Development of Marketing Plan of a Company - Essay Example

? Marketing Plan Sources of Marketing Research Information In developing a marketing plan, a marketer or manager will need adequate information in order to develop a salient strategic plan. At numerous points, a marketer has to determine whether he or she has adequate information to make a strategic action on which markets to pursue (Brassington & Pettitt, 2006, p. 221-25). A marketing research entails obtaining adequate information on the environment of John Lewis Organization. An analysis of the internal and external environments will give adequate information to determine the marketing strategy to employ. The internal environment will entail a close look at customers while the external environment will determine the market and competitors in the market (McDaniels & Gates, 1998, p. 450). John Lewis departmental store describes its customers in terms of demographics and psychographics. According to Attwood (2007), John Lewis departmental store serves the affluent and middle classes whose income may not be reduced so much by high bills. This is shown by the high priced goods sold in stores. John Lewis customers are also trendy and value fashion. This organization can increase its market share by coming up with new products, which can best serve the low income earners. John Lewis will come up with low-priced differentiated products. United Kingdom’s retail market is dominated by six huge retailers who account for 60 percent of all goods sold in the region (Board Bia, 2012, p. 3). As a result, this market is extremely competitive. This market is fast moving and at the vanguard of initiatives. Because of the continuous changes in the market, John Lewis has developed exceptional points of difference to attract new patrons and entice the existing customers to spend more (Capon and Hulbert, 2007, p. 345). Any departmental store or a supermarket is considered John Lewis’s competitor. The primary competitors in the market include Debenhams, British Home stores, Tesco, and Mark and Spenser (Attwood, 2007). Debenhams is one of the primary retailers in United Kingdom with numerous stores in different regions and states. This organization sells numerous products under its different brands. This competitor has a market share of 18 percent. Mark and Spencer is also a chief retailer in United Kingdom with more than seven hundred stores across United Kingdom and more than three hundred in other nations. Its products are luxury food items and clothing. It is the biggest retailer and controls 24 percent of the market (Board Bia, 2012, p. 5-7). Because of the intense competition John Lewis has developed exceptional points of difference to attract new patrons and entice the existing customers to spend more. The Buying Process of the Targeted Customers The buying process involves numerous activities by both customers and the company personnel. John Lewis has majored in customer service, which has made its profits grow over the past few months (John Lewis, 2012). Therefore, this process starts from the point where the customer recognizes his or her need or becomes aware of his or her problem (Lamb et al, 2009, p. 224). This may be the need for a new cloth, new phone, new car insurance or body cream. After identification of the need, the customer sets his or her quest for information on the products that can adequately satisfy his or her needs (Lamb et al, 2012, p. 256). This is adequately assisted by the internet which provides a wide range of information of the products available that can satisfy the need. John Lewis has stand-by personnel on the internet ready to assist consumers seeking information on a product or a service (John Lewis, 2012). John Lewis deals with numerous products. Therefore, the customer is provided with all the information on the available products in the market. The company personnel are expected to entice the customers into buying the product (John Lewis, 2012). As according to Brassington and Pettit (2006, p. 346-50), after the customer acquires all the information on the product, he or she will evaluate them to determine which suits them. After analyzing the products, the customer is expected to purchase the product that best suits his or her needs (Capon & Hulbert, 2007, p. 146). This may be done online or through a nearby store. After the customer buys the product, he or she is expected to give feedback on the whole purchasing process and evaluate the quality of the products obtained. This process forms a basis for one of the marketing strategies to be employed. Public relation strategy of product promotion is well engraved on the interaction between the company personnel and the customers (John Lewis, 2012). In addition, the company personnel promote the product through issuing brochures and through direct marketing where the customer requests are responded to immediately. Market Segmentation and Targeting By focusing on a commitment to quality service, John Lewis has implemented a niche differentiation stratagem in the diverse market place. Its aptitude to differentiate its products has contributed to the superior annual reports (Boone & Kurtz, 2012, p. 265-68). John Lewis will divide its market into demographic and psychographic segments. The demographic segment will involve variables such as age, economic status and gender. On the other hand, psychographic segmentation will involve variables such as lifestyle and trends (Cant, 2006, p. 287-302). The target market for John Lewis is the active customers between the age of 25 and 45. These are the people who are young and have stable incomes. These people love fashion and trendy items (Havaldar & Havaldar, 2010, p. 189). These active customers represent a demographic group of successful and well-educated people with less or no family responsibilities. Their household incomes range from $60, 000 and $100,000 annually. Regardless of their income, this group is price conscious and constantly looks for value in their purchases (Lamb et al, 2012, p. 389). They like to be associated with trendy and high quality products and are willing to pay a high price for a certain high quality brand. John Lewis creates an image of their products in the minds of consumers by first identifying its target market. As according to Lamb and colleagues (2009, p. 308-320), John Lewis tries to create an exceptional identity of its products among its target customers. This organization knows its target audience and understands their preferences and needs. John Lewis understands the attributes and advantages of their products (John Lewis, 2012). It is through