Marketing Audit Report

This marketing audit report provides an in-depth analysis of JD Sports Fashion Plc, including its strategies, macro and micro analysis, competitive analysis, and SWOT analysis. It covers factors such as political, economic, social, technological, environmental, and legal factors that can impact the company's operations. The report also highlights the company's mission, vision, and market position, as well as its strengths, weaknesses, opportunities, and threats.

Marketing Audit Report

Executive Summary
Marketing audit report is one of those reports which include strategies mission, vision of
company. It also includes external factors which can affect operation of business. These factors
include political factors, social, environmental, legal, technological factors. It also includes
identification of internal factors like strength, weakness, opportunity and threat ace by business
in market place. It also includes various factor like competitors and their strength and weakness.
It also includes strategies adopted by business to compete with these competitors. There is
various stakeholder of business which include suppliers, customers, employees and other
marketing intermediaries.

Contents
Executive Summary.........................................................................................................................2
Contents...........................................................................................................................................3
INTRODUCTION...........................................................................................................................1
Background of Company.................................................................................................................1
MAIN BODY..................................................................................................................................1
Macro Analysis............................................................................................................................1
Micro Analysis.............................................................................................................................3
Competitive Analysis...................................................................................................................5
SWOT analysis............................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing audit report is one of those reports which include analysation, interpretation of
evaluation of marketing environment ich include external as well as internal factors that can
create impact on strategies, objective of business (Buallay and AlDhaen, 2018). It helps them in
developing various strategies of firm that helps them in competing with other market player
existed within industry. This project includes study of JD Sports Fashion Plc which is a UK
based organisation. Company is established in the year 1981 by John Wardle. organisation is a
fashion retail company providing their services in Bury, England, Greater Manchester, UK, Asia,
Australia Europe, US. This project report includes micro and macro environment analysis. It also
includes SWOT analysis, Competitive analysis of firm.
Background of Company
JD Sport Fashion Plc is British company which is established by John Wardle in the year 1981.
Company is providing sports fashion in market and serving their customer in Asia, US,
Australia, UK, Europe. They are providing clothing which are in fashion trend as youth are
following clothing as per trend. They are providing clothing for kids, men, women, trainer and
women. They are aim at providing fashion cloth to their target customers in different parts of
world. Company has strong brand name in market which helps them to increase loyalty level of
their customers. There are various competitors which provide competitor to company including
Nike, Dick’s Sporting goods, Decathlon Group and other players.
MAIN BODY
Macro Analysis
Macro analysis is one of external analysis which helps to identify external factors which
can affect operation of business. It includes identification of political economical, legal,
environmental, social and technological factors. PESTEL analysis of JD sports are as follows:
Political Factors: Political factors are those factors which include level of interference of
government in business. It includes factors like government stability, trade restriction, trade
barriers etc. Political factors can create impact on profitability of business of JD Sports Fashion
Plc in a particular country (Gâdău, 2017). Organisation is conducting their business activities in
various countries and is facing different political environment which can impact on their
functionality. Operating in international business include various political risk for firm. Retail
1

