Marketing Plan for John Lewis Furniture: Enhancing Market Share and Customer Base

This report focuses on the marketing plan of John Lewis Furniture with the objective of enhancing its market share and customer base in the target market. It includes SWOT analysis, target market, current position, marketing mix, major segments, threats and opportunities analysis, objectives and issues, and more.

Running Head: Marketing & Management
John Lewis
Marketing & Management

Marketing & Management 1
1.0 Executive Summary
John-Lewis is chain of departmental stores operating from United Kingdom. The company
performs its operations under John Lewis Partnership. The first store under the name John Lewis
was opened in 1864 in London. Target audience for John Lewis is both consumer and business.
This report will focus over the marketing plan of John Lewis Furniture which will be made with
the objective of enhancing its market share and customer base in the target market. First section
of the report will focus over current marketing situation of the organization under which
organizational current position will also be determined. Along with this, competitive analysis
will be executed in order to review organizational effectiveness. Along with this, report will also
focus over the existing marketing strategies of organization. Marketing mix strategies of the
organization will also be discussed in relevance with the gaining adequate goals and objectives.
Industrial analysis will be conducted which will lead to determine threats and opportunities for
the organization. Further, objectives of the organization, marketing strategies, action programs
and the evaluation techniques will be studied. This marketing plan will be help the organization
to accomplish goals and objectives of the organization. Apart from this, assessment of major
threats and opportunities will also be discussed in this report with the help of PESTLE factors.

Marketing & Management 2
Table of Contents
1.0 Executive Summary...................................................................................................................1
2.0 Current marketing situation.......................................................................................................3
2.1 SWOT analysis......................................................................................................................3
2.2 Target market.........................................................................................................................4
2.3 Current position......................................................................................................................4
2.5 Marketing mix........................................................................................................................5
Product......................................................................................................................................5
Price..........................................................................................................................................5
Place.........................................................................................................................................5
Promotion.................................................................................................................................5
2.6 Major segments......................................................................................................................5
Boston Matrix..............................................................................................................................5
3.0 Threats and Opportunities Analysis...........................................................................................6
4.0 Objectives and Issues.................................................................................................................6
5.0 Marketing strategy.....................................................................................................................7
6.0 Action Programs........................................................................................................................9
7.0 Controls......................................................................................................................................9
8.0 Conclusion.................................................................................................................................9
9.0 References................................................................................................................................10

Marketing & Management 3
2.0 Current marketing situation
John Lewis is known for providing varieties for furniture along with the bathroom fittings. In
order to fulfil its target audience’s demands and requirements, Joh Lewis has hired some experts
who visit site in order to analyse the space available for furniture fittings before providing
suggestions in relevance with the suitability of furniture. Apart from this, John Lewis has also
posted several crucial tips on their official website through which customers could get an idea in
relation with the buying furniture. They provide furniture for every field i.e. bedroom furniture
as well as furniture for home and offices. Their major target market is UK and their headquarters
is situated at London. In addition, Joh Lewis provides a full fleshed 10 year guarantee on their
furniture to its customers. This strategy is very effective in relation with developing relationship
with the target audience along with developing a feeling of reliability (John Lewis, 2018).
This policy plays crucial role in terms of enhancing demand for organizational products along
with increasing the chances for growth and success for the organization in the target market.
Company’s direct competitors in London are Capital Bedrooms and Kitchens Ltd., Rhino
Bedrooms, Strachan, Sandbone, etc. Furniture market is bit wide and due to huge competition in
the market, it is necessary for every organization to adopt some USPs in order to make separate
image from its competitors. With relation to this, current target market segment for John Lewis
Furniture store are all segments of people i.e. they have varieties of furniture for varieties of
customers. In relation with approaching to its target demographics, organization has added
quality and service in its operations with regards to enhance the goodwill in the target market.
Apart from this, crucial objective for adding quality and service in the operations is to gain
competitive advantage. As UK market is known as the largest homewares market, thus, there are
huge opportunities for the organization in relevance with the attainment of desired goals and
objectives. But due to intense competition in the furniture industry in UK, John Lewis’
management requires to adopt certain effective measures so that competitive advantage could be
attained adequately.
2.1 SWOT analysis
SWOT analysis is the tool to analyse the internal and external environmental conditions with
regards to the operations of an organization. SWOT stands for strengths, weaknesses,

