Marketing of John Lewis Assignment

MARKETING

TABLE OF CONTENTS
TASK 1............................................................................................................................................3
1.1 INTRODUCTION.....................................................................................................................3
1.2 Marketing process......................................................................................................................3
1.2.1 Analysis on mission and objective................................................................................3
1.2.2 Situation Analysis..........................................................................................................4
1.2.3 Marketing strategy.........................................................................................................8
1.2.4 Marketing Mix decisions...............................................................................................9
1.2.5 Implementation and control ........................................................................................10
1.3 The role of marketing in creating value for customers............................................................11
1.4 Stakeholders engagement and their impact on marketing activities........................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

TASK 1
1.1 INTRODUCTION
Marketing is one of significant function of business through which corporation can
introduce and market its product and services. It is exchange process of product and services
between seller and buyer. It includes several activities such as advertising, selling, promotion,
distribution etc. The current report is based on the marketing and its significance within business
enterprise that is John Lewis. It is one of the leading company in the retail industry and offers a
wide range of products such as cosmetics, perfumes and household products. In this study,
situation analysis of the John lewis has been systematically discussed.
1.2 Marketing process
Marketing process is the procedure of analysing the opportunity in the market, select the
target market and management of marketing efforts and analysing the opportunities in the
market. In order to initiate the marketing procedure, organisation have to focus on the several
aspects such as situation analysis, marketing strategy, marketing mix decision, budget,
implementation and controlling etc.
1.2.1 Analysis on mission and objective
In the 1929 John Lewis was founded in Oxford street by Spedan lewis. Corporation is a
famous retailer which offers high quality of luxury products and services. Firm offers a range of
commodities for women, kids, men. Business enterprise also serves cosmetics, perfumes and
household products. John Lewis has more than 50 stores throughout England, Scotland and
Wales.
Mission
John Lewis mission is to deliver stylish, classic, unique design products and services. Its
main objective is to increase customer satisfaction by delivering high quality of products and
services to them. Organisation desires to become number one retail outlet which offers clothes.
Company visions is to become number one fashion retailer in the world.
Objectives
Firm objective is to open more branches in the main cities around the world and it has 35
of the stores are traditional department stores. It uses attractive themes and appearances for its
physical stores in the city. Now, company is going to launch the woollen clothes for all age

group of customers such as kids, male, female etc. The main purpose of launching new product
is to attract large numbers of customers and earn maximum profitability.
1.2.2 Situation Analysis
As John Lewis main aim is to produce unique, stylish and fashionable products and
services and its vision is to become number one retailer in the world. For achieving this
objective, corporation must focus on the business environment that consists of internal and
external factors. These elements affect business activities and functions, so it is very important
for firm to conduct analysis of business environment, so as it can cope up with changes by
developing impressive business strategies.
PESTLE Analysis
Political- Every nation's government have some specific regulation, policies, rules, practices that
have to be followed by every organisation in their business. Political factors can also disrupt the
supply chain and other operations of business (Jaramillo and Spector, 2015). Due to regular
changing policies, regulation and rules, organisation have to make changes in its business
operation.
Social and cultural- Customer taste, preferences, life style, culture, social norms, background
etc. affect John Lewis business operation. In order to make business effective and earn maximum
profitability, corporation have to focus on the customer requirement and deliver services and
items accordingly (Kubacki and et.al., 2015). By developing understanding demographics,
people standard, education level, attitudes etc. John Lewis has met customer expectation and has
established good position in the market.

Illustration 1: Pestle Analysis
Source: (Pestle Analysis, 2018)
Economical-Economic factors affect John Lewis pricing policies and strategies, as it includes
economic condition of the country such as recession, inflation, rate of interest etc. John Lewis
have to set prices of product and services according to the economic condition of country. John
Lewis has a great strategy as it sets affordable price for its product and services so as everyone
can easily afford its brand. John Lewis have effectively maintained its business in the high
competitive business environment.
Technological- In the retail industry, internet shopping is main trends that directly influence
sales (Goldfarb and Tucker, 2011). Due to changing regular technology, corporation have to
make changes its business operation accordingly. John lewis have effective presence on social
media and with help of internet company effectively promotes its product or services in the

