Marketing Strategy Report for NEXT PLC - Free Essay Example

Marketing Strategy Report for NEXT PLC 1. Introduction In the following report the marketing strategies of Next PLC, a British based clothing and home products retailer will be researched and analysed before recommendations for possible improvements are provided. This report will analyse the company marketing strategy by assessing the marketing mix or the 4 Ps of product, price, place, and promotion as well as the environment in which the company operates. Once this is completed, an analysis of the strengths and weaknesses of the strategy will be conducted followed by recommendations on future strategy to ensure further growth. The Next brand was established in 1982 and now has over 500 stores in the UK while also operating internationally with over 180 overseas stores (Financial Times, 2015). Additional sales channels were added with the launch of Next Directory in 1988 before expanding to include online shopping in 1999 (Next PLC, 2015). This points to an early implementation of a multi-channel retailing strategy which has been a key factor in their growth and success, and they have established themselves as the most advanced multi-channel retailer in the country (Mintel, 2013). The main target market for Next has long been the middle class in 25-45 age range for both genders interested in mainstream fashion, although there may be a slight increased focus on womens fashion continuing on from the brands early strategy (Next PLC, 2015). The needs of customers are ever-changing and retailers such as Next must ensure their marketing and sales strategies are appropriate to the needs of the market (Chaffey and Ellis-Chadwick, 2012). 2. Market Evaluation The market is the location where merchandise can be bought and sold while marketing is the process of identifying target markets and setting strategies for product development, pricing, promotion and distribution (Armstrong et al, 2012). Therefore, to effectively analyse the companys marketing strategy it is important to understand the state of the current environment of the intended target market. The current economic climate has improved in recent years following the downturn of 2008, however, it is still fresh in the memory of consumers and conservative spending habits will remain for some time. However, despite constraints on disposable income, clothing purchases continued to be the preferred choice for excess income for consumers prioritising spending. This saw market growth throughout the year with sales increasing by 4.5% bringing annual consumer spend on clothing and accessories to  £49.8 billion in 2013 (Mintel, 2013). This is due to consumer confidence increasing throughout 2013 as the economy recovered and consumers feeling more financially stable (Elliot, 2013). Since its launch, Next has established itself at the top of the UK clothing market and accounted for 7.2% of all clothing retail sales in 2012, making them the second largest clothing retailer in the UK (Mintel, 2013). Following this success, they surpassed main competitor Marks Spencer and forecast higher annual profits for the first time (Ruddick, 2014). In a growing market that is in a strong position, Next is in a healthy position due to successful a Christmas period and superior sales and marketing strategies. 3. Marketing Strategy Analysis The marketing mix is a tool that can be used to easily prepare, on in this case, assess a marketing strategy and it consists of 4 Ps which are product, price, place, and promotion. Product and price relate to the product or service itself, whereas place and promotion relate to how the companys offering is delivered and made available to the consumer (Pride and Ferrell, 2012). Product This is what the business offers to customers to meet their needs or requirements. As mentioned, Nexts product is primarily mainstream fashion targeting the middle class of both genders in the 25-45 age range. As per the mission statement, the focus is to ensure high quality and fashionable designs for the customer (Next PLC, 2015). This also applies to the other departments and their focus on quality has been a major factor in their establishment as a brand and recent success in growth and gaining ground on competitors. Price This relates to the pricing strategy employed by the company and has a major impact on the whole strategy. As a result, pricing must be carefully considered to ensure it is in line with the customer expectations and perception of quality as well as the companys intended targets and branding. Nexts pricing strategy, just like the target market, occupies a middle ground that is neither market skimming nor penetration pricing. Rather, it occupies a neutral zone and portrays the image of quality and design at a suitable price for the target consumer. Penetration pricing is often used by new start ups seeking to gain sales and spread awareness by undercutting competitors, whereas skimming has the same target but aims to beat the competition through higher prices that imply better quality (Pride and Ferrell, 2012). While Next may have used such tactics in the past, it now has an established brand and more neutral pricing strategy. Being a mid-market retailer, this current neutral pricing strategy offers their established customer base continuity and familiarity as they know what to expect and helps to maintain the customers perception of quality. It also offers Next flexibility in pricing for promotional or seasonal purposes and allows the retailer to remain competitive across all its sales channels. Place This refers to the strategy put in place to allow the product to be put in front of or made available to the customer in a way which is appropriate and convenient. Next runs a clear multi-channel retailing strategy with various avenues whereby a customer can browse and purchase products. Next now has over 500 stores throughout the United Kingdom and Ireland (Next PLC, 2015) and this was the original channel the brand was built on and remains a crucial part of their strategy. Having several stores around the country allows Next to cast their net wide as well as increase convenience for the customers and enable the most important part of clothes shopping, the ability to touch and try them on (Spies et al, 1997). Stores add the human element to the company through sales advisors, customer service, and general shopping experience. A positive experience shopping in stores can turn an occasional shopper to a loyal customer (Shaw, 2013). Nexts other channels include the directory, a catalogue through which customer can order and receive their purchase by post, and the online channels through the website, mobile app and social media which allow Next to sell products as well as maintain communication with customers. These channels offer more choice to the consumer and allow Next to market their products more effectively to a larger target market. Ordering by catalogue or online gives the customer more options on how to shop and with fast turnaround from order to delivery it will suit customers with busy lifestyles (Cherry, 2008). The development and acceptance of new technology such as the internet and the smartphone has made these additional sales channel essential to meet the expectations of customers (Baker and Hart, 2007). Lifestyle changes have lead to changes in how customers wish to shop (Watson, 2012) and the busier social and working lives of potential customers means there is a greater need and demand for convenience (Weiss, 2009). Promotion This refers to the methods employed by the company to provide information and make potential customers aware of its products (Bates, 2012). Nexts promotion through advertising has been limited in recent years and often more focused on smaller campaigns, rather than large-scale advertising conducted by retailers such as John Lewis who are known for their television adverts. Nexts promotions appear to have shifted to focus online with communication, advertising and promotional offers all displayed on the official website. However, the online strategy is not solely reliant on their website and the increasing use of social media such as Facebook and Twitter has attracted much attention from the retailing world (Forbes and Vespoli, 2013). Next has fully utilised the potential social media offers with regular updates on Facebook, Twitter, YouTube and photo sharing sites such as Instagram. By promoting offers and advertising their products to the millions of followers on their pages, often through the use of celebrities sporting their products, Next has bolstered its sales, profits and growth substantially. 4. Assessment The main strength for Next and their marketing strategy is their established brand, as evidenced by their recent successes. This means brand awareness is already present and their clear design philosophy that is both fashionable and affordable has allowed them to build a customer base of loyal, regular customers. This combined with their use of a multi-channel retailing strategy and effective utilisation of online sales and promotion has allowed them to gain a firm foothold at the top of the UK clothing market. Their products and pricing strategy is effective at targeting their target market and is current with the trends and needs of the customers. Next ensures it stays current with market requirements due to constant communication with customers through its multi-channel system while also providing more choice to the customer and ensuring customer loyalty (Loftus et al, 2008). Customers who use multiple channels are also more likely to spend more than those that dont (Shankar Winer, 2005) and this can only benefit Nexts accounts. A possible weakness in Nexts strategy is that while a target market is established and targeted effectively, the target market itself is rather broad. The customer specification covers a large age range in the middle market of the middle class. This can be seen as quite vague and can make it difficult to design, produce, and price products without a clear customer specification (Keillor, 2007). This may also explain another possible weakness, the lack of clear celebrity ambassador. With no clear customer image in mind, the company cannot recruit a well known individual to model and promote their products to the appropriate target market who seek to replicate the celebrity. 