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PEACOCKS REBRANDING BUSINESS PLAN 1

Peacocks Rebranding

The great value fashion store

Business Report By Ama Achiaa Adusei

Contact details:

Email: [email protected] Telephone: 07432626188


Table of Content Executive summary…………………………………………………………page 3

Introduction………………………………………………………………….page 4

Objective……………………………………………………………………..page 6

Research………………………………………………………………………page 8

Analysis ……………………………………………………………………….page 10

Findings ………………………………………………………………………page 14

Suggestion ……………………………………………………………………page 15

Conclusion ……………………………………………………………………page 18

Appendix ………………………………………………………………………page 19

Bibliography


Executive summary

This report was made to examine ways in which Peacocks can increase sales and achieve a

strong social media presence and potentially be more successful.

The research draws attention to the fact that in 2012 Peacocks went through financial issues

leaving them in administration but since then have come back fighting. The report identifies

a solution to increase sales and also keep peacocks on top of the retail competition. The

report looks at the positive aspects of the rebranding but also the negative aspects.

The report looks at the impact a celebrity endorser has on a retail store and how they can

improve sales using their fans on the social media platforms.

*The report is based on information which I found online which has not been verified by Peacocks


Introduction

The Cardiff based fashion retail store, founded by Albert Frank and established in 1884 was

created for great value for money fashion. The company which was built on Frank’s

principles of values has continued to flourish and hold its position in the 21st century with

other high street competitors such as New Look, H&M and Matalan.

The store for great value and long lasting, women, men and children wear over the years has

established a great public awareness and identity on the high streets. It went into

administration in 2012 shocking the whole high street and employers. Peacocks had to

rebrand the company and reduce prices after assessing competitors such as Matalan. The

company was brought out by Edinburgh Woollen Mill LTD (EWM) saving it from going

bankrupt, since then the business has gone ‘back to basics’ and the company has since

followed their motto “become the most successful value-for-money clothing retailer in the

country, offering great customers service in a friendly, family environment”.

Since the 2012 collapse of Peacocks it has left the danger it once faced with increasing

profits, the turnover in 2013 was up by more than 130% to £566.7m, and operating profit

had also increased to £58.5m compared to the £20.6m the previous year. EWM has invested

£80m in "refocusing the brand", developing online sales, refitting key stores and "enhancing

its overseas presence". Peacocks retail has over 200 stores located across Europe, however

the UK retail market is still a tough environment with a vast number of retail shops and

cheap goods, to stand out for the shoppers there needs to be a unique selling point (USP).

In 2010 Pearl Lowe was hired by Peacocks to create an exclusive clothing line for autumn-

winter 2010, which was worn by celebrities such as Holly Willoughby and Natalie Imbruglia,

becoming the fastest selling product on the high street during that season. The black dress


created by Lowe for the autumn- winter 2010 was a must have and the talk of the fashion

industry.


Objectives

In this report I will be looking at the ways in which Peacocks can increase their profits and

continue to be successful and make sure the company does not go back into administration and

it still in the race with the big high street retailors. The three key objectives this report will

hopefully be able to achieve will be:

I. Increase sales by 10% across UK Peacocks retail shops.

II. Increase the social media presence of Peacocks online and stay ahead of the high street

competitors

III. Broaden Peacocks targeted audience and catch the attention of the younger generation.

What are we trying to achieve

Overall we want to increase the brand awareness as a whole, we want to establish a younger

audience and get the public more engaged through online interaction. The more the brand

becomes popular within the UK the more people will be talking about it on social media

platforms and catching the attention on a mass level around the globe.

How we will achieve these goals

We aim to achieve our objectives by establishing a face for Peacocks, using a well know beloved

celebrity that has a big social media presence and strong relation with the younger generation. A

celebrity that is fashion forward but still has the same principles as Peacocks, the love for great

value and long lasting. Creating a face for Peacocks will hopefully boost sales and get the

younger generation talking about the brand

Strategies and tactics

I. Introducing Holly Willoughby’s clothing line within peacocks stores around the UK


II. Use Holly Willoughby to endorse the brand to engage the consumers via Twitter and

Facebook with links to the official website with her own clothing line.

III. Social media input by introducing hashtags, getting customers to vote for favourite styles

worn by Holly from the Peacocks line.


Research

Retail shops are now stepping into a period where it is now becoming increasingly popular to use

a well-known celebrity to endorse their company and create a buzz. With the increasing success

of Peacocks stepping out of recession and coming back strong, it is important that Peacocks stay

on top of their success but also on top of their competition. For Peacocks to continue on

growing they need to expand on their target audience. Peacocks have been through stages where

they have tried to attract they younger generation, for example when Pearl Lowe joined Peacocks

back in 2010. People need to be reminded that peacocks is not just for the older generation but

also the younger generation. Several retail shops have taken advantage of celebrities becoming

the face of their stores, which had led to an increase in profits for many high street shops.

