Presented by: Taj Zadhra-Ogunsola August, 3rd, 2016

Linking Offline and Online Marketing Efforts to Africa’s Luxury Retail Experience. Multi-Screen Approach 2016

Interact Engage

1. Drive Profit Potential. 2. Expand Customer Base &

Franchised Line.

3. Adopt Long-term Goals to Tackles Gaps in

Sales drive. 4. Grow Retail across

market

1. Outline Communication Objective

2. Develop Communication Strategy

3. Deploy Digital Asset Receptive to Target

Customer.

2. Engage and expand Distribution Channels for

increased customer Reach & Store Traffic

1. Deploy Retail Strategy that Choose Polo Luxury rather than competitors

Objective

1. Focus on Nigeria, working outwards into western territory

with Pan-African pursuit.

2. Robust Sales Strategy that Underscore New Revenue

Stream/Frequent Visits to Polo’s Stores/Builds Brand reputation but

Connect with Customers .

Situation Product

Challenges – Perception

Luxury Retailer

Low foot traffic to

stores and high

custom duties on

imports a disincentive

for customer to buy

locally.

Obstacle

Change in trajectory

Company Overview

The company has the potential to become Africa’s local Bergdorf Goodman or Alfred Dunhill within five years.

Polo Luxury

Polo Avenue

Polo Limited

Polo consist of two retail brands

Purchasing arm & franchising company

Jewellery & Watches

Luxury Leather Goods

Attract + Inspire + Experience & Commit

Discovery – Affluent Luxury Buyers

When making purchase decisions, they use the internet more than any other medium

75% conduct research online before purchasing

2x use a search engine in their research

Affluent luxury buyers are extremely tech savvy

100% use a smartphone, tablets, laptop or desktop

2x smartphone penetration than for general population

Across markets, some buy online but most will go to a store

72% of shoppers in new markets research online and offline then go to a store

65% say they want to touch and feel a product before purchase

39% to 32%: - Store windows losing relevance vs. online (from 39% to 32%: is store role changing?

75% - Omnichannels

getting momentum 75% of consumers asking for it (brands to be reached through different channels)

Source: Bloomberg: Untapped Growth Potential Attract Luxury Goods, May, 11, 2015- Bloomberg Professional Source Google - How Affluent Shoppers Buy Luxury Goods, Think Insight, 2015 Source:John Guy, Mainfirst AG, 2015

Constraints – Assumptions

Product franchise

line expansion

importation

benefits sought

• Complex product franchise agreement with NO shared marketing or financial risk, locally.

• Time consuming processes with 100% outright payment before reselling goods

• Luxury retailer with an African experience

• Convenience, superior service, quality and professionalism with great product offerings.

• Mobile friendly approach

• Expensive Real Estate

• Expansion through shopping mall chain creates unpredictable target customers at high cost

African Factor

• Preference to shop overseas for the experience

• Bureaucratic and political airport concession policies

• High custom duties on imported goods

• Restriction of certain leather goods • Difficulties convincing foreign

brands of Africa’s market potential • Unattractive upwards pricing

conversation (Forex) reduces sales.

The Market

2.5 million AB class in

Nigeria by 2020. 23% more projection than for Germany and UK combined. Source: Rod

Walker, 2013

25% of luxury brands

at risk of loosing exclusivity base on consumer declaration. Source: Rod Walker, 2013

53% of luxury

consumers spend made out of the home country.

Luxury consumers make up

just 30% of consumers

but generate about

50% of retail sales and

70% of gross profit

margins. Source: Marina Strauss –

Retailing Reporter, The Globe & Mail, June, 03,2012.

…9% of luxury sales will

happen online by 2020. Source: Mario Ortelli, Bernstein Analyst, 2015.

$5.2 billion in African

luxury retail sales by 2019. Source:

Bloomberg: Untapped Growth Potential Attract Luxury Goods, May, 11, 2015- Bloomberg Professional

62% vs. 53% Digital growing importance with online influencing 62% vs. 53% of total luxury purchases.

e-Commerce

is shaping up to be an “online luxury turf war” Source: John Guy,

Mainfirst AG, 2015

Fast-growing luxury markets, where trendiness and newness are key is in New Market.

56% are female buyers

37 is the average of buyers

Average number of luxury items purchased in the last two year:

22.7 Source: Google - How Affluent Shoppers Buy Luxury Goods, Think Insight, 2015

Why e-Commerce?

