves my whole hearted thanks as well.

I would like to sincerely thanks to my supervisor Sir Ishfaq Ahmed , for guidance and

support throughout the study and without their teaching I could not be able to complete

my project. Thank you so much for the precious time you gave me. .

Thanks to all for helping me in this study directly or indirectly.

(Muneeb Ahmed)
 DECLARATION
I Muneeb Ahmed S/o Farzand Ali, S13A14U07012, student of BBA, Riphah
University Faisalabad, Pakistan, hereby solemnly declare that the data
quoted in this thesis titled “Use of digital marketing to increase market
share. An exploratory on online shopping industry in Pakistan” is based
on my original work, and has not yet been submitted or published elsewhere.
I also solemnly declare that the entire thesis is free of deliberate plagiarism
and I shall not use this project for obtaining any other degree from this or
any other university or institution.
This is to clarify that this research work has not been submitted for obtaining
similar degree from other university/college.
________________
Muneeb Ahmed
I certify that Muneeb Ahmed S/o Farzand Ali, S13A14U07012, student of
BBA, Riphah University Faisalabad, Pakistan, worked under my supervision
and the above stated declaration is true to the best of my knowledge.
________________
Sir Ishfaq Ahmed (Supervisor)
Riphah University Faisalabad, Pakistan.
Dated: __________________
 Executive summary
Digital Marketers are moving forward and relying upon to spend
through millions in internet advertising in coming years more than
TV, print advertisements and other conventional publicizing media.
With the fast development in technology, the internet is turning into a
significant and one major point for consumers in discovering the vast
majority of their shopping needs
The study sought to determine the effectiveness of internet advertising
and promotion and on reach and creation of awareness; to establish
the reliability of internet advertising through recall; and to determine
the relationship between internet promotion and increase market share
in Pakistan.
The purpose of this exploratory project is to present the new methods
of digital marketing this study finds strategy of digital marketing that
could be effective in increasing their market share in Pakistan.
Data from different research papers have been gathered around
finding how online stores in Pakistan can increase market share.
 Table of Contents
Chapter 1.....................................................................................................................................1
Introduction:...................................................................................................................................1
The Concept of Digital Marketing..................................................................................................5
Digital Marketing examples............................................................................................................5
Search Engine Optimization (SEO)................................................................................................6
Content Marketing..........................................................................................................................6
Social Media Marketing.................................................................................................................7
Importance of Study.......................................................................................................................9
Digital marketing’s advantages.....................................................................................................10
Rational of study...........................................................................................................................10
Objectives of study.......................................................................................................................11
Chapter 2..........................................................................................................................12
Literature review...........................................................................................................................12
Chapter 3..........................................................................................................................16
Overview of Pakistan E-commerce industry.................................................................................16
Pakistan top grossed online stores................................................................................................17
Daraz............................................................................................................................................17
Export left over.............................................................................................................................17
Yavoo...........................................................................................................................................18
Catch Australia.............................................................................................................................18
Key Points of Successful Strategy of Catch..................................................................................19
Chapter 4..........................................................................................................................21
Online retailers that opened brick Physical stores after capturing online market share.................21
Casper...........................................................................................................................................21
Allbirds.........................................................................................................................................21
Warby Parker................................................................................................................................22
Chapter 5..........................................................................................................................24
Findings........................................................................................................................................24
Conclusion....................................................................................................................................26
Suggestions...................................................................................................................................28
References....................................................................................................................................30
 Chapter 1

Introduction:
Internet has become common in very short period of time and it has grown
rapidly in both its applications and its users. It has been a very helpful tool
for information sharing, comunication, entertainment, education, and
shopping. The radical change brought forth by information technology has an
important impact on the daily lives. It has changed the dynamics’ of the way
we do business by allowing sellers and retailers to offer maximum range of
products and services to every potential consumer from around the world.
The Internet has also become advertising platform for companies. Almost
every company has turned towards the Internet to advertise their products and
services; and the Internet is considered to be the most important and reliable
tool for direct marketing channel for the global marketplace. [ CITATION Koy03 \l
1033 ]

