Marketing Principles and Strategies: A Debenhams Case Study Report

This report provides a comprehensive analysis of Debenhams' marketing strategies, covering key principles such as market analysis, marketing mix decisions (product, pricing, distribution, promotion, and consumer relationship management), and marketing orientation. It delves into environmental analysis using micro (5M analysis) and macro (PESTLE analysis) perspectives. The report explores segmentation, targeting, and product positioning strategies, considering factors influencing consumer behavior, including social, cultural, psychological, and personal influences. Furthermore, it examines Debenhams' growth strategies based on Ansoff's matrix, specifically focusing on product development. The analysis highlights the importance of clarity, consistency, credibility, and competitiveness in product positioning to enhance brand recognition and sales. The report underscores the significance of understanding consumer needs, adapting to market trends, and maintaining a strong brand image to achieve business success. The report is a great resource for students looking for marketing analysis, especially a case study on a retail business.

MARKETING
PRINCIPLES

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1................................................................................................................................................1
1.2................................................................................................................................................2
2.1................................................................................................................................................3
2.2................................................................................................................................................4
2.3................................................................................................................................................5
2.4................................................................................................................................................6
2.5................................................................................................................................................7
3.1................................................................................................................................................8
3.2................................................................................................................................................9
3.3................................................................................................................................................9
3.4..............................................................................................................................................10
3.5..............................................................................................................................................10
TASK 2..........................................................................................................................................11
4.1..............................................................................................................................................11
4.2..............................................................................................................................................11
4.3..............................................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
Illustration Index
Illustration 1: Pillars of marketing ..................................................................................................2
Illustration 2: Factor affecting buyer's behavior..............................................................................6
Illustration 3: Ansoff's matrix..........................................................................................................8
Illustration 4: Pricing strategy..........................................................................................................9

INTRODUCTION
Marketing is one of the most significant and crucial part of business activities. It help
companies in creating wide impact on the growth and development of business units. Promotion
and growth of business activities demands effective investment in marketing and promotional
activities (Andersson and Servais, 2010). This help business in developing consumer focused
strategies to enhance sales of the company. Present report focuses on analyzing and evaluating
marketing activities of Debenhams in order to analyze the marketing activities adopted by retail
industry.
TASK 1
1.1
Marketing is an effective business activities which focuses on analyzing consumer needs
and demands and develop effective measures to attain them. It is an effective source of
communication measure for consumers which helps in promoting them about availability of
products and services (Afuah, 2009). The elements of marketing process adopted by Debenhams
to enhance its business activities are: Market analysis: This is one of the most crucial and significant part of marketing
analysis which helps a business unit in analyzing market situation and evaluate both
internal and external business activities accordingly. Debenhams critically examine
market and evaluate opportunities and threats that the company may face to enhance
growth measures.
 Marketing mix decisions: Based on market and situation analysis the next step of
marketing process for the company is to analyze marketing mix decisions for the
company (Element of marketing process, 2015). Debenhams is a retail unit and the
marketing mix measures adopted by the company relates to:
◦ Product development decisions to meet adhere consumer needs and preferences for
enhancing sales and developing brand recognition
◦ Pricing decisions relates to strategies that the company adopt in order to balance the
profit market and market demand of the company.
◦ Distribution decisions helps the company in enhancing market sales and creating
demand by enhancing product availability (Doole and Lowe, 2005). The company
1

thus seek effective measures of distribution to manage the sale and cost of the
company
◦ Promotional decisions are also very crucial for organizational growth as it creates
wide impact on attracting consumers for the company. Debenhams thus focuses on
finding profitable measures to enhance company sales and develop competitive edge
within the market.
 Consumer relationship management: after developing marketing mix the company then
focuses on managing consumer relations which helps in creating high value for money
within the business (Figge and et. al., 2002). This measure helps Debenhams in creating a
competitive edge within the market thus this element is planned and developed
significantly.
1.2
Marketing orientation is a revolutionary phase of marketing era. This is a process that the
companies adopt in order closely analyze the needs and demands of the consumers and enhance
organizational products and services to attain the same. This method focuses on valuing
consumer needs develop organizational activities in accordance to their needs and preferences.
This helps in developing a competitive edge for the company. These are various benefits and cost
related to this strategy.
2

