An integrated marketing communication plan for successful launch of Selfridges in Australia

PRINCIPLES AND PRACTISE OF MARKETING EXECUTIVE SUMMARY The report is about marketing principles and practises of Selfridges and the purpose of this report is to prepare anintegratedmarketing communication plan for successful launch of Selfridges in Australia. EXECUTIVE SUMMARY2 INTRODUCTION 2 TASK 2 Background of Selfridges current marketing2 Effectiveness of the Selfridges current SOSTAC Strategy 9 The current marketing strategy using the fashion retailer in the UK market so this strategy implemented the Australia marketing 10

PRINCIPLES AND
PRACTISE OF
MARKETING

EXECUTIVE SUMMARY
The report is about marketing principles and practises of Selfridges and the purpose of this
report is to prepare an integrated marketing communication plan for successful launch of
Selfridges in Australia. Accordingly, the report begins with a brief introduction. Thus, the study
of principles and practises of marketing is prepared as an outlook which provides information
and strategies with regards to the situational analysis, marketing mix, marketing strategies. The
framework of marketing planning used was SOSTAC under which each factor was looked into in
detail.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................2
TASK...............................................................................................................................................2
Background of Selfridges current marketing.........................................................................2
Effectiveness of the Selfridges current SOSTAC Strategy....................................................9
The current marketing strategy using the fashion retailer in the UK market so this strategy
implemented the Australia marketing..................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
The study discussed about the principles and practises of marketing in the context of
Selfridges. Marketing is critical business function for profit and non-profit organisation. To
analyse process of marketing include product design and development, customer services,
principles and practises were used for an effective marketing process.
The organisation also known as Selfridges and Co., is a high end department stores chain
in UK, and operated by Selfridges Retail Limited. The company was founded by Harry Gordon
Selfridge in 1908. The research evaluates effective marketing plan with the use of SOSTAC
model. The project will study about the marketing mix and the marketing strategy used by the
industry. The project will give a brief knowledge about which strategies can be carried by the
Selfridges in expansion in Australia.
TASK
Background of Selfridges current marketing
Selfridge surprise, amaze and amuse their customer everyday by doing the unexpected
celebrating special moments and inspire each other. The purpose of these all is to build consumer
engagement and feel them comfortable and valuable. Selfridge provide high street to high end
products and services to their consumer for an extra ordinary experience. In 2016 Selfridge was
the first ever store to be awarded by the title of 'Worlds Best Sustainability Campaign' at the
IGDS Global Department store Summit. Their marketing strategy include the TV show named as
Mr. Selfridge, which not only for entertainment but it also attracts the consumer towards the
store. Selfridge found their employee as the best marketing asset. Their marketing strategy
include- digital PR, social marketing techniques, PPC, SEO and direct marketing by emails. The
style lounges by Selfridges is more popular than their online stores. The marketing tactics is very
simple yet effective of the organisation. The owner of Selfridges, Mr. Selfridge is a great
marketer, they made a good relation with the media that will help in popularity of the brand
name.
Selfridges has also released a 60 second film named as 'Radical Luxury', appearing in
movie theatres across UK for promotion of the luxury brand. The marketing campaign will
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include billboards, video on demand placement and digital elements. They not only focus on the
revenue they also care about the consumer, people come to Selfridges have fun and smile on
their faces it is just not from the products, it is from great consumer services providing by the
company, great people in the store and delivering a sense of the unexpected which makes people
feel great and valuable when they shop.
SOSTAC model of marketing:
SOSTAC model
(Source: SOSTAC model, 2018)
This is a marketing model which is introduced by Paul Russell Smith in the 1990s.
SOSTAC is an extension of SWOT analysis and it includes a general marketing strategy which
can be applied in different commercial situations to help with marketing planning (Nowak, G.J.
and et.al., 2015). SOSTAC stands for- Situation, Objectives, Strategy, Tactics, Action and
Control. Each of these elements have an essential part of the overall marketing plan. And this
model will apply to Selfridges to create effective marketing campaign in expansion plan in
Australia.
Stage 1 Situational Analysis
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This stage analyses the current situation and current position of Selfridges & Co..
Selfridges have a very prestigious position in UK economy. It is important for the organisation to
conduct a situational analysis before expand in Australia to keep up with the dynamic
environmental trends and to modify the foundation of their strategies. Situational analysis
focuses on the suitability of Selfridges in Australia and necessary factor the company has to take
into account before venturing into this market. It is undertaken by the application of PEST
analysis, Porter's five forces and SWOT analysis(Quarcoopome, 2017). This help in to know
about the market trend of Australia and analyse competition of Selfridges in the market of
Australia. There are four major components of the situation analysis which are- market factors,
competitive factors, environmental factors and analysis of strengths and weaknesses of the firm.