In 2012 the Kardashian sister joined forces with Dorothy Perkins

for the Kardashian Kollection. The store which targets women

between the ages of 25-35 was injected with the young fresh look

from their collection. The highly anticipated launch created a lot of

buzz and had many people talking about it with sales increasing by

20% in the first year, the collection increased sales across the

company

Beyoncé Knowles became the face for H&M summer

collection, when sales dropped and the fashion retailer

lost their crown to the world’s largest retailer and sales

fell by 3%. H&M were hopeful that the lead singer of

Destiny child could put them back on top. Shares rose

within the company by 0.8% and sales boosted up by

14%


How do celebrity increase sales?

Celebrities have the ability to increase sales due to their influence they have within society, they

influence fashion, trends and many more other areas. Social media has become a playground for

celebrities they are able to interact with their fans and interact amongst each other, they are able

to reach consumers on a mass level.

How to reach the demographic?

Rita Ora became the face of DKNY NY last summer,

with an astronomical 249 per cent uplift on perfume

sales. The perfume was a big success and increased

sales within the UK selling three-and-a-half times more

than August the previous year.

Recent studies of hundreds of endorsements have indicated that sales for some brands increased up to

20% upon commencing an endorsement deal. According to Anita Elberse, associate professor at

Harvard Business School, some companies have seen their stock increase by .25% on the day the deal

was announced. - www.adage.com

Peacocks attract more of the older generation;

with the use of a celebrity endorser

promoting through social media platforms

such as Facebook they will be able to target

more of the younger generation. It is clear

from the diagram woman between the ages of

18-24 and 25-35 are the main people on

Facebook so reaching that demographic will

be easier.


Analysis

In this section I will analyse the positive and negative of having a face for Peacocks. I will be

looking at the key stakeholders, strengths, weaknesses and potential opportunities that Peacocks

could gain.

SWOT

Strengths Highly recognised brand.

Peacocks are still very successful.

High rated quality products for great value

The celebrity endorsement will bring in a new audience.

The celebrity clothing line will bring a diverse range within peacocks but keeping the product still at great value.

Weakness Celebrity endorsements are expensive

Lower the expectation, of an A- list celebrity (UK based celebrity)

The face of Peacocks will not create the same buzz in the European counties were the stores are based.

This rebranding could potentially be the opposite of Edinburgh Woollen Mill LTD originally idea was of going ‘back to basics’.

Does not appeal to men or children

Opportunities Bring in a new target audience but keeping hold of the original target audience.

Bring in a new fan base from the celebrity’s fan.

Increase sales

Additional promotion from the celebrity through social media platforms.

All the parties ‘win’ celebrity is promoted and so is Peacocks.

Threats Celebrities are not perfect and a scandal could potential ruin the campaign.

Could potential makes sales the same and not increase target audience.

No celebrities may be willing to endorse Peacocks.

The SWOT analysis looks at the strengths, weakness, opportunities and threats which could potentially occur with the

rebranding of Peacocks. Key factors such as a celebrity endorser bring in a new target audience and increase sales, it is

something that could take Peacocks to the next level and it has the potential to put Peacocks in the race with the big

retailers such as Zara and H&M. The strengths and opportunities outweigh the weaknesses although a key factor which

would come into consideration would be expenses. From the research, it is clear that retailers improve sales when

celebrities are endorsing the brand meaning companies tend to make the money back which they spent on the celebrity

through sales. Advertising would also be reduced as the celebrity will be advertising the brand on a social media

platform, which will reach millions and potentially reach people that would have never heard of the brand.


Stakeholder

The stakeholder analysis looks at the most important people within the company and the impact

they have within the company. In regards to this rebranding of Peacocks, the most important

group of people will be the new consumers being able to target and appeal to them, making

them want to shop at Peacocks, for maybe their first time, will be a big challenge. Peacocks have

always been known for their good value for money clothing and the older target audience,

persuading younger people that they in fact sell clothes for women of the younger generation will

be a challenge.

It could be argued the most important people within a company are the stakeholders thus the

loyal customers would also have to be satisfied. This strategy allows Peacocks to keep their

existing customers and accept new customers. A celebrity such as Holly Willoughby who is able

to attract the younger audience as well as the older audience would be perfect for the role as her

collection would have all aspects of her, being the fun young party girl to the mum and the wife,

she is able to relate to a wider target audience and potentially bring on board new stakeholders

such as ITV, as she is a regular presenter on two shows and her fans could potentially be a

stakeholder.

Although Peacocks cater to women, men and children the rebranding of Peacocks will make

men and children that shop in peacocks a lower stakeholder interest, this could potentially have a

negative impact on the two groups, however I feel existing male customers will still be willing to

shop with peacocks the rebranding will just not be targeted to the male demographic.

