INTRODUCTION- ASOS

1
Fig 1: A figure showing the logo of the online fashion store ASOS.

ASOS plc is a British online fashion and cosmetic retailer. The company was

founded in 2000 in London, primarily aimed at young adults. The website sells over
850 brands as well as its own range of clothing and accessories, and ships to all 196
countries from fulfilment centres in the UK, US and EU. ASOS originally stood
for AsSeenOnScreen with the tagline "Buy what you see on film and TV because it
exclusively sold imitations of clothing from those mediums, for example, Brad Pitt's
red leather jacket from the 1999 movie Fight Club. 2
ASOS' headquarters are in Camden Town, at Greater London House with additional
offices in Paris, New York, Berlin, and Birmingham. As of 2013, their main fulfilment
centre is in Barnsley, South Yorkshire, where they employ 3,500 workers. The
customer care department is based in Leavesden, near Watford, in
southwest Hertfordshire. ASOS was established on 3 June 2000, by Nick Robertson,
Andrew Regan and Quentin Griffiths. In 2001, ASOS was admitted to the Alternative
Investment Market on the London Stock Exchange. In 2003, ASOS shareholders
agreed to change the names of AsSeenOnScreen Holdings PLC and
AsSeenOnScreen Limited to ASOS plc and ASOS.com Limited. In 2004, the
company reported a maiden profit, with sales almost doubling in its first half. In 2004,
ASOS introduced their own label for women's clothing. In 2013, ASOS opened its
first office outside the South East, in Birmingham.3
In 2017 ASOS launched a campaign intended to take full advantage of the
'Instagram Stories' feature, encouraging users to upload videos of purchased ASOS
products. 3 million people interacted with the video in the UK.  ASOS uses the
#AsSeenOnMe hashtag and any use of the hashtag adds the photos to an ASOS
online database.
As of March 2018, a mobile app allows users to upload images of clothing they like
in order to receive suggestions of matching or similar items that the company stocks.
ASOS claims that in the UK, 58% of purchases happen on mobile devices. 4

1
https://digital.hbs.edu/platform-digit/submission/asos-your-one-stop-shop-for-all-things-fashion/
2
https://web.archive.org/web/20150529112657/http://www.asos.com/asos-as-seen-on-
screen/cat/pgehtml.aspx?cid=18967&r=2
3
https://www.business-live.co.uk/economic-development/fashion-chain-asos-opens-first-3906393
4
https://digiday.com/marketing/asos-gets-50-percent-customers-buy-mobile/
STP (UNCONTROLLABLE VARIABLE)
RUSSIA AUSTRALIA
SEGMENTATION- SEGMENTATION-

 DEMOGRAPHIC SEGMENTATION  DEMOGRAPHIC SEGMENTATION

 Launched website for Russia in 2013 to I. Launched website for Australia in

cater to young adults. 2011 to cater to “20 something”
customers.
 The Russian website of Asos targets
males & females aged 18- 29 years II. The company originally targeted
living in either Moscow or St. men and women of age group 16-34
Petersburg. 5 years.

 Given below is the achieved and III. Given below is the achieved and
segmented demographics of asos- segmented demographics of asos- 8

Performance Original Performance Original

(in %) Target (in %) Target
Age 18- 23(44%) 18-29 Age Group 18-23(55%) 16-34
Group 24-29(32%) years’ old 24-29(20%) years old
30-35(20%) 30-35(20%)
36-42 (4%) 36-42(5%)
Gender 70 %-Females Both Gender 80%-Females Female &
30%- Males female & 20%- Males male
male customer
customers s
Occupati Young Same Occupation Young Same
on professionals professionals
& students & students
Ethnic The majority All Ethnic The majority All
Group are white Group are white
Income High average Middle- Income Average Middle-
income class income class