5. Recommendations With the rise of online shopping, most opportunities for Next will revolve around optimising and expanding their service to suit digital marketing. Next could use the data gathered through its multiple channels and social media to optimise store space to ensure that displayed products are those which are most popular, whilst the less-purchased items are saved for their online sites that require lower running costs. This will allow the store space to be optimised and used more efficiently, with less clutter and more in-demand items the stores will be more cost effective and should have a positive reaction from customers who find the items they seek to be clearly displayed, in stock and available in store. As mentioned in the assessment, Next may benefit from narrowing their target market to be more precise in their target customer specification. With a clearer target in mind, products can be produced that are more appropriate for the customer and this should result in an improvement in efficiency and profitability. It will also benefit the companys branding and promotions as they can recruit a brand ambassador that the target customer can relate to and seek to replicate (Lamb et al, 2010). While Next already has a large and successful online presence, these changes could allow them to better target their online demographic with appropriate imagery, advertisements and promotions which will help in strengthening their brand image, increasing sales, and attracting new customers. 6. Conclusion Next holds a strong market position in a marketplace that is steady and shows growth. Their marketing strategy has been consistent since its launch, targeting the same target market with quality, fashionable products at a reasonable price. Having always been an ambassador for positive change, embracing new sales channels and technologies, Next now has an established brand and customer base which shows the success of its marketing strategy. However, there is always room for improvement and while their current strategy has served them well, it can benefit from some optimisation that should ensure they remain at the top of the clothing market and remain ahead of competition that may threaten their position through more precise marketing strategies. 7. Bibliography Armstrong, G., Kotler, P., Harker, M. and Brennan, R. (2012). Marketing: An introduction (Second Edition). Boston, Mass: Pearson. Baker, M. and Hart, S. (2007). The Marketing Book (Sixth Edition). Abingdon: Routledge. Bates, S. (2012). Brand recognitionà ¢Ã¢â€š ¬Ã¢â‚¬ what do people say about you? Leader to Leader, 2012(65), 27-32. Chaffey, D. and Ellis-Chadwick, F. (2012). Internet Marketing: Strategy, Implementation and Practice (Fifth Edition). Cambridge: Pearson Education. Cherry, R. (2008). Catalog: The illustrated history of mail-order shopping. New York: Princeton Architectural Press. Elliot, L. (2013). Consumer confidence edges up as triple-dip recession fears recede. The Guardian. Available: https://www.theguardian.com/business/2013/may/31/consumer-confidence-edges-up Financial Times (2015). Next PLC Business Profile. Financial Times. Available: https://markets.ft.com/research/Markets/Tearsheets/Business-profile?s=NXT:LSE Forbes, L. P. and Vespoli, E. M. (2013). Does social media influence consumer buying behavior?: An investigation of recommendations and purchases. Journal of Business Economics Research, 11(2), 107-111. Keillor, B. D. (2007). Marketing in the 21st Century. West Port, CT: Praeger. Lamb, C.W., Hair, J. F. and McDaniel, C. (2010), Essentials of Marketing. Boston: Cengage Learning. Loftus, B., Mulliken, J. and Sharp, J. (2008) The Multichannel Imperative. Boston: Boston Consulting Group. Mintel. (2013). Clothing Retailing à ¢Ã¢â€š ¬Ã¢â‚¬Å"UK October 2013-Next Group. London: Mintel International. Next PLC (2015) Our History. Next PLC. Available: https://www.nextplc.co.uk/about-next/our-history.aspx Pride, W. M. and Ferrell, O. C. (2012). Marketing. Boston: Cengage Learning Ruddick. G. (2014) Next Profits to Overtake Marks Spencer after Christmas Sale Surge, The Telegraph. Available: https://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10548020/Next-profits-to-overtake-Marks-and-Spencer-after-Christmas-sales-surge.html Shankar, V. and Winer, R. S. (2005). Interactive Marketing goes Multi-Channel. Journal of Interactive Marketing, 19(2), 2-3. Shaw, J. (2013). Shopping (First Edition). Cambridge: Polity Press. Spies, K., Hesse, F., and Loesch, K. (1997). Store atmosphere, mood and purchasing behavior. International Journal of Research in Marketing, 14(1), 1-17. Watson, T. J. (2012). Sociology, Work and Organisation (6th ed). Abingdon: Routledge. Weiss, Y. (2009). Work and leisure: A history of ideas. Journal of Labor Economics, 27(1), 1-20.