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opportunities and threats. Amongst these factors, strengths and weaknesses are considered as
internal environmental factors for an organization whereas opportunities and threats are
considered as external environmental factors.
Strengths
 Huge market share
 Strong brand value (Paranque &
Willmott, 2014).
 Increasing global presence
 Considered as reliable brand
 Effective employee partnership
schemes
 Huge product offering.
Weaknesses
 High cost is required for adaptation of
new technologies
 Unreliable economic conditions of UK
market
 Market saturation
 Rapid changes in customer’s trends and
behaviours.
Opportunities
 Enhancing reachability and
approachability
 Expansion of new sites
 Increasing global recognition
 Diversifying channels of distribution
 Introduction of new and enhanced
qualitative products (Terpstra, Foley &
Sarathy, 2012).
Threats
 Rapid conflict situation arises amongst
the partners
 Recalling of products
 Less profit margin
 Threat of new entrants in the market
 Aggressive promotional strategies
implemented by existing companies.
2.2 Target market
Product offering of John Lewis Furniture includes home furnishing, décor, bedroom designing,
wardrobe accessories, etc. Its main attraction is that its designs are globally influenced style that
inspires the senses with its rich tapestry of colour, pattern and texture. With regards to the target
demographics, organization will approach to the newly built homes, offices, newly married
couples, people aged 25-50. The main motive of targeting these groups is high demand of
furniture and related products amongst them. Apart from this, UK market is being bit complex

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market and due to sufficient purchasing power of citizens of UK, people could easily afford
furniture (Helms & Nixon, 2010).
John Lewis furniture is known for its expertise work and most appropriate suggestions, thus,
with this regard, they provide best solution as per the availability of space. Apart from this, due
to extraordinary shift in the consumer behaviour, demand for furniture is changing rapidly.
Technology and increasing disposable incomes are two major factors responsible for huge shift
in consumer behaviour (John Lewis, 2017).
Asia-Pacific region would be most perfect destination for John Lewis Furniture with regards to
accomplish its desired goals and objectives. Along with this, the major objective of organization
is to expand its business in other global parts along with increasing market share, customer base,
revenues as well as profitability. Asia-Pacific region is considered as the crucial region due to
emerging marketing conditions. This is generating various opportunities for the multi-national
companies to set up their business in emerging marketing conditions which will ultimately affect
organizational performance in positive manner along with the attainment of desired goals and
objectives would also be an easy task (van Wijngaarden, Scholten & van Wijk, 2012).
2.3 Current position
John Lewis has developed its strong brand image in the local market as well as in the
international market. John Lewis partnership holds various subsidiaries companies and John
Lewis Furniture is one of them and with unique designs and quality products and services,
organization has developed an effective image in the international furniture industry. Their
furniture products are quality assured, organization has made reliable image in the target market
and this has lead the organization to acquire almost 30% market share in UK. With regards to
maintain this achieved position in the market, organization should adopt few of marketing and
defensive strategies. This will help the organization to maintain its acquired position along with
determining the chances for uplifting its position in the target market. In relation with
maintaining the acquired position in the furniture industry, management of organization could
focus over some effective strategies such as pricing strategy, maintaining quality of their
products and making continuous improvements in their products in order to get separated from
the competitors (Andreu, Sánchez & Mele, 2010).

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2.5 Marketing mix
Product
The product range currently offered in UK will differ from the product range which will be
offered in Asian-Pacific region in initial period of time. However, the primary of the
organization will be on developing product positioning. Product positioning is the term used to
define the customer’s perception for the product in comparison with the competitor’s products.
In relation to expand the business of organization along with increasing the chances of success
and growth, huge investment is required (Armstrong, et. al., 2015).
Price
John Lewis will adopt premium pricing strategy for initial period in order to distinguish its
furniture’s quality in comparison with the existing companies in the Asia-Pacific region.
Premium pricing strategy will also define the quality offered with organizational products and
this will act as the crucial factor for attracting target audience.
Place
Place defines the distribution area from which consumers will be able to get the products. In
order to enhance the customer’s engagement at John Lewis’ furniture stores, it is necessary to
open stores at centralised and attractive locations which will be easily reachable for the target
demographics (Huang & Sarigöllü, 2014).
Promotion
This element holds huge weightage in the marketing mix strategy. This is because organization
would be able to spread awareness amongst its target audience using promotional strategies in
relation to the products introduced by the organization in new market.
2.6 Major segments
Joh Lewis major product segments include home, office, kitchen, living, dining and other
readymade furniture products such as sofa-set, sofa-cum-bed, bed, table, chair, dining table, etc.
Nowadays, furniture is now being counted in the luxurious and exhibitionist goods. People spend
more money and time on those sections of the home which are more visited by visitors. With this
regard, organization has highlighted its unique furniture products in-store and on online stores

