Strategic Marketing Plan for John Lewis

This strategic marketing plan discusses the environmental analysis, marketing objectives, strategy selection, market targeting and positioning, and assessment of 7P's for John Lewis. It also evaluates the link between corporate strategy and marketing strategy.

Strategic
Marketing
Plan

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Environmental Analysis..............................................................................................................1
Marketing Objectives..................................................................................................................3
Strategy selection........................................................................................................................4
Market targeting and positioning................................................................................................6
Assessment of 7P's......................................................................................................................6
Implementation, control and evaluation......................................................................................8
TASK 2............................................................................................................................................8
Critically evaluation the link and effectiveness between corporate strategy to market strategy 8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic marketing planning is a continue procedure through which company develop
marketing strategies and plans its implementations in the target market. The procedure taken into
account the current position of the company, supports in recognising the promotional
opportunities then analysing these opportunities (Brooksbank, Garland and Werder, 2012).
Target market is known by encompassing research. Through strategic marketing plan reviews
both short term as well as long term objectives that the company wants to achieve. This plan also
take into consideration to know the actual financial position of the company and trends at the
market place. To create strategic marketing plan taken organisation John Lewis company, which
is a chain of high end department stores that conduct into United Kingdom. The founder of the
company John Lewis in 1864 about 155 years ago. This assignment consist of several topics such
as environmental analysis, marketing objectives, strategy selection, market targeting and
positioning, assessment of the 7P's, implementation, control and evaluation. In the second part
critically evaluate the links and effectiveness from corporate strategy to marketing strategy.
TASK 1
Overview of the organisation – John Lewis is a chain organisation that opened into 52
countries. It is founded in 1864 by John Lewis and the headquarter of the company in London,
UK. It is operating 50 John Lewis shops, 353 wait rose shops and an online business. The
company has been dealing into different products such as pillows, duvets, curtains, roller blinds
and voile services. It is also providing services of Kuoni travel concession, nursery advisory,
John Lewis opticians etc. The aim of the company to expand business activities and open new
store in new countries.
Environmental Analysis
It is a first procedure of strategic marketing planning where analysis the environment
regarding to business. Through environmental analysis identify the all internal as well as external
elements that impact on the position of the John Lewis company. This analysis entails assessing
the level of threat or opportunity that factors might spent. In the environmental analysis consist
of PESTLE and SWOT analysis of John Lewis company that helps to know accurate position of
the company at the market place. Herein discussed PESTLE analysis of the John Lewis company
such as:
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Political: Political factors plays important role to analysis the impact on the John Lewis
of Hungerford Plc's long term profitability in a particular country or market. The company has
been entered into market when UK is part of European union. The competitors can enter from
Europe enter without any limitations. After the Brexit political condition impact on the
performance of company in positive manner due to reduce competitors. When UK Government
decide to increase corporation tax so it will impact on the profitability of the company in future
(Camilleri, 2018).
Economical: The UK economy face various challenges and main challenge that
recession and very sensitive to changes in interest rates. Due to increase competition in the retail
sector to companies provides many offers to customers with lot of incentives. It will impact on
the John Lewis price that fall down most of the times.
Social: The culture of society and taste & preference effect on the John Lewis culture and
its environment. of people In present time people change their interest and preferences
according to marketing trends. Due to changes in lifestyle become opportunity for the company.
These opportunities become the reason for society is becoming more materialistic. This time
John Lewis should introduce more branded and latest fashion to attract customer.
Technological: In present time people like to online shopping as compare offline
shopping. It is mainly follow in retail industry that determinative for the sales approach. When
company does not follow advance technology so it impacts on the sales so for this require to set
up massive online website where customer register their number and order products, post
feedback and many other facilities. Due to less ways of payments company customer face
problem that was impact on the sales and performance.
Environmental: Different market have different norms or environmental standards that
can effect on the profitability of a company in particular market. UK have different
environmental laws and liability laws such as Texas and Florida. Due to expand business
activities of John Lewis analysis the environment situation of particular country other wise it
impact in the negative manner.
Legal: There are consisting those factors that relates to legal activities that develop for
the retail industry. Due to changes UK government make new rules and regulations for retail
industry. It was showing impact on the organisation performance direct manner. Due to national
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legislation that develop or the health & safety both in terms company does not follow any single
law so it will impact on the performance of the organisation.
SWOT Analysis: It is a set framework where analysis the internal activities of the John
Lewis in order to analysis the benchmark its business & performance as compared with the other
company and competitors. Herein discuss SWOT analysis of John lewis company to know
strength, weakness, opportunity and threat (Énalan and Soteriades, 2012).
Strength Weakness
 The company have strong brand image
in the market due to qualities,
practicality and value for money
promoting its customer loyalty.
