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MARK5814 – T1 2022

DIGITAL MARKETING of Cotton:On

Individual Assignment

Student Name:

Word Count:
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Introduction
For this digital marketing individual report, the selected brand is Cotton:On. Cotton:On
Group is one of the largest international clothing retailers in Australia. This group is well
known for its stylish clothes and stationery lines and has several retail chains across 19
countries (Oo, 2022). In the clothing retail industry of Australia, Cotton:On has a 3% market
share (Oo, 2022). It values diversity and allows people from all walks of life to express their
talents and skills, and leave their mark on the world. Cotton:On provides the latest trends in
womenswear, menswear, kids wear, and accessories to its target customers. Cotton:On is
known for its cutting-edge clothes, which reflect the teenage approach of the brand along
with aesthetic values. The firm must create a positive influence on the life of consumers in
both domestic and international markets. This helps to create a competitive advantage (Obilo,
Chefor and Saleh, 2021). So, this individual assignment presents an analysis of the digital
marketing efforts of Cotton:On to empower the world and create a competitive advantage.
Answer 1: Activities are done by Cotton:On to empower customers:
According to Chaney, Gardan and De Freyman (2022), customer empowerment refers to a
perception of a customer about getting avenues and value to connect with the firm and other
customers, and actively shape the nature of product and service offerings. Customer
Empowerment may also result in significant outcomes like word of mouth (WOM) and
purchasing patterns. Cotton:On has implemented several digital marketing activities to
empower customers, which are as follows:
 Activity 1: Cotton:On App
Cotton:On has launched augmented reality (AR) technology to empower customers. It allows
customers to bring store windows to life by activating participatory, virtual visual
merchandising from their mobile app (as shown in images 1 and 2). The management focuses
more on the customer-centric app rather than focusing on channels (Phillips, 2014). It
provides an online experience of virtual shopping and fashion show to the customers through
its mobile app so that its savvy customers can choose the best outfits from online stock as per
their personalities. Further, using an online mobile app that provides additional promotional
offers and discount codes to the customers to purchase the latest trendy looks at a very low
price also empowers customers (Inside Retail, 2014). As a customer, I feel a sense of
belongingness and like experimenting with and developing new looks for myself through its
AR technology. It influences my buying behaviour and engages me with the brand to
continue shopping.
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Images 1 and 2: Cotton:On Augmented Reality Technology through Mobile App (Source:
(Biz Community, 2014; Tinokuhn)
 Activity 2: Reward on the Go
Another impressive activity of Cotton:On to empower customers is the ‘rewards on the Go’
strategy. Members of the Cotton:On app gets subscription stars for each shopping activity as
reward points. These can be used to receive more coupons such as discount vouchers,
surprise gifts and other promotional benefits (Cotton: On, 2022). The app also has a unique
function that allows customers to monitor rewards points and discounts for efficient and
timely utilization of stars and free product delivery. The users can use more than one coupon
or voucher at the time of a single transaction, which shows a sense of the reliability and
integrity of the brand. For instance, a consumer must spend at least $40 to claim two Payday
coupons. It has made strides to ensure customer happiness and satisfaction while shopping
along with community development as a brand. It is beneficial for the firm in terms of
developing loyalty towards customers, strengthening relationships with users and fostering
word-of-mouth publicity. This way, it empowers its customers.
 Activity 3: Cotton:On Customer Experience Intelligence Platform
The customer experience intelligence platform of Cotton:On Group is a reflection of its
dedication to putting consumers first across all of its businesses. They acquire data and
information from their customers for offering personalised and customised services and
fashion clothing to them in a better way (Kimmorley, 2014). This creates a personal bond
between customers and the company and empowers their value. Further, it accepts all the
feedback given by the customer to improve its quality and fashion trend to lead the clothing
market amongst the youngster and other teen kids, which is a technique of empowering
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customers. The inclusion of AR technology along with the experience intelligence platform
empowers me as a customer and increases my loyalty to the brand. The intricate
customization of clothes makes me feel extremely involved in the continuing fashion trend,
distinct my expression and allows me to express my aesthetics with more flexibility than
buying standard apparel.
Answer 2:
2a: Engagement with the Brand
Brand engagement is an integral strategy of a firm to create attachment of customers with the
brand. These tactics ensure that customers will remember the brand while making a purchase
decision (Samala and Katkam, 2019). It is stated by Cheung, Pires and Rosenberger (2020),
that customer brand engagement is a multilevel, multidimensional construct that emerges
from the thoughts and feelings about one or more rich experiences of customers involved in
reaching a personal goal. I feel connected with Cotton:On during and after the purchasing
because I am enthusiastic about the brand’s mission and its engagement activities. I found
these activities enjoyable and exciting as well as effective to complete my purchasing process
with high satisfaction. Cotton:On provides different values to its customers with an aesthetic
approach. Following table 1, shows the brand engagement value that I received from its
activities:
Activities to engage with Value received from the Explanation
the brand activity
Engagement Activity 1:  Emotional Value: As a student, I value comfort
Providing a virtual shopping Using the AR above all else; adding a dash
tour experience and technology of of style will help me feel
connecting me with the Cotton:On, I felt more confident. Cotton:On
brand through its AR wonderfully loved is a thoroughly enjoyable
technology and cared for as I brand as well as a fast-
fashioned my own fashion brand. It provides
distinct notion of effortlessly fashionable and
clothing while sitting high-quality on-trend
and resting at home apparel that I want to wear
with fun. right now at an affordable
 Social and quality price. Cotton:On is, in my
values: People opinion, a comfortable and
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complimented my laid-back brand, which