SWOT analysis
Strengths Weaknesses
 Fewer locations across the UK, creating
higher profits.
 One of few high end department stores
in the UK.
 Good size range in stock online.
 They are leader in innovation and
customer experience.
 Selfridges legacy stores and systems are
a competitive disadvantage
 Offers poor e-commerce services.
 They have stores in only UK
Opportunities Threats
 In the digital world they have
opportunity to providing better online
services.
 With the success and position in UK
and high demand, they have
opportunity to create their flagship
stores in Australia, New York, Paris
and Hong Kong.
 Competitors like Harvey Nichols is a
threat for Selfridges in the UK market,
they offer better promotions and
discounts and better online services.
 The competitive environment in
international market is being tough to
launch and being stable with the
consistency.
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 They have opportunity to reaching a
wider network of customers and
increasing brand loyalty.
Macro environment
It includes the broad external factors that indirectly impact upon an organisation. It
includes- political, economical, social and technological factors. These factors used to analyse
how Selfridges can effect macro environment to make effective decisions.
Political: The political factors are those which includes large anticipation in health,
infrastructure, defence & education. These factors also involves trade policy, labour law,
political stability, tariffs & restrictions by the government in different trades & business
practices. Britain leaving the EU caused great political disorder and it is causing continuing
uncertainty in the business environment and financial markets.
The Selfridges has full support by the government due to its rich historic values & fair
means of trade practice. It is a powerful organisation in the retail world with the quality of
product & services and VAT. Selfridges is directly affects by the government to increase VAT or
increase their Price it would decrease the firm's income.
Economical: Economic factors include inflation rate, foreign exchange rates, interest rate,
economic growth, it is also involved FDI (foreign direct investment). It is essential for
considering economic state in the short & long terms by applying fiscal & monetary policies.
Selfridges needs to organize a complete economic analysis. There are some issues such as
inflation, GDP, employment levels, interest rates etc. Selfridges needs to concentrate more in the
fashion arena due to spends most of their disposable income by young generation on clothings.
Social: Social factors are those which are based on the market trends with cultural aspects, age
distribution and emphasis on social environment concerns. Selfridges typically deals for the
selection of company's clothing ranges & a food hall. This company has modified itself a lot
according to its consumer's wants. Selfridges is improving its clothing line according with the
customers changing tastes and habits by their various market trends. Selfridges lowered its price
for customer's continence. Selfridges are continuing to drive hard to reduce, reuse, recycle,
reinvent to achieving sustainable development through their efforts. It is concerns over price,
quality and style which attracts their customers and also recognized and increase in the number
of their customers.
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Technological: Technology helps in businesses operate effectively & efficiently which helps in
increase productivity & lower costs by the maximum utilisation of resources. Selfridges innovate
new marketing and technological strategy which is used to attract consumer in the macro
environment. The technological factor include the latest trends, the technical factors tat affect the
business of Selfridges in Australian market. AI and cognitive intelligence are used to make the
customer experience better. The retail industry will impact by the cloud computing and
distributing intelligence.
Stage 2 Objectives
In this stage, the organisation set the objectives that where do they want to go. Each
objective of organisation and marketing should be SMART. This stage include mission of the
business, objectives of the organisation and marketing campaign(Wasson, 2015). The SMART
objective include goals or objectives should be specific, measurable, agreed, realistic.
Mission of Selfridges- The mission is to grow Selfridges into a world class retailer that is
customer fast moving, focused and flexible. We work hard to ensure we offer only the highest
quality product, services and shopping environment. And to operate stores filled with brands and
events that inspire customer and staff and to deliver profitability.
Organisational objective-
 200 subscribers to style lounge within a month.
 To increase 5-9% sales growth in the Australian market after launching and before a year.
 To expand globally and compete effectively in dynamic market.
 Improved processes for supply chain management and CRM.
 To achieve conversion rate of 30% within three months.
Objective of marketing campaign- To effectively implement the marketing strategy in the market
of Australia. To aware Australian people about the brand and the product offering by Selfridges
by 20% of the target market. The objective of marketing campaign is to develop, implement and
control new marketing strategies and tools.
Stage 3 Strategies
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It includes the marketing strategy to accomplish the set objectives. This stage include the
segmentation of the market, target the consumer and particular market, position its products and
services. STP marketing strategy is most common applied marketing model in practise. The
segmentation of the market is done on the basis of demographic, geographic, psycho graphic and
behavioural segmentation. After the segmentation, Selfridges choose the target market to enter
into. It includes undifferentiated marketing, differentiated marketing, focused marketing and
customized marketing. In order to develop a successful positioning strategy, segmentation of
market and target market need to be collaborated collectively.
