This report evaluates the current position of Debenhams in the market and recommends digital marketing strategies to improve brand position and reach a larger market share. The strategies include social media marketing, search engine marketing, e-commerce marketing, and data-driven marketing.
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Running head:Marketing MBA ASSIGNMENT By (Student's Name) Class Teacher Name of the School City Date
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Marketing2 Executive summary Digital age marketing strategies remain the current most effective marketing strategy that allows customers to interact with the marketing elements. Debenhams departmental store has experience challenges such as a decline in profit, ownership challenges and financial challenges that resulted in closing of some stores. In order to improve the company's brand position within theUKmarket,somedigitalmarketingstrategiesarerecommendedforDebenhamsto implement. The marketing strategy aims to increase the brand position, reach larger market share within the country and capture the larger online users within the country in the next 12 months. Thesuggestedmarketingstrategyincorporatesocialmedia,searchenginemarketing,e- commerce marketing, and data-driven or business intelligence marketing. The overall result will be a larger market share, more online buyers and reach international market segment.
Marketing3 Table of Contents 1.Aim of the report...............................................................................................................................3 2.Debenhams and company background............................................................................................3 3.Brand SWOT Analysis of Debenhams.............................................................................................3 4.Debenhams Segmentation and targeting.........................................................................................4 5.Debenhams Brand position analysis.................................................................................................5 6.Debenhams Brand position objectives.............................................................................................6 7.Debenhams Brand communication objectives.................................................................................7 8.Digital marketing campaign.............................................................................................................8 8.1 Search engine marketing...................................................................................................................9 8.2 E-commerce marketing.....................................................................................................................9 8.3 Social media marketing......................................................................................................................9 8.4 Data-driven and business intelligence marketing............................................................................10 8.5 message...........................................................................................................................................10 8.6 Marketing audience.........................................................................................................................11 8.7 Potential impact of the marketing campaign...................................................................................11 8.8 Integrated marketing communication.............................................................................................12 9.Conclusion........................................................................................................................................12 References................................................................................................................................................14
Marketing4 1.Aim of the report The aim of the report is to evaluate the current Debenhams position in the market and develop the digital marketing campaign that enables the company to move to the next high position in the market. The report analyses the position of the company in the market factoring the challenges that the company has faced in the market. The digital marketing campaign will enable the company to improve on its current position to the next high position in the retail market. 2.Debenhams and company background Debenhams is departmental stores that operate many stores across the UK retail market. The company is the largest departmental store by the number of outlets and one of the top ten largest retailers in the UK overall. The company also has some outlets within Ireland on franchise arrangement. Debenhams sell clothes, furniture, household items, and cosmetics among many other products. The company was founded in 1778 in London and has now moved to other cities and countries such as Denmark and Ireland. The company has increased its operations to cover the online market where it has online platforms and mobile apps that help customer to shop anywhere (Butler 2016). 3.Brand SWOT Analysis of Debenhams SWOT Analysis Strength 1.Successful new product development 2.Marketentrystrategiesallowcompany success Weaknesses 1.Poorfinancialplanningthatleadsto inefficiencies 2.Poordemandforecastingthatresult