Companies are investing billions of dollars into digital marketing to obtain

greater return on investment on ads.
The Internet has given awareness to consumers of accessing information on
products and services. There are many reasons that contribute to consumers
pull for online content. Consumers have decision power, where, what, and
how much commercial content they wish to view .The Internet facilitates
consumers to access an unlimited range of products and services from
companies around the globe, and it has minimized the time and effort they
spend on shopping.
Individuals play a much more active role in searching for information
through internet with some goal in mind, and that goal can support individual
1
behaviors and engagements towards online information and Ads. With the
advancement of internet industry, many companies have made primary
medium for marketing and also created sub department of digital marketing
in their marketing department. Internet is now most important advertising
platform because marketers found that the Internet is a medium of generating
greater sales. Since the Internet can be used as an efficient marketing
communication tool, marketers are focusing on understanding how to take
full advantage and maximizing the value of this communication medium.

Over the years marketing strategies is changing with technology leading to

the internet creating endless opportunities for digital marketers to interact
with customers to create an immersive connected digital environment,
influence and conversions, growth and create more market share. The growth
of digital marketing is both globally and locally outpacing offline advertising.
Outdoor marketing and advertisement is also experiencing quite growth, but
not as rapidly as online advertising.
This revolutionary impact has touched the world and Pakistan is no stranger
to it either. In the last few years, there has been a rapid growth in the usage of
social media in Pakistan where the use of Facebook, as a social platform for
communication, was noted to be one of the most widely used social
platforms, with a record of 19 million users (Kemp, 2015). These figures
imply that using Facebook as a social platform of communication is a
growing trend even in Pakistan. Consequently, the use of Facebook has led to
many opportunities for businesses to prosper. This phenomenon has raised
the awareness of many other organizations in various industries. As a result,
companies are joining the bandwagon to promote their products and services
alike through Facebook. As argued by Jack Ma, who is the founder of the

2
huge Chinese e-commerce firm, Alibaba, failure to utilize the social network
platform as a media to interact with consumers and other business associates
or prospects and potentials may lead them to be excluded from the industry,
thereby, losing their position in the market (Barhemmati & Ahmad, 2015).
On the same note, Phillips and Noble (2007) argue that with the upsurge of
social media platforms, the traditional mass media has become less effective
as a marketing tool. They forecast that social network marketing would be
the future marketing tool that will have a profound impact on consumers,
compared to the conventional methods. Undeniably, social media, primarily
Facebook, has attracted a considerable amount of attention in recent years,
particularly among Pakistanis which include students (Shafique, Anwar, &
Bushra, 2010). This social media platform has become part of the students’
lives and Facebook is constantly used by many to communicate their
respective interests, works, interactions and personal relationships (Hussain,
2012). Despite the importance of the social media and its impact on the
various sectors of commerce, majority of the studies conducted in the
Pakistani context focused mainly on the impact of social media on education
and training (Nawaz, Abbas, Javed, Mughal, & Nabeel, 2015; Arif &
Kanwal, 2016; Hussain, 2012). Therefore, it cannot be denied that the
pedagogical role of social media and its role in communication,
collaboration, learning, and instruction within educational institutions, is one
of the areas that have been frequently explored and understood. Within
marketing management literature, it appears that the issue of consumer
engagement has received substantial consideration from marketing experts
(Dessart, Veloutsou, & Morgan-Thomas, 2015), in particular, with reference
to research involving social media. In the context of business, consumer
engagement involves maintaining customer attention and this has been

3
highlighted by the Marketing Science Institute (MSI) a research-based global
organization (MSI, 2016), as one of the key research concerns between the
period of 2014 and 2016 (Islam & Rehman, 2016). This issue is highlighted
by researchers (Sprott, Czellar, & Spangenberg, 2009) as a prime driver of
the decision making process of consumers because consumer engagement
can result in consumer satisfaction, loyalty, trust and commitment (Brodie,
Ilic, Juric, & Hollebeek, 2013; Hapsari, Clemes, & Dean, 2017). Moreover,
bonds between seller and buyer can be easily formed through consumer
engagement. As the two parties bond, the value creation experience for both
could be nurtured. This implies that the increasing accessibility of social
media platforms should be viewed positively as such platforms appear to
facilitate consumer engagement. Further, these social media platforms can
provide opportunities for the consumers to get connected with retailers as
well as other buyers. Through social media use, sellers can build a
relationship with existing and new consumers and consequently, a
community of users of social media platform can be formed whereby sellers
and buyers interact and communicate with each other in terms of problems
and solutions to resolve problems. Nonetheless, despite the increased
practical importance of social media and its impact on consumer engagement,
particularly in the online context which encompass all social networking
domains, this aspect of business marketing has been under-researched
(Fournier & Lee, 2009; Ngai, Taoa, & Moon, 2015; Dessart et al., 2015).
In Area of Digital Marketing there haven’t been much studies conducted in
Pakistan. This method is emerging as a new concept which is aggressively
adopted by international companies and brands for marketing success. Given
the lack of studies conducted in this area, the current study thus, aims to

