Marketing Fundamentals Analysis and Evaluation for Next plc during COVID-19 Pandemic

This report analyses the impact of COVID-19 on Next plc's marketing strategies and evaluates its internal and external environment using frameworks such as SWOT, STP, and VRIO analysis. It also examines the company's marketing mix strategies to cope and thrive during the pandemic.

Marketing Fundamentals

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing is a set of actions adopted by businesses to attract potential clients and
customers. Marketing is a procedure which includes promoting, researching, distributing and
selling of goods and services (Acosta, Crespo and Agudo, 2018). Marketing helps businesses to
implement growth strategies in order to achieve goals of operations. Marketing impacts a
business in various ways which includes raising brand awareness of company in market,
expanding revenue, building trust or goodwill for brand and increasing engagement of potential
customers within organisation. Emergence of COVID-19 has affected marketing as well as
business processes of businesses worldwide (Visser and Et. Al, 2021). Due to COVID-19
marketers of businesses has to change their marketing strategies in order to survive and thrive in
this stressful environment. A great marketing strategies helped companies to cope with this
COVID-19 situation by carrying on their business operations with objectives to sustain in market
for long run. Next plc is the selected company in this report which is a multinational company
and was founded on 1864 in England, United Kingdom.
This report consist of processes and stages of marketing in a business organisation. It also
consists of impact of COVID-19 on internal and external environment of a company. This report
includes role of marketing environment in achieving goals and objectives in an organisation. At
last it also includes analysing marketing mix strategies adopted by company to cope and thrive in
COVID-19 pandemic.
MAIN BODY
Summary of organisation
Next plc is a multinational retail company having headquarters in England, UK and was
founded by Joseph Hepworth on 1864. Next plc is one of the largest clothing retailer in UK. It
operates in providing a vast range of fashion products which includes footwear, clothing as well
as home products in market. This company has approx 700 stores globally out of which 500
stores are located in United Kingdom and the rest are situated across Asia, Europe and Middle
East. Next plc generates a revenue of around 3.28 billion pounds in 2021 and 44,193 number of
employees working with it.
1

Marketing
Marketing derives of under taken activities taken by management of an organisation with
objectives to attract more customers while defeating competitive rivals by generating more
profits to sustain in long run (Ambrose and Waguespack, 2021). Marketing activities includes
researching of market place in terms of demand, taste, etc. of customers, promoting products,
distribution of products etc. Businesses practice marketing process by adopting various
marketing strategies (Visser and Et. Al, 2021). Next plc is involved in various marketing process
in order to enhance its growth in market by generating more profits. In aspect of Next plc main
objectives of adopting a marketing plan is to achieve short term goal of company while making
essential measures to achieve long term objectives of company. Business objectives of Next plc
is to satisfy needs of customers by providing them quality products in market in order gain
profits to sustain in long run. Marketing environment is generally a combination of internal as
well as external forces affecting capabilities of companies in order to create and develop
relationship while serving its customers. Marketing environment is consists of internal as well as
external environment. COVID-19 has created an impact in marketing operations of Next plc.
Due to COVID-19, Next plc has to change and develop its marketing strategies in order to
sustain in market. Marketing environment of Next plc has been influenced because of COVID-19
pandemic. In order to determine impact of COVID-19 in business operations of Next plc can be
analysed by evaluating its internal and external environment and which are evaluated as below-
Internal environment-
Internal environment consists of internal factors that exist within an organisation as well
as creates an impact on its operational activities (Butaney, 2020). In aspect of Next plc its
internal environment consist of consumers, clients, suppliers, employees,etc. Due to COVID-19
internal environment of Next plc has been affected in various ways. Various analysis of
determining internal environment of Next plc has being adapted under consideration of COVID-
19 which are evaluated as follows-
SWOT analysis-
SWOT analysis is a framework adopted by management of a firm to determine its
internal environment in terms of its strengths, weaknesses, opportunities along with threats in
market (Terech, 2018). Analysing swot analysis in context of Next plc is evaluated as below-
SWOT analysis of Next plc
2

