IMPROVEMENT OF ONLINE MARKETING STRATEGIES AND OPERATIONS OF DEFACTO

Abstract

The rapid development of digital technologies has led to the emergence and growth of e-commerce. The Covid-19 pandemic has accelerated the transition from physical stores to online marketplaces. E-commerce has made shopping more convenient for shoppers and at the same time has become a competitive advantage for companies striving to expand their audience. The global development of e-commerce has also affected Kazakhstan, where the volume of online sales increased by 80% in 2020. Despite such significant growth, there are still barriers in Kazakhstan for companies that want to develop online sales. DeFacto is a Turkish clothing brand that launched online sales in Kazakhstan in 2018. At the moment, the company is facing stagnation in online sales and is looking for ways to improve its performance in Kazakhstani online market. The purpose of this study is to analyse online sales in Kazakhstan, identify the needs of local buyers, and compile a list of recommendations for sales development. The whole methodology consists of three parts – data collection, data analysis, and preparation of recommendations. The data was collected from expert interviews, market analysis, consumer behaviour survey, user experience research, and qualitative and quantitative data from DeFacto. Based on the results of data collection, further analysis was divided into two parts – optimization of the online sales process and searching for tools to promote the company. The data analysis was performed with the help of the House of Quality and the AARR (Acquisition, Activation, Retention, Referral) framework. The results showed thaft the main barrier to the development of online sales in Kazakhstan is the distrust of the audience towards sellers. This is exacerbated by the existing risk that the product does not meet the customers' expectations in terms of clothing sizes, tailoring, and material. The major recommendations to improve the online sales process included the addition of a detailed product description, a customer reviews section, as well as the ability to try on the product and return it to the courier. Recommendations for product promotion were given for each stage of the customer journey. They included SEO optimization, targeted social media advertising, email marketing, and referral program.