4
investigate the effect of digital marketing to increase market share in
Pakistan.
The change is constant and with passage of time new ideas are generated and
they are accepted and adopted.

The Concept of Digital Marketing

Digital marketing is the marketing of products or services using internet
create brand awareness or generate sales. Digital Marketing is a form of
promotion of your product, brand, services etc by using internet and specific
tools for purpose of delivering marketing messages to attract customers.
Digital marketing include content based ads, banner advertisements, Video
ads, Social network advertising, online classified advertising, and e-mail
marketing. Attractive videos of your specific product or service you are
promoting. Marketing is a process of connecting with your potential
customers in the right place and at the right time. In today’s era you need to
be at internet where they already are.

Digital Marketing examples

 Search Engine Optimization (SEO)

 Content Marketing
 Social Media Marketing
 Pay Per Click (PPC)
 Affiliate Marketing
 Native Advertising
 Marketing Automation
 Email Marketing

5
 Online PR
 Inbound Marketing

Search Engine Optimization (SEO)

This is the process of ranking your website to show higher in search results, it
drives potential users into your store by targeting right keywords

The channels that are used for SEO include websites with good D.A P.A,
blogs, and discussion forms.

On page SEO: This type of SEO focuses on your website which content is

on it and what your website is about.
Off page SEO: This type of SEO focuses on all of the activity that takes
place off your site. It is how much other sites refer your site or how much
relevant back links on other sites.

Content Marketing

Creating and promotion of content assets for the purpose of generating brand
awareness, potential traffic growth and customers.

Content marketing channel are:

Blog posts: Writing and uploading articles on a company or brand blog

assists you exhibit your industry expertise and generates organic search
traffic for your business. This will create opportunities to convert online store
traffic into leads.

Info graphics: It is visual representations of message; it is a group of

imagery, charts, and text that provides easy way to understand the topic.

6
Social Media Marketing

This is platform which promotes your brand and your content on social media
channels to increase brand awareness, drive traffic, and generate sales for
your business.

Social media platforms are:

 Facebook.
 Twitter.
 LinkedIn.
 Instagram.
 Snapchat.

Pay per Click (PPC)

It is a method of driving internet users to your website by paying a publisher
every time your ad is clicked. Most popular PPC is Google Ads, which
provides opportunities to be at top slots on Google's search engine results
pages at a price "per click" of the links you place. Other channels where you
can use PPC include:
Paid ads on Facebook: It is platform where you can reach your product or
brand awareness to target users, the ads run in newsfeed.
Twitter Ads campaigns: Marketers can pay to place posts or profile badges
to the news feeds of a targeted audience. This can be used for website traffic,
more Twitter followers, and tweet engagement.

7
Affiliate Marketing

It is a skill and performance based advertising technique where an individual

receive commission for promoting or converting it into leads of someone
else's products or services on your website. Its channels include:

 Video ads hosting through the Partner Program of the YouTube.

 Posting affiliate links from on forums or blogs.

Email Marketing

Companies use email marketing to stay in touch with their existing

customers. Email is often used to promote content, discounts and events sale,
as well as to direct people toward the business's website. Email marketing
champions include:

 Blog subscription newsletters.

 Follow-up emails to website visitors who downloaded something.

 Customer welcome emails.

 Holiday promotions to loyalty program members.

Reporter or blogger outreach via social media: Talking to journalists or

bloggers on social media, for example, is a great way to develop a
relationship with those who has followers they can charge for your company
or brand discussion in their blog or videos, this is one f the vast way to reach
potential audience.
Engaging online reviews: When any individual reviews about your store,
whether the review is positive or negative, engaging with company reviews

8
helps you humanize your brand and deliver powerful messaging that protects
your reputation.