Strengths Weaknesses
 Next plc has developed its marketing
process by adapting digital marketing
techniques.
 Next plc provides day delivery services
to its customers which provides
products to its customers at their
comfort zones during this pandemic.
 Company has a well established
channel of distribution.
 Next plc depends on third parties for its
delivery services which provides
delayed in services while providing
inconvenience to its customers.
 Next plc is unable to cope with use of
latest technologies as compared to its
competitors in market.
 Reduced speed of innovations of its
products during COVID-19 pandemic
has affected company's objective of
long run.
Opportunities Threats
 Next plc can expand its business by
more digital marketing techniques and
platforms in order to attract more
customers.
 Company can enhance its delivery
services by collaborating with more
reliable delivery services.
 Disruption in business operations
worldwide due to COVID-19.
 Adopting latest digital technologies by
its competitors.
 Failure to meet customers expectations
in terms of quality, demands and price.
STP Analysis-
STP marketing is an approach which focuses on customer centric attitude to marketing
communications (Coita, Abrudan and Matei, 2019). In context of Next plc STP analysis is
evaluated as below-
Segmentation-Segmentation consists of dividing target audience into small segments
depending on some characteristics. Demographic segmentation of Next plc includes both male
and female genders basically who are young individuals between the age of 18 to 48. Customers
of Next plc are basically categorised on middle class as per their income. Psychological
segmentation of consumers of Next plc are basically middle class and working professionals
3

with having a mindset of purchasing value for money products. However because of high quality
products of Next plc in market behavioural segmentation of its customers are that they are
independent purchasers. But COVID-19 pandemic has made company to focus on group of
customers which are more into use of digital platforms.
Targeting- Targeting is a process where marketers of a company creates different
strategies to attract target audience depending on taste and preferences (Key, Czaplewski and
Ferguson, 2019). In targeting Next plc attracts its customers with low and reasonable price
quality goods. Company mainly focuses on middle class segment of society with its products.
Due to COVID-19 Next plc has faced a break in its customers cycle. As many middle class
individuals has lost their jobs during this pandemic because of facing loss by their respective
companies or businesses. This made an impact in sales of products of Next plc as company's
main focus was on targeting middle class and working professionals.
Positioning- Positioning is a stage where company focuses on creating a brand image
and building its reputations in market (Solimun and Fernandes, 2018). Management of Next plc
adopts positioning map in order to determine its position in market in terms of customers views
and preferences for a particular products with its competitors product. Company adopts different
strategies to position in top in mind set of its customers. Company provides trendy fashionable
products at an affordable rates to its customers which makes Next plc to defeat its main
competitors such as ZARA and ASOS in market.
VRIO Analysis-
VRIO analysis is a framework used by management of a company to analyse its
resources and capabilities with competitive advantages (Kotler and Di Benedetto, 2020). In
context of Next plc VRIO analysis is being evaluated as below-
VRIO analysis of Next plc
Resources/
Capabilities
Valuable Rareness Imitable Organisation Competitive
advantages
Financial
resources
YES YES YES YES Strong
competitive
advantages
Human YES YES NO NO Sustainable
4

resources competitive
advantages
Distribution
network
YES YES YES YES Strong
competitive
advantages
Research and
development
YES NO NO NO Sustainable
competitive
advantages
Valuable- Next plc's financial resources are highly valuable because these resources
helps in investing activities that originates as well as in dealing with external threats. Human
resources of Next plc are also a valuable resources for company as their employees are highly
skilled and well trained that leads to increase in production output for the firm. Distribution
network of Next plc are valuable resources for company as it helps company in attracting more
consumers to generate more profits for organisation. Research and development resources of
Next plc are valuable as it works in innovating new products as per demand and trends in market.
Rareness- Next plc's financial resources are rare to be found as strong resources of
finance are possessed by few organisations in this respective industry. This resources helped
Next plc in overcoming consequences caused due to COVID-19 in company's operational
activities. Human resources of Next plc are rare resources as employees of Next plc are well
trained and high skilled which are hard to be found in case of employees with other companies.
Employees of Next plc worked hard in carrying out operating activities during the emergence of
COVID-19. Next plc's distribution network are rare resources as competitive rivals would
require a high level of investment along with a long time period to come up with a better network
of distribution in comparison to Next plc. This network of Next plc helped company to reach its
customers during COVID-19 by adapting digital techniques of marketing, collaborating with
delivery services to provide goods to customers at their safe comfort zones.
Imitable- Next plc's financial resources are very costly to imitate as because company
has acquired by prolonged profits generated over years. In order to achieve this amount of
financial resources its competitors and new entrants would require a long period of time to
5

