Following the announcement that it achieved sales growth of 15% in 2017, Pandora, the Danish international jewellery manufacturer and retailer, has recently announced that it has targeted annual revenue growth of 7-10% from 2018 through to 2022. To achieve this, Nlis Helander, a Senior Vice-President at Pandora, announced a refined marketing strategy centred around developing each of its rings, earrings, necklaces and pendants segments.
Pandora’s marketing strategy is critical to its on-going success. Here’s how…
Firstly, Pandora is refocussing its marketing approach with an emphasis on creating a tailor-made personal jewellery experience for each individual consumer; a direct response to consistent findings across its customer engagement surveys. What they found, was that a personalised experience is now a must have to develop brand loyalty. Pandora already score highly for their consumer satisfaction survey scores, but there is clear scope for Pandora to further strengthen this by targeting its ‘personal’ jewellery more intelligently with specific customer promotions and more targeted launch campaigns.
Pandora’s new strategy intends “to boost its share in the online and offline market for sustainable leadership in the jewellery industry.” In this regard, Pandora plans to open 200 concept stores every year and grow its e-commerce segment to 10-15% of total revenue by 2022. In doing this, Pandora is clearly moving towards the provision of a worldwide omni-channel service with a heavy emphasis on digital marketing; spending on digital marketing is expected to represent over 60% of its marketing budget by 2022, compared to just 30% today.
Though looking to refine its marketing strategies, Pandora is wise not to lose the essence of its brand in terms of high quality, affordable jewellery collections. For example, its introduction of new collections each year will fit within its existing collections to please its loyal consumer base. In its bid to win new customers, Pandora also plans to utilise new influencers, in particular through Instagram, when launching its new yearly innovative jewellery concepts.
The outlook for Pandora is a promising one and it will certainly be interesting to see how Pandora’s marketing strategies develop.
Keep an eye out for TKM’s sponsored ‘millennial retail insight’ report which assesses the effectiveness of the current retail marketing landscape.