Marketing Plan and Analysis: Debenhams PLC (Course Code: MK101)

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AI Summary
This report provides a comprehensive marketing plan for Debenhams PLC, a UK-based retail organization. It begins with an executive summary and an introduction outlining the importance of marketing plans. The report conducts an in-depth marketing analysis, including internal and external environmental assessments using PESTLE and SWOT tools. It then details the segmentation, targeting, and positioning (STP) strategies employed by Debenhams. The report defines SMART objectives and analyzes the marketing mix using the 7Ps framework, offering recommendations for measurement and control. The report also evaluates financial positions, human resources, and research and development, while also including external analysis of political, economic, social, technological, legal, and environmental factors. The report also highlights Debenhams' strengths, weaknesses, opportunities, and threats (SWOT), concluding with recommendations and suggestions for future growth. The report is a student-created document available on Desklib, a platform offering AI-based study tools.
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Marketing Plan
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Executive Summary
Marketing plan is the document or blueprint which consist of all the activities such as
business advertising and marketing efforts for the next year. The marketing plan of Debenhams
PLC is made with critical analysis of internal and external environment. PESTLE and SWOT
tool is used for analysing the external environment of the organisation. Segmentation, targeting
and positioning of the products and services provided by the organisation has been set. The
critical analysis of the marketing mix variables which include the 7P's of marketing is evaluated
and SMART objectives is justified to achieve the goals and targets. Recommendation and
suggestion to overcome the drawbacks and conversion of threats and weaknesses to strengths
and opportunities is evaluated.
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Table of Contents
INTRODUCTION...........................................................................................................................1
An audit of marketing analysis...............................................................................................1
Segmentation, Targeting and Positioning...............................................................................5
SMART-OBJECTIVES.........................................................................................................6
Marketing Mix 7Ps.................................................................................................................7
Recommendation for Measurement and control....................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
BIBLIOGRAPHY..........................................................................................................................12
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Illustration Index
Illustration 1: PESTLE analysis.......................................................................................................2
Illustration 2: SWOT Analysis.........................................................................................................4
Illustration 3: STP process...............................................................................................................5
Illustration 4: SMART Objectives...................................................................................................6
Illustration 5: Marketing Mix...........................................................................................................7
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INTRODUCTION
Marketing plan is essential element to accomplish organisational goals and objectives. It
is futuristic and a complete plan which outlines company's advertising and efforts of marketing
for the next year (McDonald and Wilson, 2016). The report will show the marketing plan of
Debenhams PLC, a UK based retail organisation will be made. It will recommend the various
alternative source for generating revenues and new ways by which the organisation will able to
improve its position in the market. Environmental analysis of both internal and external
environment will be shown to understand the impact of those factors on company's growth. A
brief research will be made to identify the business strengths and weaknesses with opportunities
and threats it possesses. Identification of current marketing position through segmentation,
targeting and positioning to analyse the sectors of growth and the sectors of retrenchment. Tools
for marketing mix will be used to define the process and recommendation for control and
measurement is evaluated for success of marketing plan for next year.
An audit of marketing analysis
Internal Analysis
Debenhams PLC established in eighteenth century as single outlet as departmental store
segmentation in London and has expanded to more than 100 locations within UK (Mohammed,
Rashid and Tahir, 2014). It deals with various range of clothing, furniture, electronics and
household items. Headquarter of the organisation is located at London, UK. The marketing
strategy of the company is to provide unique combination of designer and international brands
across many product categories.
This analysis of the organisation scans the internal marketing environment of the
organisation. In includes the company's research and development, financial position and human
resource department.
Financial Position- The revenue of organisation was 2341.7 million GBP in 2016, which was
2.1% more than the previous year. The operating income is 131 million GBP and net earnings
were approximately 85.9 million GBP in 2016. The cash inflow of the company shows the
increase in productivity and profitability.
Human Resource Department- Human resource department plays an important role for
implementation of effective marketing strategy (Root, 2016). There are more than 27000
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employees working in different branches across the country. The employees are committed and
loyal towards the organisation which helps in achievement of goals and objectives.
Research and Development- The research and development team of the organisation works on
various unique combinations of products and services to attain maximum market share. The
major area of focus of the team is to work towards improvement and innovation of goods and
services.