market. Paperless operation, the management and administration of the corporation are
implementing IT systems in the John Lewis company.
Environmental- John Lewis use renewable source of resources such as cotton, wool etc. in the
business operation and production. Company is using several natural resources in production and
manufacturing procedure. By utilise natural resources, company engaged with environment
friendly criteria of business. (Pestle Analysis. 2018)
Legal- This constituent includes legislations which are imposed by government to make people
feel secure. John Lewis have followed all legislation for protecting its employees, business and
customers. The various laws which are followed by an organisation are customer rights act,
employment rights act, Customer goods and service act etc.
SWOT Analysis
Strength
 John Lewis have highly qualified
management team that is contributing
effective efforts for improving
profitability.
 Company produces high quality and
unique featured product and services
through which it has able to establish
good position in the market (Ferrell and
et.al., 2014).
 It is using celebrities as their brand
ambassadors and it is aggressive market
itself.
 John Lewis has more over 35000
employees and it offers online buying
option along with international
deliveries of products.
Opportunity
 One major opportunity is to expand
network, product portfolio and reach to
people by opening up more flagship
stores and brands.
 another opportunity to become
numbers one fashion retailer in the
world and deliver varieties of product
and services.
 It's another opportunity is to enhance
purchasing power parity lead to
improve lifestyles.
Weakness
 John Lewis criticized for fuelling
Threat
 Major threat is huge competition in the

accusations of poor managerial
incompetence, corporate governance
and lack of transparency infuriating
many large investors.
 John Lewis product price is higher than
supermarkets and grocery stores which
might limit the target group.
 It offers a limited products and
services as compared to other super
markets.
retail fashion industry as there are
various corner stores, supermarkets and
other convenience stores.
 Regular changing demand of customer
regarding fashionable items is another
threat of John Lewis firm (Dhar and
Varshney, 2011).
 Technological changes also affect
operation, manufacturing and
production work in the company.
 Poor corporate governance in the
corporation might lead to a decrease in
the interest margins and decline in
revenues accrued from the cash equity
business.
Porter Five Force Analysis
Porter five form model help's corporation in identifying business competency and
competitiveness as compare to other companies in an industry. Following are systematic Porter
five force analysis of John Lewis company-
 Level of competition- John Lewis have large numbers of competitors such as Tesco,
Asda, Sainsbury and other clothes retailers such as Next, Topshop, Marks and Spencer
and Zara. Thus, it can be said that threat of competition is high for John Lewis company.
 Threat of substitution- There is no major substitutes of food and clothes produced by
John Lewis company because it serves high quality of products and services to its
customers. Thus, it can be said that threat of substitution is low for John Lewis company.
As per the research, it has been found that Waitrose and Peter Jones and Marks and
Spencer offer high quality of apparel. Company have threat from these organisations as it
delivers same commodity and services to customers.
 Threat of new Entrants- Threat of new entrants for John Lewis is low as compare to
other retailer because for entering into the new market, firm have to make huge capital

investment (Cochoy, 2014). At initial level, any venture required huge capital so threat of
new entrants is low.
 Bargaining power of buyers- John lewis have large numbers of competitors in the
market due to which customers have lots of option to purchase the same products and
services from other shops. If any product and service price changed then customer have
option to switch to other brand. Thus, it can be said that bargaining power of buyers is
high (De Mooij, 2013).
 Bargaining power of suppliers- John lewis is huge brand in the fashion retail industry.
It doesn't depend upon suppliers for sale its product and services in the market. John
Lewis buys raw material and not finished goods which is favourable for margins. Thus, it
can be said that bargaining power of supplier is low of John Lewis company.
1.2.3 Marketing strategy
Segmentation: Segmentation is the procedure to divide the entire marketplace into small parts or
segments which are definable, accessible, actionable and profitable and have a growth potential.
With help of market segmentation, organisation can easily focus on the small parts and deliver
products and services in that markets (Barrett and Weinstein, 2015).
There are various kinds of market segmentation such as demographic, behavioural,
geographic, psycho-graphic and benefit segmentation. In the demographic segmentation,
organisation focuses on the age, income, gender, education, living standard of customers. On the
basis of these elements, company divide market. On the other and in the behavioural
segmentation, organisation divide market on the basis of customer behaviour, choice, preferences
etc. On the other hand, in the geographical segmentation, company divides market on the basis of
location. In order to promote its new product that is Woollen cloth, John Lewis will focus on the
demographic segmentation (Chen and et.al., 2015). In this aspect, company will focus on age,
gender and income group of customers. Organisation will produce and deliver Woollen cloth for
Kids, Male and Female customers. Furthermore, Company's product will available in all price
range, so higher to lower income group of customer can easily purchase it.
Targeting: Targeting is the procedure of identifying the most attractive segments from entire
segment market. In a simple word, it is a follow on the basis of segmentation and is the
procedure of determine the select market and plan the advertising media used to make the

