DETAILED OVERVIEW for CW2
In-Course INDIVIDUAL Assignment
[Research Proposal & Questionnaire]
Completing CW2 / Individual Assignment
(weighted to 50% Module Marks / 2000- words in total +/- 10%)
There are TWO Tasks with:
Different mark allocations for each Task:
Task One = 80% (40% Module marks / 1800 words +/- 10%);
Task Two = 20% (10% Module Marks / 200 words +/- 10%).
ONLINE SUBMISSION DEADLINE
Semester TWO = WEDNESDAY APRIL 13TH 2022
ASOS plc is a British online fashion and cosmetic retailer – www.asos.com
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, USA, and Europe.
The new marketing manager has developed the attached Research Brief which requires each student to complete two tasks as follows:
TASK ONE:
You are the marketing research executive in an agency invited to tender for this ASOS project in the UK, you are required to produce a Research Proposal.
[Further details at the end of the Research Brief.]
TASK TWO:
The Market Research Agency (in which you work as a marketing research executive) has been commissioned to do this Research project for ASOS.
You have been asked to produce an online questionnaire
(up to a maximum of 10 questions).
[Further details at the end of the Research Brief.]
Note:
No additional research into ASOS is needed to complete the two tasks as there is enough content within the ‘Research Brief’ to address the requirements of the two tasks.
The Research Brief (case scenario) is based on a mix of real and fictional datawhereby Harvard referencing is intermittently used.
The emphasis in this assessment is to apply the module (5MARK012W) learning
RESEARCH BRIEF: ASOS and SUSTAINABILITY in 2022
Total online retail sales increased marginally across 2021 (compared to 2020). source ONS2021. However, consumer spending grew 5.9% in 2021 compared to pre-pandemic year 2019. Clothing in general rose even faster in 2021 with a 7.6% increase which Barclaycard put down to a boom in socialising following the end of Covid restrictions and a successful vaccination programme. Furthermore, despite the disruption of the past 18 months, online clothing sales are predicted to remain on an even keel for 2022.
Helen Dickinson, CEO of the BRC (British Retail Consortium), says: ‘Despite some product ranges trading well at the end of 2021, the next six months will be ‘make or break’ for many retailers and they will be relying on growing consumer confidence, and a return to town and city centres to fuel their recovery.’ Furthermore, Ms. Dickinson sees all clothing retailers having to enhance their online presence.
Meanwhile, the UK economy ‘showed some improvement’ in December 2021, rising by 0.4% according to official figures from ONS (Office for National Statistics), giving rise to some hope for a retail recovery in 2022.
Online fashion retailer ASOS (which stands for ‘As Seen On Screen’) has bucked the trend and achieved a 22% sales revenue increase in 2021, compared to the same period in 2020. Sales reached £3.9bn with a gross profit of £1.7bn (which has risen by 15% year-on-year. (Source: Drapers 2021)The group saw its active customer base grow by more than 1.5 million people over the period. ASOS also stated: ‘These record results demonstrate the significant progress we have made against all our strategic priorities and the strength of our execution capability’.
The swift integration of the Topshop and Topman brands which ASOS took over in February 2021, and the impressive early customer engagement with these brands online is also especially pleasing,’ said ASOS CEO Nick Beighton (before stepping down in October 2021 after 12 years with the company). ASOS had acquired the Arcadia brands out of administration for £265million paying an additional £65million for the current and pre-ordered stock. ASOS kept 300 employees on as part of the deal but did not keep any of the brands’ retail stores. The brand Topshop started in the 1960s and became one of the most popular stores in the UK selling women’s clothing, shoes, make-up, and accessories. Topman was a UK-based multinational men’s fashion store chain founded by Burton (later renamed Arcadia) in 1978. Both Topshop and Topman were subsidiaries of the Arcadia group when it went into administration in late 2020.
‘These are strong brands that resonate well with our core customer base’, said ASOS. ‘Furthermore, the acquisition represents a compelling opportunity in support of our mission to become the number one destination for fashion loving 20-somethings worldwide’. (Source: Forbes 2021)
ASOS’s future plans include strengthening pricing to improve the customer proposition, further development of ‘lockdown’ products that focus on casualwear, better fulfilment of orders plus more focus on ‘sustainability’.
