Marketing Management: David Jones Limited

This report evaluates the marketing process of David Jones Limited, analyzes the 5Cs framework, and recommends effective marketing tactics and strategies to enhance its reputation among targeted population.

Running Head: MARKETING MANAGEMENT 1
Marketing Management: David Jones
Limited

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Introduction
Marketing management is the process to develop effective strategies and tactics for new products
and services, promotion, advertising and sales to approach the desired and targeted customers.
This process emphasizes on the physical and psychological factors of marketing. Under this
process, the concerned managers are responsible for affecting the timing, level and creation of
customer demand. Each and every organization develops effective marketing strategies to attain
its predetermined marketing objectives (Kotler, 2015). This process assists companies to enhance
its operations and brand image among targeted customers.
Basically, the below report is focused on evaluating different marketing aspects in relation to
chosen firm i.e. David Jones Limited. David Jones is operating its business as a leading
departmental store, based in Australia. This report aims to include the marketing process of
David Jones Limited. It evaluates the external and internal business environment of the
organization by conducting 5Cs framework analysis. Generally, the companies use this particular
framework to assess the environments from marketing viewpoint where it operates its business.
Moreover, it defines different techniques to collect the information for the components of 5Cs.
These techniques are such as marketing research and marketing intelligence. At the end,
effective marketing tactics and strategies are recommended to David Jones Organization so that
it can enhance its reputation among targeted population.
Issue 1: Company and Industry Analysis
David Jones Pty Limited is an upmarket departmental store in Australia that is owned since the
year 2014 by South African retail firm Woolworths Holdings Limited. Firstly, the organization
was established in the year 1838 by David Jones. It is one of the oldest continuously operating
retail stores worldwide and it is still operating business under its original name. Currently, David
Jones has more than 45 stores which are located in most of the Australian states and its territories
(David Jones, 2018). The organization operates its business in Australian retail industry that is
experiencing a significant growth and revenues.

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Figure 1: Sales Growth
(Source: David Jones, 2018)
The mission statement of David Jones Limited is “to sell the most exclusive and best products to
customers”. Through this mission statement, the company aims to fulfill the routine life needs of
customers. It offers exceptional quality in each and every product that it sells to its customers.
Moreover, the vision statement of the company is “to become one of the most responsible
retailers in the world”. This shows the commitment of organization towards its customers,
employees and environment. The company communicates its brand message to its customers by
using effective and attractive slogans like “There is no other store as David Jones” and “Lead an
Extraordinary Life”. In its operations, the firm uses two types of orientations i.e. product
orientation and marketing orientation. It is a retail firm that aimed to provide a special experience
to each and every customer in its store through its products. Moreover, David Jones focuses on
enhancing its marketing mix strategies so that it can attain its marketing objectives (David Jones,
2018). It offers a wide range of products such as home appliances, toys, electronics, stationary,
travel goods, beauty products, menswear, shoes and other items. The brand portfolio of David
Jones includes lighting, accessories, window treatments and interior related furniture. Branding
is an important component of company’s marketing strategy because its aids the business entity
to increase the number of customers and improve trust and loyalty towards its products.

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Issue 2: 5 C’s of David Jones Limited
5Cs framework is a model of strategic management that is used to analyze the entire
environment of the organization considering the five areas which are required to make marketing
decisions for the company (Hakala, 2015). It analyzes both internal and external environment
factors of organization by evaluating 5Cs i.e. Company, Competitors, Collaborators, Customers
and Context. 5Cs framework for David Jones is given below:
Company
Strengths
 David Jones Limited has strong presence in domestic market of Australia in electricity,
fashion and food products.
 The company offers a variety of products like home appliances, toys, electronics,
stationary, travel goods, beauty products etc.
 Its stores are situated in low risk and high value factors.
 The company offers products with excellent quality on affordable rates.
Key Resources
Operating its business in Australian retail industry, David Jones Limited owns various tangible
and intangible resources that support it to deliver products and services effectively. The key
resources of the organization are like its retail outlets, online website, organizational structure
and culture, leadership styles, human resources, enhanced quality of products, relationship with
suppliers and customers. The resources of this firm help it to gain sustainable competitive edge
and increased revenues against its competitors.
Weaknesses
 David Jones Limited has a limited presence in international markets.
 As there is availability of various options so brand switching is very high and brand
loyalty is low.
 The company has made low investment on promotional and advertising processes
(Weinstein & Pohlman, 2015).
Opportunities
 The company has the opportunity to enter in the pharmaceutical industry.
 David Jones can develop its operations in global markets.