Inbound Marketing
Inbound marketing refers to a marketing methodology where you engage,
and delight customers at every stage of the buyer's buying journey. In this
marketing strategy is to create a customer experience that is favorable for the
customer,
 pop-up ads

 Video marketing

 Email contact lists

Importance of Study
With fast growth in technology, the internet is becoming an important one
stop point for consumers in finding most of their needs. Be it communication,
entertainment, shopping, information search, internet serves as a medium for
all their requirements. This has led 70% of the ever users to glue themselves
to the Internet and access it on a regular basis. The problem is that, volumes
of consumers are online 6 everyday for their personal work, but do they
notice the ads, banners etc. on webpage they visit, most important how much
they remember that add. What about the reach of online advertising [ CITATION
Duc96 \l 1033 ][ CITATION Kor02 \l 1033 ]

Digital technology is changing all that. Consumers, who prefer family and
friends for word-of-mouth product information and their recommendation
now read online reviews, compare features and prices on Web sites, and
discuss options via social-networking sites. Digital Marketing is the use of

9
technologies to help marketing activities in order to improve knowledge by
matching their needs[ CITATION Cha13 \l 1033 ]
Companies are almost expected to spend on digital marketing more than $60
billion per year
By 2011.[ CITATION Lan08 \l 1033 ]

Digital marketing’s advantages

Minimizing advertising expenses: compared to other mass media marketing,
digital marketing has much cost efficient and in many cases websites can
generate potential users even for free.
• Interactivity: the online users can choose when to initiate contact and for
how long.
• Empowering effect: Small businesses because of internet can extent their
market reach and of small and medium enterprises [ CITATION Dho04 \l 1033 ]
• Unlimited potential customers: Internet advertisement for example can
reach every country in their world.

Rational of study
Online buying and selling of goods and services has been increasing
enormously with passage of time with increase in both sellers and consumers.
Companies are taking digital marketing as mainly tactic to reach their target
markets. In this study I will examine marketing tactics that are commonly
used in Digital Marketing and ascertain which ones are preferred by
consumers and are effective in influencing behavior.
In today’s era video marketing is one of the key aspects of increasing market
share. Individuals prefer video messages of brand or product before buying.
Now a day’s user’s engagements with online ads are getting low.

10
Hence I will study different techniques of digital marketing and which
techinique is effective to increase conversions in today’s competitive market.

Objectives of study

 Why companies and brand need digital marketing

 To determine the impact of digital Marketing for increasing sales and
Market Share
 To identify companies digital marketing strategies to capture market
share in Pakistan
 To determine online shopping trends in Pakistan and future of online
shopping in Pakistan

Chapter 2

Literature review
There is general harmony that digital media has greatly impacted the way a
company’s reaches today’s consumer. Digital media refers to electronic

11
media that spread information in digital formats. This includes any media
available via computers, Smart phones etc.[ CITATION JRo05 \l 1033 ]
The Internet is an important venue of digital marketing. Digital Marketing
has undergone remarkable growth since its creation in 1994[ CITATION Rob071 \l
1033 ]. The Internet advertisement is now the fastest growing advertising
medium.[ CITATION Ha081 \l 1033 ]. Marketers are spending hundreds of millions of
dollars to place their ads to get most conversions and brand awareness.
According to research, when people see ads online, they become quite
engaged with it and many of them likely to buy it. An advertising banner on
the Internet can level the playing field between large and small companies
[ CITATION Smi091 \l 1033 ].The increase in digital marketing is in response to the
increase in consumers who prefer shopping trough e-commerce. The buying
and selling of goods electronically is referred to as E-commerce. [ CITATION
GBa03 \l 1033 ]

Digital marketing concept started after yahoo started its search engine in
1994 and companies started digital marketing to rank up there sit. [ CITATION
Vir \l 1033 ]

In the developed countries, companies have realized the importance of digital

marketing. For success full business companies will have to take their
marketing to next step and merge online [ CITATION Par96 \l 1033 ]
In today’s competitive market with the availability of so many choices for
consumers, it is becoming difficult for marketers to generate sales and
increase traffic for their. Digital marketing is a powerful tool for building
brands and generating sales. [ CITATION Son01 \l 1033 ] . Digital marketing is cost
efficient and measures return on advertisement investment. [ CITATION Pep08 \l
1033 ]

In a report on e-commerce prepared by the Organization for Economic

Cooperation and Development (OECD), 2008 financial crises boosted e-
12
commerce sales worldwide, as consumers sought ways to reduce spending
their funds[ CITATION Iaf091 \l 1033 ].
Annual growth of ecommerce has been predicted to increase to 28%, while
some individual countries have even greater growth rates even in Pakistan
with rapid growth in e-commerce sector over past few years, Rs40.1 billion
sales of local and international e-commerce merchants was recorded in year
2018.

