Executive Summary This report contain strategic marketing plan forJohn Lewis company which is expanding itsretailbusinessinQatarmarket.Itcontainstepsformarketingplanandprocessof implementation. Qatar has high market and economy of people is very high which has increased from past few years. John Lewis has targeted high and middle group of people for supply of goods and services. Also marketing objectives has been designed to support corporate objectives for achieving sales of $300m and new opening of 30 stores in next three years. As it has adopted premium pricing strategy for customer which consists of 145000 residents units and 83% retail stock. It charge high prices with customers and provide high quality goods. It is great opportunity for John Lewis to expand business in such rich country. According to New Global Retail Development Index (GRDI) Qatar ranks 4thin number which is major retail hub of Dubai. Qatar is regarded as most attractive market in Middle East for retail. GRDI has placed total six middle east countries in top 30 which attracts retail market for development. Despite of decrease in oil prices, retail growth is continued which is still strong. From data, it has said that Qatar is expanding business from existing retailers. John Lewis has online as well as offline portal for selling goods and services. Offline includes physical store which helps in building relationship with customers. It uses traditional as well as digital promotion strategy for their audience. This helps in creating brand awareness amonguserwhichincreasesalesandprofit.Thisenterprisefocusoncorporatesocial responsibilityandfollowallethicalvaluesandprinciples.CSRactivitiesassistin communicating business to society, customers and government.
Table of Contents Executive Summary.........................................................................................................................2 .........................................................................................................................................................2 1.0 Introduction................................................................................................................................5 1.1 Overview of retailing in Qatar..............................................................................................5 2.0 Situation Analysis......................................................................................................................5 3.0 SWOT Analysis........................................................................................................................5 4.0 Marketing Objectives.................................................................................................................6 5.0 Segmentation, Targeting and Positioning..................................................................................6 5.1 Segmentation.........................................................................................................................6 5.2 Targeting...............................................................................................................................7 5.3 Positioning.............................................................................................................................7 6.0 Marketing Mix...........................................................................................................................7 6.1 Product Strategy....................................................................................................................7 6.2 Pricing Strategy.....................................................................................................................8 6.3 Place......................................................................................................................................8 6.4 Promotion Strategy................................................................................................................8 6.4.1 Traditional promotional strategy........................................................................................9 6.4.2 Digital promotional strategy..............................................................................................9 6.5 People, Physical evidence and process.................................................................................9 7.0 Action Plan...............................................................................................................................10 8.0 Ethics and Sustainability..........................................................................................................10 9.0 Controls and Measurements.....................................................................................................11 10.0 Uppsala model.......................................................................................................................12 10.1 Overview and advantage of Model...................................................................................12 10.2 Limitation..........................................................................................................................12 10.3 Application and relevance of Model to John Lewis..........................................................12 11.0 References..............................................................................................................................13 12.0 Appendix................................................................................................................................13 Appendix A Introduction..........................................................................................................13 Appendix B Situation Analysis.................................................................................................13
2.1 PESTLE analysis.................................................................................................................13 2.2 Five force analysis...............................................................................................................15
