Q. Identify the main problem and SMART objectives for your digital marketing plan.

Kogan has recently reported a considerable loss for the year 2022. Despite being a successful e-
commerce market place the company was suffering losses due to over selling of inventory at
lower prices (Koehn, 2023). Consequentially the high quantum of products sold at negative
prices has brought further financial turmoil for the company. The company did not realize the
need to prioritize the production of in demand products,
Why did this happen?
The financial stability of the company was challenged when Kogan reportedly over invested in
many categories without conducting a proper survey about the demands of the customer in the
particular segments (La Frenz, 2023). The company miscalculated the demand and produced
excessive inventory, the following step was taken after predicting a demand influx after the
pandemic.
SMART Objectives
Specific: The e-commerce revenue of Kogan should make up 10 % of their annual sales with an
increased conversion rate. The following objective has been chosen to compensate for the
previous year losses as a result of inventory at lower prices. Achieving the target would help
company get back to profitability
Measurable: The conversion rate of customers should be between 8% and 10% with increased
impressions on social media handles. The following objective has been selected due to highest
engagement potential of social media. The target market of Kogan is heavily influenced by
young millennials interacting through social media. An increment in the conversion rate would
help brand identify customer demand.
Attainable: Through increased customer engagement and higher conversion, the objective of
high volume sales can be achieved. The objective has been selected keeping the issue of over
production in consideration. Kogan intends to produce high sales volume in relevant product
lines which will help the company regain its competitive advantage and market share.
Relevant: The company sales have stablished as of Jan 2023, due to higher customer
engagement and offering products which suit the needs of the customer (Adams, 2022).
Therefore, high customer engagement through social media and website platforms can help in
achieving the target of sales increment. Higher customer engagement means a better interaction
between brands and customers. These interactions help companies identify potential segments of
product demand,
Timeline: The after effects of COVID pandemic and global economic downturns have made the
transition a little longer than expected. Kogan aims to establish the following goals within a time
span of six months in predictable circumstances. The objective has been established keeping a
realistic aspect in mind. Value chain management and settling the previous losses would require
an extended timeline for the company.
Q, Specific digital marketing strategies
Strategy formulation:
Kogan aims to identify customer trends through interacting with customers via social media
platforms. These interactions would be analyzed through customer management tools. Through
the usage of these tools, Kogan would be able to identify the demands and needs of its and
customers
Segmentation and targeting
The target market of Kogan comprises of technology buffs who like engaging with gadgets and
technologies of the newest kind. The customer segment for the company relies a lot on young
millennials.
Customer engagement and management through digital tools
Kogan’s website and social media handles would be equipped with live chat bots for resolving
sales and after sales related queries. Moreover, the experience of customers with the brand would
also be analyzed through different customer engagement tools (Patel, 2021). The following
strategies would help the brand to become customer oriented by all means.
Approach to social media
Kogan would be actively engaging the customers through enticing social media promotional
campaigns and discounts. The social media handle would be fun, interactive and vigilant of the
needs of the customers regarding technological gadgets.

Marketing mix
Product: 5 broad categories of products including home theatres, gaming consoles, mobile
phones, Television.
Price: Offers a market competitive price for its products. High quality combined with
competitive market prices
Place: Online selling and wholesaling to retailers.
Promotion: Social media, website marketing, television advertisements.
People: Kogan has a team of individuals working for their marketing, sales and retail shop sales
teams.
Process: Online delivery of products as well as frequent checks of inventory at retail store to
upgrade stock.
Physical evidence: The products are packed in a particular packaging identifiable and marked by
the company.
REFERENCES
Adams, D. (2022). ‘We were wrong’: Kogan posts $35.5 million loss, flags headcount reduction
as e-commerce cools. [online] SmartCompany. Available at:
https://www.smartcompany.com.au/industries/retail/kogan-financial-report-losses-e-commerce-
online-shopping/ [Accessed 6 Apr. 2023].

Koehn, E. (2023). Kogan puts $24 million loss behind it as shoppers hunt value. [online] The
Sydney Morning Herald. Available at: https://www.smh.com.au/business/companies/kogan-puts-
24-million-loss-behind-it-as-shoppers-hunt-value-20230227-p5cnrq.html [Accessed 6 Apr.
2023].

La Frenz, C. (2023). Kogan doubles loss but says return to profit ‘on track’. [online] Australian
Financial Review. Available at: https://www.afr.com/companies/retail/kogan-doubles-loss-but-
says-return-to-profit-on-track-20230224-p5cng4 [Accessed 6 Apr. 2023].

Patel, S. (2021). 18 Best Customer Engagement Tools for Businesses in 2022. [online] REVE
Chat. Available at: https://www.revechat.com/blog/customer-engagement-tools/.