Almost growth of 93.7 per cent has been registered in e-commerce activities
as sale was Rs20.7 billion in Fiscal Year 2017.[ CITATION eco18 \l 1033 ]

Consumers today can easily access product and brand information and even
have an exchange of opinions before making before buying it. Individuals
have an impact on the sale and positioning of products as information sharing
through social media and blogs are so fast. There is a growing inclination for
consumers to put more trust in the opinions of other consumers rather than
company or marketers provided information.
According to researchers consumer buying decision doesn’t much depend on
reading content or watching product image or reading its description [ CITATION

McC07 \l 1033 ].

Marketers are changing their tactics to their targeted at consumers. The

brands that were popular with their strong history are being rejected by
consumers. Now people grown up in an even more media saturated, brand
conscious world than their parents, now consumers respond to ads
differently. [ CITATION Neu99 \l 1033 ].

13
Banner advertising use to be founded to increase the probability but now
consumer engagement is getting low with banner ads. [ CITATION Goh06 \l 1033 ]

Marketers are always in a process of making strategies of finding new ways

to drive consumers to their online store. One of the best strategies is creating
such ads in which product information is described in more convincing way.
[ CITATION Cov07 \l 1033 ]

For companies or brands, one of the most key benefits of using digital
marketing is its capacity to offer consumers to build a relationship and
directly interacting with them. [ CITATION Win01 \l 1033 ].
Now internet user regularly sees ads while using internet and consumer
engagement is getting low as it sees to many ads.[ CITATION Mar08 \l 1033 ].
Online shopping depends on user thinking and its point of view and his
personal perceptions. Online shopping makes its own character for its
development.[ CITATION NaW08 \l 1033 ]
Product review forums become so popular in recent years and it is powerful
influence on consumer buying decision.[ CITATION God05 \l 1033 ]
Online video ads are more persuasive is that they cause individuals to
cognitively elaborate on the message information [ CITATION Kel89 \l 1033 ] . Videos
are more available in memory and have a greater influence on decisions
because they are attended to and encoded in greater numbers than pallid
stimuli [ CITATION Nis80 \l 1033 ][ CITATION Tay78 \l 1033 ]

Recent studies proved that online videos of products and brand facilitating
greater consumer engagement.[ CITATION Ert12 \l 1033 ]
90% of online shoppers have said that product videos influence their
shopping and buying decisions. After interacting with the video, 64% of
internet users are more likely to buy a product online. Videos have an impact
on users.[ CITATION Ant15 \l 1033 ]

14
Customers interact with video, absorb information, make buying decisions,
and share content across the web. Those are eyes that you want to see your
ecommerce brand and products.
Not only does video content receive a lot of traffic, it can also play a role in
conversions. Landing pages with video content have been shown to
experience an 80 percent increase in conversions.[ CITATION Rag19 \l 1033 ]
Video ads have the highest CTR at 1.84%, of all digital ad formats (text ads,
banner ads, and image ads).46% of online shoppers took some action after
viewing a video ad on social media.
26% looked for more information about the subject of the video
22% visited the website named in the ad
12% purchased the specific product featured in the ad [ CITATION bus19 \l 1033 ]

Pakistan has seen massive growth in media with 20 million people have
access to the Internet and they are using it on daily basis but still marketers
are doing things the traditional way [ CITATION Moh10 \l 1033 ]. Pakistani companies
are still based on ancient paradigm where customers are moving ahead with
their demands and expectations and companies are still following old tactics
for lead generation.

Chapter 3

Overview of Pakistan E-commerce industry

The first online store was started in 2001 by the name of Beliscity and even
though it no longer exists, other stores which are started very early such as
Shophive (2005), Symbios (2006) and HomeShopping (2008) still do.