 BEHAVIOURAL SEGMENTATION-  BEHAVIOURAL SEGMENTATION-

 Russians spend 10+ hours on social I. Aimed for web-savvy, regular
networks every month second in the internet users & fashionable youth.9
world, which represents a huge
commercial opportunity, hence Asos
targets technically sound youth. 5
 PSYCHOGRAPHIC SEGMENTATION-
 Same as Australia.
 PSYCHOGRAPHIC SEGMENTATION-
5
https://www.forwardpmx.com/case-study/asos-reaching-a-russian-audience-through-social-
media/#:~:text=Boost%20brand%20awareness%20rapidly%20among,tight)%20maximum%20cost
%20per%20fan.
 I. For people who demand unique and
 GEOGRAPHICAL SEGMENTATION- inexpensive clothes that could be
 Asos launched special website for shipped to them at their doorstep.
people of Russia in May 2013.
 GEOGRAPHICAL SEGMENTATION-
I. Asos launched special website for
people of Australia in September
2011.

Fig: A figure showing the customer profile of a

typical Russian customer of asos.6

TARGETING Fig: A figure showing customer profile of a typical

Australian customer of asos.6
 Characteristics of target audience of
Asos of Russia remains the same as
that of Australia. TARGETING

 Characteristics of target audience of

Asos of Australia are-

a. Twenty-something fashion lover.

b. Fashion innovators in the PLC.
c. Avid customer & communicator.
d. People who get inspired by friends,
celebrities & the media.
POSITIONING e. Fashion conscious individual,
spending as much as six hours a
 ASOS Russia has differentiated itself day on computer, phones or tablets.
10
from this competition by presenting
consumers with options, featuring a
variety of product categories, price POSITIONING
points, and brands. 
 ASOS has positioned itself as the
  Through their customer friendly and leading company behind the idea of
interactive site, they have positioned providing celebrity fashion to
themselves clearly in the mind of the consumers at cheaper prices and thus
consumer and, as their logo states, focuses its products design on the
allowed a global audience to discover fashion trend in Australia.11
fashion online through their distinctive
6
http://blogs.brighton.ac.uk/nckfy/2018/12/10/asos-com-digital-marketing-audit/
9
https://assignmentstudio.net/astudio1/wp-content/uploads/2018/03/E-marketing-Plan-of-ASOS.pdf
8
https://issuu.com/feifeifeiwu/docs/asos_marketing_auditfinal
 site. 7

Fig: A figure showing the brand positioning map of

ASOS.

Fig: A figure showing the brand positioning map of

ASOS.

7
http://asosblog.blogspot.com/2013/04/positioning.html
11
https://www.ukessays.com/essays/marketing/current-and-future-marketing-plan-of-asos-marketing-
essay.php#:~:text=Positioning%3A%20ASOS%20is%20the%20leading,design%20on%20the
%20fashion%20trend.
10
https://prezi.com/dva-dmqhh1if/asos-target-audience/
BRAND IDENTITY
RUSSIA AUSTRALIA
 Fashion Hub for Russia catering to  One stop online destination for funky
all fashion issues. to chic to minimalistic clothing.

 BRAND PERSONALITY-  BRAND PERSONALITY-

I. Light-Hearted
I. Quirky
II. Engaging
II. Successful
III. Fun
IV. Lively
III. Innovative

V. Fresh IV. Trendy

VI. Democratic V. Fashion-conscious
VII. Young VI. Independent
VIII. Cool VII. Forward-Thinking.
IX. Witty VIII. Exciting
X. Inclusive
IX. Accessible

 BRAND VALUES-
X. Daring

I. Always have fresh styles.

II. Always offers new product  BRAND VALUES-
ranges. I. Unique OSP (Online Selling
III. Motivates current & innovative Proposition)
fashion. II. Up-to-date fashion
IV. Price- Competitive III. Best Fashion edits
V. Something for Everyone IV. Fairly good quality
VI. Offers wide range products. V. Own-label collection as an
VII. Be fashion forward essence value.
VI. Best online shopping experience.
VII. A friend of customers
VIII. Well- targeted price range.
 BRAND IN ACTIONS- IX. Large selection of brands &
I. Mix vintage with new styles. product lines.
II. Interact & engage with customers
III. Develop ‘fashion finder’ concept  BRAND IN ACTIONS-
I. Free shipping to any part of
IV. Fun and informal tone across the Australia.
site. II. Tailored specific website for
V. Keep lower price points. Australia.
VI. Student discounts III. Offers both street & designer
products.
 VII. Sales, gifts, vintage IV. Trade only online.
buying/selling, outfit planning. 12 V. User-friendly site.
VI. Socially- interactive company.
VII. Keep company growing. 13

CUSTOMER LIFECYCLE MANAGEMENT

RUSSIA AUSTRALIA

CUSTOMER ACQUISITION PROGRAM CUSTOMER ACQUISITION PROGRAM

 In order to acquire new customers Asos  10% discount offers to students

started a gift voucher system on its website, especially since its target market are
wherein the user can customise the design young students.
of voucher and add amount of the choice
and write some personal message with it.

