Kathmandu Holding Limited | April 4
2013
| How do social media and consumer-generated content change the way marketers operate? | Nicole Mack |

Contents

1.0 Executive Summary 2 2.0 An Introduction to Kathmandu Holdings Limited 3 2.1 Products 3 2.2 Target market and key financials 3 2.3 Analysis of key financials 4 3.0 An investigation of Kathmandu’s Facebook page 6 3.1 Marketing on the Kathmandu Facebook page 6 3.2 Engaging their customers through Facebook 7 3.3 What Kathmandu could do to improve their use of Facebook 8 4.0 Building and maintaining customers using Facebook 9 4.1 Why consumers ‘Like’ pages on Facebook 9 4.2 Consumer Trust on Facebook 9 4.3 Conecting customers through Social Media 9 5.0
With its innovative designs such as polypro thermal underwear and waterproof hiking boots the retailer is less exposed to competition from other fast-fashion retailers.
Today as shown on 23 March, 9.20am, Kathmandu’s share price is 1.95, showing the business is continuing to survive well in a tough retail environment. (ASX, 2013)
Kathmandu’s key financial highlights for the year ending 31 July 2012 were: * Growth in sales by 13.4% to $347.1 million * Gross profit margin of 63.2%

2.3 Analysis of key financials
An analysis of the key financials shown above shows that the following key strategies helped to increase Kathmandu’s revenue and sales over the last few years. In 2012 Kathmandu increased their level of on-going investment in its brand, products and retail channels to support the future growth of the company. This was during a time when retail sales worldwide were in decline due to ‘uncertain times’ with the economy, causing consumers to spend less in retail stores (particularly seen in Australia). Plus an increase in online shopping, with consumers having more options to buy from international competitors thereby reducing the amount spent in retail stores.

The focus of the company to grow their market share in the medium