*The stakeholder analysis can be found on page 19 appendix 1


PEST

There are many factors to consider when it comes to rebranding; key economic factors such as 1

in 5 high street shops will be closed by 2018. To reduce the risks of Peacocks stores being shut

down they need to prove they should stay open. Although the company have been able to

bounce back from the administration which they went through in 2012 and come back strong, to

put them in the forefront and get people talking positively about the company, a celebrity

endorser would do just that and get the media talking and customers. Other issues which need to

be examined would be ethical issues where the products for the celebrity collection will be

produced and legislation around environment such as chemicals being used

Technology has become an important part of our culture, most people have iPhones and smart

phones which allow them to access news and information on fast level apps like Twitter and

Facebook which are some of the most downloaded apps. Facebook has more than 250 million

Facebook app users and Twitter has 232 million, with so many people on these social media

platforms advertising made by the celebrity will be on a larger scale as their fans will retweet

information and post up images of the celebrity wearing the

clothing.

Magazines have always been giving trend advice criticising what

celebrities wear, with app magazines it has become easier to access.

Free advertising is essential as it allows the brand to become more

recognised. These are all social factors to consider when it comes to

rebranding Peacocks with a celebrity endorser

*PEST analysis can be found on page 20 appendix 2


TOWS

Appendix 3 looks at what strategy works best with opportunities such as bringing in additional

promotion and a new target audience outweighs some of the strength such as the product will

not be at the standards of Peacocks. The celebrity will be able to attract new customers although

this form of promotion may not necessary attract the male demographic of Peacocks but from

the research it shows that celebrity endorsers tend to increase sales and customers, although it is

excluding part of Peacock’s target audience the company will make their money with the new

customers. Social media will allow customers to interact with the celebrity and get instant

information about the joining and what they have to offer.

*TOWS analysis can be found on page 21 appendix 3

Horizon scanning

The horizon scanning looks at potential factors which could affect Peacocks in the coming

future.

Mother’s day- the release of the clothing line and the face of Peacocks could be released a few

days before mother’s day increasing sales and getting more people talking about the clothing line.

High street shops closing 2018- with online shopping becoming increasingly popular and

speculations that one in five high street shops will be closed by 2018 it is vital that Peacocks take

the opportunity now to put their mark within the retail industry. Big collaborations such as

Beyoncé joining with H&M had many people talking on social media in magazines and on blogs


Finding

From the research which I have conducted there are several key points which I believe are

important when it comes to making the decision whether Peacocks should bring on a celebrity

endorser, these are:

I. Celebrity endorsements tend to increase sales and though Peacocks are at a good place

increase in sales is always a positive.

II. Peacocks will be able to target a new demographic and be able to cater to all women of

all ages.

III. Free promotion from social media and magazines and newspapers will run with the

stories of the collaboration.

IV. Potentially beat competitors such as Matalan and New Look neither currently have a

celebrity endorser.

V. It will give Peacocks a diverse range of clothing catering to all women.

VI. Raise Peacocks social media presents

However I have also looked at some issues Peacocks could have and come up with solutions to

overcome these issues:

I. A- List celebrities will be too expensive, however a UK celebrity which is known can

easily increase sales. Celebrities such as Holly Willoughby and Imogen Thomas are well

known within in the UK. A celebrity endorser will be expensive but I believe Peacocks

will be able to make the money back from the sales.

II. Peacocks have gone back to basics but this merging can give Peacocks the sparkle which

they have been missing and gives them a chance to show other retailers that Peacocks are

still in the race of becoming the best.

III. Even though it is not targeted at men, existing male shoppers will still shop at Peacocks.


Suggestions

From the research I believe I have come up with the perfect celebrity that embodies the values

the peacocks have and the same type of fashion style but with more of an edge. Holly

Willoughby likes to have fun with fashion and is known as the fun, outgoing but hard working

mum. I believe she is the perfect person for this role and she already has experience with

working within the retail industry.

Who is Holly Willoughby?

The fashionista Holly Willoughby an English television presenter / model is best known for the

work on ITV, namely This morning and Celebrity Juice. She is loved by the British public and

has a good eye for fashion. Holly has fans from all ages, her work at Celebrity Juice attracts the

younger generation whilst her work at This Morning attracts more of the older generation and

the target audience Peacocks already have.

Holly Willoughby would be perfect for the face of Peacocks with her amazing style and likeable

personality, with a strong social media presence. The mother, wife and model is able to relate to

all different types of women with over 5 million followers on Twitter, Holly has a strong social

media presence. She has the same morals and values as Peacocks and

does not represent a brand or high street store. Holly Willoughby has

also been known to wear Peacocks clothing, the black dress created by

Lowe which she wore on her daytime show This Morning and became

one must have items of autumn- winter 2010.