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1.0 Introduction 1.1 Overview of retailing in Qatar Retail business is process for selling goods and services to consumers through helps of multiple channels of distribution in order to earn profit. John Lewis & partner is planning to start its business at Qatar (Berthon and et. al., 2012). As income level of people is high and currently going through rapid expansion which help company to survive in competitive era and earn profits as well as sustainability. Qatar retail market of John Lewis has major players which are described below: YearCompanySalesMarket 2017Marks and Spencer£10.622 Billion5.5% 2017ASDA Group Limited£21.666 Million12.8% 2017Tesco PLC£55.9 Billion25.4% 2.0 Situation Analysis Attached in Appendix B 3.0 SWOT Analysis StrengthsWeaknesses John Lewis is upmarket retail stores in UKwhichoffersvariousrangeof fashions brands. It also provide option to customers for shop online with international delivery. It has more than 35,000 employees and strongbrandimageinmindsof consumerswhichcreateeffective relationship with their users Pricesarehighascomparedto supermarkets and grocery stores limit target group. Priceearningratioisalsolowas compared to Marks and Spencer and priceshascutdowntomatchup increasing competition. It can provide product selection option, expandmarketandreachpeopleby opening flagship stores for growing. OpportunitiesThreats
ï‚·John Lewis can develop markets to Asia-presentswhichislargest opportunities. ï‚·In order to attract young and potential consumers it can design trendy clothes. ï‚·As John Lewis contributes to 23% in credit and insurance industry which is growingatspeedisbiggest opportunities. ï‚·It can provide product selection option, expandmarketandreachpeopleby opening flagship stores for growing. ï‚·JohnLewisisfacingcashflow problems,emergenceofnew competitors with competitive advantage and effects of new legislations. ï‚·Poor corporate governance leads to fall ininterestmarginandrevenue reductions which create situation where customers lose their confidence about company. ï‚·MaincompetitorsareTescoPLC, MarksandSpencerGroupplcand ASDA Group Limited. 4.0 Marketing Objectives Following market objectives for John Lewis at Qatar market are as follows: John lewis should open at least 10 stores in first year to enter in market- John Lewis need to open 10 stores in first year to increase sales and profit. As it has also established many stores in UK (Buil, De Chernatony and Martinez, 2013). John Lewis should achieve sales of $100m in first year- It has target of achieving $600m and opening of 30 stores in next three years. Thus, it should focus on earning maximum of $100m in first year so that objectives can be achieved. 5.0 Segmentation, Targeting and Positioning STP is process in which customers are segmented and then on basis of different segmentation it is targeted according to income level, age group. After that positioning develop detailed product position for selected segments and developing marketing mix for each area. 5.1 Segmentation Segmentation is activity which divides consumer or market on sub group based on some shared characteristics. While doing segmentation, company looks for needs, common interest,
lifestyle and demographics (Cadogan, 2012). John Lewis is planning to start up its business at Qatar and segmented market on basis of different groups:ï‚·Socio-demographic variable- Age group between 0-50.ï‚·Behaviouristic variables- Online and offline.ï‚·Benefits sought- High ï‚·Geographic variables- city, town, areas. 5.2 Targeting Target marketing means breaking market into segments & concentrating efforts for want & desires matching with products and service offering to consumers which is subset of total market (Chung, Lu Wang and Huang, 2012). It is targeted on basis of age, income, location and lifestyle. Here, John Lewis targeted market on basis of income level that is high and middle class group of people at Qatar.Step of targeting is as follows:ï‚·Evaluatingmarketsegment-Itisimportanttoidentifymarketsegmentsuchas profitability, reachable.ï‚·Develop segment profile- Each and every segment need to be understand such as purchasing style, lifestyle. ï‚·Choosing a target strategy- John Lewis need to provide various options in retail business for their customers. 5.3 Positioning Positioning refers place of brand in minds of customers and distinguish products from competitors. For positioning brand or products, company need to distinguish features from others and create suitable image. Now, John Lewis has its positioning in Qatar county for goods and services (Czinkota and Ronkainen, 2013). 6.0 Marketing Mix 6.1 Product Strategy Product can be tangible or intangible service which fulfils need or want of consumers. Here, products of John Lewis is clothes manufacturing. Company need to apply unique features in their products. ï‚·Total product concept-John Lewis has planned to start up business of clothes in Qatar so its main product is clothing.
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Core productsAugmented productsActual products High price with high qualityDeals in all types of clothesFreereturn,refund,clickand collect.ï‚·Product approach- John Lewis need to offer same product with same quality to other countries. It should maintain brand value and image at market place.ï‚·Branding- John Lewis should use same brand name at Qatar market because of following dimensions: fitting target market, legal requirement, customers culture and products benefits. ï‚·Packaging-John Lewis own more than 95% branded goods so packaging and labelling should be done very effectively (Evers, Andersson and Hannibal, 2012). 6.2 Pricing Strategyï‚·Pricing objectives- John lewis has set high price for their products as it offer high quality product. People of Qatar has high living standard and company has good brand value in market so customer are ready to pay for goods. ï‚·Pricing strategy- John Lewis believes that fair pricing is heart of business so it has adopted premium or competitive pricing strategy for products and keeping quality and value in mind. It also regularly benchmarks products against others at market. 6.3 Place Place means decisions regarding company selling product and delivering in market. John lewis deals in various part of world but currently it is planning to start up business at Qatar. Following factors are considered for distribution such as:ï‚·Channel of distribution- John Lewis is serving people both offline and online. It has many retail store in market which assist people for buying of products.ï‚·Distribution strategy- John Lewis should adopt intensive distribution strategy in order to sell products. ï‚·Distribution Tactics- John Lewis target customer are high and medium income lever of people. It can provide discounts to customer and use online application for their convenient (Ford and Leonidou, 2013).
