Essentials of Marketing

This document provides study material and assignments on the essentials of marketing. It covers topics such as marketing utility, key functionalities, marketing tactics development, market investigation, and more. The document is suitable for students studying marketing or related courses.

ESSENTIALS OF
MARKETING

ESSENTIALS OF MARKETING
Table of Contents
Table of Contents.............................................................................................................................2
ACTIVITY A: (LO 1).....................................................................................................................3
Introduction..................................................................................................................................3
Company background......................................................................................................................3
Marketing utility and its relationship with other well-designed element of an association........3
Key functionalities.......................................................................................................................3
Marketing tactics development....................................................................................................4
Market Investigation....................................................................................................................4
Interior Product Improvement.....................................................................................................4
Helping sales members................................................................................................................5
Relation of roles and responsibilities of marketing in organisational context.............................5
Conclusion...................................................................................................................................7
ACTIVITY B: (LO2).......................................................................................................................7
Introduction..................................................................................................................................7
Impact of Marketing Mix on Market planning............................................................................7
Contrast of 7Ps of Jimmy Choo with Prada.................................................................................8
Conclusion.................................................................................................................................10
ACTIVITY C: (LO 3)....................................................................................................................10
Marketing plan of Jimmy Choo.................................................................................................10
CONCLUSION..............................................................................................................................14
References......................................................................................................................................15
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ACTIVITY A: (LO 1)
Scenario : Jimmy Choo is an established fashion brand company with its headquarters in
London, England and it mainly deals in luxury shoes, handbags and other accessories. As a
trainee marketing manager in the company a report is presented to the new line manager
informing about how how the marketing department interrelates with all the other departments of
the company so that company can efficiently market its products and reach to its target
customers so that the sales of the company increases.
Introduction
Jimmy Choo Ltd. is a renowned fashion brand based in London, England. They focus their
products in luxury shoes, while selling other similar product lines like handbags, accessories and
fragrances. They have earned their name primarily being the favorite of Diana, Princess of
Wales. They dominate the market, with annual revenue of over 364 million Euros (Keinan and
Crener, 2015). However, they target customers only from a selected demography based on their
financial status.
Company background
Jimmy Choo is a British high mode house with luxury shoes, handbags, accessories and
fragrances specialization. In 1996, Jimmy Choo was established as a fashion company. Diana,
Princess of Wales, says the brand was a favorite of her. In 1996, in London Motcomb Road, the
first Jimmy Choo shop opened. In 2008, the Brand of the year 2008 of the Accessories Council,
the Footwear News Award and the 2009 Nordstrom Partners in Excellence awards for its
products, amongst other things the British Fashion Council Awards for the brand. It was
cofounded by the famous shoemaker Jimmy Choo himself and Tamara Mellon in 1996. They are
presently considered to be the most sophisticated and luxurious brand in the shoe industry.
Marketing utility and its relationship with other well-designed element of an association
Key functionalities
In order to launch a product successfully in a desired market, it is important to adopt little
functionality in marketing activities. Bhandari (2018) opined that these functions analyze the
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current market situation and help the organisation to develop products from a perspective that
would allow them to excel in the market. Jimmy Choo should adopt marketing functions to
develop their product in a way that satisfies the market demands and ensures a smooth business
without any hindrances along with scopes of potential growth. In case of Jimmy Choo, the
functions of marketing comprise of conducting market research, aiding in sales and developing
products (Sharma, 2018). The key functions of Jimmy Choo that helps them to succeed in the
market are briefly explained in the following section.
Marketing tactics development
Developing the marketing tactics for the retail company will require a proper formulation
of the strategies that will aid the marketing teams to grow the business. For this purpose, the
managers of these marketing teams are a very important part as they provide the ideas and lead
the teams according to the strategy they formulated (Sombultawee and Boon-itt, 2018). The
marketing team will have to create various offers and discounts for all the products that Jimmy
Choo retail stores have to offer in order to attract different sections of the market. In addition to
that, the marketing team will need to understand the main driving force behind the thoughts of
the customers and understand their needs and necessities as well in order to improve the sales
(Quelch, 2017).