15
 In 2012 Rocket Internet entered the Pakistani market. In their six months they
had already launched three ventures namely Kaymu, Daraz and FoodPanda.
After that many online stores took place even the local brands started their
online stores. With the development of internet and awareness among
individuals in Pakistan people are exploring new horizons and expanding
their businesses.
Pakistan’s e-commerce market almost doubled 2017-18 as digitalization
paved the way for the services sector to increase its contribution to the gross
domestic product (GDP) from 52% to 60%, according to the State Bank of
Pakistan (SBP).
Sales of local and international e-commerce merchants reached Rs40.1
billion in FY18 compared with Rs20.7 billion in FY17, an encouraging
growth of 93.7%.
Online selling is helping online sellers to set up easier business systems. For
example, a conventional exchange would involve multiple channels such as
producers, transporters, wholesalers, retailers and consumers whereas e-
commerce allows the possibility to eliminate the middle parties, thereby
allowing direct dealing between buyers and suppliers.
Pakistan has got 152 million mobile phone users, almost 73% of the total
population of 207 million, out of which 59 million are 3G/4G subscribers
with total internet subscribers at 62 million.

Pakistan top grossed online stores

 Daraz
 Export left over
 Yavo
16
Daraz

Daraz is a Chinese-owned online B2C portal which operates in Pakistan. It

was founded by Rocket Internet in 2012. Daraz Group provides a platform
for Pakistani sellers and bring potential customer into their stores by digital
marketing and bringing right ad to right customer. In May 2018, Daraz Group
was purchased by Chinese company Alibaba Group.
Daraz still dominating the Pakistan online market with largest market share
but in 2018 their apparel market share was decreases.
Daraz is following the same tactics which they used since there launched by
running ads on social media by product categories and using retarget
approaches who visited their websites.
They captured the values from such consumers who are already searching for
specific products but they could capture more sales by creating demands of
products to right customers using advance tools.

Export left over

Elo started by young entrepreneur Umar farook who won award of most
grossed sales of 2018 of apparel division online in Pakistan it is a family’s
textile business and created an E-Commerce website called Export Leftovers
(elo) that sold garments made in their family’s factories to the Pakistanis
online. What began with a 2 member team in December2013 eventually grew
to become one of the biggest ecommerce stores in Pakistan and now works
with over 100 factories across Pakistan, Bangladesh, China & Vietnam. elo
has served more than half a million customers since its inception and was
recently featured in the top 100 startups of the country.

17
The success of elo is video blogging of products and describing it and is
benefits’. There video champions run frequently and in result word of mouth
marketing was biggest achievement by elo.
How they beat daraz? It is because the digital video marketing which they are
the first one to start in Pakistan and now other stores are following their
tactic.

Yavoo
Yayvo.com started as a revamp of TCS Connect, an online shopping portal
launched in 2012. TCS is the largest logistics company of Pakistan almost
with 800 offices around the country.
Yavoo had so strong advantage having their own logistic company but still
they couldn’t manage to have a market share as they should be having. It is
because there marketing tactics are old they couldn’t create a proper brand
awareness but still they have advantage of cost cut of delivery fee but they
need to create proper product market champions.

Catch Australia

CatchOfTheDay.com.au Pty Ltd. operates an online department store in

Australia. The company offers products across a range of consumer
categories, including fashion, accessories, sportswear, home decor, health
and lifestyle products, kids and babies, beauty, technology, street wear, and
groceries. It also provides international and Australian travel packages, as
well as local deals on food and beverage, entertainment, health and beauty
treatments, and more. The company was founded in 2011 and is based in
Musgrave, Australia. CatchOfTheDay.com.au

18
Catch is officially the most profitable online retailer in Australia. The Catch
Group released its financial results for the last year and reported $306 million
in revenue and earnings before interest, tax, depreciation and the amortization
of $16 million.
The good news just keeps rolling in for Catch, which announced recently that
it would be launching its very first bricks and mortar store by the end of
2017.
The Catch Group launched a new e-commerce store by the name of Catch
Marketplace, a new section of the Catch website that allows existing brands
to sell products through Catch. Lorna Jane and Speedo one of the few brands
that now mainly sell through Catch Marketplace. Catch Marketplace is
growing its revenue by 25 week by week.
It's pretty clear from the number of successes the brand has had that many
Australians can't get enough of Catch. This online store has nearly one
million active customers and almost 100,000 "Club Catch" members.

