Performance Indicators for Pandora: Sales, Marketing, and Sustainability

This report analyzes the performance indicators for Pandora, including sales, marketing, and sustainability. It identifies ways to measure each indicator and how management can use them to improve business and staff performance. Strategies to correct weaknesses or failures of these indicators are also suggested.

REPORT

Contents
• History of the Pandora organization and its industry....................................................................1
• Selection of at least 3 functional departments...............................................................................1
Research and identify indicators to assess its performance.........................................................1
• Analyze how each indicator would be measured......................................................................2
• Explain how management could use each indicator for business & staff performance............5
• Suggest strategies to correct eventual weaknesses of failures of such indicators.....................6
References........................................................................................................................................8

• History of the Pandora organization and its industry
Pandora is one of the international Danish jewelry manufacturer and the retailer founded it in
1982. Pandora organization includes customized charm bracelet with the different designer rings,
necklace and the watches. The company has the production site in Thailand and the market for
its product is more than in 100 countries in 6 continents with more than 7800 points of sale. The
history of Pandora relates to the owner Danish goldsmith who worked on the small scale with
importing jewelry from Thailand and then selling them to the customers. The lower cost of
production with efficient supply chain requires to provide an affordable and hand-finished
jewelry for the mass market (Wedel & Kannan, 2016). The collection tends to grow which
includes the ring assortment and the earrings etc. The history also highlights about world’s third
largest jewelry when it is related to the sales of Pandora, the first being Cartier and second is
Tiffany & Co. The shift is mainly to focus on the higher end designs that is alienated for the core
customers. The performance is recovered after there is a return to a much better affordable
market mass with the group reporting revenue and a net profit of 3 billion in 2014.
• Selection of at least 3 functional departments
Research and identify indicators to assess its performance
Sales: The sales of Pandora brand began in Europe and then they entered into North America.
Pandora products are not sold in more than 100 countries and their online sales in Europe in
2011 have begun to work on expansion of e-commerce with the majority of markets including
Australia as well (Chen, Ho & Wu, 2016). Here, the growth in DKK has been variant by 36%
where the wholesale growth is -3% and the 3rd party distribution is 18%. The company is
working on the revenues through proper advertisements that are set by providing the innovative
affordable jewelry to cater for the diversity among the different customers (Thomas, 2015).

Marketing: Pandora is able to work on improving and increasing the frequency to sell with new
products. The consumer needs to navigate across different channels through the online and
offline medium for a better personal experience. One needs to strive towards using data to
recognize the consumers for the online and offline and then remember the purchase history as
well. The use of the traditional printing is through moving further into digital one-to-one
marketing. The pursuing of growth helps in continued formation with providing an inspiring and
the personal in-store experience (Gilfoil, Aukers & Jobs, 2015). The expansions of the company
helps in attaining a secured customer journey and experience for the in-store and across
channels.
Sustainability: The sustainability performance indicators help in measuring the company
performance through the economic, social and the environmental performance. This includes the
company turnover, profit and the products sold. The social factors include the labor practices and
the broader issues Pandora is facing. Hence, to maintain the quality, there is a need to employ a
strict quality testing process with higher quality raw materials that take into account different
aspects from the costs through sustainable sourcing and business ethics.
• Analyze how each indicator would be measured
Sales
The sales could be analyzed through focusing on expanding the product collection beyond the
charms and bracelets. The collection will include the collaboration with Walt Disney Company
where the revenues are set for making up 26% of the revenue with the year compared to 23% in
2016. The financial performance and the expanding production capacity could be analyzed
through the image:

Figure: Pandora Sales
The sales could be determined with earnings that are for the effective tax rate that is at 24.8% for
2017 when compared to the initial guidance of 21%. The sales are for handling the underlying
tax rate which is seen to be approximately 21%.
Marketing
Pandora marketing is done with the teams to gather the plan of the year. Here, the evaluation is
done on the previous collections through using input from the regions and the franchises as well.
The marketing standards are set for the product development phase where each new piece is
drawn in 3D at the innovation center of Pandora in Bangkok. Considering the marketing
standards, there are consumer traffic where one engage with the consumers through wider variety
of channels that are from TV advertisements and through the stores and websites. The
interactions are mainly to work and handle the needs and desires of the customers, with giving
them best in-class service across the different touch points (Choi, Ko, Medlin & Chen, 2018).
The elements are based on creating a unique brand experience that will set the competitors apart.