distinctive style and allows me to apply its
shows their curiosity product virtually to my
about my fashion personality and improve my
sense. My friends fashion sense too. The
find my clothing experience was quite
sense as unique, and rewarding for me. Styling
one-of-a-kind with my clothes and shoes is
my personal artistic supposed to be time-
and creative fashion consuming, and difficult, but
perspective along as a student, I could do it in
with quality too. the luxury of my own house
in a short amount of time.
Engagement Activity 2:  Emotional and This reward on go is an
Getting regular subscription economic Value: excellent example of how to
stars for each shopping Cotton:On ‘Rewards encourage people to use the
activity with personal on the Go’ gives me mobile app and get
assistance and customization several reasons to economic benefits like
along with discounts and connect with the discounts and free
other promotional offers brand emotionally deliveries. My buddies have
through Rewards On The Go and economically, accumulated more reward
program such as freebies and points, by using the
discounts. It allows program. My friends, for
me to check my gift example, received an
card balance points, additional point for utilizing
as well as place after earning 25 points.
orders through They did, however, receive
mobile, online, and the next bonus gift after
in-store. reaching 200 points.
 Social Value: Share Similarly, after earning 400
the rewards policy points, they may upgrade to
with my friends and a plus member, which
relatives, and comes with additional
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connect with them privileges. Cotton:On has

on the social always been able to provide
platform on regular economic value to me and
basis. From a social my friends.
perspective, they
also find it easy to
use the Cotton:On
app to claim such
rewards for clothing
at the very best price.
Table 1: Values associated with Customer Brand Engagement (Source: Author)

2b: Rating of Form of Value received:

Receive Receive
d no d
value highest
based on value
what I based on
have what I
given have
given
Engagement activity 1              
Quality value 1 2 3 4 5 6 7
Economic value 1 2 3 4 5 6 7
Social value 1 2 3 4 5 6 7
Emotional value 1 2 3 4 5 6 7
Engagement activity 2
Quality value 1 2 3 4 5 6 7
Economic value 1 2 3 4 5 6 7
Social value 1 2 3 4 5 6 7
Emotional value 1 2 3 4 5 6 7
Table 2: Value Rating (Source: Filled by Author)
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Answer 3: Suggestions for two key areas