6.4 Promotion Strategy Promotion is way or activities which marketers undertake for informing consumers about products, motivating and encouraging them to purchase. It uses new age of promotional tools such as joint promotion with other product and special advertisement at end of seasons. Following are promotional strategy of John Lewis such as:Target audience- Target audience is its main focus group of people. Through help of promotional activities it can gain attention of customers.Promotional objective- Through helps of promotional activities, John Lewis can increase brand awareness of 20% in first year and market share by 7%. Promotional strategy- John Lewis use various promotional strategy such as traditional and digital media for creating awareness (Hallbäck and Gabrielsson, 2013). 6.4.1 Traditional promotional strategy Traditional promotional strategy is form of advertising and marketing which is most easy and recognisable types of tools used by company. It includes following traditional strategy such as:Advertisement-John Lewis uses newspaper, magazine for advertisement. It helps in creating awareness to target audience which encourages to buy products. Sponsorship- John Lewis has sponsorship with Olympic games for increasing awareness of brand. Also it has sponsorship with Commonwealth games. 6.4.2 Digital promotional strategy Digital promotional strategy is marketing of goods and services using digital technologies mainly internet and also includes display advertising, phones, digital media, social media. John Lewis also use social media such as Facebook, twitter, Instagram for promotion strategy. 6.5 People, Physical evidence and process John Lewis focuses on workforce and its customers. The main aim is to create good experience for their consumers at every store of John Lewis. As more than 35,000 are part of this organisation. Here, staffs are well trained and manager look after request put up by individual are looked into or not. Store has unique, distinct look and ambience, which allow customer to feel friendly environment and comfortable for shopping. Shopping bags, loyalty cards and in-house brands are added to physical evidence of brand. Ithas various business processes which assist in
smoothingoperationsofretailbrand(HilmerssonandJansson,2012).Processincludes dispatching of goods and products from manufacturing unit to warehouse of entity. After receiving goods at warehouse, products sent to retail store for customers to purchase. Through John Lewis website, consumer can allow to browse and shop online (Javalgi, Hall and Cavusgil, 2014). 7.0 Action Plan Following is chart which is designed in order to implement action plan which is described below: Tasks/ Subtask Descriptio n Primary Responsibilit y Secondary Responsibilit y Typesof Resource Required Start DateEnd Date Market research Review market& audience Research Director Communicati on Director HRand financial resources Dec 2018March 2019 Open storeOpening storein Qatar Boardof Directors Marketing directors Financial resource Feb 2019N/A Advertiseme nt Newspaper ,social media. ITmanager, marketing manager Marketing& branch manager Financial and HR Oct 2018Jan 2019 8.0 Ethics and Sustainability CorporateSocialResponsibility(CSR)isveryimportanttobefollowedinan organisation. John Lewis also apply ethics in their business to get success and differentiate right and wrong. As it is expanding business in Qatar so need to follow values and ethics of that place and work ethically for business and society (Onishi and Manchanda, 2012). Primary goals of sustainability are end of hunger and poverty, achieve gender equality, better education & healthcare standard, economic growth. This lead todevelopment of nations as well as rise in economic. CSR assist in communicating goods and services to consumer by following way:
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Major areas of CSRRecommendation for John Lewis CorruptionJohn Lewis should follow anti corruption practices in business. As corruption decrease reputation in global market. Community SupportJohn Lewis support community in terms of educations, charity at Qatar. Environmental ConcernProduct should be eco friendly in nature. There should be minimum waste and greenhouse impact on production and operation. 9.0 Controls and Measurements Key performance indicator of John Lewis are as follows: Key Performance IndicatorsDeliverablesMeasurement Criteria Revenue improvementRevenue should be increased by 20% every three months in order to achieve target set. Calculation should be done on every three months in order to improve. Brand AwarenessJohn Lewis need to focus on creatingbrandawarenessto achieve set target. Brandawarenessshouldbe checked in 3 months by survey toknowaboutawarenessin market. Increasedcustomer satisfaction John Lewis should focus on increasingcustomer satisfaction by providing high quality goods. Bytakingfeedbackfrom customers it can be measured and improved. Key success factor: ObjectivesCSF To open at least 10 stores in first year to enter in market Increase sales Building relationship with their communities and customers.
