18•BUSINESS STRATEGY
PANDORAANNUAL REPORT2014
Marketing
We constantly assess themedia landscape and adjust our
media spread to increase the effectiveness of campaigns
to ensurewe connect with consumers in themost
effectiveway. In recent years, we have shiftedmuch of
our media spend from traditional print and broadcast
media to online. Onlinemedia gives us an opportunity
to both connect and interact with consumers.We create
online spaces where consumers canmeet and share
their passions, jewellery designs and fashion tips – and
consumer feedback ismonitored and fed back into the
design process.
In 2014, we spent 9.6% of our revenue onmarketing
comparedwith 9.8% in 2013, an increase of 29.9%. In
addition, our global marketing spendwas supplemented
by themarketing spend of franchisees, multi-brand
retailers and third-party distributors.
In 2014, we completed a target group segmentation
study providing deep insights into current and potential
customers. Information from the studywill enable us to
target communication and products to different consumer
groups evenmore effectively.
More than 60% of thewomenwho own PANDORA
jewellery receive it as a gift, andmore than half of the gift
givers aremen, andwe dedicate a certain amount of our
marketing spend tomen in order to support this position.
However, themajority of our efforts in the gift-giving
area focus on helpingwomen indicate to gift buyers which
PANDORA jewellery theywould like to receive. For
example, the PANDORAClub allowsmembers to share
their wish lists with friends and family.
YEAROFTHE RINGS
PANDORA’S REVENUE FROMTHE RINGS
CATEGORY SAWANAMAZING INCREASE IN
2014.WHATDROVETHISGROWTH?
Whenwedecided to increase focus on theRings
category,weknew that thego-to-marketmaterials
needed tobeaswell thought-out as theproducts
themselves. Soat theendof 2013,we launcheda
ring toolkit, acollectionof best practices and sales
andmarketing tools topromote theRings category.
Oneof the toolkit’s focal pointswas to improve the
way ringswerepresented in stores.Today, at least
20%of the retail category space ineachconcept
store is dedicated to rings, and rings haveexperienced
increasedattention fromconsumers as a result.
Sizing is important for consumerswhenbuying
rings, so the toolkit includes variousways tohelp
consumers ensure theyget rings of the right size.
This includes ring-sizing features onPANDORA’s
digital touchpoints.APANDORAClubmember, for
example, can includeher ring sizeonherwish list
and share itwithher friends and family through social
mediachannels.
All thecombinedefforts togrow ring salesmeant
an increase in revenue fromRings of 116.7% toDKK
1,192million in2014.