3a. Sense of empowerment:
 To increase the sense of empowerment among customers, it is suggested that
Cotton:On should focus on strengthening customer brand engagement through
innovation in its current augmented reality technology. The company should
introduce 5 dimensions images or more for strengthening personal empowerment. For
example, its augmented reality technology should create opportunities for the
customers to apply their designs, slogans, signatures and artwork to the clothes in
different dimensions. They should also have opportunities to change the colour and
customise cloth features. This will enable consumers to apply their preferred prints,
personal and emotional quotes, customized colours and design virtually during the
shows and have a 5D view. Here, the customer should have easiness of accessing the
virtual platform or fashion shows organised by Cotton:On, where they can easily
upload their preferences and change the virtual images on a quick basis. This addition
will include an opportunity for customers to increase their sense of empowerment in
terms of getting the customized product and develop a personal fashion sense, as per
their comfort, changes in season and social and cultural values too. They can apply
content and designs directly to the t the virtual images and pick how they want their
piece of design and colour to be displayed, which is quite feasible given technological
advancements. This one-of-a-kind customization via digital media will be a unique
opportunity, allowing individuals to express themselves in different dimensions and
develop their confidence in following different types of clothing and accessories. At
the same time, it will also allow Cotton:On to collect data on customer preferences
and forecast future products (Scholz and Duffy, 2018). As a result, they will
accumulate a large database of people and offer them customized products and
services at premium prices. It will provide Cotton:On with a new way to empower
and engage as well as reach out to new audiences throughout the world.
 Another suggestion to Cotton is to empower a sense of responsibility through a new
innovative way of causing consumers to choose Cotton:On as their preferred apparel
or clothing brand “Your STYLE. Your Questions”. For example, is an initiative that
Cotton:On might develop to analyse the changing fashion trends and requirements of
global consumers. The strategy should be implemented as a transparency programme
that would allow the general public to ask inquiries regarding the company’s goods,
quality, personal and emotional values and economic benefits. It should be a
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dedicated part of the website of Cotton:On, where the campaign will provide answers
to crowd-sourced customer inquiries. Cotton:On must be willing to respond to even
the most vexing and unfavourable questions related to fashion, size of customers and
products, etc. Consumers would be more engaged if they could ask questions and
have them answered on Facebook, Twitter, and other social media sites. In addition,
this concept would be helpful to analyse the most unfavourable design and resolving
product misperceptions on social media and the internet. This will also be beneficial
for the brand in terms of increasing revenue via a subscription-based model, and its
attempts to develop an app will be accelerated. The brand Cotton:On will benefit even
more from this increased empowerment and involvement.
3b. Level of engagement with Cotton:On:
 For the improvement in the level of engagement of customers in the activities of
Cotton:On, it should develop brand loyalty. It is because, unlike other premium
fashion brands, products like clothing and accessories of Cotton:On are accessible and
inexpensive to a wide spectrum of people (Cotton:On Group, 2022). It should launch
a new mobile application feature as Cotton:On Squad. According to this additional
Squad plan, app users may plan, where individuals may order the same tees to hang
together. Apart from this, all the types of different clothing can be put into a separate
section of the squad with personalized features, like denim with rugged prints and
shirts with happy birthday tags, and other personal quotes can be placed in separate
squads. It will gain the attention of employees, who are always looking for different
tactics to socialize after work hours. These squads can be promoted among frequent
buyers and groups of peers, friends, family or customers, who are looking for the
same fashion trends (Obilo, Chefor and Saleh, 2021). The employees can contact
them through chat boat to contact them personally and aware of new benefits. Bonus
points are awarded to customers or squads, who purchase the stock within defined
hours.
 Apart from this, the brand engagement level with the customers can be enhanced by
offering them opportunities to display their preferred and personalized trends of
clothing on the company web page, social networking pages, and in feeds on different
social networking sites like Instagram Facebook and so on (Cheung, Pires and
Rosenberger, 2020). In the current digital world, social media is one of the powerful
tools to strengthen engagement between brands and customers. Customer
empowerment also includes connecting and interacting with one another (customer to
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customer) by exchanging information, compliments, or suggestions regarding the

