University of Northampton: MKTM028 Marketing Audit of Dorothy Perkins

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This report presents a comprehensive marketing audit of Dorothy Perkins, a UK-based fashion retailer. It begins with an overview of the company and its competitive landscape. The core of the report analyzes the external environment using a PEEST analysis, examining political, economic, environmental, social, and technological factors impacting the business. A micro-analysis delves into customers, employees, competitors, and suppliers. The internal analysis assesses the company's strategy, functions, and productivity. A SWOT analysis identifies Dorothy Perkins's strengths, weaknesses, opportunities, and threats, followed by a TOWS matrix to formulate strategic recommendations. The report concludes by summarizing key findings and strategic challenges, supported by references and appendices, including a company overview and macro analysis details. The report provides a detailed examination of Dorothy Perkins's marketing environment and strategic positioning.
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Running head: STRATEGIC MARKETING
STRATEGIC MARKETING
Student’s Name
University Name
Author note
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1STRATEGIC MARKETING
Introduction – company overview
Dorothy Perkins is a multinational fashion business organization based in United
Kingdom. The business organization offers its own range of fashionable clothes and branded
products to the consumers. The organization is a part of Arcadia Group. The business
organization is controlled by Sir Phillip Green. The company was founded in the year 1990.
Dorothy Perkins operates in a highly competitive business environment. Dorothy Perkins faces
direct competition from Wallis, Nordstrom and Monsoon. The company is headquartered in
London (Aindow 2016). The company offers users to purchase fashion apparels and accessories
for both men and women. The purpose of this report is to conduct a marketing audit on Dorothy
Perkins. It analyzes the external and internal business environment of Dorothy Perkins and
determines the key strategic challenges faced by the company. Lastly, it sums up the main points
and concludes the report.
Macro analysis – PEEST analysis
Political factors – The political stability of UK is one of the biggest strength of Dorothy Perkins.
However, incidents such as Brexit create level of uncertainty and debates in the country. The
country has good stable relation with other countries, which makes it favorable for the business
organization to carry out the operations and functions of the business organization smoothly
(Blázquez 2014). It also provides additional opportunities to expand its operations in other
international countries. Furthermore, the country being a member of UN has considerable
influence on global economic, cultural, and political affairs.
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2STRATEGIC MARKETING
Economic factors – Dorothy Perkins faces both threats ad opportunity from the economic factors
of the country. The overall increase in sales of the business organization depends on the
economic boom periods (Fields 2017). The consumers have higher disposable income during the
boom periods. During the recession periods, sales is decreased which affects the profitability of
the business organizations. Inventories and stocks get piled up without any sales (Kim, Fiore
and Kim 2013). During these periods, the products and services are needed to be sold at a lower
price.
Environmental factors – Increase in ethical and environmentally conscious consumers are both
threat and opportunity for the business organization. The environment conscious consumers
demand the company to adapt to eco-friendly approaches. Dorothy Perkins might face stiff
competition from other companies undertaking environmentally responsible approaches for
conducting business (Kim, Fiore and Kim 2013). The governmental pressures have also
increased concerning the environment hazards.
Social trends – The presence of socio-cultural trends of the business organization provides
additional opportunities to Dorothy Perkins. However, increase in obesity among the people and
the ageing population of the country is a threat to the company (Miles 2019). As per the research
and surveys, it has been identified that almost 7 out of 10 men and women in the country are
overweighed. Therefore, many consumers’ especially female shoppers avoid shopping at
particular individual clothing company which lacks plus size ranges (Miles 2019).
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3STRATEGIC MARKETING
Technological factors – The advancement of technology accelerates growth and development of
the business organizations. Dorothy Perkins might face stiff competition from the e-commerce
fashion companies like Amazon (Pookulangara and Shephard 2013). The new channel of
distribution opens new competitive space. Moreover, it has low operational base.