industries need to diversify these risk factors in political environment (Xia, 2018). Company is
also facing risk related to Brexit in UK as due to Brexit agreement, government has made
various changes in laws and regulation which affect business of JD Sports Fashion Plc in UK and
Europe. Level of corruption in consumer service also create impact on firm in particular nation.
There are various other factors like intellectual property, taxation, product labelling also affects
operation of business.
Economic Factors: There are various economic factors which can create negative impact
on cost of business. These factors include interest rate, inflation rate, exchange rate. These
factors also affect demand as well as supply of product in particular country (Gonzalez-Padron,
2016). As company is conducting business at international level, they can take advantage of
interest rate. As company can raise money from country where there is lower interest rate which
reduce their cost of operation. Economic development or growth in economy also create direct
impact on firm. As growth in economy create opportunity for business to earn more profit in
market place. Increasing GDP also indicate increase in spending power of buyer which is
beneficial for business and people of those countries are buying more products. Labour condition
in economy also create impact on business of JD Sports Fashion Plc as these factors helps to
determine wages rate of country and also supply of skilled employee for company.
Social Factors: Social factors are those which is related to culture, norms, value and behalf
of people. These include factors like health consciousness, education level, population etc.
understanding marketing trends, buying patten and power structure of buyer will help business of
JD Sports Fashion Plc as it allows them in designing effective marketing campaign for people
living in that country (Grünig and Morschett, 2017). Managers of company can use social
analysis and environmental analysis for purpose of increase target customers and also increase
their profitability level. Understanding demographic factors helps business in selecting right
market segment which has potential for growth of business. Culture also plays important role in
business of JD Sports Fashion Plc as there are different culture in different country. To
understand need as well as behaviour of consumer, it is important for firm need to understand
culture of that country.
Technological Factor: Technological factors are those factors which is related to
automation, advancement of technology and research and development. These factors provide
competitive advantage to a firm and also create barrier for new firm to enter into business. JD
2

Sports Fashion Plc is working on attaining technological innovation which helps them to
compete with other market player available within industry. This technology upgradation in
company helps them in enhancing experience of customers, provide cost benefit to company and
also increase efficiency of firm (Iliev, 2019). These technological upgradation result in cost
effective solution for enterprise and also saves efforts of employees. This upgradation also helps
in introduction of innovation in market which can in form of new product or new service in
market. This also helps in providing competitive advantage to company.
Environmental Factors: Environmental factors are those which is related to weather,
climate changes etc. People now a days are increasingly aware for environment which create
benefit for company like JD Sports Fashion Plc that is adopting standard measures to protect
environment. There are different laws and regulation relate to environment standards and it is
important for business to adopt these standards as it helps them in avoiding negative
circumstance form their company (Thompson and McLarney, 2017). To avoid these factors in
business, business need to adopt effective waste management as it can harm environment. They
should also recycle necessary materials. Business can also use upgraded technology to avoid
harm to environment.
Legal Factors: Legal factors are those which include various laws and regulation
including employment law, consumer laws, health and safety laws. Before enter into ma new
market in new country, it is important for a company to understand essential legal requirement of
that country (Islam, 2020). This will help them to avoid government interference in their
operation and also ensure smooth flow of operation. JD Sports Fashion Plc is following all
employment laws as ell as health and safety laws to increase safety of their employees. This
factor helps them to avoid government interference and also improve mutual trust between
company and its employees. Organisation is also following all consumer protection law which
improve their image in minds of their customers and provide them wit competitive advantage. As
by following these laws, company is providing high quality product at right price to their
customers which helps them in serving their target customers effectively.
Micro Analysis
Company
3

Mission Statement: To become most known retailer in UK in sports fashion. Company
wants to provide variety of product range to their customers, good shopping experience and high
quality with efficient services for different range for kiss, trainers, women and men.
Strategy:
 Market position: Company is adopting dynamic appeal and also works to make
connections with their customers as it helps them in provide them creative marketing,
digital platform. Company is also working on enhancing experience of their customer for
improvement of marketing position of company.
 Store portfolio: Company is engaged in retails estate for increase brand awareness of
their product by engaging in retail stores. Company is also using multi-channel to
increase their growth in international business.
Board of Directors
Peter Cowgill: Peter Cowgill is one of Executive chairman of the bord in JD Sports
Fashion Plc. He is one of director as well as chairman of company (Islam, 2020). He is appointed
for this position in March 2004 and was previously a finance director of company. He has
resigned with his position from June 2001. Entity is also awarded for their contribution in
business 2019 by an honour doctorate in University of Bolton.
Neil Greenhalgh: Neil Greenhalgh is working as Chief Financial Officer as well as
executive director of JD Sports Fashion Plc. Entity ha contribution success as well as growth of
JD sports. He has been working for 14 years and increasing fulfilling their role in success of
company.
Martin Davies: Mr. Martin Davies is one of Senior independent director of JD sport
Fashion Plc. He has been appointed for this profile in October 2012. He was appointed as chief
executive in Holiday break Plc.
Suppliers: JD Sports Fashion Plc are purchasing raw material for their industries from various
sources existed in different countries. They buy rom various suppliers as it provides them cost
benefit. Organisation has suppliers which provide them strength in market place as the prove
them high quality of raw material and provide their order from on time. These suppliers include
Finish line. Inc, Global logistical Connection Inc.
Marketing intermediaries: Marketing intermediaries refers to those which helps an
organisation in maintaining flow of goods in market place. These include retailers, agent,
4