Illustration 1: Pillars of marketing
(Source: Winston, 2012)
This strategy helps the business in developing brand recognition within the market by
enhancing the products and service quality according to consumer perception. It results in
enhancing sales and market share of the company as well. Debenhams has adopted the effective
measures to analyze consumer needs through market trends, consumer feedback etc. This
measure helps the company in developing market demand and sales as well (Wood, 2008). This
measure also helped the business in developing an effective brand image within the market.
The cost associated with this measure is high and significant. Marketing orientation needs
high level of investment in research and development section of the company. It is crucial part of
the business activity as effective research is needed in order to develop products as per the
changing needs and preferences of consumers (Saxena, 2009). Debenhams closely examine
consumer needs to produce range of apparels according to latest fashion trends. The cost
associated in these measures however has increases product cost which results in increasing
product prices as well. Moreover this measures also demands highly skilled and talented
employees who can analyze the needs of consumers and develop organizational strategies
accordingly.
3

Hence marketing orientation is the crucial need of the current marketing scenario. This
helps the business in developing a winning edge within the market. The benefits associated with
the process is high which efficiently manages the cost of marketing orientation for Debenhams.
2.1
Environmental analysis is significant for the growth and development of the company.
The macro and micro analysis of Debenhams helps in reflecting the internal and external market
prospects for developing market plans and actions.
Micro Analysis of Debenhams
5 M analysis for Debenhams
AXIS ANALYSIS
Manpower A strong and committed team of employees results in developing sales
measures. Company developed effective measures to gain consumer
feedback to update organizational products (Kotler, 2011).
Material Quality of Apparels and other products of the company are highly
acclaimed. The company has developed a high street brand image
Machinery Technically advanced methods have helped Debenhams in developing
high growth prospects and effective brand image.
Money The strong financial position of the company enhances growth
prospects within the market.
Method Well developed infrastructure and effective service and facility layout
helps in sales increment.
Effective online infrastructure boosts the company sales highly.
Macro Analysis of Debenhams
PESTLE Analysis of Debenhams
POLITICAL ECONOMIC SOCIAL
4

The company operates under
regulatory framework to
develop effective growth
within the market
A close analysis of changing
economic policies disposable
income of people results in
effective planning for
development of business
prospects (Clegg, Kornberger
and Rhodes, 2007).
Latest trends and fashion
needs help the business in
enhancing consumer demands
within the market
TECHNOLOGICAL ENVIRONMENTAL LEGAL
Latest and advanced
technology has been adopted
in order to closely link with
needs of youth.
The changing environmental
policies are adapted within the
business operation to develop
a positive brand image within
the market.
Company abide legal and
regulatory framework
efficiently
it works in ethical limits
2.2
Segmentation is one of the most crucial part of the marketing activity. It is used to divide
the vast market into small and accessible segment to develop focused and effective range of
business activities for those. Analyzing current market scenario Debenhams has planned to
launch a range of Cowboy boots within the market in order to enhance product range to meet
consumer needs. The market segmentation for this product will be done accordingly: Demographic basis:This segmentation will be done of the basis of age, gender and
interest of the consumers (De George, 2011). The Cowboy boots is a new and funky
range of products. The company thus will divide the market on the basis of age group
which will be from 15-28years and 28-40 years. This will help the company in analyzing
the needs of the two segments to develop product and promote it as well.
 Psychographic basis: This segmentation criteria considers the factors regarding lifestyle,
social class and personal values. Debenhams will use this criteria to enhance the usability
of its product to a segment of consumers who belong to high social class but are
adventurous and has personality to adopt bold fashion trend. Thus the segment for the
product will be premium consumers thus the product range will be high.
5