Market Investigation
In order to create better strategies for marketing for the retail company the proper
emphasis needs to be given on the task of analyzing the markets where the retail shops of the
company are operating (Ramanathan et al., 2017). The proper investigation of the markets where
the company will do business can be beneficial for understanding the mindset of the customers
and the major factors that can influence the business. Moreover, with in depth market
investigation the authority of the company will be able to create better policies for attracting
more customers. The market analysis or investigation aids any company to understand the major
trends and the norms of the society of the country where they are attempting to enter (Grewal et
al., 2016). Therefore, to do successful business in both developed and developing countries
Jimmy Choo Retail Company will have to conduct an investigation of the market where they will
be entering.
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Interior Product Improvement
The vital process of creating a range of better and improved products can help to make a
better impact on any new markets, where the company is trying to create a bastion. Therefore,
the marketing manager gets tasked with the duty of coming up with new and improved products
that will increase the level of sales in a drastic manner (Erasmus et al., 2016). Therefore, the
sales executives of the Jimmy Choo Company have come up with various novelty products and
equally new ideas regarding their promotion. The sales teams are also guided in order to present
the unique selling proposition of the new products to the customers even during a brief
introduction. In addition to that, the financial department of the Company has also planned an
estimation regarding the budget required for the aforementioned tasks (Tortorella et al., 2015).
Under the guidance of the management the employees of the Company create and/or sells better
products while keeping the needs of the customers in mind.
Helping sales members
In order to increase the level of the sales of the Jimmy Choo Company, the teams
responsible for marketing and managing the sales related activities will have to create a system
of unification among them. This will greatly benefit the company as well as the people involved
in the selling of various products from clothes, shoes to accessories (Keszey and Biemans.,
2016). The amalgamation of the skills of the marketing crew with the proficiency of the
members of the sales division will help in the revenue generation process. In addition to that, the
authority of Jimmy Choo can create strategies that will involve the inclusion of the executives of
the customer care in the sales and marketing process (Johnson and Matthes., 2018). In this
context, the people related to the sales and marketing department can take the help of the people
responsible for dealing with customer’s feedback collection. With the data collected from the
feedbacks the managers of sales and marketing can create improved strategies for the marketing
and selling of the products.
Relation of roles and responsibilities of marketing in organisational context
The tasks related to marketing of the Jimmy Choo Company are interconnected with the
other divisions and their tasks. Therefore, most of the strategies and policies of the Company are
made in a way where the aspects of marketing of the products and services are highlighted
(Gonzalez and Claro, 2019). In addition to that, the overall connections among all the
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departments of the company are given high level of importance, as it creates a chain that
interconnects all the departments and their tasks. This also creates a better understanding among
the members of the different division of the company to work together for the benefit of the
organisation and create more revenue generation.
The development of the strategies for overall marketing and other actions can play a vital
role in the whole process of organisational operations. The responsibility of running the
organisation smoothly will create better prospects for the growth and development of Jimmy
Choo Company (Malshe et al., 2017). In addition to this, both the abilities and drawbacks of the
company can be assessed by the efficiency of the department responsible for maintain all the
major operations. The operation of marketing various products and services are thus a part of the
operations departments’ task list. Hence, it can be said that both departments of the company are
interrelated.
Another important division of the Jimmy Choo Company is the one that has the duty of
conducting various market researches. The market research department initially analyses all the
factors and the trends of any market be it old or new. With the collected data the market
researching division helps the organisational authority as well as the sales and marketing
department to create better strategies to promote sales (Soundar, 2017). In this context, the
inclusion of the human resource department is must as they are responsible for the management
and enforcement of all the needs and rights of the employees of Jimmy Choo. This department
also helps the company to hire skilled candidates, who will be able to work hard and make the
organisation prosper. It is to be noted that, every employee of Jimmy Choo is thus connected
with the human resource department. Further clarification of Jimmy Choo Company’s internal
process will need the elucidation of the planning and sales departments (Soundar, 2017). The
planning department is tasked with the duty of planning the overall path of action for the
company. Under the impact of these plans the sales department works in order to sell various
products or services offered by Jimmy Choo. Both these departments are connected by the
marketing department of the company.