Source: Google - How Affluent Shoppers Buy Luxury Goods, Think Insight, 2015

Where do luxury shoppers purchase

In-store in my country In-store aboard/while travelling Online

Metal - Attraction

Obsession Carre LV Landscape

Acetate - Mahina

Sun Glasses

Celestie Tie

Olivia Scarf

LV Initials Monogram Belt

Ties and Scarves

Organic expansion – Aggressively lobbying for key strategic positions at Nigerian airports (PL Concessions)

Increase product range – Discover new sales channels with low entry products to increase foot traffic offline & online.

Incorporate REAL time technology innovation in digital assets – Connecting with African customers and attract foreign tourist, PL is a place to shop when in West Africa

Strategic Alliance/Partnerships – Airlines PR campaigns/adverts that delivers value for money builds PL’s Pan-Africa drive.

Market Drivers Shoes

Harold Loafer in Calf Leather

Sofia Sandal in Suede Goat Leather

Rose Pump in Glazed Calf Leather

PL’s Digital Overview

Digital Asset Digital Name

Tweets/Post

Following /Friends

Followers Likes Joined Images Challenges Solution

Website Pololuxury.com N/A Web Traffic ???

N/A

N/A

N/A

Around 26

Requires face-life

To be determined

Facebook Polo Luxury Don’t know what’s going on

Couldn’t access this information at time of review

N/A 8,974 22 Room for improvement

Immediately address

Twitter Account 1 Polo Luxury 24 99 88 1 December 2013

9 Inconsistent & confusing

To be addressed

Twitter Account 2 Polo Avenue 315 81 224 1 February 2014

1 Poor structure & inconsistency

Address immediately

Instagram Account 1 Polo Avenue 938 629 18.6k N/A N/A Over 100 Room for improvement

To be determined

Instagram Account 2 Polo Luxury Shoe

1,288 8,935 3,621 N/A N/A Over 100 Room for improvement

To be determined

E-Commerce (partly)

Sub-domain to main web portal

Traffic -------------- Low

Friendliness ------------------- Questionable

Payment ------------------ No Platform

N/A Delivery--------No options

Product image _______ out dated

Untapped gap of opportunities.

Review or consider total e-commerce.

Linkedin (Linkedin Name: Polo Limited)

Social Networking

None N/A 839 / N/A Irrelevant to Polo Luxury

To be determined

Source: Polo Luxury Digital Content, July, 22,2016

Customers [1] The Snobs

The Snobs

35 -70 years old

Nigerian/Ghana or African shopper

Women and men

High Net Worth Individuals (HNWI’s)

Old money philosophy

Income NGN 200 million and above Conservative with spending but some do indulge to make a statement

Love travel Luggage’s, tend to change them frequently

Buys designer bags to maintaining the statue-quo

Fashion accessories is to die for, “darling!”

Perfumes… well, the more expensive the better.

Customers [2] - Vulgar clicks

Vulgar clicks

34 - 45 years old

More men then Women

“New Money” or newly found wealth statues Made up of Ministers, Bankers, Oil & gas worker, IT guru’s or enteropuaeurs

African celebrities are part of this group

Income NGN100 million and above

Worships “fake it till you make it” theory

Designer watches is the “new” found religion and they are willing purchase

The fake it notion confuse them from purchasing REAL designer handbags and accessories over $2,500

Loves “Perfs” (meaning Perfumes) and will indulge from time to time

This is the cult of “show it, if you’ve got it”

Questionable fashion sense but perfect visitors for PL stores

Customers [3] Followers & Closet Politian's

Followers & Closet Politian's

Intellectually sound Africans with benefits to match the new corporate Africa. They live in hotels and airports across the world and need to look good at all time.

30 - 55 years old

Women and men

Income NGN 50 million and above

Lovers of tech product to subtly display competitive success.

Exposed and accessible to making frequent purchases for lost family times and may shower spouse with extravagant gifts.

Selective in style, cut, and design but that’s partly due to their professions.

Closet Politian's are a new group added to this category, who spends money on anything fashionable.

Closet Politian’s are big spender on women’s leather goods products as gifts to their many lady friends!!!

“Closet” has no reference to their sexuality but rather secretive about spending on luxury as government officials.