 Provide top brands clothes according to
fashion and offer to select from these
brands.
 The chain famous as “Never
Knowingly undersold”.
 John lewis sell out items in higher price
that higher than to super markets.
 The earning ratio of the company is
very low due to compare with
competitors.
 Company have not proper marketing
strategy to stay long time in the market
in the competitive environment.
Opportunity Threat
 Focus on market trends according to
that provide items to customer.
 Young professional living way from
home and stay with brand. So company
target to these people who take interest
in home decoration.
 Due to change lifestyle and living
standard, spend money on the items.
 Due to competition laws and large scale
development and merger companies
impact on the stores.
 John Lewis face competition from
super market, mall, grocery store and
corner store.
 The company face the problem of cash
flow due to imp[roper management of
cash.
Marketing Objectives
The environment analysis provided result that how to company operate their operations
and what is the position in the market. On the basis of these analysis business set the effect
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objective of marketing that easily grab by the organisation in certain period of time. The
marketing objectives of the company set according to market needs and requirement. These
objectives easily grab by the company in set limit time period. There are defined objectives of
the John Lewis company such as:
 Company wants to increase quantity of sales, share and profit by segment.
 In 12 months open new store in other country to grab attention from the customers.
 Profitability increase by the 25% to 35%within two year.
 John Lewis become leading retail company in the retail industry.
 Provide customer satisfaction through effective services.
These are the objectives that set by the John Lewis and wants to achieve in three years.
There are vision and mission of the company such as:
Vision: The happiness of all our members through their worth while and satisfy to
customers through effective services.
Mission: To become leading company in retail industry and become successful to sustain
and get position (Kash and Deshmukh, 2013) .
Strategy selection
In the strategic marketing planning select Ansoff Matrix for John Lewis company. Ansoff
matrix is a tool that utilised and determine by the organisation in order to identify the growth
through the strategies. This matrix presents four strategies that can use by the company to get
grow and also determine the risk related to each strategy.
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 Market Penetration: It is defined as growth strategy where focused on the selling of
existing products in the existing markets. To cover large market company apply several
strategies that supports to organisation to increase market share. For this require to
sufficient changes in the existing product that become impressive and attract customer.
These modifications are based on the customer taste & preferences, market trends etc.
John Lewis apply the particular strategy to achieve market market share regarding to
existing products and use various strategies such as decreasing price to attract customers,
improving encouragement activities regarding to existing product (Kotler, Bowen and
Baloglu, 2017). Product development: It is a strategy tool that apply the organisation to introduce new
product in the existing market. After focusing on different elements and related risks , a
company provide new products to customers. John Lewis follow the strategy to cover
large market and impress to customer through new product. For this use good quality,
development procedure, merging and collecting resources with the competitors and apply
modifications in technology to offers different products in existing market. Market Development: This is a approach where strategies are applied by the organisation
to enter into new market with the existing product. For this require to create effective
strategies that helps to easily set up the business and conduct business activities
effectively. There are identified several risk with the strategy but company prepare back
up plan to face these problems. John Lewis select particular strategy to reach those
markets where does not open the store and products are not sold. It will supports to
expand the business at more geographic locations.
 Diversification: This approach selected by a company to enter into new market with the
new product at a same time. John Lewis can apply and adopt the diversification strategy
in order to enter into new market and effectively expand business activities at global
level. For this required to company develop innovative product that different from other
products and impress to customers and they are willingly purchase products as per the
market demands to maintain profitability.
After all the strategy analysis it is understand that John Lewis select Market development
strategy to enter into new market with the existing products. Company wants to expand business
activities and open store in the new market (Kurt and Hulland, 2013).
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Justification: Market development strategy should be selected by the company that
easily promote their products after analysing the market of the new places.
Market targeting and positioning
STP: In marketing STP defined is set of different strategy where consist of segmentation,
targeting and product. It is applied by the organisation to expand business activities into other
countries. All the three strategy of STP are applied on the organisation that required to focus by
the John Lewis are as follows: Segmentation: According to this strategy John Lewis will classify into different segments
then select suitable strategy for the organisation to expand business activities across the
countries. Such as company selected those countries where does not open any store then
London will be the segment where the new items will be addressed. Targeting: In this process recognising those target customers is known as targeting. The
target market for John Lewis will be the women, men of London as the new fashion
trends and home furnish items. These items provide by the organisation in their store
where they open (Mackay and Wilmshurst, 2012).
 Positioning: The procedure of the company try to apply impressive strategy that attract to
customers and become good brand image in the market. John Lewis is going to open new
retail store into other countries and apply effective promotional strategy such as
advertisement, direct marketing etc. to aware customers regarding to products.
