Analysis of David Jones' Business Strategies: A Comprehensive Report

This report provides a comprehensive analysis of David Jones' business strategies. It explores their corporate strategy, focusing on transforming into an omnichannel retailer and investing in technology. The growth strategy emphasizes online retailing and leveraging the store portfolio for an integrated customer experience. The diversification strategy includes focusing on Asian customers and implementing new initiatives in customer service and experience. The report also examines business strategies such as cost leadership, differentiation focus through loyalty programs, and innovative remarketing strategies using dynamic creative and bid multipliers. The analysis covers various innovative approaches like RLSA, GDN dynamic remarketing, and Google shopping RLSA, highlighting their impact on ROI and conversion rates. The report references relevant sources to support its findings and provides insights into David Jones' approach to maintaining a competitive edge in the retail market.

Running head: David Jones
David Jones

David Jones
Table of Contents
Corporate strategy............................................................................................................................1
Growth strategy............................................................................................................................1
Diversification strategy................................................................................................................1
Business strategies of David Jones..................................................................................................2
Cost leadership strategy...............................................................................................................2
Differentiation focus strategy.......................................................................................................2
Innovative strategy...........................................................................................................................3
References........................................................................................................................................5
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Corporate strategy
Growth strategy
It is one of the corporate strategies of the company in which the main aim of David Jones
is to transform the business into Omni channel retailers and also emphasis is given on boosting
the investment in the technology capabilities. The company is emphasizing on offering the seam
line experience across the different channels. Through Omni channel retailing the company is
grabbing the opportunity in Australia. David Jones is emphasizing on the online retailing at the
early stages in the Australian market (Craik, 2017).
It is considered as one of the best growth strategy that has helped the company in
boosting the sales. From the Omni channel retailing the company is expecting 10% of the total
sales that is generated through web stores and also by mobile applications. The company
believes that sales done by these channels are more profitable as compared to in store channel
stores. The portfolio of the located stores will be the integral to the Omni channel experience that
allow the customers to pick the orders online and also there is picking up service in the store.
The company also offers buy online return in store service that helps the company to attain
growth in the competitive market (Craik, 2017).
Diversification strategy
David Jones considered this strategy in which the emphasis is given on focusing on the
Asian customers with the integrated and financial service program. David Jones also
implemented the new initiatives in which the transformation has been made in the customer
service and experience that helps in introducing the new staffing structure with the redesign sales
managers role. David Jones also launched the new merchandise and financial system to help the
customers to purchase better and also it has helped in planning decisions. To grow around, the
company considered the turnaround strategy in which the David Jones launches the new website
in April 2018 and now it is expected that the online sales will be enhanced by 10% by 2020
(Hunt, 2018).
To diversify into the different markets, the company has also focused on reducing the
products price so that it could be easy to attain growth in the highly competitive market. David
Jones has recently opened six new full time department stores in the high value locations and
also opened small format of the David Jones stores in the demographic locations. To strengthen
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the core business, the company continued to provide the best range of national and international
brands that has helped in restoring the gross profit margins to the long term sustainable levels.
The David Jones also implemented multi-application approach that helps in creating the
applications that emphasize on the unique user needs. In this, the company offers different
features through which it could be easy to arrange ad browse the overall history of purchase. So,
it can be said that this features offered to the customers helped in enhancing the demand of the
services and products provided on the global platform and due this the success ratio has been
enhanced in the competitive market (Loy-Wilson, 2016).
Business strategies of David Jones
Cost leadership strategy
In relation to cost strategy, it has been examined that Davis Jones has emphasized on the
suppliers and the transition has been made in the global cost, price harmonization and also they
have the aim to secure the customer value proposition. Davis jones strategy is to commence a
detailed work program with the local and international suppliers. At the time of working towards
the global cost price the company has aimed to boost the gross profits margin. The emphasis has
also been given on capturing the extra volume by reducing the cost of the products. The
company has also offered discounts so that it could be easy to boost the sales and demand of the
products offered in the market (Miller & Merrilees, 2016).
To compete in the market and to attain the large market share, the company has to reduce
the prices by analyzing the high competition level that exists in the market. The price promise of
the David Jones is to provide the competitive prices and to match with the Australian and New
Zealand retail stores and also with the online sites. The prices set by the company are same on