 Asos will then send the voucher to the lucky  Extra off on all merchandize with valid
customer through mail on the specified day, student ID card and number. Upto 25%
thereby acquiring a new customer. discounts on Students’ Day. 17

Fig: A figure showing the customised gift voucher given Fig: A figure showing the student discount offer
by Asos on its site to acquire new customers in Russia.14 given by Asos in Australia.

CUSTOMER RETENTION PROGRAM CUSTOMER RETENTION PROGRAM

 Asos launches daily discounts offers for its  The programme offers users five points
customers, on the apparels for both men & for every $1 they spend, with each point
women, also it promises to give discounts worth 1p.
upto 25% on applying certain referral codes.

 Code can be used multiple times per  That means if a customer spends $60,
customer up to maximum pre-discount they’ll earn 300 points worth $3. The
spend of ruble 500 per order. scheme has been implemented to boost
engagement and brand loyalty. 18

12
http://sarahloujlcf.blogspot.com/2013/11/asos-branding-diagrams.html
13
https://issuu.com/feifeifeiwu/docs/asos_marketing_auditfinal

14
https://www.asos.com/ru/gift-vouchers/?ctaref=global%20footer|gift%20vouchers
17
https://www.asos.com/au/discover/students/asos-on-campus/student-validation/
 Fig: A figure showing the customer retention
program launched by Asos, as a reward system.
Fig: A figure showing the discount offers given by Asos
for Saturday evening on applying of coupon. 15

CUSTOMER ENGAGING PROGRAM

CUSTOMER ENGAGING PROGRAM
 Asos launched an online fashion show
 The name of this engagement program is
in Australia to engage its customers,
‘Name and claim the Vintage Designer Bag.’
named ‘Spring and Fall Runaway
Show’.
 Guessing the name of designer of this bag
and winning a clutch/tote/sude/backpack
from the same designer was an
engagement program developed by Asos in
all countries.
 BENEFITS-
 HIGHLIGHTED MERCHANDISE I. Live video of the runway event.
I. Vintage boutiques & independent labels II. Complementary styling consultation.
including CK, Fendi, Liz Claiborne, Head III. Runway inspired looks tips.
Champion, C&A and Converse.16 IV. Customised styling options
according to the body type.
V. Best styling options for each product
type according to seasons. 19

Fig: A figure representing poster of Runway Show

Spring’2017 hosted by Asos in Australia to engage
Fig: A figure representing the poster of customer its loyal customers.
engagement program developed by Asos.
15
https://www.asos.com/ru/women/sale/?xaffid=17294&r=1
16

