The Marketing Strategy Analysis of Jellycat

Research Article
Open access

The Marketing Strategy Analysis of Jellycat

Raomeng Gu 1*
  • 1 Wuhan-Britain China School    
  • *corresponding author guraomengnice@163.com
Published on 25 October 2024 | https://doi.org/10.54254/2754-1169/117/20242045
AEMPS Vol.117
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-83558-657-0
ISBN (Online): 978-1-83558-658-7

Abstract

This paper is based on Jellycat's new marketing strategy of selling toys with a additional show, and there is only little research on the influence of such a marketing strategy on Jellycat's brand by scholars. Therefore, this paper aims to study the influence of Jellycat's offline stores by combining performance and sales. This paper uses qualitative data collection on the website and different models to analyze Jellycat's marketing strategy, including marketing mix, SWOT analysis, and Pestle analysis. The research results show that the new sales method, that is, on-site sales with corresponding short performances, can affect multiple factors on many levels. For example, the price of the product will increase, the value of the product itself will also increase, and the brand image will be well established as a relatively high-end positioning. Therefore, although this marketing strategy may have many shortcomings, it has brought more good effects to the brand as a whole for the business to improve the brand image and increase their sales and profit.

Keywords:

Marketing strategy, Jellycat, Swot analysis.

Gu,R. (2024). The Marketing Strategy Analysis of Jellycat. Advances in Economics, Management and Political Sciences,117,52-57.
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1. Introduction

1.1. Research Background

Jellycat, the British soft toy manufacturer, has captured hearts across the globe with its quirky, cuddly creations. Founded in 1999 by brothers Thomas and William Gatacre, the company quickly rose to fame for its unique and innovative designs that appeal to both children and adults [1].

Over the past decade, Jellycat has evolved from a niche novelty gift to a collectible item. Last year alone, the company generated more than $58 million in global sales. Figures on social media show that the brand has 619,000 followers on Instagram and 46,000 followers on Facebook, making it a big presence in pop culture [2]. The brand promoted its marketing strategy in the form of performance in offline stores on the social platform. The marketing strategy in the form of performance refers to a series of performances when the shop assistants pack plush dolls for customers. For example, the doll is a potted plant, and the clerk will take out a watering can and a small rake to use the doll to perform, and tell the customer to take good care of the doll, the doll likes the sun. This series of behaviors attracted a large wave of traffic online, and at the same time attracted many customers to offline stores to experience this marketing strategy.

The theme of this paper is the performance marketing strategy, and the question is the impact of this marketing strategy on the brand. This study also has a great impact on the future because the success of a brand's marketing strategy determines whether the brand's future marketing mode should be changed and whether other competitors can use the same marketing strategy to achieve the same effect. A good marketing strategy can enable a company to have its brand characteristics while also improving profits, which is one of the most important factors in brand operation. This research will use marketing mix, SWOT analysis, and Pestle analysis to explore and analyze the influence of Jellycat's marketing strategy on the brand.

1.2. Research Gap

In the existing research, people mainly pay attention to the influence of plush dolls themselves on customers, including consumer psychology. Very little attention has been paid to Jellycat's marketing strategy and to what effect it had on Jellycat and what effect it would have on the brand.

So why has Jellycat's marketing, shown in videos that are now widely circulated on the Internet, attracted so much attention? Since the pandemic, Jellycat has expanded beyond selling toys for babies and has become a fashion icon for young people [3]. This article explains the positive and negative effects of Jellycat's marketing strategy combined with the current market, and discusses whether it has been successful.

2. SWOT Analysis

2.1. Strength

For one thing, Jellycat's marketing strategy involved an elaborate show where employees packaged the dolls in elaborate shapes. The exquisite packaging can prevent breakage or wear off the doll, and the packaging prevents liquids such as ink and perfume from evaporating. The paper changes color in the air, and the glue cannot be used, but it will remain in the packaging for years. Plush toys can also be protected from damage during transportation after packaging [4]. In the packaging, customers can be assured that they will not be damaged when they take them home, and the subsequent return and exchange problems caused by damage caused by transportation are avoided, effectively saving customers time and energy.

Second, Jellycat's marketing was similar to that of the fashion world, with a series of new releases in January and July each year [5], accompanied by beautifully photographed and themed brochures, and Jellycat dolls appeared on magazine covers and classic albums, as well as movie posters and world-famous paintings. Beautiful goods combined with interesting sales models have attracted the attention of most young people and become a fashion trend. Jellycat got Jellycat customers to punch in because it got more customers and boosted sales and profits.

Finally, Jellycat's products have passed the European toy safety standard and the American material testing standard, and are also accessible to newborns, which greatly increases consumer trust. After attracting a large number of customers, Jellycat's excellent quality maintained consumer loyalty and made Jellycat's sales steadily increase.