accumulate this profits. This resources helped company in providing salaries to its employees
during COVID-19,working on expansion of its business activities as well as helping needy and
victims affected due to pandemic along with carrying out its CSR responsibilities. Next plc's
distribution network are also very expensive to imitate by other firms in industry as this
company has generated this over years of hard work. Its competitors would require a lot of
amount in order to imitate this level of distribution system. During COVID-19 pandemic,
distribution network of Next plc worked effectively in attracting customers which was tough for
other firms operating in this industry.
Organisation- Next plc's financial resources are well organised with objective to capture
value. This resources are strategically used while grabbing opportunities in order to invest in
right place as well as combating threats. This resources of Next plc worked efficiently in
carrying forward its operational activities during COVID-19 pandemic. Next plc's distribution
network are also well organised as distribution network helps Next plc to engage with consumers
while providing availability of products in all of its stores. This resources of Next plc has
ensured that products are available for customers along with made essential measures needed to
reach customers in the effect of COVID-19 pandemic.
External environment-
External environment are factors that exists outside a company while affecting its
business operations (Lichtenthal, 2020). External environment of Next plc consists of outer
factors such as political, technological, environmental, economical, legal and social factors
which impacts in functioning of business operational activities. Analysing external environment
of Next plc while adopting various frameworks in aspect of COVID-19 affect is being evaluated
as below-
PESTLE analysis-
PESTLE analysis is a framework used by management of an organisation with objective
to identify and determine macro factors affecting business operating and developing strategies in
order to overcome them (Martell, 2018). In context of Next plc, PESTLE analysis is being
considered to analyse macro factors affecting its business operations are as below-
Political- Political stability is seen is UK. Frequent changes in policies of government
affects business environment both in positive and negative ways. In Brexit effect, Britain
companies has to close its outlets and stop its operational activities from EU. This has affected
6

business activities of Next plc as company has to shut down its premises from EU which has
impacted in decrease in revenue as well as increased in loss for company. This has impacted in
break of customer cycle in EU. Emergence of COVID-19 worldwide has also affected business
operation of Next plc in UK. Company had to shut its premises due to implementation of Lock-
down in country. Government of UK has supported corporations during emergence of COVID-
19 pandemic. Government of UK has provided exemption in taxes and well as several other
benefits to companies and its employees working in this pandemic. This support from
government helped Next plc to function effectively in this pandemic.
Economical- UK has a high GDP rate with a low unemployment rates as compared to
other countries in the world (Litvinenko and Et. Al, 2019). High GDP rates signs towards ability
of consumers towards spending more on products. This helps Next plc to attract more profits
while providing quality products to customers in market. But due to COVID-19 pandemic,
unemployment has been increased within UK. Global lock-down has put pressure on treasury as
well as destroyed many organisations functioning in different industries. Businesses of UK has
also been affected by COVID-19 pandemic. Many companies were terminating their employees
due to increase in loss as a consequence of this pandemic in UK. Next plc has contributed in
decreasing unemployment rate in UK by providing employment opportunities to workers,
allotting work from home practises to its employees, etc. COVID-19 pandemic has affected
spending power of customers in retail sector. This impacts in lowering profits by decrease in
sales as compared to previous years.
Social- UK has a big fat consumer market with a high income earners(Shepherd and
Zacharakis, 2018). This high income rate has impacted in increase in sales for businesses
operating in UK. This leads to increase in profitability for Next plc by providing quality products
in a reasonable rate. But due to COVID-19 pandemic, changes in customers behaviours,
purchasing nature, spending power etc. is been seen in market of UK. Customers started adapting
online shopping sites rather than going out to market in the spread of coronavirus. This
influenced Next plc to adopt digital platforms to move forward its operational activities in order
to sustain in this pandemic. Company started attracting customers through social sites, websites
etc. while providing delivery services of products at their safe zones. Spending pattern of
customers were also being influenced due to COVID-19 pandemic. With reduce in income or
purchasing power of customers has influenced Next plc to change prices of its products from
7