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with the view to promise its target audience towards quality and responsible sourcing. In 2016,
company was awarded as the ‘Best Furniture Retailer’ (Harrison & Reilly, 2011).
Boston Matrix
Question marks
High growth market and low market share:
 Small sofas for children
 Multi-coloured furniture
 Décor inspired by Brazilian culture
Stars
Product with huge growth rate requires huge
investment:
 Leisured products for international
market
 Airframe white desk
Dogs
Low growth markets with low market share:
 Bookcases (Wedel & Kamakura, 2012).
 Hanging chair
Cash Cows
Low growth markets with high market share:
 Customised furniture
 Multi-coloured attractive designs

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3.0 Threats and Opportunities Analysis
In order to expand the business in new market, it is necessary to determine the internal as well as
external factors which may affect organizational performance. This analysis is necessary with the
motive of developing effective strategies so as to perform the functionalities in an appropriate
manner. Environmental threats are mainly responsible for adopting change in the existing
organizational strategies. While developing strategies in terms of achieving future goals, it is
necessary for the organization to consider the long term growth objectives along with the future
increments in costs and wages. Increment in costs of raw materials and wage rate is noticeable,
thus, they should be considered to maintain the profitability margin as well as desired goals and
objectives could be attained appropriately (Weinstein, 2013).
Asia-Pacific region has been chosen for the purpose of expansion of JLP’s furniture section
considering the emerging economy and low cost of land labour factors. Along with the
consideration of positive factors, negative factors present in the new target market should also be
considered. Apart from this, market entry options also plays crucial role in the growth and
success of an international company to enter into a new market. All the market entry options
must be determined along with all hindered factors so that investment cost could not exceed and
the desired goals could be attained in an appropriate manner (Konečný & Zinecker, 2015).
Major barriers for growth and profits are huge cost for new machineries and cost of new
technologies and product development. Lack of knowledge regarding the local market
environment and existence of local competitors in the market could affect organizational
performance in negative manner. Along with these, there are certain other factors which generate
various opportunities for the organization to attain success and growth. Consumer wants, desires
and the market trends are some of those factors which generate opportunities for the organization
to expand its business appropriately in the target market (Tao & Shi, 2016).

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4.0 Objectives and Issues
Major objectives for John Lewis Furniture are to extend their global presence, gaining
competitive advantage, developing positive image amongst the target audience and establishing
new sources for growth. SMART objective strategy has been adopted by the organization so that
the desired goals could be attained in an effective manner. Below is the segregation of SMART
objectives of John Lewis Furniture:
Specific Measurable Achievable Realistic Timed
Expansion in
product range
Emerging
economic
conditions in
Asia-Pacific
regions
Goodwill of
brand
Good experience
in the field
Achievable in
next 10 years
Increasing
retailing on
offline and
online mediums
Enhancing global
market share
Product
positioning
Choosing the
appropriate
option amongst
the available
market entry
options
Achievable in
next 10 years
Expansion of
brand (Fouskas
& Drossos,
2010).
Chances for
growth in
international
market
Positive brand
image
Coordinating
with local brands
Achievable in
next 10 years
Every country has its own culture, values, market trends, customers’ requirements, etc. Thus,
before entering into a new market, it is necessary for the organization to enhance its capabilities
so that the desired goals and objectives could be fulfilled. Apart from this, John Lewis Furniture
is required to reduce the impact of its weaknesses so that they could be converted into
opportunities for the organization. This will help the organization to uplift its market share in the
new market along with the successful expansion in the market (McDaniel & Gates, 2013).

Marketing & Management 10

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5.0 Marketing strategy
With regards to enhance the market share of the organization in the new target market, it is
necessary for the marketing team of the organization to analyse all the needs and wants of the
target audience with the objective to attain success and growth.
Figure 1: Ansoff Matrix
Market Development: Market development strategy is known for expanding new market
through existing product offerings. This strategy is useful for the new market segments along
with the existing product offerings (Phil & Jim, 2010).
Market Penetration: This strategy is useful for enhancing the market share through existing
product offerings in the existing markets. Price decrease, modest product refinements, etc. are
certain elements through which market penetration strategy could be implemented (Wilfried,
2014).