2.2. Weakness

Jellycat's high price was resisted by some consumers [6] and made them less willing to buy Jellycat. Combined with the sale of offline shows, high labor costs, and complex, beautiful packaging, Jellycat's price rose further, and the move lost some consumers due to the higher price.

At the same time, because the packaging takes more time and leads to a long queue, some consumers will choose to buy other brands because of the short time or do not want to spend time waiting to waste energy.

2.3. Opportunities

For one thing, Jellycat is a high-end brand that works from a "small" point of view, creating a foundation of emotional value for customers with its beautiful packaging and the care it gives to its dolls as small animals. This unique brand positioning allows it to cross over from the children's market to the young adult market. A large number of young people will be attracted by this marketing strategy because the store staff attaches great importance to the doll and has been in line with the exquisite packaging of the doll background so that customers feel the details of the brand and the mood of being taken care of. A good mood increases the probability that customers will come back for more.

Secondly, Jellycat is a current fashion trend. Customers will be delighted by the staff's patience and kindness and may post it online to show the Jellycat's childlike approach. This kind of publicity is undoubtedly the best for the brand because they can get free publicity and have a lot of circulation. Therefore, the brand can get a lot of potential customers to lay the foundation for future sales.

Finally, there are more and more young people suffering from mental illness, and research shows that dolls can relieve people's pressure and alleviate some mental diseases [7], bringing hope and companionship to some young people and children. The good implied meaning also allowed Jellycat to increase sales invisibly.

2.4. Threats

Jellycat is so popular that there may be a lot of counterfeits on the market, which is a threat to Jellycat's brand image and sales. Because Jellycat is a high-end product, its quality is guaranteed. However, imitation products may greatly reduce the production cost for greater profits, so the quality of imitation products will be greatly reduced. Jellycat could leave a bad impression on unsuspecting consumers.

In addition, if competitors adopt a lower price strategy, it may also pose a threat to Jellycat's market position. Jellycat has always had a high price policy, and competitors sell Jellycat if they give up some of their profits to attract more customers.

3. Marketing Mix Theory

3.1. Price

Jellycat's prices are relatively high, mainly due to the high quality and unique design of its products. Because of the higher costs, Jellycat may run the risk of having too much inventory. However, Jellycat's prices are still competitive compared to other high-end plush toy brands. Jellcat's high price allowed consumers to recognize its excellent quality and build a brand image with its high price. Jellcat also appealed to those who wanted to use Jellcat as a gift for children or friends, because Jellcat's high price allowed the Jellycat recipients to feel the Jellycat as a gift.

In addition, Jellycat offers various promotions and discounts to appeal to different consumer groups. Jellycat's unique design made it look cheap to those who liked it too much but didn't want to spend a lot of money on a doll. However, Jellycat's promotional campaign is a good way for this group to buy. Let them love the product and still get it at the price they want. The pricing mechanism has helped Jellycat expand its audience.

3.2. Place

Jellycat's products are sold worldwide, primarily through online and offline channels. Online channels include official websites, e-commerce platforms (such as Amazon, eBay, etc.), and social media platforms (such as Facebook, Instagram, etc.). Offline channels include specialty stores, department stores, gift shops, etc. Jellycat sells mostly in high-end shopping malls because it focuses on people with spending power. The exquisite decoration style will make customers want to spend money when they pass by Jellycat, and the location is set in a high-end area so that customers can see the doll after shopping because the price of the product is acceptable to them.

In addition, Jellycat has partnered with several well-known brands and designers to sell exclusive products in its stores. Jellycat's sales have been further boosted by increasing distribution points.

3.3. Product

Jellycat's products include soft toys in a variety of shapes, colors, and sizes. These toys often have unique designs and personalized features such as different facial expressions, colors, and patterns. In addition, Jellycat offers a range of branded-related merchandise such as clothing, homewares, and stationery. The main features of these products are cute, soft, comfortable, and of good quality. Whimsy and Playfulness Beyond softness and quality, Jellycat plush toys also infuse a touch of playfulness and whimsy into every creation [8]. Jellycat plush toys also infuse a touch of playfulness and whimsy into every creation. Most people can find a look they like in Jellycat's many dolls. Good quality and unique shape received the current people's favor.

Jellycat's product has its flaws, however. Some products have low sales due to their niche design in Thailand. So that's the end of it. There's no way to sell this inventory of goods. This will lead to a high cost, and also cause a certain degree of waste and environmental pollution because the fiber material after the destruction of goods is harmful to the environment [9].

3.4. Promotion

Jellycat uses a variety of marketing strategies to promote its brand and products.