marketing service agencies and physical distributors. JD sports Fashion industries are using their
physical show room to supplying their product and service.
Customer: Customers of JD Sports Fashion Industry are focuses on buying cloth which are
trending in fashion and has good fitting and quality. These customers are concerned with quality
of their product and are buying product which has high brand values.
Competitive Analysis
Company Strategies Strength Weakness Company
reaction
Dick’s Sporting
Goods
Dick Sporting is
a American
company which
is providing
Sporting goods
in market. They
are using
Shifting
categories which
include focus and
various range of
goods in their
production. They
are providing
goods s per
needs of
customer,
changing trend in
fashion industry
and within area
of sports.
Organisation also
Company is
established
sporting retailer
and provide
broad category of
sports
brand(Kang,
2019). Company
is focuses on
customers and
provide their
service to overall
societies.
Company is
dependent on
their whole sale
partners like
Nike and Under
Armour. They
also have
increasing
competition in
market from
various market
players.
It is American
company which
is established in
year 1848.
Company is
using digital
technology to
compete with its
competitors. JD
sport Fashion Plc
is using various
other strategies
to compete with
Dick Sporting
Goods. As they
are opening more
offline stores to
increase
customer
interaction in
market.
5

focusing on
Ecommerce due
to increase in
online shopping.
Decathlon Group Decathlon Group
is an organisation
which is
providing
sporting goods in
market.
Company is
established in in
1976 by Michel
Leclercq.
Company is
using cost
leadership to
gain competitive
advantage in
market. They are
also providing
quality product
to their
customers at
affordable prices.
Organisation has
private label and
is providing
innovative
product for their
customers.
Company is also
increasing brand
retention to
increase loyalty
for their
customer which
result in increase
in satisfaction
level and also
improve
performance of
company.
Firm has facing
difficulty to
depend on
French market
for their
profitability
level. Company
is working in
mature market
which does not
support rise to
their profitability
level. There are
also increasing
competition in
market which
create difficulty
for their
business.
Organisation is
providing
sporting goods in
market and
adopting various
technologies to
capture
maximum
market. JD
Sports Fashion
Plc is providing
their services to
different
countries and
their innovation
technology helps
them to compete
with company in
market place.
SWOT analysis
Strength Weakness
 JD Sports Fashion plc has various
faithful suppliers. These suppliers
provide raw material to organisation on
 JD Sports Fashion plc is one of
organisation which is getting success in
market by selling their product but at
6

time and of high quality.
 Company has strong supply chain in
market which are providing product as
well service of cop any to across
geographical boundaries (Kumar,
Lamba and Raman, 2021).
 Company has excellent market
exploration as when they enter new
market, can get good response from
their customers.
 Organisation is working on increasing
their brand values and get strong brand
name in market which increase loyalty
level of their customers.
same time, their offering is limited as it
is difficult for them to increase
extension of their product line.
 Company is not utilising their funds
effectively.
 Organisation is adopting traditional
work culture which create difficulty for
them tin integration with company
which has new culture environment.
 Enterprise is dependent on old
technology. As they are working at
international level, it is important for
them to adopt innovative technology to
compete with other market player
present within industry.
Opportunities Threat
 JD Sports Fashion Plc can reduce cost
of transportation by selection lower
shipping cost as it helps them in
reducing total cost of business.
 Company is in green drive list of
government which provide them
benefit of first choice of government
vendors and staff.
 Government of UK has good marketing
agreement which provide them various
business opportunity to JD Sports
Fashion Plc.
 Youth are following fashion trends
which increase demand for fitness and
fashion cloth that create opportunity for
 JD Sports Fashion plc is earning profit
from seasonal products and changes in
trend can affect their profitability level
in market.
 Cost of raw material of company is
increasing. To handle this situation,
firm need to reduce their profitability
level.
 Company is conducting their operation
in different countries and for this they
need to follow different law applicable
to in those countries(Ray, 2016).
 Company is also facing issues related to
counterfeit product in developing as
well as emerging market segment.
7

