Proposed Marketing Research for Mulberry Group PLC - Assignment Example

 Proposed Marketing Research for a Specified Company Background Information Mulberry Group PLC is a holding company with headquarters in the United Kingdom. The Company is designs, manufactures, and markets luxury leather goods and accessories; footwear and clothing. The company then markets its luxury handbag brands such as Bayswater, Del Rey and Alexa through its stores or through wholesale channels in the United Kingdom and export markets. Mulberry Group operates in two segments: the Design business and the Retail business. The Retail section is involved in the sale of the company’s clothing, footwear, and branded fashion accessories. This is achieved through its shops and department store concessions. The design section includes brand management, product design, manufacture, marketing, sourcing, outsourcing, and wholesale distribution of its products. Mulberry Group Mulberry Group PLC wholly owned subsidiary companies include Mulberry Company (France) SARL, Mulberry Company (Design) Limited and Mulberry Company (Europe) Limited (Mulberry Group, 2012). Over the past few years, there has been stiff competition for the Retail segment in the United Kingdom. This is owing to the direct competition of leather goods and services from Pavers England Accessory Stores and Burberry, and rapid increase in the number of leather distribution stores in the region. Mulberry Group Plc (MUL.L) reported a weaker-than-expected 3 percent rise in comparable retail sales, a fall of the company's shares from 34% at the beginning of the year to 25% (1,505 pence on the London Stock Exchange) in June 20008 (Berger, 2011). This motivated the company to conduct a market research that would provide the company with relevant information to help it increase its sales and revenue in the highly competitive market. This paper therefore proposes the most appropriate research for Mulberry Group PLC in the United Kingdom. Marketing Strategy Marketing is something which must be performed in the right way possible in order to promote increased sale of a product. This should incorporate all components of a marketing plan and functions in addition. The marketing plan in that manner becomes the central application, which has the competency to improve the sales of a product in the global perspective (Gilbert & Dawn, 2009, p.45). The marketing of a product largely relies on the marketing plan established in any given organization. The defined process for a company to implement its products or services is 1) assessing the information needs, 2) developing the needed information through internal databases, 3) implementation of market research, 4) organization of ideas, and 5) distribution and using the gathered information (American Marketing Association, 2011, p. 1). The company already having established a relevant primary research they should conduct, this paper seeks to describe the secondary marketing research literature to describe, explain and account for the type of research Mulberry Group might have undertaken in bringing its product to the market (Gilbert & Dawn, 2009). Marketing research is essential in the development of a marketing strategy because it assesses the steps a company should take to reach their targeted market. The Internet helps with collecting the marketing data in the primary research. Use of such tools as online focus groups, experiments, and Internet surveys would have been an effective means for Milberry to collect its data for primary research. Secondary data involves rechecking and evaluating the internal and external marketing procedures and secretarial, such as sales invoices, published materials and warranty cards (Mulberry Group, 2012). Research Importance A general definition by for marketing research is the process in where a perform gathers information to introduce their products and services to their target market. According to American Marketing Association (2011), "marketing research is the function that links the customer, consumer, and public to the marketer through information--information helpful to identify and define marketing prospects and problems; generate, re-check, and evaluate the marketing behavior; monitor performance of the market; and improve the understanding the process of marketing. Marketing research identifies and defines the required information for addressing the stated issues. Marketing research also is helpful in designing the methods for information collection, information management and implementation of the data collection process, analysis of the results, and communication of the findings and their implications” (Definition of Marketing , para. 3). This concept states that a company needs to carry out marketing research to get more in touch and be well connected with their customer’s needs. The marketing research help the company know customer’s wants and needs. Market research targets not only the current customers, but other potential customers as well. The overall purpose of marketing research is to maintain the customers and bringing in new customers to ensure longevity and profitability of the company (American Marketing Association, 2011, p. 1). Current Strategy The current marketing strategy for Mulberry Group PLC seems to be that store will bring in customers on its own. The company largely depends on their official website that explains where their stores are located, the general type of leather good and accessories available in