In order to become a successful business organisation every venture has to have a fixed
process of checking the quality of the products that they are selling as well as the services being
offered. The customers are attracted to only those companies and brands who are constantly
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checking the quality of their products and services and improving them on a more or less regular
basis (Kotler et al., 2015). All of the departments of Jimmy Choo are therefore directly to report
their actions to the division responsible for checking the quality of the products and services.
Only after the quality checking, the marketing department can create marketing plans for the
products and services. In case everything passes the quality check test, then the marketing
manager creates various promotional activities in order to launch or further promote those
services as well as products. This makes it easier for the company to acquire attention of the
customers in the market as people always look for quality whenever they are buying either any
services or any products (Kotler et al., 2015).
Conclusion
With the help of this current section of the assignment, a clear notion of jimmy Choo
retail company’s methods of creating better marketing will be created. It will also aid in the
process of understanding what the vital departments of the company are and how they operate in
order to help make the organisation grow and prosper.
ACTIVITY B: (LO2)
Scenario : As the above report was successfully able to interrelate all the departments of
the company with other departments, the line manager has asked to produce a report showing
comparison between Jimmy Choo and its competitors so that an understanding can be
established about the company's strengths and weaknesses which can be enhanced and reduced
respectively in order to make a successful marketing plan for introducing its new products in the
market.
Introduction
Jimmy Cho is an organisation that has excelled in majority of their product launches.
This success could be supported by a number of reasons, however, the most important reason
behind their success is the efficiency of the marketing mix developed by Jimmy Choo.
Marketing Mix refers to a set of tactics and actions that cover the various aspects of a business
model (Shen et al., 2017). To succeed in a market, the organisation must be efficient enough to
device an intelligent Mix while considering the market requirements, the competitions and
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customer needs. The impact of a good marketing mix on an efficient decision making in
marketing plans is discussed in the following section.
Impact of Marketing Mix on Market planning
According to Al Fahad et al. (2015), the marketing plans carried out in Jimmy Choo are
primarily based on the 7Ps of marketing known as the Marketing Mix. It includes Product, Price,
Place, Promotion, Process, Physical Evidence and People. All these aspects impact the product
design as well as other important marketing functions of Jimmy Choo. They have concentrated
their promotional campaigns and advertising in a limited domain, that include advertisements in
malls, promotion through fashion shows and sponsoring the accessories of iconic people like
celebrities. They refrain from television advertisements and newspaper advertisements to
maintain their uniqueness. Jimmy Choo has increased their line of products shifting from shoes
to handbags, and fragrances. They have taken advantage of their already established brand name
to launch the new products which were easily accepted by the people who found the brand name
to be reliable (Saidani and Sudiarditha, 2019).
Prada is considered to be the chief competitor of Jimmy Choo in the market that they
perform in. The Marketing Mix of both these organisation is devised while keeping in mind the
competitors market plans and actions. While Jimmy Choo aims at a particular population for
their target customers, Prada tries to popularize their product throughout all sections of the
society. Moreover, the products launched by Jimmy Choo are more concentrated or streamlined
in a particular market, while Prada has opened up to a broader market perspective which include
fashion and accessories along with shoes and handbags. Thus they perform at a larger market
(Morgan et al., 2019).
Contrast of 7Ps of Jimmy Choo with Prada
7Ps Jimmy Choo PRADA
Product Jimmy Choo is a 23-year-old brand, but
is still considered to be in the growing
stage. The products they sell are mostly
targeted to female customers. However,
they also house shoes and accessories
products for men. They are famous for
their variety of unisex products. As a
shoe company, they try to provide as
Prada has focused mainly on the
contemporary fashion and is
characterized by their wide range of
products. They have a strong Product
Mix considering their market and
competition with Jimmy Choo. They
have a variety of perfumes specialized
for both men and women. On top of
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many variations as possible. They
provide a wide range of products,
designed for each seasons, and often
collaborate with other brands like Off
White and H&M to develop unique
products (Jimmy Choo, 2019). To ensure
their growth and prevent themselves from
entering the decline stage, they have
taken care of the Product Mix by
broadening their market in handbag,
accessories and fragrance fields.
that they offer a variety of apparels
that reflect the modern fashion trends
(Lee, 2016). Along with apparels,
Prada focuses on shoes and
accessories. To strengthen their
product mix even more, they have
launched a separate line or apparels
for kids. Other than accessories for
men, they have a separate category for
beauty products for women.