Tactics – It is a set of strategies that are applied by the company for achieve long term
goals of the company. There are defined particular tactics of John Lewis organisation: Technological enhancement: The company plan to expand business activities into other
countries. For this require to apply advance technology that helps to get customer
attraction regarding to products.
 Arrangement of the funds: To expand business activities into another market require to
funds from internal as well as external sources. Such as bank, personal loan, selling of old
assets etc.
Assessment of 7P's
Marketing mix is defined as the set of actions or tactics that apply by the company in
order to promote its brand and product in the market. Marketing mix conduct by John Lewis in
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order to determine the brand/company and define the marketing strategy of the company
(McDonald, 2015). There are defined marketing mix broadly such as:
Product – The company prepare product strategy to increase sells of the company and
customer attract for the products. John Lewis is one of the leading company of retail industry
that conduct business operations in UK and outside the UK. It is providing unparalleled range of
services from personal styling. The company also offering nursery advise for application
installation and technical support. The company dealing into various type of products such as
electricals and technology, home and design, fashion and beauty, gifts and celebrations and baby
and child. Company have own brands in home furnishing such as pillows, duvets and furnishing
fabrics, seven day curtain, roller blinds and voile service.
Price – The company believe in fair pricing strategy that become heart of the business.
For all the products company apply competitive marketing strategy to keeping quality and value
of the products. On the daily basis company set the benchmark for the products as per the market
trends. This policy supports to cover large market with competitive pricing policies. John Lewis
create pricing monitoring team to monitor on the competitors price and branded products price.
When company find that any competitor sell out same product at same price at lower cost that
time company immediately apply that price in their online and offline stores. It is advantageous
for the company as well as customer to get items in lower price (Meredith, 2016).
Place – John Lewis have several stores in different countries and apply the different
strategy in order to distribute products with different channels to tackle its customer. It is not
only dealing into precious and highly brand but also retail outlets in Britain that continue expand
their activities through the E-commerce that involves tapping on you tube, twitter and Facebook.
To satisfy the customer with their effective service released smartphone applications where
customer give online order and know the specification about the products. It helps top convince
to customer regarding to products. They have about 50 stores all over the England.
Promotion – The company followed innovative strategy for the promotion of its products
and apply creatively as per the occasion and festivals. During the season and year they develop
effective advertisement. From past 10 years company develop creative advertisement for the
consumer that makes easy during to festivals and exploit the emotional approach to appeal. To
promote its products company make campaigns such as Monty the penguin, Buster and Boxer,
The bear and the Hare, The long wait and the journey.
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People – Due to reputed brand John Lewis monitor on its customers as well as staff
members to retain long period of time. They wants to assure about the customer satisfaction and
have good experience with the company when they visit to store. More than 38000 staff
members are become part of the company that are trained by the manager and provide services to
customer according to their request (Mihai, 2013).
Process – John Lewis have several business processes in place where assure about the
fast operations of the retail industry brand. In the procedure contains dispatch of goods &
services, products from production plants to storehouse of the organisation. When storehouse
send goods from factory to retail store after that they start to selling products to customer. After
that they allows to customers to buy products online & browse products.
Physical Evidence – In the retail brand company have biggest physical evidence in the
store. There are working many people and satisfy with the job. The store have friendly
environment and different look from other store where customer feel and ambience and it makes
comfortable for the customers. The store provide many offers such as loyalty cards, in house
brand, shopping bags etc. also add the physical presence of the brand.
Implementation, control and evaluation
After follow all the procedure required to implement plan in effective manner and guide
to people to follow all the rules & regulations according to set plan. For this require to train staff
members and managers according to plan and distribute their roles & responsibilities. There is
required to keep control on the planning process and monitor that every person do their role with
full efficiency. After proper implementation require to analysis the plan and observe that every
work has happen according to plan or not (Paley, 2017).
TASK 2
Critically evaluation the link and effectiveness between corporate strategy to market strategy
Corporate strategy: Corporate strategies are the detailed and defined set of long-term
visions, objectives, corporate values and culture that help in motivating the workforce to
implement adequate actions so that maximum customer satisfaction can be attained. In simple
words, corporate strategy defines the actions of corporate firms with the goals and objectives of
the organization. These strategies are hierarchically the highest effective plans of the company
which includes various analytical techniques such as PESTEL analysis, SWOT analysis, etc. and
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various tools such as Balanced scorecard, KPIs, etc. in order to achieve overall organizational
goals and objectives.