18
https://digitalmarketinginstitute.com/blog/analysing-asos-digital-strategy#:~:text=ASOS%20are
%20trialing%20an%20online,boost%20engagement%20and%20brand%20loyalty.
19
https://www.clozette.co/article/top-looks-from-the-asos-runway-show-2114
SWOT ANALYSIS
RUSSIA20
STRENGTH  Ongoing investment in
technology
 focus on growth
 accessibility on mobile
devices
 International markets.
 Distribution efficiencies and
delivery options enabled the
company to ship to
numerous international
destinations across the
globe within 48 hours.
 Local language customer
care, social media activities
and a dedicated express
delivery solution were
factors that helped to build
a strong position on the
Russian marketplace.
 in-country teams and
locally-relevant product
offers
 fully tracked drop-off at
more than 13,000 post
offices and outlets
 Improved technology
platforms, especially local
language mobile sites.
 Asos has partnered more
with local companies in
Russia calls for a different
approach.
 Free shipping and free
returns
 The website sells over 850
brands as well as its own
range of clothing and
accessories.
WEAKNESSES  ASOS is online only,
customers do not have the
option of trying on or feeling
the clothing prior to
purchase.
20
https://wndirect.com/application/files/7914/4604/3169/15_-_wnDirect_Case_Study_ASOS_Russia.pdf
21
https://assignmentstudio.net/astudio1/wp-content/uploads/2018/03/E-marketing-Plan-of-ASOS.pdf
AUSTRALIA21
 Vast portfolio of products
maintain consumer interest
 Use of social media for
increasing awareness
amongst consumers of the
new and current products
 Celebrity endorsement allows
the ASOS consumers to feel
connected with them
 Blogs and getting to know the
insiders, both strategies allow
ASOS consumers to make
connection with the brand on
a personal level
 Operating fully online saves
time and cost for achieving
global expansion.
 Low cost of production as
users sell merchandize
 Fashion destination for
twenty something gives a
marketing edge to ASOS
 Experienced with social
media marketing
 Free shipping and free
returns to its global consumer
base
 Catwalk feature of website
allows consumers to see how
the product will look like
while wearing
 ASOS brings consumers and
sellers together on one
platform for buying and
selling products
 No physical store (only online
shopping)
 Shipping time differ
 ASOS does not market itself
on any offline marketing
  The company needs to
invest in technology more to
improve its customer
experience.
 The free shipping service
provided by ASOS costs the
company 100 million
pounds on an annual basis.
 ASOS does not advertise on
any marketing platform.
 The investment of ASOS on
Research and Development
is below the industry
average. It has not been
able to compete with the
leading industry players in
terms of innovation.
 Limited to credit cards and
PayPal whereas the majority
of online fashion sales in
Russia are made via cash-
on-delivery. About 80% of
fashion goods are sold in
this manner.
OPPORTUNITIES  Consumers are willing to
spend more money on
unique products, which is
advantageous to the
diverse, exclusive brands
features at ASOS.
 Consumers continue to
make more purchases from
mobile platforms, including
phones and tablets.
 On average, Russians spend
10+ hours on social
networks every month
(second in the world), which
represents a huge
commercial opportunity for
advertisers wanting to reach
a Russian audience.
 Relatively small number of
international online retailers
have made specific efforts
to develop their sales into
Russia. So competition is
platform
 Not well-known in Australia
 Not all cards are accepted
here
 Almost 30% of the purchases
made on ASOS are returned
to the company which results
in additional costs to ASOS
 Total cost is around 100
million pounds which is faced
by ASOS due to free shipping
provided by ASOS.
 Expanding to other countries
like BRIC and MENA market
that are trade oriented
markets.
 Online retailing is also
increasing and now occupies
around 12% of retail sales in
Australia.
 Digital media advertisements
 Growing markets
 Globalization is extending the
base of retailers as they are
now more able to connect
with each other across the
globe for growing their
businesses
 Growth in the popularity of
online shopping
 Increase in mobile usage that
aids people for making more
purchases from mobile
platforms
 comparatively low.22
 no specific security issues to
deal with when working
with Russian consumers,
and that it is not necessary
to offer them payment-on-
delivery options for cross-
border purchases
THREATS  Major hindrance to the
company’s efforts in Russia
that their distribution centre
remains in the UK — this has
a negative impact on
delivery times to Russia.
 Amazon has also set its
sights on cracking the online
fashion market in Russia.
 “Russian launch” is basically
a translation of their English
site. The company hasn’t
undertaken any true
localization of its operations
and will thus have limited
effectiveness in expanding
its addressable market in
Russia.23
PESTLE
RUSSIA
POLITICAL  Main political factors
influencing e-retail in
22
https://www.gmb.org.uk/news/asos-playing-russian-roulette-peoples-lives
23
https://www.ewdn.com/2013/05/14/asos-opens-in-russia/
 Uncertain economic issues.
 Other larger brands like
Marks and Spencer, New
Look and Tesco, have both
physical as well as digital
form of recognition due to
which they also gain
consumers through foot
traffic as well as other online
platforms.
 Dependent on internet
connection
 No or lack of television and
other offline advertisement
usage
 Seasons and climate factors
due to different local fashion
tastes as well as opinions will
also impact the globalization
 Small company and HR issues
as in 2012 womenswear
design director, product
director, head of
womenswear and branded
accessories manager left
ASOS.
 Some countries lack social
media and internet coverage
due to which social
promotions do not reach
them.
AUSTRALIA
 The political situation
is rather stable in
 Russia are – high level
of
corruption.Corruption
has serious effects on
e-commerce in many  Political stability of
ways. The price and