Stage 4 Tactics
The fourth stage is the study about the implementation of the strategy. Tactics plan
defines the marketing tactics in the form of marketing mix. Marketing mix include the 6Ps-
product/services, place, price, promotion, people and physical evidence, to be used for marketing
strategy of Selfridges(Warner and Schall, 2015). Tactical plan shows the way to use
communication tools effectively to survive in Australian market, what messages do Selfridges
wish to communicate with their consumer. Also, it helps to analyse the necessary
resources/budget available before expand in Australia. Following are the 3ps of marketing mix of
Selfridges, which are interrelated with each other:
Product/ Services
Selfridges is a popular and high end retail chain brand in the world. The product portfolio
of Selfridges in its marketing mix is wide covering items for all age groups including men,
women and kids. Selfridges offers products for women that include clothing, footwear section,
bags, beauty and accessories(Florea and Duica, 2017). Selfridges also offer Home and Furniture
section that includes furniture for bedroom, living room, dining room, home accessories and
lighting etc. They provide an AI-powered stylist to their consumer for selecting their ideal
product and perfect clothing style. The product basically target person who are between the age
of 30-50 women who is married and have cildren and does not hhave enough time for leisurely
sopping.
Price
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Price is an important element of marketing mix, because it is the only revenue generating
element amongst all the 4ps. Pricing decisions are influenced by many factors- organisational
and marketing objectives, market share, profit maximisation. Selfridges follow competitive
pricing strategy for its product portfolio. According to the strategy pricing are between medium
to higher category due to its premium quality. The company also follows a dynamic pricing
strategy occasionally when offering discounts.
Place
Selfridges have four stores throughout the UK They are one of the higest fashion retailer
chain in the UK. Selfridges also increasing its popularity by being digitalised. It has got its own
online store launched in 2010, from where the consumers can purchase products. The website
delivers to 130 countries and transact in 60 currencies. Also, earlier in this year the brand launch
their first app called as Selfridges+. The company continue invest in brick-and-mortar and in
websites at the same time. Currently the stores is limited in UK but they plan to launch the stores
in different countries.
Stage 5 Actions
It gives a detailed outline of the action plan and detail of tactics to be achieved using a
Gantt chart and a budget analysis (Bowie and et. al., 2016). The action plan includes
responsibilities and structure, processes and system, internal resources and skills and external
agencies of the organisation. It is the detailed analysis that what budget should require to expand
the business of Selfridges in Australia.
Stage 6 Control and implementation
This stage discuss about the control and implementation phase, contingency planning,
integration of marketing and operations and risk assessment. The last stage is overall analysis of
marketing strategies based on STP, situational analysis of Selfridges, marketing mix and
objectives of the business and implement the effective strategy in the context of expansion
planning in Australia.
Overview of SOSTAC
SOSTAC has become popular since it is easy to cover all the main issues which you need
in a marketing or business plan. The situational analysis identifies SWOT and PEST the of
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expansion in Australia using the marketing strategies. It is important to mention and setting the
objective of the business and marketing plan thus, the next stage mention to set the objective.
Strategies is a way to achieve the objective which is set by the company(Steele, 2016). Tactic is
an outline of the overall strategy which is going to implement in the new market. It is essential to
make a budget plan for an effective implementation. After making budget the company is going
to take actions accordingly. The SOSTAC have supported Selfridge in innovation, forefront of
digital developments, give them training opportunity to enhance the outcome.
Effectiveness of the Selfridges current SOSTAC Strategy
There are used to SOSTAC strategy in Selfridges company. They can make the digital
marketing plan. There are competitors involves global and local market. It is very risky strategy
so that is achieved the impact on the organization. Nowadays the company should have provides
free templates to structure for their strategy. They can start fast guides given to covering for the
best practises and alerts latest and high developments on the strategy (Armstrong and et. al.,
2014). Selfridges company will be creates to easy structure and strategy plans for various
developing plan activities and creativities. They can make whole global marketing and digital
marketing strategy, and improved and changed the channel like email marketing is their peer.
There are good developers and expert members of smart internals' idea's, they will come
into new brand and new technology or new updates for the business. So SOSTAC is perfect
digital plan for their strategy. Company should have created SOSTAC strategy then using for
their developments. There are SOSTAC stands use for in Selfridges company. What they want to
be company objectives and where company situation stands are now or How to do create strategy
they get there. They can take action for a good and better planning. They should have considered
its approach in making their digital marketing and internet marketing. Selfridges company can
see and they through a logical order for plan with their interest and interaction. They should have
use SOSTAC strategy to difficult asses for their processes.