premium to reasonable rate. This change in pricing strategy and behaviours of customers has
affected profit share of Next plc as compared to previous years.
Technological- UK is known as one of the top 10 countries contributing in research and
innovations in technology (RM and Berry, 2018). This innovations in technologies has created
opportunities for businesses in different industries in UK. This innovations in technologies has
helped Next plc in expanding its business operations. Capturing technological trends helped Next
plc to cope and thrive its business activities during pandemic. Company adapted digital
marketing techniques such as social media marketing, search engine optimization, websites,
social media influencers, etc. in order to reach its customers in the environment of pandemic.
Company has also adopted system of digital assets management in motive to handle large
number of digital assets. Company has allotted digital landscape or tools to its employees to
work proficiently at their home in this COVID-19 pandemic. This various tools of technologies
innovations helped Next plc to interact with its customers while providing goods as well as
generating profits to sustain in long run.
Legal- UK is one of the top 10 countries known for its strong legislative system. Country
has enacted laws or acts such as Employment Act 1996 making it compulsory to follow for
businesses operating in UK. This Employment Act 1996 consists of minimum wages, sick
leaves, maternity leaves etc. for employees working under an organisation in UK. This Acts has
offered benefits and protection to employees working in COVID-19 pandemic. Next plc has
followed this legislations effectively by paying salaries to its employees according to minimum
wage rates enacted by government of UK. Company has made essential measures to provide
protections to its customers according to consumer protection laws from cyber theft, protecting
consumers data from hackers while using security protection software etc. Next plc has
introduced some rules and regulations such as use of masks and sanitizers etc. in order to protect
its employees from spread of coronavirus.
Environmental- Every industries faces some serious environmental issues due to
increase of pollution in environment (McLean, 2019). Government of UK is working on
reducing this negative impact on environment within the country. Increased global warming has
impacted in rising concerns among people towards carbon emission in atmosphere. Next plc has
been working on reducing carbon emission in its production to supply process. Company has
changed its packaging bags from plastic to disposable bags. Next plc has also adopted green
8

business practises with objectives to gain trust of stakeholders as well as reduce pollution.
During COVID-19 pandemic Next plc was focusing on practising new techniques of production
and packaging in order to reduce pollution and carbon emission in environment.
Role of marketing-
Marketing plays a vital role in making a product successful (Nisabwe, 2020).
Determining role of marketing in aspect of Next plc is been evaluated as below-
 Meets customer demands and needs- Adopting marketing processes, marketers
of Next plc determines needs and demands of customers. This helps company to
decide products to trade according to differences in consumer's personalities.
 Ensure growth- Customer retention and expansion in market share ensures
survival of a business in this competitive business environment. Marketing helps
Next plc to accomplish operational objectives through its consumer centric
approach. Marketing also aids Next plc in satisfying customer needs by providing
goods as per their needs and wants.
 Adapting right price- Marketing helps companies to set prices of its products by
using different marketing strategies (Rauschnabel, Felix and Hinsch, 2019).
Marketers of Next plc adopts various approaches to set prices of its products in
order to provide goods to customers at a reasonable rate as well as generate a
good amount of profit to sustain in long run.
 Widens market- Marketing functions as promoting products in market by
adapting various promotional activities such as advertising, event marketing, PR,
digital marketing sites etc. This helps Next plc to reach more potential customers
beyond geographical boundaries which also creates opportunities for company to
expand its business.
 Competition- Marketing activities helps a firm in analysing competition in
market by monitoring activities of competitive rivals. Marketers of Next plc
maintains a balance in satisfying expectations of customers by analysing and
monitoring activities of its competitors.
Marketing mix-
9

Marketing mix refers to a process of determining various aspects of marketing (Narus
and Anderson, 2020). Marketing mix of Next plc under consideration COVID-19 pandemic is
evaluated as below-
 Product- Products of Next plc are high in quality which offers satisfaction to its
consumers. Company manufacturers its products according to taste, trends,
changes in behaviours and insights of its customers. This company has a vast
range of products which provides multiple choices to its customers.
 Price- Next plc adopts premium pricing strategy for some range of its products.
This company also adopts psychological pricing strategy for some sort of its
products. Next plc sets prices of some products while utilizing competitive pricing
approach where company provides goods to customers at a low price as compared
to its competitors which impacts in increase in sales of its products in market.
This helped company to generate revenue during COVID-19 pandemic by
offering products at low cost to its target audience.
 Place- Next plc has a huge number of outlets of approx 500 in UK. This stores are
well build with an attractive ambience to attract customers. During COVID-19
pandemic, Next plc has started expanding its stores in the digital world by
developing a website, collaborating with e-commerce sites, search engine
optimization, etc. which helped company to satisfy needs of its customers and
survive its business operation in this stressful environment.
 Promotion- Next plc functions while adopting various marketing strategies from
traditional approach to digital marketing approach. COVID-19 pandemic has
pushed a forward button on adapting digital techniques under promotional
activities. Company moved forward from traditional techniques to digital
techniques such as search engine optimization, social media marketing, etc. in
order to reach more customers at a same time.
CONCLUSION
As per the above report it is concluded that marketing refers to as an action of attracting
potential customers and clients by providing valuable goods and services by means of promoting,
distributing products in market. Marketing environment are environment which includes internal
and external factors which influence business operations of a company. Internal environment are
10