the stores, the company’s mission, and the survey for customers to fill out. However, customer’s place to join for email coupons, or special offers, or any upcoming functions and promotions by the company is not available in the website. Primary research is where information can be directly collected from your target demographic market, and past or current customers. It is done in a different ways including through both quantitative and qualitative means. Qualitative primary research is where focus groups and interviews are used to gather important information from your target audience (Gilbert & Dawn, 2009, p.81). Open ended interviews that require multifaceted answers (beyond the “yes” and “no” answer) that will reveal innate things such as customer’s interests, dislikes, emotional factors and trends that affect the buying behaviors. Focus group research is should be done in groups of six people to help Mulberry Group PLC determine customer’s needs so as to ensure their product offerings remain current and up to date (Apollo, 2010). Secondary Marketing Research Literature Secondary market research involves analyzing information from secondary sources online. Web based market research is fast compared to primary research. Mulberry Group PLC needs to put more focus on customer’s needs. Most customers shop at the stores with the products that they want. Incases where two or more stores offer the same products, as is the current case with Mulberry Group, customers prefers the store that offers some exciting deals to their valued customers. For Mulberry Group PLC to keep their customers happy and coming back, they will need to utilize the primary research to find out what their customers needs are. Modern clothing and footwear stores offer customers the option of joining the stores preferred club or discount club, which sends customers coupons in the mail for the store. The coupons are typically for the products that the customer normally buys because the store’s system records the customer’s purchases for this purpose (Berger, 2011). The customer will get satisfaction from this process, but the company also gains a lot in terms of increased sales. The company will gain the knowledge of what the customer’s buy and how often they buy their products. The other information that they gather is when customers stop shopping at the store. For example, if a customer shops at Mulberry for six months and are constantly using their preferred card, the company’s store will be able to track the purchases. If the same customer stops shopping at Mulberry, the store will be able, establish the factors that made this happen like. If it was price increase or opening of a similar store in the area that may have won that particular customer. Mulberry Group PLC then will then have the option of how they can regain the same customer by offering special offers or these coupons in the mail. This will be made possible through secondary market research and development. Another thing that people do is to become more conscious with fashion. The type of clothing and footwear in relation to the time and season of the year is also important. There are four seasons in the year and the design and type of clothing and footwear for one season is quite different from the other. Mulberry Group PLC should use marketing strategy to determine the appropriate selection for each season of the year. The company should therefore invest more in the designing, developing, and marketing leather footwear and clothing collections for Spring and Summer, as well as for Autumn and Winter seasons of the year (American Marketing Association, 2011, p. 1). Customers combine both fashion and the relevance of the season and time to be comfortable in their clothing and look fashionable at the same time. When the company successfully observes this strategy, customers will flow in which means an increase in sales and profitability (Robert, 2006). Mulberry Group PLC should consistently enhance their products or services they provide to the customers. The advancements should be exclusive with reasonable price adjustments. The products at a glance may not be directly associated to the direct consumers, but more though, steps and improvements to help create elegant and sensational clothing and footwear designs. Another thing that Mulberry Group PLC will need to do is to determine their inventory through the demand strategy and the pricing strategy. As new products and services are introduced Mulberry will have to take exceptional consideration with these successful tools. With leather designer clothing and footwear products, the price may increase slightly as the customers are paying for the quality of the products. Mulberry will need to provide exemplarily services that focus on the anticipation of the customer’s needs and meeting their special requests. Mulberry Group PLC should come up with a new marketing strategy to market their products. Such a strategy will directly introduce consumers to the products. For example, the secondary research can help them to come up with an advertisement that is superior to their competitors. An advertisement that for instance uses a famous actress or a supermodel, to display their product can be powerful. It will demonstrate that the products being showcased are a high product because a celebrity is wearing it. Mulberry Group PLC should be featured as the exclusive distributor of the elegant leather products. (Berger, 2011). Competitive Intelligence According to