First, Jellycat engages with consumers through social media platforms (such as Facebook, Instagram, etc.), publishing product images, videos, and stories to increase brand awareness and appeal. Whether shopping online or in person, interactive shopping experiences create more engagement, these types of experiences are often memorable, can increase customer satisfaction, encourage customers to engage with the brand, and can lead to more customers talking to others about their experiences, whether on social media or in person with friends and family [10]. The combination of performance and interactive shopping not only makes the product more childlike and unique but also satisfies consumers with a beautiful shopping experience. Watching the Jellycat staff package their product is a novelty because no one else is selling it the same way. This unique marketing method distinguishes Jellycat from its competitors.

Secondly, Jellycat works with several well-known brands and designers to organize events and exhibitions to enhance the brand image. Holding an exhibition in the city will also introduce Jellycat as a high-end image to people who may not have known about Jellycat before, and allow them to think of the Jellycat brand when they want to buy a doll in the future. An exhibition is a very good way of publicity. While charging exhibition fees to earn profits, it can also promote products to attract customers to buy exhibition peripheral products or buy products from brands in the future. This approach attracted many potential customers and helped Jellycat's future sales.

In addition, Jellycat expands its brand presence through advertising, public relations, and sponsorship activities. These traditional propaganda methods are also essential. Now in the Internet age, people get information through various electronic devices. Advertising on online platforms does not have the expensive advertising costs of billboards, nor does it target Jellycat's main audience, as newspapers do. The online promotion will help Jellycat improve its brand image and provide a direct channel for Jellycat to buy. After consumers read the publicity, they can easily place orders immediately. The conspicuous purchase channel and very favorable publicity increase the possibility of consumers buying products and improve the profits of the brand.

4. PESTLE Analysis

First, on the political front. Jellycat, which sells nationwide, takes into account the politics of its supply chain, such as tariffs and trade agreements [11]. Jellycat complies with the relevant regulations of different countries, and also complies with the regulations of different countries and takes appropriate measures to ensure the safety of its products. The safe and compliant products have been trusted by consumers so that consumers can buy Jellycat with confidence.

Second, in environmental terms. Jellycat's products are usually made from cotton, and some of the plastic in the packaging creates waste. Therefore, its production process may have a certain impact on the environment. To reduce this impact, Jellycat can take steps such as using recyclable materials and reducing packaging materials. Jellycat could also consider developing more environmentally friendly products, such as toys made from degradable materials.

Third, on the social side, Jellycat's main market is for children and young adults. Now that Jellycat is becoming a fashion trend, Jellycat is a great gift for personal relationships. As a result, many people think of the Jellycat brand first when choosing a gift. In addition, Jellycat could consider partnering with charities to provide support to people in need.

Fourth, Jellycat uses sophisticated technology to make high-quality dolls that appeal to parents who are concerned about their babies' health. Qualified dolls make it easier for parents to buy Jellycat to accompany their children's growth. At the same time, Jellycat's packaging technology has also attracted a large number of consumers. They designed the packaging according to the different characteristics of different goods. For example, the packaging of the hamburger plush doll is a hamburger box and a snack bag. The funny and humorous packaging has been praised by young people on the Internet.

Fifth, on the legal side. Jellycat complies with various laws and regulations, such as consumer protection laws and intellectual property laws. In addition, Jellycat ensures that its products comply with local standards and regulations to avoid legal disputes.

Finally, in ethics. Jellycat adheres to business ethics and ethics, such as honesty and fair competition.

5. Conclusion

The research found that Jellycat had a lot of positive effects on Jellycat by using performance and marketing strategies to interact with the audience. First of all, this interesting and interactive way of selling plush toys attracted a lot of customers to come to experience, which generated their sales. In addition, customers experience good service in online stores and see interesting and unique sales methods, so many customers will take photos of interesting sales methods and post them on the Internet. This approach not only shows that consumers are happy with Jellycat but also helps Jellycat complete very good publicity. Jellycat has become a fashion item because research has shown that its main market is now young people who follow trends. A lot of publicity on the Internet will not only let more people know the brand, but also its interesting packaging will strengthen the brand image. However, the operation of this packaging system requires a lot of staff and relatively expensive packaging costs. However, the good publicity effect will bring greater benefits to the future and cover the cost of packaging.

This study provides a certain reference for scholars who want to conduct in-depth research on Jellycat and fills the gap in the research on the influence of Jellycat's performance to pack plush toys on the whole brand. It will also help people get to know the Jellycat brand and the interesting packaging it uses, and increase sales. However, this study lacks the support of actual data, so it is necessary to complete deeper exploration and collect a large amount of data for further analysis in the future.