To achieve sales of $100m in first yearCreating awareness adopting CSR activities creating public relations 10.0 Uppsala model 10.1 Overview and advantage of Model The Uppsala Internationalization Model was given by Swedish in 1975 to explained international involvement. It is theory which explains about firms that intensify activities at foreign market (Paliwoda and Thomas, 2013). This model proposes foreign sales which start with occasional export that are allowed by regular exports. It has two key features which are: ï‚·firstly gaining experience from domestic market before moving to other foreign markets. ï‚·Resources required in every country increases because of experience. This model has four steps for entering into international market which cannot be seen alone of market, company situation and market knowledge. Here, organisation chose countries having low resource commitment and move for high commitment after gaining knowledge and experience. 10.2 Limitation This model is too deterministic which does not consider interdependencies between differentcountry.Asthismodeldoesnotappliedinserviceindustriesandhighly internationalised industries and firms. Due to increase in technology and development firm need to respond fast than stages of Uppsala model. 10.3 Application and relevance of Model to John Lewis John Lewis opened its store in 1864 at UK, then in 1905 it acquired second store in London. It can be said that John Lewis has not followed international process because its has own store for providing goods. However, John Lewis is expanding business at Qatar so it should follow all four stages for better understanding of market and gain knowledge which is described below: ï‚·Sporadic export ï‚·Export mode ï‚·Establishment of foreign sales subsidiary
Foreign production/manufacturing John Lewis should export goods from other countries. After gaining experience it should export to other countries which establish sales subsidiary. Finally, gaining experience and confidence it should open its own store for selling goods and services (Samiee and Chabowski, 2012). 11.0 References Books and Journals Berthon, P. R., and et. al., 2012. Marketing meets Web 2.0, social media, and creative consumers: Implications for international marketing strategy.Business horizons.55(3). pp.261-271. Buil, I., De Chernatony, L. and Martinez, E., 2013. Examining the role of advertising and sales promotions in brand equity creation.Journal of Business Research.66(1). pp.115-122. Cadogan, J. W., 2012. International marketing, strategic orientations and business success: Reflections on the path ahead.International Marketing Review. 29(4). pp.340-348. Chung, H.F., Lu Wang, C. and Huang, P.H., 2012. A contingency approach to international marketing strategy and decision-making structure among exporting firms.International Marketing Review. 29(1). pp.54-87. Czinkota, M. R. and Ronkainen, I. A., 2013.International marketing. Cengage Learning. Evers, N., Andersson, S. and Hannibal, M., 2012 Ford, D. and Leonidou, L. C., 2013. Research Developments in Interna-tional Marketing.New Perspectives on International Market-ing, edited by SJ Paliwoda, pp.3-32. Hallbäck, J. and Gabrielsson, P., 2013. Entrepreneurial marketing strategies during the growth of international new ventures originating in small and open economies.International Business Review.22(6). pp.1008-1020. Hilmersson,M.andJansson,H.,2012.Internationalnetworkextensionprocessesto institutionallydifferentmarkets:EntrynodesandprocessesofexportingSMEs. International Business Review.21(4). pp.682-693. Javalgi, R. G., Hall, K. D. and Cavusgil, S.T., 2014. Corporate entrepreneurship, customer- orientedselling,absorptivecapacity,andinternationalsalesperformanceinthe internationalB2Bsetting:Conceptualframeworkandresearchpropositions. International Business Review.23(6). pp.1193-1202 Onishi, H. and Manchanda, P., 2012. Marketing activity, blogging and sales.International Journal of Research in Marketing.29(3). pp.221-234. Paliwoda, S. and Thomas, M., 2013.International marketing. Routledge. Samiee, S. and Chabowski, B. R., 2012. Knowledge structure in international marketing: a multi- method bibliometric analysis.Journal of the Academy of Marketing Science.40(2). pp.364-386. Terpstra, V., Foley, J. and Sarathy, R., 2012.International marketing. Naper Press. Vellas, F., 2016.The international marketing of travel and tourism: A strategic approach. Macmillan International Higher Education.