products of the firm (Samala and Katkam, 2019). So, Cotton:On should provide an
opportunity to its customers by allowing them to share their final idea, after applying
AR technology and virtual shows. The customers can post the final designs that they
have modified on, the social media pages of the firm. It will help to promote the
company products as well as the skills of the consumers. If the customers will allow
others to purchase the same design from company web pages, it can be sold with the
signature of the original creator. The designer of that style will receive credits in his
account, which he may use to earn a discount on his future Cotton:On purchases, get
gift vouchers from the company or a loyalty bonus. For example, if a style is
purchased by ten individuals, the designer will receive a proportion of the style’s
worth on each transaction and receives 200 credits. 200 credits are worth $200, which
he may use to make future transactions with the company. Here, by allowing
customers to show their creativity and generating distinctive looks to change the
regular trend, the brand will increase engagement. Customers who are not
comfortable being creative can pick a style they like from a list of popular options.
This way Cotton:On will ensure consumer engagement, repeat purchases, and brand
loyalty by giving shop credits. All of these will eventually help to enhance the
revenue and profits of the firm.
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References
Biz Community (2014). Cotton On launches AR. Available at:
https://www.bizcommunity.com/Article/196/179/118439.html [Accessed 13 April 2022].
Chaney, D., Gardan, J. and De Freyman, J. (2022). A framework for the relationship
implications of additive manufacturing (3D printing) for industrial marketing: servitization,
sustainability and customer empowerment. Journal of Business & Industrial Marketing,
37(1), pp. 91-102.
Cheung, M.L., Pires, G. and Rosenberger, P.J. (2020). The influence of perceived social
media marketing elements on consumer–brand engagement and brand knowledge. Asia
Pacific Journal of Marketing and Logistics, 32(3), pp. 695-720.
Cotton:On (2022). Perks. Available at: https://cottonon.com/au/perks/welcome.html
[Accessed 13 April 2022].
Cotton:On Group (2022). From Australia to the World. Available at:
https://cottonongroup.com.au/from-australia-to-the-world/ [Accessed 13 April 2022].
Inside Retail (2014). Cotton On to introduce augmented reality. Available at:
https://insideretail.com.au/news/cotton-introduce-augmented-reality-201409 [Accessed 13
April 2022].
Kimmorley, S. (2014). VIDEO: Watch This Awesome Augmented Reality Experience From
Cotton:On. Available at: https://www.thechainsaw.com/video-watch-this-awesome-
augmented-reality-experience-from-cotton-on-v2-2014-9 [Accessed 13 April 2022].
Oo, S. (2022). Clothing Retailing in Australia. IBIS World INDUSTRY REPORT G4251, pp.
1-37.
Obilo, O.O., Chefor, E. and Saleh, A. (2021). Revisiting the consumer brand engagement
concept. Journal of Business Research, 126, pp. 634-643.
Phillips, C. (2014). Cotton On Launches Global Augmented Reality Initiative, PowerRetail.
Available at: https://powerretail.com.au/multichannel/cotton-on-augmented-reality-initiative/
[Accessed 13 April 2022].
Samala, N. and Katkam, B.S. (2020). Fashion brands are engaging the millennials: a
moderated-mediation model of customer-brand engagement, participation, and involvement.
Young Consumers, 21(2), pp. 233-253.
Scholz, J. and Duffy, K. (2018). We ARe at home: How augmented reality reshapes mobile
marketing and consumer-brand relationships. Journal of Retailing and Consumer Services,
44, pp. 11-23.
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Tinokuhn. Available at: https://www.tinokuhn.com/onepage/folio_cottonon.html [Accessed

13 April 2022].