ASOS has made a commitment to ‘fashion democracy’ highlighting ‘choice for all’ (through a partnership with GLAAD- a voice in LGBTQ activism) and embedding ‘body positivity’ notably in its advertising. The company also partners with the Paralympics GB. A prime goal for ASOS is to extend its focus on sustainability and link it more visibly to the United Nations Sustainability Development Goals (SDGs).
ASOS introduced a tag of ‘responsible’ as a website search function divided into two categories: ‘recycled’ and ‘sustainable materials’. However, these two categories can only currently be applied to about one in five products sold on the ASOS website.
ASOS noted that the search interest for ‘sustainable fashion’ and ‘sustainable clothing’ peaked during the pandemic and there was hope 2021 would lead to a climate reality check with world leaders meeting at COP26. It became clear that with fashion industry leaders collaborating to address environmental concerns, the tide was starting to turn on fast fashion. GWI-Consumer Insights noted that towards the end of 2021 about 1 in 3 Gen Z (born between 1997 and 2012)bought clothes or shoes monthly in the UK. It was also noted that the buying was linked to an interest in the items’ sustainability.
ASOS knows that Gen Z and Millennials(18–40-year-olds)are the most digitally active generations, with the influence of social platforms like Pinterest, TikTok and Instagram meaning they don’t want to be seen always wearing the same outfits. It has become clear in the social media posts, that eco-friendly, carbon-neutral shipping and sustainable packaging issues have all become important to the Gen Z and Millennials, as have considerations of part of the sales proceeds going to eco-friendly causes.
The challenge for ASOS and its brands is strengthening its sustainability credentials and to scale up the availability of recycled materials and second-hand items while engaging with its target audience. The offerings need to be accessible, desirable, and attractive to everyone.
However, media sources have highlighted that a firm’s sustainability claims can be simply used as a vanity metric and do not represent the full business picture. Additionally, press reports show that while companies are becoming more environmentally and socially conscious, ‘greenwashing’ is becoming a common issue, with studies suggesting as many as 40% of environmental claims could be misleading to consumers. This may also be partly due to the confusion on what is to be understood by sustainability.
As for the men versus women issue – ASOS knows that in sustainable fashion communities, whether that entails shopping with different brands, reading thought pieces or engaging in online discussions, these spaces are often founded and led by women. Women also make up most of the activists and engaged community members in these spaces. However, there is research that shows men also care about shopping sustainably quite a bit, maybe even more than women do. Whether they are buying sustainable clothing because it makes them feel good or because they know it has a positive impact on the environment, men have proven themselves to be eco-conscious consumers.
ASOS is aware of all these developments and is keen to discover what its buyers (specifically Gen Z and Millennials/ 18–40-year-olds) really think about fashion sustainability.
ASOS thinks some of the factors to research and to understand in terms of importance include eco-friendly clothing products that may cost more; use of recycled materials; sale of second-hand items; carbon neutral shipping and delivery; sustainable packaging; some of ASOS sale proceeds going to eco-friendly causes etc.
ASOS also want the research to consider both men and women (who may have different views).
A Research Proposal is required
Suppose you are the marketing research executive in an agency invited to tender for this ASOS project in the UK.
TASK ONE:
You are required to produce a Research Proposal that addresses each of the issues indicated in the following table:
| Background to provide the context for the research Marketing research objectives and rationale supporting them | 20 marks |
| Methodology with some indication of why the methods proposed are appropriate and a clear statement on sampling | 40 marks |
| Data analysis considerations Reporting Timing and a general costing – you do not need to be precise Any other issues you believe are important | 20 marks |
(Total: 80 marks)
Note: It is recommended students take each bullet point as a subheading for their research proposal
TASK TWO:
The Market Research Agency (in which you work as a marketing research executive) has now been commissioned to do this Research project for ASOS (about buyers’ attitudes (preferences – likes & dislikes) and perceptions – notably men and women who are Gen Z and Millennials / 18–40-year-olds- towards sustainability).
You have been asked to produce the following:
- An online questionnaire (up to a maximum of 10 questions) accessed via a link on the receipt of any purchase of any item from ASOS.
(Total: 20 marks)
.
Note:
It is recommended students use a grid format for Q.2
to limit thenumber of words that will be needed