business (Suranga and Garg, 2016).
CONCLUSION
From above mentioned project report, it can be concluded that marketing audit report is one
of those reports which include analysation, interpretation of external and internal marketing
environment including goals, objective and mission and strategies adopted by organisation to
take advantage of opportunity of business and overcome from threat of business. It includes
macro environment analysis which helps them to identify external factors which can create
negative impact on their business. These factors include political, legal, economic, technological,
environmental and social factors. It also includes micro analysis which include factors that
include mission of company, strategies adopted by organisation, analysation of their competitor,
stakeholders, customer and marketing intermediaries. It also includes competitor’s analysis
which can done by identifying strategies adopted by their competitors, strength and weakness
their competitors have. Company also include SWOT analysis in their marketing audit report in
which they include identification of strength, weakness, opportunity and threat. Strength provide
competitive advantage to organisation whereas weakness include those factors which can create
negative impact of operation of enterprise. Opportunity provide a chance to expand market share
as well increase profitability level of firm Whereas threat can impact on operation as well as
offering of business.
8

REFERENCES
Books and Journals
Buallay, A. M. and AlDhaen, E. S., 2018, October. The relationship between audit committee
characteristics and the level of sustainability report disclosure. In Conference on e-
Business, e-Services and e-Society (pp. 492-503). Springer, Cham.
Gâdău, L., 2017. Marketing audit and its importance in achievement of marketing objectives of a
company. Journal of Advanced Research in Management (JARM). 8(15). pp.38-43.
Gonzalez-Padron, T. L., 2016. Ethics in the supply chain: Follow-up processes to audit
results. Journal of Marketing Channels. 23(1-2). pp.22-33.
Grünig, R. and Morschett, D., 2017. Determining the Target Markets. In Developing
International Strategies (pp. 85-104). Springer, Berlin, Heidelberg.
Iliev, P., 2019. Control and audit in marketing. Challenges of the Knowledge Society. pp.1053-
1056.
Islam, M. S., 2020. Scenario Planning: Systematic Handling of Organisational Troubles during
COVID-19 Economic Recession. Available at SSRN.
Islam, M.S., 2020. Scenario Planning: Systematic Handling of Organisational Crises during
COVID-19 Economic Recession. Available at SSRN 3684788.
Kang, Y. J., 2019. Are Audit Committees more challenging given a specific investor base? Does
the answer change in the presence of prospective critical audit matter
disclosures?. Accounting, Organizations and Society. 77. p.101051.
Kumar, R., Lamba, K. and Raman, A., 2021. Role of zero emission vehicles in sustainable
transformation of the Indian automobile industry. Research in Transportation Economics,
p.101064.
Ray, J. K., 2016. Abercrombie & Fitch: A Strategic Position.
Suranga, M. and Garg, K., 2016. The Importance of Strategic Direction for the Growth of Small
and Medium Scale Enterprises: A Case Study. International Journal of Research in
Social Sciences. 6(6). pp.1-21.
Thompson, J. and McLarney, C., 2017. What effects will the strategy changes undertaken by
next Plc have on themselves and their competition in the UK Clothing Retail
Market?. Journal of Commerce and Management Thought. 8(2). p.234.
Xia, X., 2018. Assessment of marketing management performance audit practices of tourist
destinations. International Journal of Tourism Policy. 8(2). pp.147-171.
9