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Product development: Under this strategy, organization launches new products and services to
approach its existing markets with the objective of achieving growth and success (Mascia, et. al.,
2014).
Diversification: Under this strategy, organization tries to increase its market share by launching
new products and services for new target markets. Joint ventures, investing in research and
development section, etc. are certain factors which plays crucial role in relation with uplifting the
market share of the organization (Stavrakantonakis, et. al., 2012).
Apart from the Ansoff Matrix, John Lewis could also adopt various other marketing strategies.
Before adopting other marketing strategies, it is required to analyse certain factors such as the
customer’s requirements, latest market trends, etc. so that the desired goals and objectives could
be adopted.

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6.0 Action Programs
March April May June July August
Situational analysis
Company analysis
Customer analysis
SWOT/PESTLE
Market segmentation
Marketingmix
GanttChart depicting ActionPlan
Figure 2: Gantt chart

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7.0 Controls
Effective monitoring and controlling measures plays crucial role in order to determine the
effectiveness of adopted strategies. This helps the organization to detect errors, issues and other
negative points which are present in the adopted strategies. This helps the organization to
enhance its effectiveness along with the upliftment of desired goals and objectives. In terms of
evaluating organizational performance, organization must adopt effective controlling and
monitoring strategies. Apart from this, another effective measure for improving organizational
performance is adaptation of Total Quality Management technique. With regards to the
operations of Total Quality Management of John Lewis, most appropriate technique will be
taking feedback from its target demographics. This ensures success and growth for the
organization along with the attainment of desired goals and objectives (Čuček, Klemeš &
Kravanja, 2012).

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8.0 Conclusion
From the above discussion, it could be concluded that the strategies discussed under this
marketing plan are effective enough in order to attain desired objectives. John Lewis Furniture is
a subsidiary company of JLP (John Lewis Partnership) which is based in United Kingdom.
Along with this, they are also distributing their qualitative furniture products in United States,
New Zealand, Australia, etc. In this manner, situational analysis, marketing mix techniques,
analysis of threat and opportunities, objectives and issues of John Lewis has also been discussed
under this report.

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9.0 References
Andreu, L., Sánchez, I. and Mele, C., 2010. Value co-creation among retailers and consumers:
New insights into the furniture market. Journal of Retailing and Consumer Services, 17(4),
pp.241-250.
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction.
Pearson Education.
Čuček, L., Klemeš, J.J. and Kravanja, Z., 2012. A review of footprint analysis tools for
monitoring impacts on sustainability. Journal of Cleaner Production, 34, pp.9-20.
Fouskas, K.G. and Drossos, D.A., 2010. The role of industry perceptions in competitive
responses. Industrial Management & Data Systems, 110(4), pp.477-494.
Harrison, R.L. and Reilly, T.M., 2011. Mixed methods designs in marketing
research. Qualitative Market Research: An International Journal, 14(1), pp.7-26.
Helms, M.M. and Nixon, J., 2010. Exploring SWOT analysis–where are we now? A review of
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Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to market outcome, brand
equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-132).
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John Lewis, 2018. Furniture & Lights. Accessed from: https://www.johnlewis.com/furniture-
lights/c9780211221?rdr=1 [Online]. [20th April, 2018].
Konečný, Z. and Zinecker, M., 2015. Using the Boston Matrix at Identification of the Corporate
Life Cycle Stage. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 63(1),
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Mascia, M.B., Pailler, S., Thieme, M.L., Rowe, A., Bottrill, M.C., Danielsen, F., Geldmann, J.,
Naidoo, R., Pullin, A.S. and Burgess, N.D., 2014. Commonalities and complementarities among

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approaches to conservation monitoring and evaluation. Biological Conservation, 169, pp.258-
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McDaniel, C. and Gates, R., 2013. Marketing research. Singapore.
Paranque, B. and Willmott, H., 2014. Cooperatives—saviours or gravediggers of capitalism?
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Terpstra, V., Foley, J. and Sarathy, R., 2012. International marketing. Naper Press.
van Wijngaarden, J.D., Scholten, G.R. and van Wijk, K.P., 2012. Strategic analysis for health
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Wedel, M. and Kamakura, W.A., 2012. Market segmentation: Conceptual and methodological
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technology firms. Routledge.
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