External Analysis
This analysis consists of scanning of external organisational environment. It includes
various factors which affect the marketing strategies of the business. It includes political,
economic, social, technological, legal and environmental factors. In PESTLE analysis.
Political Analysis- Political sector influences the overall marketing strategies of the organisation
as it has to face various challenges like interest rates of fluctuations, consumer protection,
tax policy’s structures and employment legislation. There is growth in competitors as
government allows foreign markets in the country. Though there is reduction in tax structure
which benefits the organisation.
Economic Analysis- UK is facing economic crises due to instability in political structure. The
competitors in retail sectors attract consumer by offering them various discounts and other
benefits. This influences Debenhams because of low selling price of the product. With the
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Illustration 1: PESTLE analysis
(Source: Sodry. S., 2017)
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changes in tax policies by government, the organisation affected greatly as it has to made
changes in its fiscal policy and compensation policy.
Social Analysis- The shifting in tastes and preferences of consumer and increase in lifestyle and
standard of living provides the organisation an opportunity to introduce more branded and
premium products to please the consumers.
Technological Analysis- The criteria of shopping has been shifted from door to door shopping to
online shopping. It influences the sales approach and marketing strategies. More
development and improvement in information and technology is required in the organisation
to increase the sales and growth of the organisation.
Legal Analysis- The rules and regulations which are made by the government are to be followed
by organisation. The laws include consumer right to safety, employment legislation,
production of own natural renewable resources, etc (Janicic and Jankovic, 2014). They
influence the overall business strategies and lays impact on growth.
Environmental Analysis- Environmental factors like geographical regions, culture and
civilisation influence the production of the organisation. .Use of natural resources leads to
provide clean and green environment across the country. Resources like wool and cotton
which are ecological friendly are used in production to reduce issues like recycling and
contamination.
SWOT Analysis
The strengths and weaknesses which organisation possesses with opportunities and threats that
influences the marketing plan and strategies. The SWOT analysis of the organisation is provided
below:
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Strengths- Debenhams PLC is the market leader in women fashion and clothing among
its competitors. The organisation possess strong brand equity and more effective in
corporate social responsibilities. It is operating in foreign markets with more than 150
stores located across UK, Ireland and Denmark which reduce its susceptibility (Ashcroft,
2013). The major strength of the organisation is its 27000+ workforce working for the
organisation. Weakness- Increase in competition makes the capture of market share slow. Organisation
is not focusing on all type of customer segments and has limited presence in global
markets. Opportunities- Organisation possess opportunities to increase its expansion in many
European countries. Evolving tastes and preferences of consumers fashion can leads to
innovation of unique combination of products (Colorful Leaves SWOT Analysis, 2017).
Online shopping is the new trend in the UK economic environment, which enables the
organisation to increase profits. Threats- Local retailers in fashion industry creates threat of high competition. Price
increase in clothing and tax increase will lead to less spending by customers. Brand
switching due to high brand awareness and specific choice of product is the biggest threat
to the organisation.
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Illustration 2: SWOT Analysis
(Source: Colorful Leaves SWOT Analysis, 2017)
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Segmentation, Targeting and Positioning
Segmentation- Debenhams PLC main task in marketing campaign is to offer premium
and branded lifestyle products. The consumer market is divided into various
segmentation based on the demographic conditions such as age, gender, religion, etc. It
also deals in other goods like electronic, furniture and household items (Subhan and
et.al., 2015). The organisation invests large amount of resource and time to increase the
brand loyalty for customer retention. It works to analyse extensive behaviour of customer
and direct it marketing strategies to aim for chosen segment efficiently.
Targeting- The main target of the organisation is upper middle class individuals
especially women who aged between 25-55. Differentiated products are innovated for the
women's who always want to look good and trendy (What is the STP Process?, 2017).
The business strategies target to gain the market share in lifestyle products. Other
segments are also targeted by the organisation as they are also the part of business. But
the products which influences more in the growth of organisation is the lifestyle segment.