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Marketing5 3.High customers service and satisfaction is a strength imbalance between demand and supply 3.Nofeedbackmechanismleadingtoless competitiveness Opportunity 1.Currentconsumerbehaviorspresentan opportunity for building a strong customer base 2.The government policy of free trade present opportunity for international expansion 3.Marketingtechnologiesavailableinthe market has a competitive advantage for the company Threats 1.The rising cost of raw material is a threat to Debenhams operations 2.Intensive competition from other brands 3.Environmentalregulationthatlimitsthe retail impact on the environment 4.Debenhams Segmentation and targeting ThemarketintheUKcomposesofpeoplefromdiversebackground,ethnicity, geographical location, and different consumerbehaviors. Debenhams market segmentation can be divided in terms of geographical, demographic and social class segmentation. Firstly, in terms of geographical segmentation, Debenhamscustomer majorlycomes from the UK where the company has the highest number of store outlets (Titcomb 2014). A few numbers of customers come from Denmark and Ireland. The company has also taken root in the online market gaining a significant number of customers. Secondly, the social grouping of the customers that shop at Debenhams gives the middle class as the highest number.The market segment for Debenhams is majorly composed of customers from the middle and upper middle class and forms 35% of all
Marketing6 customers. Thirdly, the company has numerous marketing campaign that reaches customers that are women. The company management has highlighted that their main focus currently is on women aged 35 and above not girls. This indicates that the main market segment of the company is women and this is connected to the company's designers’ collection (Goyat 2011). Debenhams target market comprises of various customer categories that the company aim toreachwithintheUKandinternationally.TheDebenhamstargetvariouscustomer classification within the UK and some of these include a range of the demographic target, gender target, social class target. Firstly, the largest target market for the company is majorly women of 35 to 54 years of age. Secondly, the company has been targeting people from different social class throughout the UK. The target market for Debenhams is majorly middle class and upper- class customers. Lastly, the company in terms of the geographical target is major people from the UK but the company is also coming up with an international target to reach more customers outside the country (Jobber & Ellis-Chadwick 2016). 5.Debenhams Brand position analysis The Debenhams stores in the currently the largest departmental store within the UK in terms of the number of outlets. The company has been focusing on the local UK market and this has caused the company to grow locally as compared to other stores that are doing good internationally. The company has been among the largest company in the market despite challenges that the company has been facing in the UK retail market (Rowles 2014). Currently, the Debenhams store is at number nine among the top largest companies within the retail market. In addition, the company is known within the country as affordable price destination for the
Marketing7 customer, especially on its designers. The brand position on the online retail market has been good and has received high customer rating due to customer satisfactory service (MogoÅŸ 2016). There are some challenges that the company has faced in the market leading to brand market share challenges within the UK market. The company has been facing many different challenges such as low profit, fall in sales and low share prices. Firstly, the company has reported low profit over the last year December season caused by a fall in sales. Loses that the company made over the last year resulted into shutting down of a number of stores to reduce financial challenges. This is also coupled with a fall in the share prices that started sometimes back due to the company low profitability and ownership. Secondly, Debenhams has experience ownership tussle that has highly affected the company operations. The company has undergone a number ownership transitions that date back in 2003 when the company was bought by Texas Pacific Group, CVC and Merrill Lynch Private Equity bought the company. The company has since then suffered numerous financial challenges as the owners seek to make a profit at the expense of the company performance (Chapman 2018). 6.Debenhams Brand position objectives There are some brand positioningobjectivesthat are recommended to enablethe company to move high than it currently holds within the UK and regionally in the next 12 months. The brand positioning objectives are to have the largest market share, to be the number one online designer store and to be premier departmental store regionally.Firstly, Debenhams should take the largest market share in the designer retail store within the UK despite its current top ten positions within the country. The company has been doing better in the country despite some financial challengesthat it faces and this could improve to be the largest market