this that the company can sell the product attributes to the customers. Jon Lewis creates exceptional selling points for their products and brands and communicates them to the consumers. This is done by identifying what the products can do and how they meet the customer’s needs (Boone & Kurtz, 2012, p. 356). John Lewis tries to show its target customers that its products are the best in the market. This ensures that the company will live up to the expectations of the consumers. Marketing Mix Product Strategy John Lewis offers its customers everything they need, such as the best fashions, furnishings and household goods (John Lewis, 2012). They offer these products through internet shopping, mobile applications, call centers and home delivery (Attwood, 2007). John Lewis offers high quality and value products to customers. It offers retail products ranging from electrical, beauty products, clothing, accessories, school wear, toys, to sportswear (John Lewis, 2012). It has these products in different brands names which the patrons enjoy such as Barbour, Calvin Klein and Diesel. Over the next four years, John Lewis plans to expand the product line to include customized items. This may include customized sportswear with the customer’s logo. This will add uniqueness to the products making them the best in the market. As Boone and Kurtz (2012, p. 367) note, the product’s intangible attributes are the ability to meet and even exceed consumer needs consistently, speed in responding to the needs and its expectation of new customer needs. John Lewis second strategy involves expanding the product line to offer low priced products that will not only target the low income earners but all its patrons. Finally, the company plans to change the packaging of products to more appealing packages. Place Strategy Currently, John Lewis markets and sells its products through regional, departmental stores scattered across United Kingdom (John Lewis, 2012). It has an estimate of 30 stores across Britain. Fashion trends dictate the product sales at stores. Therefore, the company obtains information from its customers on their needs and requirements through direct marketing (Cant, 2006, p. 213). In addition, John Lewis offers its products through the internet, mobile applications, call centers and home delivery. The fact that John Lewis can offer its products through the internet and mobile phone applications and deliver the products at home gives it an upper hand in positioning and selling its products (Havaldar & Havaldar, 2010, p. 234). Over the next four years, John Lewis searches ways to expand its distribution to retail shops across the world, focusing more on the European countries and the untapped market in the developing countries. In addition, the company plans to increase its offerings not only through the internet mobile applications but also through tablet and note applications. This will come in hand with specialty shops and options where a customer can order a custom made product. Internet kiosks will be placed in the most profitable stores to enable customers customize the products from the stores. Regardless of these plans, John Lewis plans to maintain a strong relationship with its distribution channel members. Promotional strategy John Lewis communicates with its patrons about its products in numerous ways. Information about the company and its products is available through the internet and direct mailings. The company’s promotional efforts try to distinguish its products from those of competitors. John Lewis depends on personal contact with customers at the stores. This contact, either through phone or direct contact, assists in relaying the company’s message, building relationships and showing the unique attributes of the company products (Lam et al, 2012, p. 382). John Lewis sales representatives often visit the numerous departmental stores across United Kingdom and offer training on attributes of products to the attendants and personnel. Public relations and sales promotions constitute a huge part of John Lewis’ promotional strategy. John Lewis offers its customers short-term sales promotions tied to contests and events. Public relations are well tied on the buying process (John Lewis, 2012). Pricing Strategy As noted earlier, John Lewis sets its prices high to signify luxury, quality and prestige. John Lewis does not try to gain high sales by selling its products at lower prices in large quantities. Rather, value pricing is adopted to make the customer comfortable when buying John Lewis products. The pricing strategy makes the product salient for gifts. This has helped in positioning the products in the market. The products will be priced competitively, providing salient value against the competitors. Control Since John Lewis current and future products necessitate broad customization to meet the customer’s requirements, it is essential to arrange the marketing role by customer groups. This ensures that John Lewis products meet the needs of the different consumer groups. Each of these groups will be led by a sales supervisor who will report to the marketing director. This will ensure that the set sales figures, awareness rates and competitor retaliation are met (Capon & Hulbert, 2007, p. 236-42). Each of these activities will also have timelines for accomplishment. References Attwood, K. 2007, December 11. John Lewis and the taste of Success. The Independent [New York]. Retrieved from http://www.independent.co.uk/news/business/analysis-and-features/john-lewis-and-the-taste-of-success-764387.html Board Bia 2012. A guide to Entering the UK Retail Market-. Board Bia. Boone, L. E., & Kurtz, D. L. 2012. Contemporary marketing. Mason, USA: South-Western Cengage Learning. Brassington, F., & Pettitt, S. 2006. Principles of marketing. Harlow: Financial Times Prentice Hall. Cant, M. C. 2006. Marketing management. Cape Town, South Africa: Juta. Capon, N., & Hulbert, J. M. 2007. Managing marketing in the 21st century: Developing and implementing the market strategy. Bronxville, N.Y: Wessex Inc. Havaldar, K. K., & Havaldar, K. K. 2010. Business marketing: Text and cases. New Delhi: Tata McGraw Hill Education Private Ltd. John Lewis. 2013, January. Buying Guides. Retrieved April 2013, from www.johnlewis.com/buying-guides Lamb, C. W., Hair, J. F., & McDaniel, C. D. 2012. Essentials of marketing. Mason, Ohio: South-Western Cengage Learning. Lamb, C. W., Hair, J. F., & McDaniel, C. D. 2009. Marketing. Mason, Ohio: South-Western Cengage Learning. McDaniel, C. D., & Gates, R. H. 1998. Marketing research essentials. Cincinnati, Ohio: South-Western College Pub. Read More