Micro analysis
Customers – The core strategy of the business organization is to comply with the needs and
preferences of the consumers. The marketing strategy of Dorothy Perkins is to focus on the
consumers. It is the responsibility of the marketing departments to understand the need and
demands of the consumers (Pookulangara and Shephard 2013). Considering the needs and
requirements of the consumers in the market, Dorothy Perkins offers the best products and
services to the consumers. The changing in the fashion trends affect the smooth functioning of
the business organization. Fashion is something that is most uncertain. Fashion trends and styles
keep changing and revolving. Dorothy Perkins runs on the fashion trends (Rashid and Barnes
2017). Hence, it needs to continue to make changes and improvements to cope up with the
changes in the fashion trends.
Employees – Employees are major stakeholders of the business organization who contributes to
the success and profitability of the business organization. Dorothy Perkins provides training and
development opportunity to the consumers to improve their ability and skills. The company also
provides opportunity for promotions and other opportunities (Pookulangara and Shephard 2013).
These facilities and opportunities provide a competitive edge to the company.
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Competitors – Competitors like Zara, Amazon and other e-commerce companies are biggest
threat to Dorothy Perkins. The company needs to consider the actions of the competitors to
remain successful and competitive in the company (Rashid and Barnes 2017). The company
considers the actions of the competitors and makes significant changes in its marketing strategies
so as to maintain and improve their position in the market.
Suppliers – The suppliers provide materials and other essential supplies for the companies to
successfully operate the company and provide fashionable products to the consumers. The
functionality of the suppliers directly impacts and affecting the organization (Kim, Fiore and
Kim 2013). It is essential for the business organization to maintain strong relationship with the
suppliers.
Internal analysis (strategy, functions, productivity)
Strategy
The overall strategy of the business organization is to develop growth through diversification
with vertical integration. The business organization leverage latest technologies for rapid growth
and development (Miles 2019). Implementation of artificial intelligence and other advanced
technology provides competitive advantage to the business organization. Customers are main
priority of the business organization, hence the strategy of the business is to provide 24/7
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5STRATEGIC MARKETING
customer service that provides guidance and support to the customers (Miles 2019).
Responsiveness to customer feedback and queries enable them to attain satisfactory customers.
Functions
The business organization manages designing, manufacturing the products, shipment of the
products, displaying the products and services, effective sales, and accessing the feedback of the
consumers (Pookulangara and Shephard 2013). The main function of the business organization is
to offers wide range of fashionable apparels and clothing for the target consumers in the markets
along with other fashionable accessories for the consumers. Dorothy Perkins leverages its control
and provides reliable quality products and services to the consumers. The business organization
has extensive control over designing of the apparels and manufacturing process to ensure higher
quality products and services (Pookulangara and Shephard 2013). The business organization has
efficient capital equipments with skilled designers and employees which ensures high quality
products and services. The company has a strategic and unique approach towards retain fashion.
Productivity of Dorothy Perkins
High quality products and services, good brand image and rise in consumer spending have
increased the productivity and profitability of the business organization. The fashion industry in
UK is booming currently, which increases the profitability and growth of the business
organizations (Rashid and Barnes 2017). Most importantly, the advancement of technology,
machinery and artificial intelligence, the business organization has been able to boost its
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6STRATEGIC MARKETING
productivity thereby ensuring quality and profitability. The fashion industry is a source of
enviable growth for companies like Dorothy Perkins. Innovation is the most important factor for
the overall success and profitability of the business organizations (Shin and Cassidy 2015). Other
favorable environmental factors such as changes in consumer trends and preferences improve the
productivity and performance of the business organization.
SWOT Analysis – key strategic challenges
Strengths – Dorothy Perkins offers numerous options in collections, styles, and sizing. The
business organization provides new collections to the customers every week. The company
excels in styles and new fixtures. These features and functionality of the business organization
are biggest strength of the company (Shin and Cassidy 2015). The company has a good brand
image and good reputation among the consumers with excellent customer services.
Weakness – The price of the products and services are higher in terms of other products and
services (Aindow 2016). The store display is limited which weakens the ability of the business
organization. The company has low stock with small market presence. This weakens the position
of the business organization (Kim, Fiore and Kim 2013).
Opportunities – The young consumers in the market are highly fashion conscious and trendy.
There has been an increase in spending among the consumers. Increase in globalization and
diversity provides opportunity for growth and diversification (Pookulangara and Shephard 2013).
The company has a strong presence on websites and other social media sites.
