Poshmark Marketing Plan Michalie Fielder Kelsie Jackson Tori Weaver

4/16/2013

EXECUTIVE SUMMARY: Poshmark is a service that allows women in the United States to purchase and sell items from her own closet. Items such as shoes, clothing, handbags, jewelry and other accessories can be sold or purchased. Transactions are made online using a traditional website, or through the Poshmark app for iPad, iPhone and iPod. It is considered an electronic auction according to NAICS. The app is free to purchase in the app store, and it is free to post items to sell. We take 20 percent out of the transaction for commission fees, and charge two different shipping rates depending on how much the consumer spends. That way, if your item doesn’t sell, you don’t lose any money! Our target is a fashionable young to mid-aged woman who bargain shops for brand name items. Target market is reached by means of social media. Customers can tweet about their purchases or items to sell or see when “Posh Parties” are in progress. Ads are seen in the sidebars of users’ newsfeed on Facebook and there is a direct link to download the app on iPhones. COMPANY OVERVIEW: The Poshmark Promise Poshmark is a platform where our members can buy and sell with confidence. We are committed to making sure each and every one of our members is happy and satisfied with their end-to-end experience on our marketplace. We will safeguard your money and protect your product. This is the Poshmark Promise (Poshmark).

Company Objectives 

Broaden the target market of people who are able to access Poshmark



Use social media to effectively promote their service to iPhone users



Create a web page allowing members to sell items



Begin the global expansion of Poshmark

Competitive Advantages Poshmark has built a reputation of trust and respect in the virtual world. They have created a set of community guidelines outlining how members should act while using the app. Some of the community guidelines include being friendly and kind, a trustworthy seller, and a responsible posh partier. Posh Parties are a great way for members to discover and shop new closets. It is also a good way for sellers to promote their own listings. Typically, the parties are themed by a specific item of clothing or accessory. Once a member has sold an item, Poshmark sends the seller a prepaid shipping label. This label supports shipping around the United States. In addition, Poshmark notifies the seller of the item’s shipment and offers a tracking link. After buying an item, Poshmark holds the funds from the seller until the buyer receives their purchase. Poshmark also provides the buyer with a tracking link once the item has been shipped. If the buyer is unsatisfied with their purchase, Poshmark will refund the money spent to the buyer.

SITAUATION ANALYSIS: Strengths: Since Poshmark is an ecommerce business; consumers can shop in the comfort of their own home at any time of the day. If one has a question about an item, she can contact the buyer to ask, negotiate a price, or even trade items (seller’s discretion). By selling gently used authentic items, consumers can buy brand name items at a significantly lower price. Weaknesses: Most e-commerce businesses do not have a physical store for customers to visit. Since there is no physical store, there is no established inventory. If a customer sees a pair of shoes she likes on Poshmark, but she wants to shop around for any better deals, those shoes may be sold when she returns to purchase them. She would have to request to reserve the item through the seller. Also, items cannot be returned at Poshmark. Poshmark does not sell the item directly, and is not responsible for misrepresentation. If the item you received is damaged, missing, not what was described, or wrong then customer service will help in any way with refunds, credits, etc. Opportunities: Expanding the company outside of the United States could be a great opportunity. Transaction numbers would increase, as well as users. By expanding our target market to men or children, Poshmark would generate more users.

Threats: A major threat is the selling of fake goods. Women shop with Poshmark to find authentic brand name items for less. There is currently no way to prove authentication with items under brand names like Chanel, Coach, Burberry, Michael Kors, or Marc Jacobs unless the seller has included the receipt and/or tags with the item. STP ANALYSIS: Market Segmentation 

iPhone Users. Any person who owns an Apple cellular device.



Americans. Anyone who lives in the United States.



Online Shoppers. People who buy items online rather than go to a “brick and mortar” store.



Thrifty Shoppers. Persons who manage money and resources in a cautious and sensible way so as to waste as little as possible.



Young Adults. People between the ages of 18 and 35.

Target Market Poshmark targets final consumers using a differentiated targeting strategy (Grewal & Levy, 2012). To keep shipping costs down for the buyers, Poshmark only allows buying and selling in the United States. Women are the target market because they are 71% more likely to shop for clothing online than men (Redstage Networks, 2012). Because of the recession, Poshmark has made it possible to buy or sell clothes at more affordable prices. Many people

own iPhones, so Poshmark has further narrowed the target market by only allowing women with iPhones to use their service. Positioning Strategy Poshmark markets to segments of young adult women who have iPhones and want to buy or sell clothing items, shoes, handbags, and jewelry at more affordable prices. MARKETING MIX STRATEGY: Product: The following concept test took place during the product planning process. The following summary was given to 1,000 women within our target market and they were then asked if they would be likely to use the application. These are the results: “Poshmark is a new service that allows women in the United States to purchase and sell items from her own closet. Items such as shoes, clothing, handbags, jewelry and other accessories can be sold or purchased. Transactions are made online using a traditional website, or through the Poshmark app for iPad, iPhone and iPod. The app is free to purchase in the app store, and it is free to post items to sell. We take 35 percent out of the transaction for commission fee for all items posted”

How likely would you be to use the Poshmark application as a buyer?