Price Jimmy Choo targets their customer base
to financially established sections of
society. They are more popular among
the affluent youth and adults. Their
products do not aim at maintaining a
limited budget, rather they are more
focused on the glamour and quality of the
product. The prices of their shoes range
from 195 Euros to about 3,500 Euros.
They only aim at selling their products to
a section of society with higher income
(Cacciolatti and Lee, 2016).
Just like Jimmy Choo, they aim their
pricing policy at a higher value. They
also do not aim at serving a diverse
section of society by lowering the
costs. Rather, they also aim their
products to be sold to influential
customers. Their customer lists
include celebrities, models,
dignitaries, etc. They have the
advantage of having a superior brand
value which allows them to maintain a
higher Pricing Mix (Prada.com,
2019).
Place Jimmy Choo has their stores spread
across the important and well developed
cities of the world including Paris, Rome,
Tokyo and New York. They also provide
their products through authorized retail
stores. They have also joined the modern
era marketing by introducing their
Ecommerce platform. They showcase
their exclusive collection on their
website. Since they deliver to the affluent
section of society, Jimmy Choo often
cater to personal needs of their customers
to build and deliver customized products
at premium prices. All these factors make
the Place Mix of Jimmy Choo strong
enough to lead the market.
Prada has an extensive Place Mix
strategy. In order to provide an
optimum Prada experience to the
customers (Lee, 2016). They have
built their stores with exquisite
designs. They call their stores as
Prada Epicenters. These epicenters are
scattered all over the globe including
countries like Canada, USA,
Germany, India, Hong Kong, etc. they
also have large boutiques in the
Middle Eastern countries like the
UAE. They promote more physical
sale over online sales.
Promotion Along with a huge portion of celebrity
endorsement, Jimmy Choo maintains a
celebrity status in the industry of shoe
making. They do not depend on TV
advertising to maintain their uniqueness.
Instead, they prefer to popularize their
In case of Prada, they promote with
sales promotion like product bundling.
For being the part of effective
promotions, Prada also adopts
aggressive brand, where its e-com
website tends to attracts consumers by
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product through social media presence.
They stress on gaining popularity through
the word of mouth through discussion
about their brand among the common
people (Jimmy Choo, 2019).
gifting its viable customers. Unlike
Jimmy Choo, Prada advertises their
products in famous fashion
magazines, newspapers and through
television advertisements.
Process Jimmy Choo, being a world leader in
shoe and accessories industry, it has
found well-built business orientation.
Jimmy Choo has increased their
availability through sale in retail stores so
that the operational efficiency could be
developed by serving the customers in
offering better location of the package.
The information management and
customer relation is considered core to
the business
Towards process, Prada has been
effective, as it helps customers to
dress according to their desires. They
provide a complete package of
apparels, shoes and accessories under
one roof. Regarding warehouse
processes, they make sure to house
enough products to fullfill the
customer needs ensuring easy
transaction and smooth customer
experience (Prada.com, 2019).
Physical
Evidence
They have stores distributed at key
locations in key cities of the world.
However, their presence is majorly felt in
the social media sites. They exhibit their
most premium collection though celebrity
endorsements and sponsoring the shoes
and accessories of celebrities for special
events.
Prada has more physical presence than
Jimmy Choo in terms of brick and
mortar. This means that they are more
accessible to the genral public than
jimmy Choo. They have epicenters
present more than their competitors
have and have a greater availability at
retail shopping malls.