Threats – Stiff competitive in the fashion industry with new emerging companies and present
operating companies. The business organization also faces stiff competition from the e-
commerce business organization. Frequent changes in fashion trends might impact smooth
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running of the business organization. Unstable and uncertain political and economic conditions
might affect the business organization (Pookulangara and Shephard 2013).
TOWS MATRIX
Strengths Weakness
Opportunity Dorothy Perkins has a global
presence with good brand
image. Globalization and
diversity increases the
opportunity to expand and
grow.
There products and services of
the business organization are
priced higher as compared to
other brands. However,
consumers are highly trend
and fashion conscious. The
pricing of the products reflects
its quality and fashion.
Threats Increase in competition
threatens profitability of the
business organization.
However, the products of
Dorothy Perkins are perceived
to be of higher quality and
trendy. The brand image of the
company is a competitive
advantage of the business
organization.
The pricing of the products
and services are high which is
not affordable by major
segment of the consumers in
the market, this weakens its
position. Frequent changes in
fashion trends among the
consumers impact the business
operations. Stiff competition
in the market also threatens
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8STRATEGIC MARKETING
the position of the company.
Conclusion
Therefore, from the above analysis, it can be concluded that Dorothy Perkins operates in
a competitive fashion industry in UK. UK is comparatively stable, which favors successful
operations of the business organization. The report has identified the external environment
factors affecting smooth running of the business organization. It has described the micro
environment factors such as the customers, employees that affect the business organization.
Further, it identifies the strengths, weakness, opportunities, and threats of the business
organization and determines its key strategic challenges.
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9STRATEGIC MARKETING
References
Aindow, R., 2016. Dress and Identity in British Literary Culture, 1870-1914. Routledge.
Blázquez, M., 2014. Fashion shopping in multichannel retail: The role of technology in
enhancing the customer experience. International Journal of Electronic Commerce, 18(4), pp.97-
116.
Fields, S.E., 2017. Cultural and Aesthetic Analysis of Some of the Most Daring Celebrity
Fashion Trends. Art and Design Review, 5(2), pp.103-114.
Kim, E., Fiore, A.M. and Kim, H., 2013. Fashion trends: Analysis and forecasting. Berg.
Miles, R., 2019. Sharing the index: Performance.
Miller, D., 2013. Towards sustainable labour costing in UK fashion retail. Available at SSRN
2212100.
Pookulangara, S. and Shephard, A., 2013. Slow fashion movement: Understanding consumer
perceptions—An exploratory study. Journal of retailing and consumer services, 20(2), pp.200-
206.
Rashid, A. and Barnes, L., 2017. Country of origin: reshoring implication in the context of the
UK fashion industry. In Reshoring of Manufacturing (pp. 183-201). Springer, Cham.
Shin, M.J. and Cassidy, T.D., 2015. Designing a fashion driving forces website as an educational
resource. International Journal of Fashion Design, Technology and Education, 8(2), pp.173-183.
Tupikovskaja-Omovie, Z., Tyler, D.J., Chandrasekara, S. and Hayes, S., 2014, March.
Segmenting the UK Mobile Fashion Consumer. In ICMB (p. 2).
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Appendices
Appendix 1: Company overview
Company Name Dorothy Perkins
Industry/ country Fashion industry / UK
Company mission and vision statement Conducting business in an ethical way and
having responsible attitude towards
community, people and environment.
Company size (employees) 1840 employees
Key competitors Ted Baker, Seduce Group, Forever 21 and Zara
Key products and services
dresses, tops, shoes, coats, petite clothing, and
more in sizes
Source: Created by author
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11STRATEGIC MARKETING
Appendix 2: Macro analysis
Political environment Unstable political environment affects the
business operations. However good relation
with other countries provides opportunity to
the company.
Economic environment Economic condition is favorable for the
business organization. It is stable conditions
for smooth running of the business.
Environmental factors Increase in environment conscious consumers
provides both opportunity and threat to the
business.
Social factors The fashion trends are changing frequently
which threats smooth functioning. The young
consumers are highly fashion trendy which is
favorable for the business.
Technological factors Advancement of technology increases
opportunity to grow and expand in the market.
Source: Created by author
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