Competitiveintelligence.com (2010), “Competitive intelligence is the art where intelligence about products, customers, individuals, consumers, competitors, concepts, information, ideas and data needed to support top leaders and managers in making strategic company’s decisions is defined, gathered, analyzed, and distributed. Competitive Intelligence includes a broad array from business intelligence, to government intelligence, to market intelligence” (Competitive Intelligence, 2010). This concept is one of the most essential parts of the market research that Mulberry Group PLC needs to do in order to successfully bring its products to the market. The company after identifying what their competitors and come up with what their competitors are offering, the pricing of their products, and identify what it is that their customers like more about them than Mulberry Group PLC. It could be as plain as being in a strategic location or the accessibility, but more important it could also be quality customer service or the price. Competitor’s may be offering services or products that Mulberry Group PLC is not currently offering like bringing in a famous clothes designers to come up with new designs sold in the stores or they may be offering discounts on their products because of the price matching guarantee (Gilbert & Dawn, 2009). Both of these services are some of the strategies that bring in new customers and help maintain the existing and make all customers happy. Whatsoever the case, Mulberry Group PLC has to find out what the competitors are doing to complete their marketing research. Advantages of the identified Primary Research: In the discussed Primary Research the researcher controls the research process therefore specific research needs that fit the company’s needs are addressed. In Primary Research the researcher have control over how the information is collected which means the researcher can decide on the research requirements such as size of project, time frame and goal of the research (Robert, 2006). Disadvantages of the identified Primary Research: It is more expensive in terms of in preparing the data and carrying out the research compared to secondary research. A research plan should be executed in order to be completed properly, this means longer time required to undertake the primary research in comparison to secondary data. Pros of the identified secondary Research The company will have detailed information about their needs and wants. The research also enable the company identify their potential customers. The marketing research analyzes the company's business structure, major products and services, operations, prospects, locations and subsidiaries, the company’s executives and key competitors. This profile help the company come up with effective market strategy to penetrate the competitive market (Gilbert & Dawn, 2009). Understand and respond to their customer’s needs. Mulberry Group PLC will be able understand their competitor’s business structure, strategies, and how to capitalize on their weaknesses. The marketing research help Mulberry Group PLC stay up to date on the key developments affecting the company. The company's core market strengths and weaknesses are analyzed by the marketing research. Areas of development or decline in market developments are also analyses and the recent developments of the company’s activities help track important business events. The research equips the managers and the top leaders with information that enables them to sharpen their strategies and shape their operations profitably. Opportunities to be explored and exploited by the company are sized up and its growth potential assessed in the research. The technological and/or competitive threats are highlighted that enables the company come up with effective counter strategies and transform their market activities profitably. Disadvantages Some of the disadvantages include the following: Because of relying on the information from other sources, there is a higher possibility of data inaccuracy in comparison to primary marketing research. Some of the secondary sources may have been copyrighted therefore creating legal complications (American Marketing Association, 2011). Conclusion Mulberry Group PLC marketing strategy will need to be focused on keeping their existing customers and bringing in new customers. The strategy should remain aligned to their overall corporate goals and mission. By focusing on the primary research performed, the company will be able to establish and maintain a direct approach to their customer’s satisfaction (Apollo, 2010). Various theories are essential when it comes to making marketing. Such are considered essential because of barriers for instance across-the-border investment and partnership. It is worth noting that the pros outweigh the cons as analyzed in the research. Bibliography American Marketing Association (2011). Marketing Power. Retrieved from http://www.marketingpower.com/AboutAMA/Pages/DefinitionofMarketing.aspx Apollo, D. (2010). Competitive Intelligence. Retrieved from http://www.competitiveintelligence.com/ Berger, A. (2011) Media Research Techniques. Newbury Park, CA: Sage. Gilbert A. & Dawn I. (2009) Marketing Research: Methodological Foundations. New York Cengage, Learning. Mulberry Group PLC (2012) Mulberry Group PLC MUL:LSE company performance. Retrieved: markets.ft.com/research/Markets/.../Business-profile?s=mul:lse Robert, E. (2006) The Marketing Research Guide. London. Routledge Publishers Read More