Key Points of Successful Strategy of Catch

Catch has assortment of products their website. They make a video for each
category.
There videos are short: Their aim to make a video length maximum of 30
seconds especially when they are sharing at social media.
Explainer video: There point of a product explainer video is to causes to
increase relating ability between Catch and their customer.
Catch believes text and images don’t get this across as well. Product or
category videos show emotion and honesty whether it shows actual people or
is an animated video.

19
• They don’t just sell create stories.
• They center there digital video around the Story, Not the Sale
• Video Feature the Best 10 Seconds
• They educate Customers with video
• Customer loyalty program (Club Catch)

20
 Chapter 4

Online retailers that opened brick Physical stores after capturing online
market share

Casper
Mattress brand Casper, which started as an online startup in 2014, is
expanding its brick-and-mortar strategy after seeing success with its pop-up
stores.
While the retailers original USP was to help customers avoid the experience
of buying a mattress in-store, Casper is now using physical retail to its
advantage. Namely, to engage new customers, as well as differentiate itself in
what is now a rather crowded online mattress market.
Casper’s first physical store in New York features six ‘mini-bedrooms’ where
customers are able to test out the retailer’s range of mattresses, pillows, and
bedsheets. The aim is to create an experience that is far removed from the
traditional experience of buying a mattress in-store, making it more about fun
and sensory involvement than transactions.
It’s been reported that Casper has plans to open 200 more physical stores in
the near future, perhaps offering further proof that when internet-only
retailers hit a certain size, bricks and mortar become an important part of
their growth strategy.

Allbirds
Allbirds started out as online-only in 2016, positioning itself as an alternative
to other footwear brands that use ‘design for design’s sake’. It is a highly

21
customer-focused brand, instead focusing on factors like comfort,
wearability, and excellent service.
Allbirds’ decision to enter into physical retail (it now has four brick-and-
mortar stores) is based on improving its customer experience, and replicating
what it is able to offer online. Its stores are minimal – including furniture and
a layout that makes it easy to try on shoes – and a service bar that gives
customers the right size (instead of waiting for employees to go away and
return).
There is a clear focus on touch and feel, too, with displays detailing how
shoes are made and their material. This combats the downsides of online
shopping, whereby customers are unaware of how products feel to the touch.

Warby Parker
Warby Parker was founded in 2010 and ventured into physical retail in 2013.
In 2018, the eyewear retailer announced plans to reach 100 stores, increasing
from around 64 at the beginning of the year.
The reason Warby Parker expanded into brick and mortar in the first place
was due to customer demand, specifically to be able to try on glasses before
buying them. This meant that it immediately offered customers a valuable
reason to visit in-person, allowing Warby Parker to slowly scale up
operations as the demand increased.
Stores are being hit by online retailing
WHEN AMERICA’S RETAIL bosses gathered in New York earlier this year
for the annual shindig of their trade association, the National Retail
Federation, there was much talk about new technology to improve the
industry’s prospects, from sensors that read consumers’ facial expressions to

22
machine-learning software that can optimize prices. The ghost at the banquet
was the company that gave no presentations but made its presence felt
everywhere: Amazon.
Traditional retailing has had a tough time lately. Traffic in shopping centres
in Europe’s biggest markets has been declining. In America, which has about
five times as much space in shopping centres per person as Britain, the pain
is acute. Chains that were faltering even before Amazon’s ascent are now in
even deeper trouble. Macy’s, a department store, last year said it would close
100 of its 728 shops. Fung Global Retail & Technology, a consultancy,
expects nearly 10,000 stores in America to close this year, about 50% more
than at the height of the financial crisis in 2008. And there will be more to
come.