They are ostentation and that’s good for PL’s business

Customers [4] Royalty

Royalty

Lil Prince and Lil’ Princess

23 - 35 years old

1st, 2nd and 3rd generation African wealth

Income 15 million and above

The “new” trust-fund junkies

Foreign educated groupies

Well mannered but too much “talkology”

Purchases made in Africa is like a favour to that economy

Clear on what they want and CAN”T be sold special products by Africans retailers.

Snobbish but not rude, it only serves to remind others they are well travelled..

People – Whether someone is selling a product through a channel or using a direct sales model, the value of people in the buying process is critical to the success of business transaction. Product – Luxury is synonymous with excellent quality. The components are of an exceptional nature and manufacturing the product involves high level of expertise. Passion – Whether they are collectors, connoisseurs or communities of like-minded individuals, passionate consumers are brand advocates respected by their peers and a brand marketers best allies. Pleasure – Luxury products need emotional marketing to give them that extra dimension. Provide sensory fulfillment beyond the functional attributes of the item or service. Purpose – Luxury must be both exemplary in function and form. The balance between practicality and pleasure will be different for different customers. Price – Luxury sets the price; price does not set luxury

PREREQUISITES Deploy sensory

engagement that can be employed, as needed, in right

combination.

CUSTOMER

You are not the

customer

LISTEN Listen to the customer.

PEOPLE: They buy from people.

6 P’s of Luxury Marketing

Source: Adopted & Developed using Winsper- Six Key Luxury Marketing Definition

PRODUCT: Has a history, heritage for authenticity

with a unique brand identity.

PASSION: Connoisseurship

shared in real and virtual

communities

PLEASURE: Luxury is

experiential

PURPOSE: The six key

characteristics of luxuries.

PRICE: Fractional

ownership is temporarily.

Cater to the already existing loyal Polo Luxury customer

Increase the Market Share & Increase Revenues

Fulfill people’s desire of owning luxury goods at LP

Why travel aboard when you can visit, click, and have it deliver to your home with PL

Opportunity & PL’s Cash-Cow

Perfumes when sold through selective distribution channels are clearly luxury products, even if they correspond to low-priced items

Invite the customer to travel and dream. Join the Polo Luxury world.

Global retailer with extended product propositions increase sales and in-store visitors.

Target the largest audience by creating desire with permission

Sun Glasses

Design Puerfume

Ties & Scarves

Designer Belts

Accessories Wallets & Leather Goods CASH-COW

Shoes – both sex

Designer Bags

Strategic Overview

Communication Objective

Communication Strategy

Communication Tactics

Business Strategy

Business Objective

Increase purchase

frequency and

retail visits among

current/potential

customers.

Incorporate digital

assets into

communication to

develop engagement

and favorable

attitudes among

customers.

Build personal

relationships with

current and potential

customers.

Aggressive online & offline

drive

Create Polo Luxury app

supported with customer

acquisition strategy

Print advertising

(airline/Airports)

SMS Alert (Geo targeting/

device targeting

Acquire agreed cumulative customer base within an agree period. Expand franchise product range to include: Belts, Ties & Scarves, designer sun glasses Leather goods. Aggressive expansion approach to drive product reach and accessibility

Improve and drive store traffic

Increase product information

via push marketing that

relates to online behavious

data (cookies) to drive store

traffic.

Enable customer service

engagement and develop

customer loyalty programme

points.

Marketing Strategy

Recommendation

Polo Luxury should continue to: ✓ Carrying out the illusion of exclusivity – the emotion, the product, the texture – and the buying experience. ✓ Focus on increasing potential consumers & frequency of current consumers ✓ Monitor the success & ROI of the outlined communication programs ✓ Develop communication plan in conjunction with Polo Group’s overall business development goals relating to further penetration of your markets

1). Work with other foreign direct investors to lobby government to reduce tariffs and restriction effecting the business.

2). JV with other African retailers or consider franchising brand – “Polo Luxury” to reduce cost/risks and grow pan-African expansion strategy.

3). E.A.C.C. Evaluate: your core business function/Cash-Cow product

Align: with product demand and market needs

Consider: diversifying franchise line to deliver growth profits Create: engaging online/offline brand experiences and in-store

experience

Going Forward

Thank you!

Any Questions?

Taj Zadhra-Ogunsola August, 3rd, 2016