Holly Willoughby has previously been associated with Very.com were

she created 12 successful collections. In 2010 Holly Willoughby

increased sales at Very.com and Littlewoods with her festive advert by


26%. With her departure at Very.com it is a great opportunity for Peacocks to take advantage

before she branches into her own clothing line.

Peacocks 2014

Holly Willoughby style VS Peacocks


Holly Willoughby and Peacocks both share the same sense of style, her style is young and fresh

and she enjoys mixing patterns, something which Peacocks are known for amongst their

consumers. Her great value for fashion and Peacocks going back to basics it’s a perfect

opportunity for both the Peacocks brand and Holly Willoughby to get her hand back into

fashion.

Holly Willoughby was able to increase sales at Very.com I believe she will be able to do the same

as Peacocks she is heavily active on social media platforms and she embodies the new target

audience we are trying to achieve yet has the essence of the existing customers.


Conclusion

To conclude rebranding in this way will be a perfect way to increase sales and get people talking

about peacocks and recognising the great high street chain it really it. There are some negatives

but I believe the positives outweigh the negatives and this had create potential for success.

This campaign can be evaluated by looking at sales before and after the collaboration between

the two and if more people are talking about Peacocks on social media platforms. As a lover of

peacocks myself I believe that peacock offer a diverse range of clothing but are not as recognised

as other high street stores such as New Look with this rebranding it will create the awareness

that Peacocks is not just for the older generation but also young trend setters.


Appendix 1 : stakeholder


Appendix 2: PEST

Political factors Legislation around production and environmentally/green production - need

to comply with these laws

Legislation around disposal and waste - ensure these are complied with as

there is an increasing demand for companies to minimise these and provide

proof that they are doing so.

Ethical issues surrounding where clothing is made.

Economic factors One in five high street shops to be closed by 2018, it is important Peacocks stay on top of the competition to minimise loss of shops.

With more people now shopping online less people are going out to shop so having a strong social media presence will allow consumers to see what peacocks have to offer. With internet sales peaking at 81 billion.

Increased cost of advertising and audiences avoidance of advertising through

on demand television and skipping advert capabilities - need to reach

audiences in new ways

The increased awareness of the product on a global scale will provide large opportunities - something that P&G have already done successfully.

Social factors Celebrities are seen to be of a higher status, they have the power to influence consumers in buying products. Celebrities have become trendsetters.

Women are socially aware of what they wear and always want to be on trend with the latest accessory or clothing.

Magazine stories and TV shows enjoy discussing what celebrities are wearing creating more awareness around the brand and label of clothing.

Technology factors

Increase in social media usage for generation between 16-30. The rebranding of

Peacocks will target the younger generation who are using new improved

technology. Access to social media and online shopping due to the increasing

technological ability of phone companies and wifi/4G/3G allows companies to

contact audiences very easily.

Allows celebrities to promote without having to waste money on a big campaign

when a single tweet will reach millions.


Appendix 3: TOWS

Peacocks-

celebrity

endorsement

Opportunities Threats

* Bring in a new target audience * Potential sales could stay the

same with no new customers.

* Additional Promotion from both

celebrity and Peacocks

* Cross media success

* would the clothing line be at the

same standards Peacocks expect

Strengths S-O Strategies S-T Strategies

* Highly recognized

Brand

* diverse range of

clothing within

peacocks

A big brand and celebrity

endorsement all mean that audiences

have numerous draws to entice them

into wanting to know what Peacocks

have to offer

A celebrity wouldn’t endorse

anything or want to be linked to a

brand which they don’t believe in.

clothing would be of good

standards, as the celebrity is also

being scrutinised.

* High rated quality

product

* Celebrity

endorsement

The celebrity merging with Peacocks

will lead to a buzz generated through

media platforms with many

customers anticipating the event.

Celebrity endorsement means that

even if the clothing line is not

good, the celebrities involved in

the campaign will still be able to

pull in customers.

Weaknesses W-O Strategies W-T Strategies


* celebrity

endorsements are

expensive

* Doesn’t appeal to

men or children

Although celebrity endorsements

tend to be expensive Peacocks will

hopefully make the money back

through the sales and with the new

customers they will still make more

money. Existing male shoppers will

continue shopping at Peacocks.

When a celebrity joins with a big

brand what they do always has an

impact on the brand, whether

negative or positive. It is

important to have a celebrity that

will represent the brand and the

values which Peacocks have also

represented

* Not A-list

celebrity

endorsement

Not having A-list celebrities in the

campaign should not affect the

campaign success too much due to

the success of Peacocks already.

As for not appealing to men,

retailers such as Peacocks, New

Look and River Island don’t tend

to advertise for men and is

predominantly female based.


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