Marketing strategies: Marketing strategies are the part of corporate strategies that help
in reaching to the market goals like attracting consumers and turning them into customers for the
business offerings. An impressive marketing strategy includes the value position of the
organization, data and information on customer demographics, key brand messaging and other
upper level factors. The major purpose of the marketing strategies is to understand the customer
needs and preferences and increasing the sales volume of the company by providing business
offerings on such a prices that customers can be satisfied and desired profits can be earned by the
organization (Quinton and Fennemore, 2013).
Link between corporate and marketing strategy:
Corporate strategy include various strategies in order to guide and manage different
departments of the organization. For this purpose, strategies for finance, marketing, human
resources, production, operations and management are planned. Marketing strategy of John
Lewis is a part of overall corporate strategy of the organization. Marketing strategy of the
selected company defines segmentation, positioning and targeting of the market to sell the
company products and utilize targets, metrics and budgets for performing all marketing
activities. In order to fulfil various marketing objectives decided within the marketing strategic
plans, other corporate strategies plays significant role for instance, opening new stores to grab
the attention of the customers need financial resources which will be provided by the corporate
financial strategy. Marketing strategies help in repositioning of the selected company in the
market, introduce a new range of products, increase the performance of business operations and
business offerings, and penetrate new marketplaces that is essential for the success of various
corporate strategies. For building a strong brand image, marketing strategies are significant for
the corporate world while without corporate strategy, marketing strategies can be executed.
Critical evaluation of effectiveness from corporate strategy to marketing strategy:
An effective marketing strategy leads an organization towards the continuous growth by
increasing its sales and revenue. In case of John Lewis, its well-planned marketing strategies
promote the overall development of the company (Wrenn and Mansfield, 2014). Company has
decided the objectives to increase the sales and profitability by 10% within two years that will be
fulfil with the help of efficient marketing techniques. Marketing strategy will help in growth of
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the company image and overall goodwill and creditability of the organization. Marketing your
business properly helps in better communication with the audience. It also interacts with the
audience in a safer and quicker method rather than newspapers, brochures, radio or television.
Purchases can be made anywhere, anytime by providing the availability of the company online
for 24 hours of a day. By deciding the objective of increasing customer satisfaction, marketing
strategies also provide the opportunity of better positioning of the business in front of the
audience. For increasing the sales of the company products, it is also necessary to enhance the
quality of the products. Without a quality production, it is difficult to maintain the profitability of
the establishment therefore marketing strategies also helps in increasing the quality of the
business offerings. With effective digital marketing, pricing strategies, knowledge of market
trends and adequate research and development, marketing strategies are also helping in taking
competitive advantages and defeating the competitors within the marketplace (Robertson and
Wardrop, 2012).
On the other hand, marketing strategies of John Lewis are so expensive that they are
consuming most of the part of the funds to be executed successfully. The company is planning to
take loans and borrowings to develop new stores and discover new markets which will increase
the extra burden on interest on the company revenue. To make efficient marketing strategies, it
needs big data and analysis of market trends that is an expensive element and it also increase the
workload of R&D department. Marketing campaign that is planned by the marketing department
is time consuming and it is possible that return on investment on marketing campaign would be
low. Television and radio advertising spots are also costly, and even local advertising space is at
a premium, because there is so much competition for the local audience. In order to ascertain the
customer satisfaction, it is necessary to collect their feedback and control them which will
increase the cost of marketing. Marketing strategies are based on the estimations and specific
conditions which may be failed or adverse situations may occur. In this condition, the huge
investment that is made on the marketing strategies will lose and company have to face financial
deficiencies if the chosen marketing strategies fails.
An effective utilization of marketing strategies may help in achievement of overall
corporate strategies. Marketing strategy of the selected company is helpful in sales growth,
customer satisfaction and retention, increasing profitability and discovering new markets. With
the corporation of other corporate strategies, it may help the organization in attaining a
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sustainable success and take competitive advantages (Sakas, Vlachos and Nasiopoulos, 2014).
The marketing strategies also consider a certain level of risk factor that make these strategies to
be ineffective but these uncertainties can be decreased with the proper utilization of marketing
mix, marketing tactics, targeting, segmentation and positioning. The company needs to control
the cost of execution of marketing strategies so that the risk factor can be reduced and
profitability of the company can be increased. Projection of marketing strategies is crucial for the
success of entire corporate strategy (Tinnish and Mangal, 2012).
CONCLUSION
As per the above report it has been analysed that strategies marketing planning prepared
by the most of the organisation to stay in competitive environment and provide services to
customers according to their request. For this require to follow particular procedure where
analysis the internal and external activities that will impact on the performance on the
organisation. After that set objectives for the company and follow the strategy that supports to
achieve objectives effectively in certain period of time. For this apply market development
strategy that helps to enter into new market. Company apply corporate strategy and marketing
strategy that helps to get success effectively.
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REFERENCES
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