People Jimmy Choo has a loyal employee
strength that they are proud of. Since
most of their clients are of higher
profiles, they have strict customer service
protocols and policies that the employees
should be familiar. Each employee is
given special attention while training him
or her. Though the training procedures
are strict, they are provided with a
comfortable work environment (Jimmy
Choo, 2019).
Prada has larger employee strength
than Jimmy Choo. However, their
employees are dealt with strictness of
a lesser order than it is done in Jimmy
Choo (Prada.com, 2019).
Table 1: 7Ps illustrating Jimmy Choo with Prada
(Source: Learner)
Conclusion
Marketing Mix acts as an important factor while taking decisions regarding marketing
procedures and operations. The above section contrasts the 7 aspects of marketing of Jimmy
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Choo in light of their competitor Prada. It is evident from the analysis that both excel in their
own ways and there exist a steep competition in the market.
ACTIVITY C: (LO 3)
Scenario :The line manager of Jimmy Choo has asked to evaluate and develop marketing
plan for the company so that the introduction of new products in the market can be easily done
which will help the company in achieving its goals and objectives in the desired manner. A
detailed marketing plan along with the internal and external analysis of the company will be
done so that the factors that affect the company can be listed which will help in forming
appropriate strategy for the company.
Marketing plan of Jimmy Choo
Company overview: Jimmy Coo is a 21st century luxury brand dealing in handbags,
fragrances and other accessories which gives a glamorous and fashionable look. The company is
based in London, UK and was founded in 1996 and is considered to be the most luxurious and
sophisticated brand in the shoe industry. The company is very innovative in its main products
and is always ahead in introducing new and fashionable designs of shoes for women so that their
comfort level increases along with improving their style. The company is aiming at introducing
Jimmy Choo jeans in the market and become a brand leader in jeans industry.
Mission : The mission of the company is to provide its customers with the most unique and
highly designed fashionable shoes.
Vision : To capture the hearts of high-income class women of the society towards its designer
shoes.
Product range : The company deals in making luxurious shoes, handbags and fragrances mainly
aimed towards high class societies.
Competitors : Bally, YOOX NET-A-PORTER, Prada, Crocs etc. are the competitors of Jimmy
Choo.
The company is a fashion brand company which mainly focus on women belonging to high class
societies providing them with fashionable shoes, handbags and fragrances.
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SWOT Analysis
Strengths
 The customers get highly satisfied on
using their products which is beneficial
for building company brand and
increasing sales.
 The company has reliable suppliers
which means that the products
manufactured by the company is of
high quality.
Weaknesses
 The company is not very efficient in
predicting the future demands for its
products which increases the storage
cost of the company.
 The company is inefficient in dealing
with the new entrants in the market
which give it a strong competition.
Opportunities
 The customers have become more
brand conscious these days with high
disposable incomes.
 The company can approach new
customers through their online channels
which will increase their sales.
Threats
 The company is facing high
competition from other brands which
are offering same quality products at
low prices.
 The threat of getting imitated by other
company has also increased.
PEST Analysis
Political Factors The political stability of UK helps the company in introducing the new
products without changing company policies or strategies. The
government of UK supports expansion of business by giving subsidies
which is also beneficial for the company.
Economic Factors The people of UK have high purchasing power which helps the
company in introducing jeans of its brand. Also the income of people
is high enough to afford company's products.
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Social Factors The people are brand conscious and also they are ready to spend more
to acquire the products they want which will help the company in
introducing jeans of its brand.
Technological Factors UK is a technologically advanced nation which means that all the
technology that is needed to manufacture the jeans is easily available
in the country at reasonable rates. The jeans can be successfully
manufactured in London where all the technologies that are required to
manufacture jeans are easily available.
Marketing strategies
Segmentation The company uses mix of demographic, geographic and psycho graphic
segmentation so that they can reach to a large potential market to increase its
sales which help it in earning profits from new product.
Targeting The company uses selective targeting method to target only ab specific
segment of people i.e. high income people.
Positioning The company uses social media, T.V., print media and online platform to
position its products.