How likely would you be to use the Poshmark application as a Seller?

Not At All Likely

Not Very Likely

Not At All Likely

Not Very Likely

Somewhat Likely

Very Likely

Somewhat Likely

Very Likely

13%

21%

32%

41% 23%

21% 23%

26%

That test made us worried that we would not have many sellers. This was worrisome because without sellers we cannot have buyers. We made adjustments to the process of selling items and provided the same 1,000 women with the following summary and asked the same questions. These are the results: “Poshmark is a service that allows women in the United States to purchase and sell items from her own closet. Items such as shoes, clothing, handbags, jewelry and other accessories can be sold or purchased. Transactions are made online using a traditional website, or through the Poshmark app for iPad, iPhone and iPod. T he app is free to purchase in the app store, and it is free to post items to sell. We take 20 percent out of the transaction for commission fees, and charge two different shipping rates depending on how much the consumer spends. That way, if your item doesn’t sell, you don’t lose any money!”

How likely would you be to use the Poshmark application as a Seller? Not At All Likely

Not Very Likely

Somewhat Likely

Very Likely

17% 44%

11%

28%

These results were much better and we felt that Poshmark would benefit from making those changes. The following logo is the logo that will brand Poshmark. The goal is to make everyone, especially women in our target market, to realize this is Poshmark when they see it. The logo will appear on all labels that are used for shipping and in any Poshmark advertising.

Distribution: All products purchased on Poshmark will be distributed from the seller directly to the buyer. When an item is purchased the buyer will pay the cost for shipping. Poshmark will then send the seller a prepaid postage sticker to place on the box to ship the item. Promotion: Internet-based marketing will be our primary source of promoting our product. Websites such as Facebook and Twitter that are used by women in our target market will have advertisements about Poshmark. Word of mouth will also help us tremendously. When women start to use our application and fall in love with the ease and convenience of it they will tell their friends to download the application and try it for themselves. Price: It is absolutely free to be a member of Poshmark. The prices of the items being purchased will be determined by the seller. Poshmark’s income source is the 20% commission off of every item sold. This commission percentage was originally set at 35% however after concept testing we learned that women would not be willing to sacrifice that much of their money. Therefore the commission percentage was reduced to 20%. ETHICS/SOCIAL RESPONSIBILITY: Code of ethics

Poshmark employees should always act ethically and lawfully. Employees are expected to be trustworthy, honest, and fair to anyone they come into contact with while representing Poshmark. Any employee that does not feel that he or she can act accordingly with the following code should contact their department manager or direct supervisor immediately. I.

Laws, Company Regulations, & Company Rules a. Poshmark employees should always comply with all laws. Employees are responsible for knowing, understanding, and abiding by all rules and regulations made by Poshmark.

II.

Discrimination a. Discrimination based on race, ethnicity, gender, or any other category will not be tolerated. Anyone that comes into contact with a Poshmark employee should be treated fairly, equally, and with the upmost respect.

III.

Privacy and Confidentiality a. Poshmark is an e-commerce business and information will be submitted over technology more often than not. Information that is deemed private by a customer or employee should not be released to anyone without written consent.

IV.

Bribery a. Bribes for any reason and from any person should not be accpeted. Bribes should not be made to anyone for any reason.

V.

Strive for Excellence

a. Excellence should be a daily goal for Poshmark employees. Employees must realize that failure to meet this goal in every aspect is detrimental to the company. Health and Safety

VI.

a. Employees are expects to maintain their health and help ensure safe workplace at all times. VII.

Financial Integrity a. All accounting should be done in a proper and ethical manner. All FASB standards should be recognized and followed by anyone dealing with the financial measures of the business.

VIII.

Corporate Integrity a. Employees should not use company information or secrets to benefit themselves or others in anyway. Insider trading is strictly prohibited.

Corportate Social Responsibility Poshmark is dedicated to providing our employees, customers, and stakeholder with the upmost respect and satisfaction. In order to do so we strive to provide quality customer service and a professional environment that is comfortable to all. GLOBAL MARKETING: Since fashion is the main cause of our service, it would only make sense to expand to a fashionable country. We choose to expand to France to increase sales and number of users. Fashion trends differ in both United States and France, thus opening a door of opportunity for

fashion to join forces. Internet and Apple products are used world wide thus making it simple for women in France to shop and sell items Poshmark. Not only would we gain more users and transactions by expanding, we would have more items to offer to our consumers. We would have to convert the currency for accurate payment. Shipping charges would differ between the countries. Our marketing mix will differ by being able to use other means of promotion such as e-mail subscription lists, mobile texting, and expanding to the droid app world.

References "Corporate Governance." Amazon. Amazon.com, Inc., n.d. Web. 15 Apr 2013. . Grewal, D., & Levy, M. (2012). Marketing. New York: McGraw-Hill/Irwin. Poshmark. (n.d.). Retrieved March 12, 2013, from www.poshmark.com/what_is_poshmark Redstage Networks. (2012, July 25). Retrieved from http://www.redstage.com/2012/07/25/online-buying-behavior-the-differencebetween-men-and-women/