the stores but it can vary on the online sites (David jones, 2019). Therefore, it can be stated that
company consider fix pricing strategy and also the products are offered on discounts so that the
demand of the customers can be enhanced.
Differentiation focus strategy
To differentiate the products, the company has focused on the maintaining differentiation
by offering loyalty cards programs as it can maximize the engagement level of the customers
towards the products and services of the company. In this program, the company focused on
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bringing the rewards program in which the customers has to make the registration and the
vouchers or the points gained by the customers can be used at the time of next purchase. This
business strategy considered by the Davis Jones has helped to boost the customer experience of
shopping and also assisted in maintaining good brand image in the market. This is one of the best
strategies that has helped the company in boosting the products and services demand and also
assisted in accomplishing the set goals and objectives. The customers are attracted towards the
services only because of the good quality products that are provided by the company. With the
loyalty programs scheme, the company also offers the chance to the customers to purchase the
quality products (News. com, 2019).
Therefore, it can be said that this is also the effective strategy that has boosted the
demand of the products and also provided a good option for the customers at the time of
purchasing the products of the David Jones. It can be stated that customer experience is also one
of the best approach that has been boosted by introducing the loyalty program scheme in the
market. Due to this strategy, David Jones has accomplished the set goals and targets and also
maintained the large customer base.
Innovative strategy
David Jones has implemented the different innovative remarketing strategies that has
helped to enhance the overall return on advertising spend. By focusing on combining the
dynamic creative and bid multipliers with the onsite audience groups in relation to the Google
shopping ad Google display network the company has seen ROAS enhancement by 286% and
also the conversion rate has been boosted by 642%. David Jones focused on improving the ROI
with the remarketing lists (Xu, Gao & Hammond, 2017). The company has also partnered with
the Columbus to revolutionize the overall remarketing strategy. The main goal of the company is
to search the way to get the website visitors who are leaving the website of the company without
purchasing to return. The company has also embraced the entire opportunity in relation to
innovation by testing the new digital products and strategies (Tuite, 2019).
It has been examined that RLSA is the strategy that is rolled out as the remarketing
strategy that focuses at reaching to the customers to boost the sales. This remarketing strategy
has helped to target the all website visitors. In comparison to the earlier strategies related to
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audience, the new RLSA strategy has attained the positive outcome with the 34% of the increase
in the ROAS. Also, the performance improvement has taken place at the time of off season in
Australia for the retail brands. The retargeting has also offered the brand a flexibility to optimize
the real time based on the overall performance and also David jones has achieved growth and
success in the competitive market (Think, 2019).
GDN dynamic remarketing is also the strategy with the funnel based modifiers. The
company was the first fashion retailer that involved in the trial run of the international Alpha and
it has also helps to focus on the new targeting feature that is considered by the Google merchant
center. By considering this strategy the company has achieved growth and success in the
competitive market area network. Google shopping RLSA is also the considered by emphasizing
on the Google shopping strategy and it has been equally successful. The company has focused on
improving the conversion and also the click through rates by enhancing the bids and impression
shares on the search producing listing ads for the customers who are not interested earlier in the
products and services of the company (Think, 2019).
So, by considering these strategies the company has seen growth by 97% in the CVR and
also the 35% increase in the CTR. These are the best strategy that has helped the company to
boost the customer experience and also attracted the customers towards the services and products
of the company offered or provided to the customers in the market (Think, 2019). These
strategies considered by the David jones are fruitful in accomplishing the set goals and
objectives.
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References
Craik, J. (2017). Fashioning Australian: Recent Reflections on the Australian Style in
Contemporary Fashion. Journal of Asia-Pacific Pop Culture, 2(1), 30-52.
David Jones.(2019). MARKETING, CUSTOMER INNOVATION & FINANCIAL SERVICES.
Retrived from: https://www.davidjones.com/careers/our-departments/support-centre/
marketing-customer-innovation-and-financial-services
Hunt, S. D. (2018). The prospects for marketing strategy and the marketing discipline in Era V:
is the prognosis promising or problematic?. Journal of Marketing Management, 34(1-2), 86-
95.
Loy-Wilson, S. (2016). The gospel of enthusiasm: salesmanship, religion and colonialism in
Australian department stores in the 1920s and 1930s. Journal of Contemporary
History, 51(1), 91-123.
Miller, D., & Merrilees, B. (2016). Department store innovation: David Jones Ltd., Australia,
1876-1915. Journal of Historical Research in Marketing, 8(3), 396-415.
News. com.(2019). David Jones looks set to unveil its new loyalty card program. Retrived from:
https://www.news.com.au/finance/business/retail/david-jones-looks-set-to-unveil-its-new-
loyalty-card-program/news-story/d450647e39742b25343ada00f4bf564d
Think.(2019). Remarketing Helps Australia's David Jones Connect With Consumers. Retrived
from: https://www.thinkwithgoogle.com/intl/en-aunz/advertising-channels/search/
remarketing-helps-australias-david-jones-connect-with-consumers/
Tuite, A. (2019). What is Independent Fashion? An Australian Perspective. Fashion
Practice, 11(1), 5-25.
Xu, J., Gao, X., & Hammond, J. (2017). E-tailing in Australia: A preliminary analysis of David
Jones. The International Technology Management Review, 6(4), 149-157.
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