Tactics used by Jimmy Choo
Product The company aims at introducing jeans in the name of their brand so that
their sales can increase as the demand of branded jeans in the population
is increasing.
Place The company designs, manufactures and distributes its products on its
own and so the same will be done with respect to their new products also.
Price The company targets high income families and adopts premium pricing
policy which means that the products are kept at high prices affordable by
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only high income class people.
Promotion The company promotes its products through various channels like online
media, print media etc. which can be done for their new products as well.
People The employees that work in the company are highly loyal to the company
and dedicated to their work which will help in designing and
manufacturing highly good quality jeans.
Physical Evidence The company provides pay slips and is present in the form of Jimmy
Choo stores with fascinating appearance in the market. The jeans will be
sold in the stores of Jimmy Choo which will be divided into different
sections so as to make them accessible to customers. Also there are
chances of increase in sales along with matching footwear and other
accessories which will increase company sales.
Process The company conducts all its activities with high efficiency and has
highly efficient supply chain. They also provide their products in
innovative packages which attracts their customers.
Action plan
Budget allocation : IT is a statement which helps in estimating the revenues and
expenditures associated with introducing new products in the market. It helps all the departments
of the company in managing and controlling their activities so that the desired results are
achieved within the budget allocated to their department. Budget also helps in monitoring and
controlling all the expenses so that the target can be achieved within the stipulated budget. The
budget that is prepared by Jimmy Choo to introduce jeans in its line of production is given below
:
Particulars Amount (£)
(Spent this
year)
Amount(£)
(Spent last
year)
Percentage
change
Marketing (the company invests in
advertising through online and digital
18000 16000 0.13%
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media platforms etc. to reach the
customers.)
Trainer and Support (The company hires
trainer, conducts meetings, presentations so
as to train the employees)
8000 6000 0.33%
Equipments (the company has to install
machines and also has to conduct research
and development so that proper measures
and sizes of jeans can be manufactured.)
170000 13000 0.31%
Technology required (the company has to
develop technologies so as to make
different patterns, sizes, colours etc. of
jeans to attract high class society people.)
30000 40000 -0.25%
On the basis of this budget it can be analyzed that Jimmy Choo needs to spend a high
amount on acquiring the equipment that are required to produce jeans. As the company mainly
relates to providing branded shoes and accessories it needs a lot of machines so that jeans can be
manufactured efficiently. It also needs to utilize technology so that cost-efficiency can be
increased which helps in increasing the profits of the company. Also it can be seen that in
comparison to the last year budget the expenditure that is done this year is almost equal but just
the difference occur in the amount that is allotted to various activities that are required to be done
for efficiently launching the new product.
Controlling and monitoring
Controlling and monitoring of the activities of marketing department will help the
company in efficiently completing their tasks within time. Controlling will help in enhancing the
performance so that the standards are maintained and the quality that the company desires to
provide to customers can be maintained. Monitoring on the other hand will help in maintaining
discipline in the company and also controlling the expenses related to its department. The
company estimates that through proper controlling and monitoring techniques the sales of the
company will increase by 30% this year.
Target marketing : It refers to targeting a group of customers so that the company can sell them
their products and services and also direct their efforts to attract those customers based on certain
characteristics. Jimmy Choo targets its customers based on the money that their customers has. It
means that the company mainly targets the customers that belong to high-income groups and the
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elite class of the society. The products of the company are expensive and can be afforded by
high-class societies.
Company stores in UK : The company will provide its new products i.e. jeans by expanding their
already existing stores like in Selfridges etc.
CONCLUSION
It can be concluded from the above report that marketing is an essential part in the growth
and success of an organisation as it assists them in transmitting valuable information about
products and services to the targeted customers. For this, marketing manager provide support by
playing an important roles and responsibilities with the help of taking support from other
departments. Along with this, the management need to compare its marketing mix with their
rivals which makes easy to update their offerings according to the customers’ requirements.
Launching a new product requires to prepare an effective market plan consisting of different
aspects including mission, vision, competitive analysis, STP etc. This will direct the marketing
members to perform its allotted roles in desired way and make new product more successful in
competitive market.
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