Sports Tourism - 2380 Words

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Technology Is An Essential Part Of Today s Generation

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Social and Emotional Development System †Free Samples to Students

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Julius Caesar And Romeo Essays - Characters In Romeo And Juliet

Julius Caesar And Romeo "A pair of star-crossed lovers", Romeo and Juliet. From the opening scenes of the play these two children of feuding families were destined to fall in love together and eventually die together. How does the reader see this? How do we know it was fate which triggered these events? Coincidence caused the death of these two lovers. For this reason Romeo and Juliet is one of Shakespeare's great tragedies. For coincidence to have caused the death of Romeo and Juliet it must have been evident in the events leading up to their deaths. These events include their meeting and falling in love, their separation, their reunion and finally their suicides. Solving the ancient feud between their families was the only real result of these untimely deaths. How did Romeo and Juliet meet? Was it by fate or could it have been avoided? Romeo and Juliet could not have avoided coming in contact with each other, they were brought together by uncontrollable circumstances. In Romeo and Juliet's time Verona (a city in Italy approximately 100 km west of Venice) was a fair sized city, and "bumping" into an acquaintance was unlikely. During the course of Act I, Scene II, the contrary had happened, and happened by chance. As Romeo and Benvolio were nearing a public area they were stopped by a Capulet servant. After Romeo had read the guest list to the Capulet party and the servant was on his way, Benvolio suggested that to relieve himself of his sadness for Rosaline, Romeo should go to the party and compare Rosaline to the other female guests. Romeo agreed Another example of coincidence is evident here. If Rosaline had not been attending, Benvolio would not have thought anything of the party. During the Capulet's ball Romeo and Juliet had seen each other, once this happened, there was no force that could have stopped them from falling in love. The encounter with the servant in the city set off an unlikely chain of events. Given the information following, none of these events could have been altered or avoided . "And for that offense immediately we do exile him hence," (Romeo and Juliet, III, II, 191-192). Romeo's banishment and the fate involved with it is a prime factor in the deaths of Romeo and Juliet. Why banishment? In Act I, Scene I the Prince's words were quite the contrary. Was it intentional that a man of such high standard would go back on his word? Perhaps. Romeo's exile poisons all possibility of happiness for himself and Juliet. His exile causes Juliet great sorrow, greater then if he had been executed, as stated by Juliet in Act III, Scene II, lines 130-131. Juliet's sorrow drives her to obtain a "knockout potion" from Friar Laurence which, in effect causes Romeo to make some important decisions regarding his well being. Romeo's banishment (brought about by the death of Tybalt) initiated the Friar's scheme which eventually leads the two lovers to their deaths. In reuniting the two lovers, timing played the largest role in deciding if they would live or die. Friar Laurence had two chances to deliver the message to Romeo regarding Juliet's present state. The first and most practical method of sending this message was through Romeo's "man", Balthasar. The second method was to send the message with Friar John. Timing was an important factor in both of these events. Friar Laurence had missed his opportunity to send the message with Balthasar and reverted to sending it with Friar John. As fate would have it, Friar John was locked up in a condemned house because of the plague. As a result Romeo received incorrect information. The only information he received from the unsuspecting Balthasar was that Juliet was dead. There are two important points to note in this area of the play. One being the reference to star-crossing made by Romeo when he heard of Juliet's death. "Is it even so? then I defy you, stars." (Romeo and Juliet, V, I, 24). The second being that when Romeo received the poison he states "Come cordial, and not poison, go with thee." (Romeo and Juliet, V, I, 85). This is coincidental to what Juliet had said earlier, in Act IV, Scene III, when she drinks to Romeo. Cordial means hearty, or sincere. When someone drinks to someone else it is usually in good health. The reuniting of the two lovers in such circumstances (Romeo's unawareness) could only have happened as it did by timing. One could ask what if the friar had

Exploring Business Purpose Essays