marketability of any
product or service is
determined
significantly by the
local cost of
production. On the
other hand, the cost of
production is
influenced greatly by
the level and  Australia also has an
magnitude of
corruption in the
system. The level and
magnitude of
corruption affects the
cost of all the factors
of production which in  Australia hosts a
turn affects the
demand and supply of
products and services
covered by e-
commerce. This will
give a negative impact
for the growth of Asos
in Russia
 Another significant
political factor
affecting e-commerce
in Russia is problems
that have emerged
after the Ukrainian
territory of Crimea
was annexed by the
Russian Federation on
18 March 2014.
(BBC,2014) As a result
many sanctions were
applied against Russia
by Western countries.
 Some new custom
limitations has been
introduced recently,
Russia has set a new,
lower custom
threshold for imported
Australia, allowing
investors to feel
confident in their
purchases.
Australia gave Asos an
opportunity to expand
its business in the
region. Political
stability has a great
influence in economy
of the country.
Economy can grow
easily. Which is good
sign for Asos
open, efficient and
transparent legal
framework. Corruption
levels are lower.
Which is good for Asos
to develop in Australia.
growing economy; a
stable political and
business environment;
a skilled, well-
educated and multi-
lingual workforce; a
strategic time-zone
and a competitive cost
base. These factors
provide a
sophisticated market
and the right
environment for Asos
 goods.
 Free Trade Zone
Agreement between
the member states of
the Commonwealth of
Independent States.
Asos ware houses are
situated in these
countries. This
agreement helps in
import and export of
goods
Economic  Russian economy is  Strong economy,
suffering from the
ongoing financial
crisis.
 As a result of financial
crisis online businesses  The highest per capita
sales volumes are
stagnate or even
decreasing since the
middle of 2014.
 Increased prices for
domestic and foreign
raw materials.
 Growing inflation rate.
Increase in inflation
rate has significant
negative effect in E –
commerce.
 General decrease in
Russian business  Impact of Covid-19 on
profitability
 Increased import costs
resulting in higher  Currency exchange
prices for goods
 Growing national debt
 Change in consumers`
behaviour: tendency
to spend less and save
more for the future.
 Impact of Covid-19 on
economic and retail
business.
SOCIAL  Russia`s Long term  Australia has a smaller
orientation shows this
society is more
pragmatic and is able
to adapt its traditions
to changing
conditions. This is
According to an
estimate, Australian’s
per capita is the 10th
highest in the world.
means earning per
citizen, it means that
every citizen of the
country is employed
and earning well. This
is good for online
business. They used to
spend more money for
leisure activities. So
they buy more items
through online. This
gives a strong base for
Asos
economic and retail
business.
rates against euros,
dollars and sterling are
very favourable in
Australia. This has a
positive effect in
growth of Asos as it is
an international e-
commerce site
population than most
other countries. But
demographics lies
42.5% in age group of
25-54. Asos can make
an impact in this age
 showing the
adaptability of the
people which can
utilise Asos well.
 New educational
approaches and  Australia has a good
modern solutions are
welcomed in Russia.
New educational
approach has a
positive impact for
online studies.
Through this parents
can also get to know
about online
transactions and
online shopping. This  Australians prefer
is good for Asos
 Russia is obviously a
country of restrained
culture.
 People in such cultures
have a tendency to be
pessimistic and
cynical; they are able
to take control over
their desires and are
stricter to themselves.
TECHNOLOGY  The majority of TV  Australia is known for
channels and stations
are owned by the
government or people
with close ties to
government officials.
This impacts what
citizens can watch
freely. If Asos can do
ads in television
channels they can
easily make an
impression among  The technology growth
people. Because
almost all contents in
TV ads are telecasting
with the permission of
government. Through
this Asos can gain trust
of the customers.
 A slowly growing IT
market. This is one of
group. This age group
is more vulnerable to
internet using. Asos
can easily attract
internet users.
number of public and
private universities
which attract a lot of
international students
every year. Because of
that a lot of students
are coming who are
inclined to buy more
and fit the target
market of Asos
higher-tech education.
adopting new
technologies at a
faster rate than most
other countries. It
entered the new
millennium with one
of the highest rates of
internet access in the
world. This giving a
structured base for
Asos.
has also helped to
improve Australia’s
economy, as it is now
one of the leading
countries in the world
for importing and
exporting goods. As
the increase in
economy country is
 the main issues which
Asos facing in Russia.
LEGAL  The legal framework
of Russian Federation
is very complex and
brings confusion to
inexperienced
entrepreneurs.
 Russian legislation
Infrastructure is constantly
evolving due to economic
and political factors. This
unstable condition can
make a negative impact in
the growth of Asos
welcoming more
international brands
and e-commerce
companies. Asos can
utilise this opportunity
to grow.
 Signing or accepting
contracts, is
company’s interests to
seek professional legal
advice from legal firms
specializing in
international work.
Without knowing
 The major elements of
formation of a
contract are offer and
acceptance;
consideration;
intention to create
legal relations and
certainty of terms.
 A contract may be
construed via
exchange of e-mails,
scribbling on the back
of a docket or even
verbal exchanges. This
helps in making
contracts less
complicated.
 The Australian
Consumer Law (ACL)
governs all e-
commerce
transactions in
Australia. Therefore, if
you do not abide by
the rules, you can get
into serious law
violation problems.