forces that consists under an organisation which creates an affect in its business operations.
External environment are forces that influence business operations of a company while existing
outside the organisation. SWOT analysis is an approach used by management of a firm to
determine strengths, opportunities, weaknesses as well as threats. PESTLE analysis is a
framework used to determine macro forces that affects operational activities of business under an
organisation.
11

REFERENCES
Books and Journals:
Acosta, A. S., Crespo, Á. H. and Agudo, J. C., 2018. Effect of market orientation, network
capability and entrepreneurial orientation on international performance of small and
medium enterprises (SMEs). International Business Review. 27(6). pp.1128-1140.
Ambrose, S. and Waguespack, B., 2021. Fundamentals of Airline Marketing: Strategies for
Success in a Hyper-competitive Environment.
Butaney, G., 2020. Comparative Review of Business-to-Business Marketing Textbooks: A
Commentary. Fundamentals of Business Marketing Education, pp.223-231.
Coita, D. C., Abrudan, M. M. and Matei, M. C., 2019. Effects of the blockchain technology on
human resources and marketing: an exploratory study. In Strategic Innovative
Marketing and Tourism (pp. 683-691). Springer, Cham.
Key, T. M., Czaplewski, A. J. and Ferguson, J. M., 2019. Preparing workplace-ready students
with digital marketing skills. Marketing Education Review. 29(2). pp.131-135.
Kotler, P. and Di Benedetto, A., 2020. Every discipline needs to be re-examined in its
fundamentals, given the huge impact of twenty-first-century globalization and
technology on our global market, economy and society. Those of us in marketing are in
the midst of a changing marketing paradigm, moving us from a concern with growth, to
a concern with conservation and social justice. I hope that all marketers taste this rich
sou é of new ideas and add their own contributions.
Lichtenthal, J. D., 2020. Introduction: Business-to-Business Marketing Education in the Twenty-
First Century. In Fundamentals of Business Marketing Education (pp. 1-5). Routledge.
Litvinenko, I. L., and Et. Al., 2019. The fundamentals of digital economy. AD ALTA: Journal of
Interdisciplinary Research. 9(1 S7). pp.30-37.
Martell, D. A., 2018. Marketing information and new technology. In Management Information
Systems (pp. 161-181). Routledge.
McLean, G., 2019. Digital Marketing Fundamentals.
Narus, J. A. and Anderson, J. C., 2020. Making Business Marketing More Prominent: A Reply to
Commentary. In Fundamentals of Business Marketing Education (pp. 109-112).
Routledge.
Nisabwe, F., 2020. Fundamentals of Marketing Management in a Competitive World
(Fondamentaux de la Gestion Marketing dans un monde concurrentiel). Available at
SSRN 3661254.
Rauschnabel, P. A., Felix, R. and Hinsch, C., 2019. Augmented reality marketing: How mobile
AR-apps can improve brands through inspiration. Journal of Retailing and Consumer
Services. 49. pp.43-53.
RM, M. V. and Berry, M., 2018. Digital marketing fundamentals.
Shepherd, D. A. and Zacharakis, A., 2018. Conjoint analysis: A window of opportunity for
entrepreneurship research. In Reflections and extensions on key papers of the first
twenty-five years of advances. Emerald Publishing Limited.
Solimun, S. and Fernandes, A. A. R., 2018. The mediation effect of customer satisfaction in the
relationship between service quality, service orientation, and marketing mix strategy to
customer loyalty. Journal of Management Development.
Terech, A., 2018. An introduction to marketing and branding. Generations, 42(1), pp.45-49.
12

Visser, M. and Et. Al., 2021. Customer acquisition: recruiting visitors through paid channels.
In Digital Marketing Fundamentals (pp. 276-344). Routledge.
Visser, M. and Et. Al., 2021. Designing effective websites and apps. In Digital Marketing
Fundamentals (pp. 472-523). Routledge.
Online:
Next Plc. 2021. [Online]. Available through <https://www.nextplc.co.uk/>
13