Figure 2: Pandora sales and marketing in 2017
Reference at:<https://www.statista.com/statistics/290437/pandora-marketing-spending/>
Sustainability
The sustainability is considered as an effective way to add the increased value for the consumers.
The operations are performed at the full value chain where the factors are related to different
aspects of business model. The business practices help in designing phases with the choice of
materials and suppliers. The integrated business model includes the control of majority of value
chain for incorporating the sustainability for different aspects of operations (Corrigan, Cracium
& Powell, 2014). The approach includes gaining valuable insights for the critical factors that
shape the business environment and sustainability performance like the industry dynamics,
mining practices and the marketing ethics effectively. The companies tend to prioritize the
development with analyzing whether the product is genuine for usage, and the strategy or profit
generation does not need to be mutually exclusive (Geiger & Kelly, 2014).

• Explain how management could use each indicator for business &
staff performance
Sales: Pandora organization has been always involved in communicating vision so that the
employees and consumers are connected properly. The sales leader need to step outside the
desires for helping the team for pushing and increasing the sales. This needs to have a close loop
between pushing sales people for performance metrics and then encouraging the development for
meeting a particular goal. The expression of gratitude is to handle the long way towards
increasing the performance of sales.
Marketing: The marketing management strategies are for defining and communicating the
different company goals or objectives where the employees do not come for asking the different
follow up questions. The goals are defined through goal tracking software which helps in
managing the distribution of the flyer through the office and holding the meetings as well. The
utilization of performance management software with lower employee engagement can
streamline the performance. There are other performance feedback with using peer reviews that
affirms the employees to work and shape it effectively. The communication of company and
individual goals needs to be achieved with using peer reviews and focusing on preemptive
management and recognition (Subramanian, 2017). This includes how the employees are
working towards building a better communication with assessment to improvement themselves
by watching their colleagues and how they work.
Sustainability: Pandora can work on improving the sustainability through working on
incorporating the aggressive environmental and societal goals. There is a need to spell out the
economic case for sustainability where the research is about how to improve the business for
better profitability. The creation of sustainable knowledge and competency is important for one
to invest in educating the employees about sustainability along with creating systems and

processes to integrate sustainability for business decisions. One needs to make employee a
sustainability champion with leadership that is considered to be a key for embedding the
sustainable business model. The cultivation at different levels can bring co-creative sustainable
practices with employees. There are ways where companies are able to get the better ideas.
Pandora needs to work on encouraging the healthy competition among the employees with the
new set of goals and fostering spirit through company with creating a culture of health
competition.
• Suggest strategies to correct eventual weaknesses of failures of such
indicators
Sales
a. The sales need to be checked and the response of the customers for the product. This will
help in improving and learning about what strategy works best.
b. The failure celebration have to be done with sharing stories about the worst perspectives
as well. There is a need to overthink the failures and then coordinate with the team who is
involved in selling and managing the sales to a greater level (Roberts, Geho, & Hall
Webb, 2016).
c. The overfilling of the leads funnel could be an effective way to handle the undervalued
skills in sales with the ability to have consistency.
Marketing
For the correction of the failing marketing strategy, it is important to focus on:
a. Giving more time and then acknowledge the problems is the best method to handle the
marketing strategy.
b. Differentiate the problems, where there is a need to focus on improving the sales.

c. Making a more valuable offer which can bring an awakening in customers.
d. Retargeting to fit the audience.
e. The segmentation of strategy
f. Alignment needs to be done with different individual practices.
g. Trying a new strategy and then scaling it up with total success. The experiments can help
in different approaches when modifying existing marketing strategies.
Sustainability
For the sustainable consumer, the ethical living is considered an influential mega trend in 2017,
where more consumers are generally aware and interested in the production standards and the
company transparency. The empowerment by the digital technology can help the consumers to
have a better access of information and choices before, leading to a change in shopping behavior
and the expectations as well (Choi et al., 2018).
a. One has to be original where the focus is on making specific references to the principle of
change for leaders to see their organizations.
b. Be forward looking and transformation depending upon the requirements. It will help in
improving the cases with effective change that includes more attractive options.
c. The collaborative options help in attaining the sustainability initiatives with the
unintended consequences or the trade-offs. The goal is to mitigate the risks and drive
innovation or improve the engagement of employees.
d. The value driven factor is considered important with change that has been set to tackle
the problems of risk management with the expansion of vision to consider about the
material issues.

References
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Subramanian, K.R., 2017. Marketing and Promotion of a Single Product in Different
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