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Marketing8 shareholder within the UK retail market. The company has opportunities to take hold of its current customers due to the current customer service quality (Megaw 2018). Secondly, the company should be number one online store with many customers more than any other company within the country. Since the company launched its online store, the company has reached many customers within the country and is promising to reach more customers. Therefore, the company needs to expand its online marketing operations to be the number one online designer collection within the country. This will also enable the company to reach more customers internationally in the next 12 months (Brinkley 2012). Thirdly,thecompanyisdeterminedtobepremiumdepartmentalstoreregionally reaching more customers through online and franchise models. The company has ventured in Ireland and Denmark and should go beyond those two countries to reach more customers. The marketing campaign seeks to make the company a premier company regionally or internationally with many stores outside the UK. In addition, the company has been using franchise arrangement to operate in other countries and this can still make the company realize a large market share outside the country (Lerman 2014). 7.Debenhams Brand communication objectives The brand communication objective is to reach more customers within the country online and internationally in 12 months. The brand communication objective is to reach more customers within the country, connect with many online users and to reach more customers outside the country. Firstly, Debenhams marketing communication seek to reach more customers within the country that will increase brand market share in the next 12 months. The communication seeks to
Marketing9 reach a larger proportion of customers within different age groups, social classes and many geographical locations within the country (Ozuem & Bowen 2015). Secondly, brand communication will connect many online users to the store through various online platforms. This objectiveseeks to make the company has a dominant online store selling products through many different digital platforms. This will increase the online presence of Debenhams hence more market share. The online objective of the communication campaign is based on the possibility of the company to realize a high conversion rate between online users and buyers (Tuten & Solomon 2015). Thirdly, the company will focus on getting more customers across the border into another country regionally. The company has been reaching only two countries regionally and in the next 12 months, the company should reach more customers outside the UK. This will allow the company to realize huge sale volume as many online users come from a different country apart from the UK. The company through its online e-commerce platform has the opportunity to reach more customers across the borders of the country (Wagner 2013). 8.Digital marketing campaign The digital marketing company that is mainly integrated marketing communication that integrates various digital marketing methods to reach more customer. The digital marketing campaigns will combine various marketing platforms, audience and has a potentially huge impact. Digital marketing campaigns comprise of various digital marketing methods such as searchenginemarketingandoptimization,socialmediamarketingandoptimization,e- commerce, data-driven marketing, and mobile app marketing (Chaffey & Ellis-Chadwick 2015).
Marketing10 8.1 Search engine marketing Firstly, search engine optimization and marketing is a method that will involve increasing visibility of Debenhams stores and products on the searchengine. Here the main target search engine is Google being the largest search engine currently used for marketing. The main aim of the search engine marketing campaign is to make Debenhams appear on top of the search engine when products such as fashion and designer collections are searched within the internet. This will enable the company to be the first stop by customers searching for products (Kaufman & Horton 2014). 8.2 E-commerce marketing Secondly, e-commerce marketing will make use of the online store already established by the company to do the marketing of various products available. Running e-commerce marketing will also enable the company to reach more customers online through various e-commerce marketing channels. Some of the channels that will be used to market the online store include mobile commerce and social media integration. E-Commerce marketing will enable users to obtain products at their closes comfort. E-commerce allows customers to interact with the company online platform through placing of orders (Laudon & Traver 2015). 8.3 Social media marketing Social media marketing is another digital marketing method that will comprise of various social media platforms. Social media marketing focuses on the larger percentage of social media
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Marketing11 platforms within the UK alone. Social media marketing will also allow the company to reach other social media users outside the country (Ozuem & Bowen 2016). Some of the common socialmediathatwillbeusedformarketingincludeFacebook,Twitter,YouTube,and WhatsApp.These social media platforms have many users that can easily accept products sold within the company. Social media optimization is also part of the social media marketing that majorly focus on making the company social media page visible to all social media users.These social media platforms are digital marketing communication channels that allow customers to interact with the marketing campaigns as the element of digital age marketing (Danova 2014). 8.4 Data-driven and business intelligence marketing Data-drivenmarketingisdigitalmarketingthatusesdataanalyticsandbusiness intelligence to market Debenhams store products. Data analytics make use of consumer data and information generated from consumer online behavior to market products (Liu& Burns2018). Data on consumer preference and choice is generated from online platforms such as the company’s online platforms. These data include the items that customers have been viewing over their last visit and match the item with the available items. All stocks that are related to previous customer browsing habit are therefore presented to customer whenever they visit the store again. In addition, whenever a customer views some products online, all related items are also presented to the customer to increase their purchasing probability. Business intelligence also makes use of data from browsing habit of the consumers to market products to such consumers (Bowen & Ozuem 2015). 8.5 The message