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 David Jones can invest the funds in its advertising and promotional activities.
Threats
 The company faces intense competition from other major players like Myer, Harvey
Norman, Aldi Australia etc.
 Higher brand switching of firm provides rise to the limited brand loyalty (Brook, 2018).
 Moreover, there are various new and domestic brands which are entering into markets.
Customers
David Jones Limited is targeting its customers considering demographic and psychographic
variables like age, income, social classes etc. It is offering its products and services by targeting
middle aged women (35 to 50 years), upper class people and home makers. Moreover, the
organization emphasizes on the people who are conscious towards quality and style (Levy, Weitz
& Grewal, 2012). The products and services of the company are majorly focused on the women
who appreciate the luxury products of departmental stores. Thus, the major customers of the
company are from young generation to working population and home makers.
Collaborators
Collaborators play an important role in organizational life of David Jones. These collaborators
work by developing closed partnerships with the company. Some of the collaborators of David
Jones are suppliers, society, charitable institutions, product manufacturers etc. Suppliers are the
major collaborator at David Jones as they assist in delivering the products to final customers. For
this company, it is important to have collaborators as they can assist the organization to distribute
the products and services to end customers. Developing better relationships with its collaborators
enables the organizations to deliver exceptional quality and value of retail services (Wan, Shen
& Choi, 2017).
Competitors
As mentioned above in the weaknesses and threats, David Jones Limited confronts an advanced
level of rivalry from some well-recognized competing brands like Myer, Coles, Target Australia,
Wesfarmers Limited, Aldi Australia, and K-mart etc. In addition to this, the company may face
the competition from the new entrants in Australian retail sector (Nenycz-Thiel, 2011). In

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competitive retail industry, David Jones Limited is creating strategies looking at the competitors’
strategies.
Figure 2: Most Impacted brand by Alibaba/Amazon effect
(Source: David Jones, 2018)
Context
Political Factors
The political environment in Australia is not very stable and there are frequent changes in the
government and regulations. So David Jones need to consider the changes and it needs to
implement rules and regulations accordingly. The firm needs to develop effective relations with
the government, foreign countries and political groups. The retailers need to comply with
restriction and tax policies (Villeneuve & Pasquier, 2017).
Economic Factors
Australian economy is stronger and stable as compared to other economies and it provides its
population with a well living standard. The people have more purchasing power so they prefer to
buy quality retail products from well-known departmental store like David Jones. Thus,
economic development of company is beneficial for growth of David Jones in nation (Sutton-
Brady, Kamvounias & Taylor, 2015).

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Social Factors
Social factors play a vital role in the growth of David Jones Organization. Today, Australian
population purchases their products from departmental stores and online stores. They think that it
is better than other options. Considering this fact, David Jones makes efforts to provide better
experience of shopping (Daniels, 2017).
Technological Factors
Nowadays, people actively use social media sites and updated technology that increase the use of
online shopping for retail products. The company can promote its products on social media sites
like Instagram, Facebook etc. It will enhance brand image and recognition of David Jones among
customers.
Issue 3: Market Research and Market Intelligence
5Cs framework is the marketing framework to evaluate the environment and its factors in which
an organization operates its business. This framework can give the insight into the major drivers
of growth and success. Collecting the information about internal and external factors is the most
important part of this process. There are many mechanisms that are used by David Jones to
collect the information about different environmental forces (Jones, et al, 2015). The primary
approaches are such as market intelligence and market research which this organization uses to
gather the data about different factors. Market intelligence is the data which is collected for the
objective of making important business decisions whereas market research is the systematic way
to gather, record, analyze and interpret of data about the organization’s competitors, markets and
potential customers. With the assistance of these approaches, David Jones Limited is evaluating
its external and internal environment and its related factors. 5Cs model of strategic management
assists the organization to evaluate the market atmosphere because it provides detailed
information about the environment. By using market research, this firm collects the data upon its
customers, competitors and collaborators (Stead & Stead, 2013). For an organization, it is
significant to get the data about customers. By conducting market research, David Jones
understands the changing needs and preferences of customers towards retail products and
services.
In order to analyze the international market and changing trends, country reports can be used as a
common data source. By linking its marketing analysis with the capabilities and resources of

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firm, David Jones Limited recognizes the most appropriate and beneficial opportunities to
provide the effective value to customers. Tis firm understands the customer’s wants by
organizing the feedback forms, customer surveys and questionnaire. This process supports the
company to understand the demands and needs of targeted audiences towards retailers.
Marketing research conducted by the David Jones results that Australian population wants to buy
their consumer electronics and household items at affordable costs. In addition to this, the
company collects the data about competing brands from their websites and social media
networks like Facebook, Twitter etc. It found that Myer and Target Australia are the competitors
that pose major threat to David Jones. It helps this entity to evaluate the competitive strategies of
rival brands in Australian retail sector (Hesterly, & Barney, 2015). Collaborators also help the
company to gather the information about market as suppliers can provide the data about
competitors. In this way, David Jones can gather the data about the internal and external
environment factors which are assessed in the 5Cs framework.
Issue 4: Developing Marketing Strategies
Looking at the above report, it can be stated that currently David Jones Limited is running its
business operations smoothly. But this company is not that much successful in the Australian
retail industry. Under its marketing analysis, this firm needs to focus on its marketing strategies
(Slack, 2015). It can upgrade its strategies by focusing on three primary elements like target
market segmentation, positioning statement and value proposition. David Jones can emphasize
on below components:
Choice of Target Market
Making a choice of target market is one of the most important components in the process of
developing marketing strategies of the company. In Australian retail sector, David Jones is
running its operations as one of the major players. Through its operations and management, the
company is planning to cover a large market segment in Australia. Primarily, the company is
serving high-end market through its products and services. To increase its revenues and profits,
David Jones Limited is targeting the customers by focusing on their psychographic and
geographic behaviors. Under demographic segmentation, the company considers the age and
income of people. David Jones targets the people of 35 to 50 years men and women from upper
social class (Shareef, Dwivedi & Kumar, 2016). As per an Australian study, a major percentage