2.3
Targeting is the next step to segmentation. Debenhams focuses on selecting potential
consumers to generate high market sales and develop products according to their needs and
requirements. Target market is chosen on the basis of segmentation strategy of the company. For
Cowboy boot range the company will develop differentiated targeting style. As per this measures
the company will use more that one promotional measure in order to target the prospective
buyers for the product.
This strategy will helps the company in developing the message about the product quality
and usability along with its funky features. This will help the business unit in developing positive
consumers perception for the product. Moreover this measures will helps on targeting wide
consumers range (Gilmore, 2010). This measures will target youth buyers for the product.
However the premium buyers for the product and services will be targeted by different measures
of communication and promotion. The price range of the product is high thus the target market
for the company will be high income group.
6

2.4
In order to plan the marketing activities and design promotional measures the companies
closely monitor the buyer's behavior within the market as this helps the company in analyzing
strategies which could helps in grabbing maximum sales. Debenhams has analyzed the following
factors which has developed a direct impact on the buying behavior of consumers: Social factors: These factors are influenced social bonding and surroundings of the
buyers. It has been observed and seen that social influence such as family, friends and
reference group has wide impact on the buying patterns of the people. Debenhams
consider these factors closely to promote and communicate product features and details. Cultural factors: These factors deals with social class and culture that the individual
belongs to. This factors is analyzed by the company closely in order to develop
convincing sales prospective (Hollensen, 2010). Psychological factors: the new product range demand wide impact on psychological
factors of the buyers. It includes motivation, perception and beliefs for the product. The
company will create a positive motivation of the product by promoting the product
7
Illustration 2: Factor affecting buyer's behavior

suitable for bold and outgoing personality. This will help the products in creating a
fashion statement within the market.
 Personal factors: These factors are also important to analyze the sales and promotional
strategies fro the shoes. These factors deals with elements such as lifestyles, economic
situations, occupation etc. hence this category is significant for the company to consider.
2.5
Product positioning is a process of developing the impression of brand image and name
in the minds of buyers to enhance brand loyalty and demand for the product. This measure helps
in enhancing the product recognition within the market in order to enhance the sales of the
company (Hollensen, 2010). To position the product, company will need to enhance effective
promotional measures. The factors which will help in the same are discussed henceforth. Clarity: Debenhams will focus on developing clear and well defined message in order to
enhance high sales within the market. Consistency: The positioning strategy of the company will be consistent in order top grab
effective sales from the market. Credibility: The brand recognition of the company is high. The high street brand image of
the company will helps in developing high quality perception for the consumers which
will helps in enhancing company sales for the boots market (Trevino and Nelson, 2010).
 Competitiveness: The company will develop a competitive product identification by
effective measures of promotional means. Well managed display and sales promotion
measures will also contribute for the same.
8

3.1
Debanhams have effective measures to develop growth prospects within the economy.
For developing market share and enhancing sales the company need to carefully analyze various
strategies for product development and promotion as well. On the basis of ansoff's matrix
Debenhams will adopt product development strategy which will focus on introducing new
product within the existing market.
The product development strategy of the company will focus of providing a competitive
product to the consumers (Simpson and et.al., 2006.). To develop the product efficiently the
company will focus on the quality of and style of cowboy boots in order to meet consumer
expectations. Moreover the pricing and packaging measures of the product will also be
efficiently analyzed in order to enhance consumers perception. To develop value and demand
the company will develop effective promotional measures to enhance high demand for the boots.
9
Illustration 3: Ansoff's matrix

Celebrity endorsement measures will be adopted for the same. This will help in creating a
competitive product for the brand.
3.2
Distribution strategies are also very crucial and significant part of the business activity.
This helps the company in making effective availability of product within the market. The
distribution strategy adopted by the company will be: Intensive distribution: This measures will focus on making maximum product
availability within the market. The company will develop its supply chain in oredr to
enhance product availability. Online sales, retailing and wholesaling will be used for the
same. Selective distribution: This measure focuses on developing selective distribution
measures to enhance brand recognition and effective perception for product. Debenhams
will use effective display measures for enhancing sales via online and retail mode. This
measures however will manage the stock at the company outlet only (Felsted and Smaith,
2015).
 Exclusive distribution: This measures will focus on developing effective measures to
enhance the sales of the company through choosing exclusive distribution measures such
as exclusive exhibitions etc. this will help the company in targeting high class and
premium consumers for the products.
3.3
10