Exploring Business Purpose Essays Exploring Business Purpose Essay Exploring Business Purpose Essay Why businesses set aims? Businesses set aims to make profit, provide goods and services. An aim also helps the business survive and expand. Maximise sales or improve quality and be environmentally friendly. All business has aims that they want to achieve and objectives that help them they have to do to achieve those aims. And aims are the overall goals and purposes that the business was set up to fulfil. Aim should always be appropriate to the business achieve and size of the business. Also aim is to provide a focus for the business also development and achievement of key areas of business. Why businesses set Objectives? Objectives: Objectives are steps which help to achieve an aim; they are broken down aims so that they can be easier to achieve them. They also should be monitored to be regularly checked if the achievement is successful. OBJECTIVES also are specific targets that must be achieved if the business is to fulfil its aims. Also objectives are to break down the aim so that they are easier to achieve and its step which to achieve aim. All objectives mast is monitored regularly to check achievement. Mission statement A Mission Statement sets out the business idea and values that enables employees, managers and customers and even suppliers to understand the basics for the actions of a business. The beast objectives are SMART SMART stands for: Specific There is a clear definition often including a number for example saving à ¯Ã‚ ¿Ã‚ ½20 a week. Measurable- This means achievement can be checked. Banking your saving mean your bank statement will record and measure your achievement. Achievable- This means you attain your target if you stretch yourself a litter- so saving à ¯Ã‚ ¿Ã‚ ½20 a week may be achievable without having to make too many sacrifices. Realistic-This means the target is sensible so that you stand achance of achieving it you could not save à ¯Ã‚ ¿Ã‚ ½20 a week if you did not have a job that paid at least that amount. Time-related- Every objective should have a time limit in which it should be accomplished. Therefore you can set a time limit to review your performance to see your objective progress. SMART objectives: SMART objectives are accessable and help business to plan and monitor its aim and objectives. For example if a business aim is to make profit and their objective is to make 12%profit they have to sell more products which is specific. They can compare the current years product sold record to previous and calculate that they are selling more each month that is measurable. Management giving the permission or create the plan is agreed. Time helps manager to monitor and plan and also to see where they are that time is constrained. SMART objectives also known as management tools it helps manager to prioritise work load. By breaking down the aims into smaller achievable goals help the business to plan and monitor these smaller goals and see progress toward achieved long term aims. Richer sounds Mission statement. The reason for having aims and objectives is to keep moving the business forward. At Richer Sounds they have a mission statement. This states our business aims in simple terms. Having a mission statement helps us to ensure that everyone in the organisation is working to achieve the same aims. RICHER SOUNDS MISSION STATEMENT 1. To provide second to none service and value for money for our customers. 2. To provide ourselves with secure well paid jobs working in a stimulating and equal opportunities environment. 3. To be profitable to ensure our long term growth and survival. The current goals and Objectives of Richer Sounds. 1. Consolidate the business and improve our profitability. 2. Develop the audiovisual home cinema range and increase the sales of plasma TVs and L C Ds. 3. Keep the business fun. We measure the success of this through our yearly Colleague Attitude Survey. 4. Keep the level of excellence of customer service above 90% for the company as a whole. Richer sounds measure the success of this through our customer till receipt questionnaires. 5. Control them costs through the cost control group to keep these to budget levels. How Richer Sound Achieve they Aims richer sounds didnt change the mission statement but often change the way they try to achieve they aims. They change product line so that richer sounds continue to ensure our customers receive value for money. Also richer sounds have a suggestion scheme. Every member of staff has a suggestion pad and every single suggestion is read by our Chairman Julian Richer. The idea is that everyone can contribute towards ideas for future improvement. Often the smallest ideas can be the most effective and richer sounds try to implement every plan which would provide a positive benefit. So they are trying to improve the way richer sound operate all the time to cope with changes in technology, new product developments, changing customer needs and economic changes. The OBJECTIVES of Richer Sounds one goal is always to keep the fun and to continue