segment. John Lewis focused on the effective targeting strategy through which it has
successfully met every customer's requirement by delivering high quality products and services.
Positioning: Positioning is a process to analyse and assess that what are the customers’ views
about company’s products and services as compare to other competitors in the market. Customer
reviews and perceptions have a huge impact on the brands positioning in the market. There are
three types of positioning that is functional, symbolic, and experiential positioning. John Lewis
will focus on the functional positioning under which corporation focuses on the aspects of the
products and services that can fulfil buyers needs and requirements.
1.2.4 Marketing Mix decisions
Product- John Lewis is one of the leading premium retail store based out of UK. It provides
varieties of products such as Home and Designs, Electronics and technology, Gift and
celebrations, fashion, baby and child.
Price- Company believes in providing the products or services at the fair price, as it adopts a
competitive pricing strategy for all its products and services. It has policy to ensure capture the
market with very competitive pricing among all players (Extended Marketing Mix: The 7 Ps of
Marketing. 2014).
Place- John Lewis uses the multi channel's strategy and also considers various distribution
channel for delivering products and services to customers in the market. It also has presence on
the E-commerce channels including You Tube, Facebook, Twitter, Instagram etc. It has also
released smart phone application for improve its sales of product and services.
Promotion- Company uses innovative promotional strategy for its products and has creatively
used the occasion of festival in order to develop special advertisements. Company uses creative
advertisement on the special occasion, festival and events in the year so as large numbers of
customers can easily attracted (Wilson, 2001).
Physical evidence- John Lewis 35 of the stores are traditional department stores and 12 are John
Lewis at home stores. Its stores are customer friendly and comfortable. It offers loyalty card,
shopping bags, in-house brands etc.
Processes- John Lewis has several business processes in place which aids to ensure the smooth
operation of the retail brand.

Illustration 2: Marketing Mix
Source: (Extended Marketing Mix: The 7 Ps of Marketing, 2014).
People- John Lewis focuses on the customers as well as employees’ requirement. It ensures to
deliver quality products and services at affordable price through which customer can satisfy. In
addition, to this, it also organises training and development program for improving employees
performance and satisfaction level (Whittaker, 2009).
1.2.5 Implementation and control
Impact Analysis
Impact analysis is a process of identifying the potential consequences of a change. It helps in
estimating what requirements to be modified to accomplish change. With help of this procedure,
John Lewis company can easily analyse and assess the changes that occurred after use various
techniques and tools in the business. Once the necessary changes implement in the business,
John Lewis, analyse and assess its existing performance by use of impact analysis techniques.

Controlling and monitoring is one of the essential activity in the marketing by which
organisation can easily control and monitor each and every action regarding business.
Organisation should control and monitor the marketing plan by use of following techniques- Budget analysis: This is one of the most significant method used for monitoring and
controlling business activities and function (Nykiel, 2007). In order to monitor marketing
plan of John Lewis will use budget analysis method by which financial activities can be
easily measured. Each and every financial requirement can easily assess with help of this
technique.
 Timely report- This is another significant method of monitoring and controlling, by
which organisation can easily assess the gap between actual and expected results of the
activities.
1.3 The role of marketing in creating value for customers
Product- John Lewis is going to launch Woollen clothes for all age of customers such as Kids,
Male and Female. This product will help corporation in gaining competitive advantage and will
assist in attracting large numbers of customers.
Price- Company will use penetration pricing strategy under which firm sale its product and
services atvery low prices at initial level. With help of this pricing strategy, firm can improve its
sales and profitability.
Place- The new product of company will be distributed by use of both physical store and online
platform. It has large number of store in the several countries through which customer can easily
access the products or services offered by an organisation. With help of internet and social media
it can easily promote and deliver commodities (Kumar, 2010).
Promotion- John Lewis will promote and advertise new Woollen cloth products with help of
social media and print media. In the social media strategy, company will create profile on
Facebook, Twiter, Instagram etc. for promoting new product.
Physical Evidence- Company will also sale its new Woollen cloth product through its online
stores as John Lewis have large numbers of stores in commercial area in the city
Processes- Company will use electronic customer relationship management system for deliver
its product and services in the market (Halal, 2003).