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Yang, Z., Su, C. and Fam, K.S., 2012. Dealing with institutional distances in international marketingchannels:Governancestrategiesthatengenderlegitimacyand efficiency.Journal of Marketing.76(3). pp.41-55. Online SWOTAnalysis.2018.[Online].Availablethrough: <https://www.investopedia.com/terms/s/swot.asp>. 12.0 Appendix Appendix A Introduction 1.2 Mission John Lewis focus on maintaining high quality goods and services for its customer in order to increase efficiency (Samiee and Chabowski, 2012). 1.3 Current product ranges John Lewis deals mainly in retail market. Here it has planned to start up new business which is dealing in clothing manufacturing. Almost 95% products of John Lewis are branded which covers high and middle class level people. 1.4 Current pricing strategy John Lewis has adopted premium or competitive pricing strategy as it charge for its brand value and quality products. 1.5 Current promotional activities John Lewis has both online and offline promotional strategy for creating brand awareness in mind of customers. It has sponsorship with Olympic games for promoting its products. Promotional activities includes newspaper, television, social media. Appendix B Situation Analysis 2.1 PESTLE analysis PESTEL analysis is tool used by marketer or company for analysing and monitoring macro environmental factors that is external marketing environment which has impact on organisation. John Lewis has following PESTEL analysis such as: Political Factors- These factors determine extent in which government can influence economy or industry. For example change in new tax rate or duty which leads to change in entire revenue structure of entity. It includes tax policies, fiscal, trade tariffs which greatly impact any business. John Lewis is planning to start business in Qatar which is very easy for them to establish. As there is no election and is democratic country. There will be no change in policies
and taxes which is easy for business establishment (Terpstra, Foley and Sarathy, 2012). People are happy with facilities provided to them and government create good relationship with neighbouring countries. Economic Factors- Such factors are determinants of economy performance which has directly impacts on company and long term effects. For example rise in inflation rate can affect company and its price on goods and services. It includes inflation rate, foreign exchange, interest rate, economic growth patterns and accounts for Foreign Direct Investment (FDI). Economic condition of Qatar is good as it was grown 3.9% in 2010 and expansion was 6.0%. John Lewis can expand business easily which give good outcomes in terms of profits, returns, growth, success and sustainability. Qatar is very fast growing economy country as compared to others in terms of clothing or retail sectors (Vellas, 2016). Social Factors- These factors determine cultural trends, age, gender, demographics. There are large number of young generation in Qatar. Need, desire, want change with time and situation which is great opportunity for John Lewis to expand its clothing business with new trends, attractive design. As there is large number of Muslim population so John Lewis can design as per their requirements. Technological Factors- These factors includes innovations in technology which affect operations of firm and market favourable or unfavourable. It includes automation, amount of technological awareness, research and development. Qatar has significant development in various technology, new mobile and computer technology has introduced. John Lewis has planned to start new business at Qatar so it should provide online facility for customer. As people access internet and social media website for their benefits. So by analysing this factor John Lewis can gain maximum profit and provide convenience to people for survival. Environmental Factors- When factors are influence or determine by surrounding is called environmental factors. This factor is very important for industries such as tourism, agriculture and farming. It includes climate, geographical location, weather, environmental offsets. In order to protect environment, government has shown attractiveness for making legislation. John Lewis should assist in providing clean and green environment project and accordingly produce products. This also helps foreign investors to invest in different industry and business at international market (Yang, Su and Fam, 2012).
Legal Factors- Internal and external sides are called legal factors. Laws which affect business environment in certain country and policies that are required to be maintained by company. Example of such factors are consumer laws, labour law, safety standards. There are several laws which has made by government need to be implemented very effectively. As judicial system is very strong in Qatar and individual as well as organisation carry out effectively for their activities. It helps John Lewis to start business and run it without any disturbance. As law represent safety and security of lives of people and properties. From legal point of view, Qatar is ideal for making investment and helps in getting business activities better (Berthon and et. al., 2012). 2.2 Five force analysis The Porters five forces is helpful in analysis the situation of company at market place. The Porters Five Forces of John Lewis Partnership mention below as above: Five ForcesStrength Threat of New Entrants: Itisminimumbecauseofrequirementof massive capital investment in chain store. Existingretailcompaniesareclenchingon market shares and also would use available methods in effective way to encounter any new entrants. Low Bargaining Power of Suppliers: Supplierswanttheirgoodsonshelvesof retailerstoreachatlargeconsumerbase through John Lewis. High Bargaining Power of Buyers: The income level of buyers in Qatar is high. It is helpful in enhance sales and reputation of companyatmarketplace.Ifcompanywill provideitsproductsathighratethem High
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consumers have the power to switching the products. Threat from Substitute Products: It is necessary for John Lewis company to make its clothes unique and different designs so that people can be attracted. In order to deal with thee competitors, this firm pursue with differentgenericstrategiesforaninstance differentiation and low cost. Low Rivalry among the existing players: Retail company sells the food items, drinks, householdandappealproducts.ButJohn Lewis deals does not provide the no-food items so, it will be a disadvantage for company (Buil, De Chernatony and Martinez, 2013). Low