to reward people for working hard. We like to think of new ways of doing this, to keep all our colleagues motivated at work. Other issues will vary from one year to another, depending upon external influences, suggestions richer sounds have received and other developments. At the end of the year they check how far we achieved our goals. We look at which goals havent been achieved and why. We then set new goals for the next year. However, in between times we will also adjust, change or alter our goals the key point is that we are constantly moving forward. This is very important in they business. Technology develops new products come on to the market. There are new ways of doing business such as through our web site. New competitors may enter the market and some may Oxfam Mission Statement Oxfam is an international charity group of organizations working together with over 3,000 partnerships in more than 100 countries to find long term solutions to poverty, sufferings and injustice. With many cases of poverty in caused by nature, the members of the global Oxfam international believe they can achieve a greater impact through their joint efforts. Aims: Oxfams vision on the world is where there is no poverty and where everyone gets justice, and to help ensure that every individual is guaranteed of. A sustainable livelihood: this means that they can earn a reasonable living over many years to support themselves and their families. Education and health: this means that they access the basic service for example learning the basis education and health and safety. Life and security: this means that the poor should have a shelter and security when conflict and natural disasters strike. An equal right: this means that the poor should not be judged by their gender or ethnic identity. Long term goal for Oxfam and Richer Sounds The long time goal for Oxfam is to ensure the rights income security that is sustainable for their future. Oxfam want to see the part of people living in extreme poverty on less than $1a day halved, by 2015 in all countries of sub-Saharan Africa, South and East Asia, and America. Richer Sounds is a Public Limited Company, this means that they gain a profit. It is owned by Julian Richer who also is the chairman of Richer Sounds. The head office richer sound is in London, there are over 50 retailing shops in the UK and in Ireland. Richer Sounds are specialists retailers of audio equipment and separates- such as DVD players, CD players and amplifiers. Richer Sounds think it is very important that all our staff enjoy working here and are well rewarded for their achievements, they employ nearly 400 colleagues. Oxfam is a charity and all the money made excluding the wages of the staff are given to the charity organization for the poor. It is a non- government agency dedicated to fight poverty and related injustice around the world. Oxfam has 42 shops throughout Ireland selling goods donate by the public as well as 3 shop committed to sell Fair Trade crafts and food products. Oxfam have over 40 full time staff working in 2 head offices (Dublin and Belfast) and nearly 70 staff involved in running shops around the country. Oxfam also have a field office in Tanzania with a full time staff.

Respons Post Essay Example | Topics and Well Written Essays - 250 words - 1

Respons Post - Essay Example According to the Mayo Clinic, if a person has a long struggle with diabetes, there are a plethora of potential complications including â€Å"cardiovascular disease, nerve damage, kidney damage, eye damage, cancer, and brain problems (â€Å"Complications,† 2011). Many of these complications are due to the fact that diabetes damages blood vessels, especially when left unchecked/untreated, which leads to the deterioration of these body systems over time. I think that America as a whole is seeing more cases of diabetes mellitus because of the general lifestyle. Many people are developing Type 2 diabetes because of poor diet and lack of exercise. There appears to be a connection between obesity and Type 2 diabetes specifically, and since Type 2 diabetes seems to be on the rise, I think it is fair to link the high fat and high sugar diets of Americans to the rise of this disease for the most part. I think that what you said about your grandfather is really important in terms of controlling the disease and preventing the complications. You said he is eating healthier and exercising more. I think for many people this is a key factor in staving off the illness. Of course, this may not be the case for everyone, particularly those with Type 1 Diabetes, but I think for a good portion of those facing diabetes, diet and exercise would be very important. I think it is a good idea to become more aware of the amounts of sugar, salt, and fat in our food because with more attention paid to it, it is more likely that people will not consume as much of them and possible save themselves from a fight with this