ENVIRONMENTAL  Growing popularity of  Questionable practices

e-commerce is causing in fast fashion.
increasing need in  Sustainability a
transportation, paradigm shift in
paperwork and usage retail. Australia is now
of natural resources. concentrating more on
 It is important to sustainable thigs. To
remember about the grow in Australia Asos
 harm all of the above have to include more
mentioned is making sustainable products in
to the environment. their product line.
 Businesses have to
take a responsibility
over environmental
issues and operate in
accordance to legal
standards protecting
the environment.
 It is necessary for
them to support
recycling, find smart
28 logistics solutions
and encourage
reduction of waste of
electricity, paper and
other resources.
 These are the main
environmental facts
that need to take care
Asos while operating
in Russia.

SOCIETAL MARKETING
RUSSIA
 Asos corporate responsibility has led the
company to create the ASOS Foundation,
which builds infrastructures and
educational initiatives.
 Through the foundation, ASOS has
implemented training programs that
aimed to provide opportunities to
children interested in technology and
fashion.
 At the same time, ASOS continues to
AUSTRALIA
 Designed to hype 2012’s end of
summer sale, ASOS’ Queue Jumper
Contest. Through a series of point-
earning games (to move up in the
sale access queue), ‘queue jumper
confession’ posts, shout-outs and
friends inviting friends to join the
line, ASOS’ Facebook audience grew
substantially in just a few days.
 ASOS began its #AsSeenOnMe
 partner with charity organizations such as
Prince’s Trust and SOKO Community Trust
to fulfil its corporate responsibility.
 January 2018 saw ASOS begin a new
activewear campaign with the
hashtag #MoreReasonstoMove. The
advertising features models of
various backgrounds, genders and
abilities in order to encourage
shoppers to see working not as a
burden, but as a form of self-
expression.
positive body image campaign in
2014. The concept was simple and
sustainable: customers posting
pictures of themselves wearing
clothes bought from ASOS.
#AsSeenOnMe campaign achieve its
original goal – celebrating people of
all shapes and sizes.
 ASOS’ inspired Blank Canvas
Competition started in 2014. Timed
with the ‘back to uni’ season, ASOS
invited students to design a bag. All
who participated (even those who
voted) received ASOS perks and
discounts. The winning bag was sold
through ASOS.com. Participants
could design from scratch or use pre-
provided artwork online.