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of its customers are women. So company should focus on this group and develop its marketing
strategies. Furthermore, it should focus on the customers who are concerned about style and
quality. In the future, the company should choose the target market from young generation to
working people and home makers.
Value Proposition
Value proposition is an important statement which states how a business entity fulfills the needs
and wants of possible customers by offering its products and services. Through the value
proposition, the company plans to state that why the people should buy or use their products and
services. David Jones develops its value proposition by focusing on the tastes and interests of
potential customers. It is making innovations in its brands to create them more attractive. In the
future, the organization should foster one-to-one relationship with its customers. It should
develop and offer the products by collecting the behavioral and demographic information of
customers (Jones, Comfort & Hillier, 2007). The major appeal of David Jones to the customers is
the excellent quality of products. The company needs to develop a value proposition so that it
can stay competitive with its strengths. Its online stores should be very efficient and innovative
to deliver the significant value to customers by providing ease of shopping process and
dispatching speed.
Positioning Statement
Positioning statement is an important statement of the company that focuses on how the
customers look at the organization’s products and services and the benefits which customers get
from dealing with the company (Jones, Clarke-Hill, Comfort & Hillier, 2008). David Jones is
using attractive slogans to grab the attention of Australian population towards its products and
services. Its positioning statement shows that company offers retail products with exceptional
quality and style. The current positioning statement of the company is “Style Within Reach”. In
the future, the firm can use the statement like “Affordable Style”.
Issue 5: Developing Marketing Tactics
Considering the above components of marketing process, David Jones Limited should create
marketing strategies and tactics which can be developed under marketing mix framework

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(Borden, 2015). The below paragraph includes the recommended marketing mix for David
Jones:
Product
David Jones Limited is a famous organization that offers variety of products to its potential
customers. It products include home appliances, toys, electronics, stationary, travel goods,
beauty products, menswear, shoes and other items. The organization should focus on including
new products in its product line. These products may be such as jewelry, footwear and other
products for females. The major customer segment is covered by females so it should focus on
the female’s products. In addition to this, David Jones should focus on providing excellent
quality at reasonable prices. It should emphasize on packaging and labeling so that this can
attract more customers (Swayne, Duncan, & Ginter, 2012).
Prices
Price strategy is the major strategy that assists a company to attract a larger customer base.
Currently, David Jones offers its retail products on higher prices than its competitors like Target
and Aldi Australia. Now, the company should offer the products on affordable prices because it
will attract more people towards buying the products of David Jones in comparison to competing
brands. It should make balance between affordability and profits (Hanssens, Pauwels, Srinivasan,
Vanhuele & Yildirim, 2014). An affordable pricing policy will help David Jones to appealing
more people in minimum period of time.
Place
Currently, David Jones is offering its products through physical and online stores. The past data
shows that customers are more interested to purchase the products online than from physical
stores. David Jones has limited existence in global markets so it should make efforts to establish
an extensive distribution network. It should use effective distribution channels to deliver the
products and services to final customers. The company should encourage its suppliers and
distributors which will assist the firm to reduce the delivery time and shipping costs. To expand
its business in international countries, it should collaborate with already established players in
the local retail sector. Thus, the place strategy will assist David Jones to attract more and more
customers towards its retail products and services (Wethey, 2013).

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Promotion
By enhancing its promotion strategy, David Jones Limited can increase brand presence and
awareness among targeted population. Now, the organization should focus on promotional and
advertising process so that it can enhance brand image among targeted customers. In the future,
it should use different promotional techniques such as personal selling, sales promotion,
advertising, public relations etc. Under advertising, it will adopt both internet sources and offline
modes of promotion (Fassnacht, & Königsfeld, 2015). These are the best ways to communicate
its brand message among a large customer base. It can give advertisement in the magazines and
newspapers so that company can deliver its brand message to a larger population. Additionally, it
will post the advertisement on social media portals like Facebook, Twitter and Youtube. It
should create a page on these portals and post the pictures and videos of their products. David
Jones should use cross selling technique in its promotion process that will enable the
organization to stay competitive in the Australian retail industry (Ailawadi, Beauchamp, Donthu,
Gauri & Shankar, 2009).
Conclusion
In the limelight of above discussion, it is hereby concluded that David Jones is adopting effective
marketing processes and strategies to achieve its marketing objectives and goals. The company is

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making each and every effort to fulfill the needs and wants of its targeted customers. It is
delivering four elements like excellent quality, significant value, great saving, special purchase
etc. From the above report, it can be found that despite of effective strategies, the company is
failed to gain enhanced brand image in the market. So organization should upgrade its marketing
strategies and tactics. It will assist the firm to gain sustainability in the Australian retail industry.

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