Marketing12 The message that will be presented to consumers is based on three key elements affordable, designer collection and increase beauty. The message that will be presented in the marketing campaign will be based on the company philosophy of giving affordable products to the customer. Another aspect of the message will present the store as the number one designer's collection for all customers. The last bit of the campaign message will be grounded in the current marketing target message that aims to increase the beauty of women within the country. The marketing campaign message will, therefore, be‘Do not miss out our affordable best designers’ collection that increases your beauty’. This message will drive people to check out affordable products from the best designer with the aim of increasing their beauty (Kates 2013). 8.6 Marketing audience The campaign target women that are the core customer portfolio for the company within the UK and internationally. The audience that the campaign aims to reach is mainly online users that are from the UK and internationally. The campaign targets to reach as many people as possible online in order to realize the potential impact on brand sale and position. In addition, the campaign will also reach various categories of customers from different background, profession and ethnicity with the desire for beauty or affordable products (Buttle & Maklan 2015). 8.7 Potential impact of the marketing campaign The marketing campaign has a potential impact of reaching many online UK users that forms is ranked fifth within Europe. The UK has average monthly online users of 56.7 million by 2017 forming a larger proportion of the potential market. The potential penetration rate within
Marketing13 the UK is between 90.64 in 2016 to 94.85 % in 2017, these figures that are expected to increase. Currently, potential online buyers within the country stand at 78% as at 2018 statistics. Among the online buyers, female buyersare ranked at 69% and the figure is slightly higher than male buyers. This implies that an intensive marketing campaign using digital media is likely to reach a larger percentage of people within the country. The company’s marketing campaign targets to reach over 54% weekly internet buyers within the country plus many others outside the country (French & Smith 2013). 8.8 Integrated marketing communication This marketing campaign fits with integrated marketing communication as it incorporates various marketing communication that is digital in nature. The marketing communication can incorporate other marketing aspects that are not digital in nature to bring up a well-integrated marketing communication system. These are marketing channels that are not digital include print media, audiovisual media, public relations, road shows campaigns and personal selling. These strategies will enable Debenhams to reach as many customers as possible leading to larger market share hence better brand positioning within the country (Chaffey & Ellis-Chadwick 2012). 9.Conclusion In conclusion, the digital age marketing entails many different marketing methods that result in better brand positioning and larger market share. Debenhams departmental stores have been experiencing some challenges that are easily offset by the opportunity that is available in the UK market. The company has been within the top ten stores occupying number nine position
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Marketing14 despite being the largest store by a number of outlets. The brand positioning objective for this digital marketing is to enable the company to have the largest share within the country, number one online designer store and to be premier departmental store internationally in the next 12 months. This brand positioning objective gives rise to communication objective that will be to reach many customers within the country, online and internationally within the next 12 months. The digital marketing campaign is designed to focus on various methods, reach many audiences and communicate a unique message that will result in huge brand positioningimpact. In the next 12 months, the company will invest in social media marketing, search engine marketing, and optimization, e-commerce marketing, data-driven marketing, and mobile apps marketing. The overall impact is to reach over 54% weekly online buyers within the UK and many other online users outside the UK. In light of the analysis, Debenhams need to implement that digital marketing campaign that will incorporate various digital marketing tools together with other non-digital marketing methods. the implementation of marketing communication should form an integrated marketing communication strategy that will ensure that the company increase its market share, improve on brand position and reach a larger market segment in the next 12 months. Some of the non-digital marketing communication methods that form part of integrated marketing communication that the company should use along digital marketing are personal selling, print media, public relation, event marketing, and audiovisual marketing.