Positioning- The organisation is focused on brand positioning which include the products
and services like clothing and fashion accessories. Organisation motive is to provide
unique combination of designer and international brands (Wilhelm-Rechmann, Cowling
and Difford, 2014). It has goods for all segments of customers and sorted according to
their needs and desires.
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Illustration 3: STP process
(Source: What is the STP Process?, 2017)
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SMART-OBJECTIVES
SMART means Specific, Measurable, Achievable, Realistic, Timely. As setting goals is easy but
achieving them is hard task. That's why SMART strategies are made (SMART Objectives, 2016).
Debenhams PLC is working progressively to attain its goal and objectives. By using SMART
strategies the organisation aims to achieve following objectives.
To increase the profits and revenue by 15% in next year. By being specific about the
goals and targets, the improvement in various sector will help to achieve the set target.
To increase the number of customers by 10% and improve in lifestyle segment to retain
existing customers. The organisation will increase the percentage of customer by
providing quality products and services.
To become the leading organisation in retail sectors by providing unique and premium
products and services. The organisation set the achievable target for the next year and is
working progressively to attain it.
To increase the manpower working in the organisation by 20%. The human resource
management of the organisation requires more employees in specific time to achieve the
goals and objectives.
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Illustration 4: SMART Objectives
(Source: SMART Objectives, 2016)
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By using and working on SMART objective, organisation will able to work on the set targets and
will able to achieve them effectively and efficiently in right time.
Marketing Mix 7Ps
Marketing mix is the process of allocating right product, at right price and at right place
(Mullin, Hardy and Sutton, 2014). The difficult part is the promotion of products. Marketing mix
of Debenhams PLC analyses the brand which cover the 7ps (Product, Price, Place, Promotion,
People, Physical Evidence and Process) and covers the marketing strategies of the organisation. Product- Debenhams claims to provide premium and branded goods and services to the
customer. The strategy of the organisation is to provide products with unique
combination of designer and international brand. The products include men and women
clothing and lifestyle, accessories, branded beauty items, furniture, electronic and
household items. Due to rise in standard of living in the country, company focuses more
on clothing and fashion segment. Which increase the substantial growth of the
organisation. In 2016, company is focusing on food, beauty products and gifts. Price- Price of product vary according to its brand and quality. Clothing products which
are premium are high priced and domestic products are provided with affordable price
(Eggers and McCabe, 2015). The price strategy of the organisation is to provided right
product at right price so that every all customer can fulfil their needs and desires.
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Illustration 5: Marketing Mix
(Source: Behera. M., 2014)
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Place- There are more than 150 stores of Debenhams PLC are operating across the UK,
Denmark and Ireland which provide competitive advantage to the organisation. In
addition to it company also conduct online business where customers can purchase the
products and services online. The place strategy of the organisation is to open an outlet in
every area in the country so that it become accessible and feasible to the customers. Promotion- The promotion strategy includes online marketing, hosting various events
and sponsoring in sports. Many festive offers also helps in attraction of customer. This
strategy helps in 1% increase in sales by the end of first quarter of 2016. By the highly
trading environment in UK organisation has expanded its multi channel offering and
strengthen its mobile commerce platform. People- The company aims to build an effective relationship with customer by providing
them luxurious and premium quality branded products. To maintain the consumer
satisfaction is the main aim of this strategy. In addition to that, there are more than 27000
employees who are the part of the organisation (Boone and Kurtz, 2013). To make an
effective and healthy employee relationship, the organisation upgrade its HRM policies. Physical evidence- Headquarter of the organisation is located at Block Street, London.
There are more than 160 stores operating in UK and approximately 250 outlets are
opened worldwide. More ever it has highly developed and user friendly website which
shows the organisational structure and other detail.
Process- Organisation contentiously promotes its products and services. The revenue
generation is dependent on high quality and branded clothing items. This customer are
aware about the offerings of the organisation.
Recommendation for Measurement and control
The success of the market plan will depend on the growth of the organisation. To
evaluate the success of strategy organisation must focus on its cost and production areas
(McDonald and Wilson, 2016). The segments which are not generating profits, retrenchment
strategy needs to be implement. Segments like food and clothing are in demand so growth
strategy must be implement. Debenhams PLC is one of the biggest department store in UK and
acquires majority of market shares across the country.
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