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 Chapter 5

Findings
Digital Marketing is becoming most important medium for selling goods and
trend are also changing rapidly. Internet is a medium to increase market share
by generating sales using ads.
Video content receive a lot of traffic, it can also play a role in conversions
Now for a consumer seeing ads while using internet is normal and its
engagement is getting low as it sees to many ads.
According to researchers consumer buying decision doesn’t much depend on
reading content or watching product image or reading its description
Banner advertising founded as to increase the probability but still consumer
engagement is getting low
Pakistani companies are skeptical towards digital marketing. They do not
fully understand the full potential of digital marketing in terms of growth and
cost effectiveness. Digital marketing is considered an important tool for
growth.
Digital marketing tactics what Pakistani companies are using are not much
engaging, consumer expects more to be engaged as information flow is too
fast and internet users and easily generates reviews.

24
Customers interact with video, absorb information, make buying decisions,
and share content across the web. Those are eyes that you want to see your
ecommerce brand and products.
Not only does video content receive a lot of traffic, it can also play a role in
conversions. Landing pages with video content have been shown to
experience an 80 percent increase in conversions.
Catch group uses product description and video blogging of products and
become the most lead generated stores in Australia
In order to generate leads companies should focus on product description
videos and or brand awareness video blogs and target the right customer by
using online audience segmentation tools.

25
Conclusion
While there have been numerous studies about online advertising, there has
been little academic research focused on what types of digital marketing
strategies are preferred by consumers and which ones influence their
behavior. Consumers are an essential ingredient in the development of e-
commerce. Results of this study indicate that User prefer certain forms of
digital advertising, while avoiding others. Results also indicate that there are
digital marketing strategies that are considerably more effective than others
in grabbing the attention of users, motivating repeat visits to a website, and
online video blogging or in stream video ads are most successful strategies
now.
In designing digital advertising, marketers should use video ads and offer
coupons for return visit. Now users like watching video advertisements on
YouTube, social media, etc
Avoid using pop-up advertising or un-closable windows, unless your intent is
to irritate the consumer.
Users are attracted to ads with brightly colored graphics. Digital media offers
the opportunity to personalize ads marketers should take full advantage of
this feature. This generation likes to interact personally with the company and
brand. Make your website interactive.

26
A company should never use an online advertising tactic that is considered
intrusive and annoying, thus turning away customers. Companies can directly
attract with customers by using which digital marketing strategies are
engaging and generating sales. Companies should connect with this new
generation of consumers on their turf which includes videos ads.
Proper engagements needed with products by the consumer so catch store
strategy is by video marketing and that is the best tactic for now in increasing
market share.
Pakistani e-commerce stores or private label brands are still behind in digital
they can increase their market share by getting more engagements and now
video marketing or sharing proper information in videos of product or its
category can lead more sales and at the end that store will increase market
share.

27
Suggestions

 Online industry is expanding day by day globally every year there is

increase in online sales including Pakistan. It is a major sector of Pakistan
which is expected to grow every year. More opportunities means more
companies will fall in which end up with more competition’s ,e-commerce
industry is a kind of industry in which the success reason is only the
marketing and innovative skills of targeting the users.
 The strategies of targeting users with ads are changing rapidly as now
internet users engaged with video ads or blogs which they understand easily
and feel relax and directly interacting with him it.
 Pakistani companies should focus on video marketing as describing
the product and creating proper awareness of product and brand.
 Users feel relax while watching a descriptive video and this is the
reason why catch group of Australia has more than 50% of market share of
Australia.
 Digital videos should be targeted to right audience by using proper
online tools and setting the proper audience in Ads sense or Adwords.

28
 Video blogs or ads should be not being lengthy maximum of 30
seconds.
 It could be animated or digital marketer, category manager could
directly interact to.

 If you can’t measure accurately, then you won’t know if the video was
a success.

 In the old model, no built-in mechanism exists to guide production of

the right kind of content for a given goal. A good video strategy provides the
guidance and a framework to create and distribute a powerful piece of
content.
 An ill-conceived strategy also can be no strategy at all, creative briefs
that give little detail on audience or, worse, state the video is for multiple
audiences. While on the surface this may seem efficient, the reality is that if
you make a piece of content for several audiences it ends up engaging no
one.

 At first glance you could be fooled into thinking this is an audience or

demographics question. On the surface, it is. But if you want to craft a video
that’s truly powerful to an audience, go deeper.

 Psychographics are a good place to start as well as the view of your

audience. What is it that they believe about your brand, product, service,
content?

29
 Go specific and narrow. If you can understand the view of your
audience in relation to what it is you do, you have a greater chance of making
something that means something to them.

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