People- Corporation will effectively satisfy customer as well as employees by fulfilling their
requirements. Company will offer high quality products to customers at affordable price for
deliver effective customers satisfaction. In addition to this, corporation will provide effective
salary, wages and incentive to its employees.
1.4 Stakeholders engagement and their impact on marketing activities
Stakeholder plays a very crucial role in the company who directly and indirectly affected
by business changes. When organisation makes any changes in the business policies, procedure,
practices and strategies then they must have to consider stakeholder contribution (Aaker, 2011).
John Lewis important stakeholders are customer, employees, government, suppliers, investors
etc. who may directly and indirectly get affected by business decision. At the time of initiating
marketing activities like design pricing strategy, promotion, distribution, deliver of commodity,
etc. company should focus on the stakeholder engagement. It should invite them in decision
making procedure, so as they can give their reviews, opinion, suggestion regarding activities.
Each and every action can directly affect interest of stakeholders.
CONCLUSION
By this entire report it has been summarised that marketing plays a very significant role
in order to gain effective profitability in the market. With help of business environment analysis,
organisation can easily cope up with changes and develop effective strategy and policies for
business. John Lewis have strong position in the market due to its unique and high quality
featured product and services.

REFERENCES
Books and journals
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business performance. In Proceedings of the 1997 Academy of Marketing Science (AMS)
Annual Conference. Springer International Publishing.
Chen, Y. and et.al., 2015. Linking market orientation and environmental performance: The
influence of environmental strategy, employee’s environmental involvement, and
environmental product quality. Journal of Business Ethics. 127(2). pp.479-500.
Cochoy, F., 2014. The American Marketing Association: A handrail for marketers and marketing
history. Journal of Historical Research in Marketing. 6(4). pp.538-547.
De Mooij, M., 2013. Global Marketing and Advertising: Understanding Cultural Paradoxes:
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Dhar, S. and Varshney, U., 2011. Challenges and business models for mobile location-based
services and advertising. Communications of the ACM. 54(5). pp.121-128.
Ferrell, C. O. and et.al., 2014. Marketing Principles PDF. Cengage Learning Australia.
Goldfarb, A. and Tucker, C.E., 2011. Privacy regulation and online advertising.Management
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Halal, W., 2003. E‐commerce forecasts: a return of the dot.com boom. On the Horizon. 11(1).
pp.23 – 25.Varey, R., 2002. Marketing Communication: A Critical Introduction.
Routledge.
Jaramillo, F. and Spector, P.E., 2015. Sunk Cost Effect, Escalation of Commitment and the
Principle of Fungibility: Consumers’ Reactions to Membership Cards. In Creating and
Delivering Value in Marketing. Springer International Publishing.
Kubacki, K. and et.al., 2015. A systematic review assessing the extent of social marketing
principle use in interventions targeting children (2000-2014). Young Consumers.16(2).
pp.141-158.
Kumar, V., 2010. Customer relationship management. John Wiley & Sons, Ltd.
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Whittaker, M., 2009. An introduction to Internet marketing and planning. Lulu.com.
Wilson, R., 2001. Planning Your Internet Marketing Strategy: A Doctor Ebiz Guide. Wiley.
Online
Extended Marketing Mix: The 7 Ps of Marketing. 2014. [Online]. Available through: <
https://blog.udemy.com/extended-marketing-mix/>.
Pestle Analysis. 2018. [Online]. Available through:
https://blog.oxfordcollegeofmarketing.com/2016/06/30/pestel-analysis/.
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