Marketing15 References Brinkley, C. (18 October 2012)Digital marketing is growing in Australia, but so is the skills gap,Econsultancy.Availableathttp:/econsultancy.com/au/blog/10906-digital-marketing-is- growing-in-australia-but-so-is-the-skills-gap[Accessed 3, May 3, 2019] Bowen, G & Ozuem, W. (2015)Computer-mediated Marketing Strategies, Hershey: IGI Buttle,F.&Maklan,S.(2015)CustomerRelationshipManagement:Conceptsand Technologies. London: Routledge, 3rdEd. Butler, S. (27 October 2016) Debenhams targets BHS customers with new lighting departments. TheGuardian.Availableathttps://www.theguardian.com/business/2016/oct/27/debenhams- targets-bhs-customers-with-new-lighting-departments[Accessed 3, May 3, 2019] Chaffey, D. & Ellis-Chadwick, F. (2015)Digital Marketing: Strategy, Implementation, and Practice, Harlow: Pearson, 6thed. Chaffey, D. & Ellis-Chadwick, F. (2012)Digital Marketing: Strategy, Implementation, and Practice.1st ed. Harlow: Pearson Education. Chapman, B. (8 February 2018) Debenhams to slash up to 320 store management jobs in a cost- cuttingdrive.TheIndependent.Availableat https://www.independent.co.uk/news/business/news/debenhams-job-losses-store-management- jobs-cut-costs-profits-sales-a8200151.html[Accessed 3, May 3, 2019]
Marketing16 Danova, T. (2014)For Mobile-Social Apps, Advertising Is Winning As The Money-Making RevenueModel[online].UnitedStates:BusinessInsiderInc.Availablefrom: http://www.businessinsider.com/advertising-is-the-most-lucrative-revenue-model-for-growing- mobile-social-apps-2014-1[Accessed 3, May 3, 2019] French, A. & Smith, G. (2013) Measuring brand association strength: a consumer-based brand equity approach.European Journal of Marketing, vol.47, no.8, pp.1356-1367. Goyat, S. (2011) The Basis of Market Segmentation: A Critical Review of Literature.European Journal of Business and Management.Vol.3,no.9, pp 45.54. Jobber, D. & Ellis-Chadwick, E. (2016)Principles and Practice of Marketing, 8thedn. London: Mc-Graw-Hill.(publisherlinktobuywithdiscount: https://www.mheducation.co.uk/9780077174149-emea-principles-and-practice-of-marketing- group).[Accessed 3, May 3, 2019] Kates, M. (17 April 2013)Making digital and traditional marketing work together,Econsultancy. Availableathttp:/econsultancy.com/au/blog/62546-making-digital-and-traditional-marketing- work-together[Accessed 3, May 3, 2019] Kaufman, I. & Horton, C. (2014)Digital Marketing: Integrating Strategy and Tactics with Values, A Guidebook for Executives, Managers, and Students. London: Routledge Lerman, S. (2014)Building Better Brands: A Comprehensive Guide to Brand Strategy and Identity Development.How Design Books Laudon, K. & Traver, C. (2015)E-commerce 2015: Business.Technology. Society, Harlow: Pearson.
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Marketing17 Liu, X, & Burns, A. C. (2018)Designing a Marketing Analytics Course for the Digital Age. Marketing Education Review.Vol.28,no.1, pp 28–40.doi:10.1080/10528008.2017.1421049. Megaw, N. (2 March 2018) Sports Direct lifts Debenhams stake to almost 30%. Financial Times. Available athttps://www.ft.com/content/2888bd78-1e1b-11e8-aaca-4574d7dabfb6[Accessed 3, May 3, 2019] Mogoş, R. (2016) Digital Marketing for Identifying Customers' Preferences -- A Solution for SMEs in Obtaining Competitive Advantages.International Journal of Economic Practices & Theories.Vol.5,no.3, pp 240–247. Ozuem, W.& Bowen, G. (2016) Competitive Social Media Marketing Strategies, Hershey: IGI. Ozuem, W. & Bowen, G. (2015) Computer-mediated marketing strategies: social media and online brand communities, Hersey: IGI Publications Rowles, D. (2014)Digital Branding: A Complete Step-by-Step Guide to Strategy, Tactics, and Measurement.Kogan Page. Titcomb, J. (2 January 2014) Debenhams finance boss quits days after a major profit warning. TheTelegraph.Availableat https://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10546564/Debenhams- finance-boss-quits-days-after-major-profit-warning.html[Accessed 3, May 3, 2019] Tuten, T. & Solomon, M. (2015)Social Media Marketing, London: Sage Publishers. Wagner, E. (2013)5 Business Model Components Every Entrepreneur Needs.Available at: https://www.forbes.com/sites/ericwagner/2013/05/23/5-key-business-model-components/ [Accessed 3, May 3, 2019]