There are new designs ready for new marketing plans. Then solve the issues and
problems to the developing digital marketing plans. In company use for SOSTAC strategy so
first step is create to review their planning process and manage their marketing. They can ask
themselves difficult about the plans and creativities their business are better and good at.
Selfridges company will be spend too some time reviewing the business condition. They can
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more than time spend on the plans for analysis and setting the goals. The company should have
give focus on their situation and condition then analysis (Tricker and Tricker, 2015). They can
use SWOT analysis for their company strategy. There are using situation analysis for SOSTAC
strategy. It is implementing of the digital marketing and set the external situation analysis. It
should be given an overview of their business. How they interact and addressing on the trade
online inside and outside terms effecting the organization. They should be use a picture and
painting of their business or little methods to its term to the life.
There are who their digital consumers presently, customers are interacted with the
platform, new trends and new brand. They can use demographic breakdown. Selfridges company
should have use SWOT analysis for check of situation of the organizational, what are company
strength, opportunities, weaknesses and threats to the over all business. There are using
competitor analysis because they will know who are their competitors, then how do they
compete, so they will be decided accordingly market situation. e.g. customer, price, product,
service, reputation, so how to do differentiators are them. SOSTAC strategy is best of the
Selfridges company for use.
The current marketing strategy using the fashion retailer in the UK market so this strategy
implemented the Australia marketing
There are analysis the company and brand, which explains the UK marketing strategy.
Selfridge is widely accepted as being the first and best example of modern department store and
constantly sets the trend as a retail revolution. There are described 3Ps of covered in the strategy.
Like product, price and place, that's explains in the market. Selfridges company used to the
articles like advertising, distribution and pricing in their market strategy. There are start mix
marketing.
 Product
Selfridges is most famous and top broad retailer in the whole world of UK. There are many types
of covering items available for male, female and kids. They have offers products for females that
involves sandals, clothing, jeans, tops, bags, accessories, shirt, boots, skirt and more than items.
There are most popular brands for women and girls are autograph, twiggy, classic, foot glove and
indigo. So customers are very attract for their products. They want to good and better quality of
products to the minimum price(National Academies of Sciences, Engineering and Medicine,
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2017). The retailer needs to more than profits earned by customers. Selfridges company will plan
to launch retail marketing strategy in Australia so how to effect on the company. The company
will not maximum product manufacturing in the Australia because peoples will need to different
think of the company. They are not satisfied from their products. So that company will not take
maximum profit and reputation. Selfridges company can more than development of the retail
marketing strategy in the UK. There are the company should have comes into new brands and
trends, because customers are crazy for new design and stylish trends. Thus, company will more
than profits earn from these trends. They can gather new customers experiences for their
products.
 Price
Selfridges company own creates brands for men, women and kids cloths. They can
follow other company and competitors, they have decided medium and higher categories of
customers according pricing. The company will house brands of quality based on decide price
for the customers. The company should have facing from competitors and online retailers. The
retailer follows dynamic rate strategy, they can give seasonal offers discount many products for
the customers. And old stock through for sale at low and less than price so its compare between
new and old stock price. Customers needs to good and better quality of product and services to
paying minimum price. The company should have given good qualities of products and services,
then they can also provide special offers and gift vouchers for their customers. A buyer attracted
by the product when company provides products and services to minimum and low price. So
customers' interaction highly for shopping.
 Place
Selfridges is most popular UK brand, it has four stores operating in the UK. This is very major
business in generating profit in the UK. It has got current are France, turkey, Spain, hungry,
Finland, Ireland etc. and also it has got it internet website. Customers can be used to website
from buying products and get home delivery. Selfridges will give the best option for limited
products.(Serrat, 2017). And all over products and services should have been bought in the local
areas for local currency while online shopping. So they can give more than facilities for the
customers. They are very impressed this offers so they want to choose for the retail marketing
strategy in the UK not an Australia. The company can establishing more than destinations. They
should have many outlets and branches operates in united kingdom.
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CONCLUSION
A detailed marketing plan of Selfridges to launch the store in Australia was carried out
using the SOSTAC model. The situational analysis identify the macro environment using PEST,
with that SWOT and Porter's analysis were also discussed. In objectives, marketing and
organisational objectives were identified. Tactics conducted the evaluation of marketing mix of
Selfridges. The above study evaluated the overall strategy used by the Selfridges in the current
situation and gave a brief knowledge about that the existing strategy can be used in new market
or not. The assignment also discussed about the 3ps of Selfridges which gave an overview of the
company's product range, pricing strategies and places where the product and services were
provided.
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