References

[1]. Ace. The Adorable World of Jellycat: A Comprehensive Guide [Internet]. Handmade artist teddy bears one of a kind creations and antique collectible teddy bears. 2023. Available from: https://www.ubear.com.au/the-adorable-world-of-jellycat-a-comprehensive-guide/

[2]. Williams T. My Hands-On Review: The Ups and Downs of Jellycat Plush Toys - 33rd Square [Internet]. www.33rdsquare.com. 2024. Available from: https://www.33rdsquare.com/jellycat-review/

[3]. Chen S. (2024) The Impact of Emotional Marketing on Consumers’ Purchase Intention: A Case Study of Jellycat. ResearchGate. Advances in Economics Management and Political Sciences, May.

[4]. Hakola J. Customer perceptions of the value of new packaging technologies. Journal of Business & Industrial Marketing. 2013 Oct 7;28(8):649–59.

[5]. Official Jellycat [Internet]. https://jellycat.com. Available from: internet

[6]. Chang T.Z ., Wildt AR. Price, Product Information, and Purchase Intention: An Empirical Study. Journal of the Academy of Marketing Science. 1994 Jan 1;22(1):16–27.

[7]. Ullán AM, Belver MH, Fernández E, Lorente F, Badía M, Fernández B. The Effect of a Program to Promote Play to Reduce Children’s Post-Surgical Pain: With Plush Toys, It Hurts Less. Pain Management Nursing. 2014 Mar 1;15(1):273–82.

[8]. Minchin D. Observations on the southern distribution of the jellycat, Anarhichas denticulatm Kroyer. Journal of Fish Biology. 1988 Jan;32(1):151–2.

[9]. Metz A, Imwalle M, Dauch C, Wheeler B. The Influence of the Number of Toys in the Environment on Play in Toddlers. American Journal of Occupational Therapy. 2017 Jul 1;71(4_Supplement_1):7111505079p1.

[10]. Häubl G, Trifts V. Consumer Decision Making in Online Shopping Environments: The Effects of Interactive Decision Aids. Marketing Science. 2000 Feb;19(1):4–21.

[11]. Bertola G, Faini R. Import demand and non-tariff barriers: The impact of trade liberalization. Journal of Development Economics. 1990 Nov;34(1-2):269–86.


Cite this article

Gu,R. (2024). The Marketing Strategy Analysis of Jellycat. Advances in Economics, Management and Political Sciences,117,52-57.

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ISBN:978-1-83558-657-0(Print) / 978-1-83558-658-7(Online)
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References

[1]. Ace. The Adorable World of Jellycat: A Comprehensive Guide [Internet]. Handmade artist teddy bears one of a kind creations and antique collectible teddy bears. 2023. Available from: https://www.ubear.com.au/the-adorable-world-of-jellycat-a-comprehensive-guide/

[2]. Williams T. My Hands-On Review: The Ups and Downs of Jellycat Plush Toys - 33rd Square [Internet]. www.33rdsquare.com. 2024. Available from: https://www.33rdsquare.com/jellycat-review/

[3]. Chen S. (2024) The Impact of Emotional Marketing on Consumers’ Purchase Intention: A Case Study of Jellycat. ResearchGate. Advances in Economics Management and Political Sciences, May.

[4]. Hakola J. Customer perceptions of the value of new packaging technologies. Journal of Business & Industrial Marketing. 2013 Oct 7;28(8):649–59.

[5]. Official Jellycat [Internet]. https://jellycat.com. Available from: internet

[6]. Chang T.Z ., Wildt AR. Price, Product Information, and Purchase Intention: An Empirical Study. Journal of the Academy of Marketing Science. 1994 Jan 1;22(1):16–27.

[7]. Ullán AM, Belver MH, Fernández E, Lorente F, Badía M, Fernández B. The Effect of a Program to Promote Play to Reduce Children’s Post-Surgical Pain: With Plush Toys, It Hurts Less. Pain Management Nursing. 2014 Mar 1;15(1):273–82.

[8]. Minchin D. Observations on the southern distribution of the jellycat, Anarhichas denticulatm Kroyer. Journal of Fish Biology. 1988 Jan;32(1):151–2.

[9]. Metz A, Imwalle M, Dauch C, Wheeler B. The Influence of the Number of Toys in the Environment on Play in Toddlers. American Journal of Occupational Therapy. 2017 Jul 1;71(4_Supplement_1):7111505079p1.

[10]. Häubl G, Trifts V. Consumer Decision Making in Online Shopping Environments: The Effects of Interactive Decision Aids. Marketing Science. 2000 Feb;19(1):4–21.

[11]. Bertola G, Faini R. Import demand and non-tariff barriers: The impact of trade liberalization. Journal of Development Economics. 1990 Nov;34(1-2):269–86.