Comprehensive Report: Global Business Management of Fortnum & Mason

This report provides a comprehensive analysis of Fortnum and Mason's global business management. It begins with an executive summary and table of contents, followed by an introduction to the company and its rapid growth. The report delves into the marketing mix, focusing on the 7Ps strategy (Product, Price, Place, Promotion, People, Physical Evidence, and Process), examining each element in detail. Market segmentation, target market identification, and brand positioning are then discussed, considering consumer behavior and facilities. The importance of market research is highlighted, and recommendations are provided to enhance the company's performance. The report concludes with a summary of key findings and references to support the analysis. The report emphasizes the company's innovative product offerings, affordable pricing, strategic location, and promotional strategies to engage customers. It also examines market segmentation based on demographics, geographic location, and consumer behavior. The report concludes with recommendations for improvement.

Running head: GLOBAL BUSINESS MANAGEMENT OF FORTNUM AND MASON
GLOBAL BUSINESS MANAGEMENT OF FORTNUM AND MASON
Name of the Student
Name of the University
Author Note

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Executive Summary
The report has talked about the business market and global business distribution of Fortnum and
Mason products. Fortnum and Mason are one of the biggest companies in the UK so their wine,
tea, cakes all these are collected from this company. The innovative touches in all those products
make them rich in terms of product quality. Better revenue generation is also expected form the
company, in this reason marketing strategy like 7Ps' of marketing strategy has been used to
analyze the product and price format. Market segmentation has been done and age group
differentiation for wine also states a new dimension in culture. Their income, taste, culture all
these are different form demographics people and that is the reason better strategic planning is
needed in that situation.

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Table of Contents
Introduction......................................................................................................................................3
Marketing mix of Brand..................................................................................................................3
Market segmentation, Target market, and Positioning....................................................................6
Consumer behavior and facility.......................................................................................................8
Importance of market research........................................................................................................9
Recommendation.............................................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................12

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Introduction
Fortnum and Mason, an up market departmental store established in London in 1707, has
rapid growth in their production. They have varieties products and the company has focused on
innovative upgradation of products. In case of better business management, company can make
better decisions that encourage better productivity as well (Fortnumandmason.com 2017). A
refreshing environment has persisted in the hotel that also encourages people to understand the
quality that Fortnum and Mason deliver to their customers. In case of demonstration and social
responsibility customer involvement and better product deliverance are the key factors of the
company have analyzed for their better revenue generation. As per the focus of active
employees’ demography, 15.2% of employees’ engagement has been noticed in the UK and this
culture produces have impacted more engagement in terms of better management.
Marketing mix of Brand
The marketing mix is a strategic change in marketing basically depends on the traditional
limitation of product enrichment. There are lots of marketing strategies and all those strategies
are implemented in product marketing and promotional policy (Ferraro and Briody 2017).
Classic marketing form is applied to the modern business scenario then market position of the
company become stagnant, so better implementation of process and marketing association is
needed for better marketing process. 7Ps of marketing strategy used over this brand so that
product flow and better revenue generation can be sustained.
The first section is dealing with Products. There are lots of products in Fortnum and
Mason and all those innovative products are very attractive to people. They have products like
cakes, biscuits, pastry, chocolate, mincemeat, Florentine. All these products are good in quality

4GLOBAL BUSINESS MANAGEMENT OF FORTNUM AND MASON
and have makers touch to redefine the product to be the best one (Wild, Wild and Han 2014.).
Tea collections like silky tea, clotted cream tea, ginger tea, cocktail tea, chocolate violate tea,
nougat tea all these kind of tea are unique in nature and good as products, so these form of
diverse product culture help company to reach in bigger business market.
The next section is Price and this is the defining aspect of market engagement and
revenue generation. People love to have quality food at low price and this price statement can
create gain in business. Loss or gain for a particular product depends on the product price and the
reach of the product in external market. Fortnum and Mason sell their product at affordable price
and deliver quality products.
The place of the company and selected location of it is the major investment that
company does for their business growth and expansion. The revenue generation is also
depending on location of the company where people can access their food. The major capital is
placed for the acquisition of land and that place need be good one where all the facilities like
supply of raw material, water adequacy, electrical sustainability, transport, employees'
engagement and better delivery facilities will be there for sustainable business condition (Peng
2016). Export and import in all over the world is depending on the place and position of the
company.
The next section of the 7Ps strategy is Promotion. This is the only way to grab market
and enjoy product demand. Promotion can be done through web portals, internet, television,
radio, newspaper or any other mediums. The gradation of the promotion is the key aspect that
change the product dimension as radio television, banner posters all these encourage products of
the company. Sometimes, company has put some huge discount on their products. This is

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basically a marketing strategy to engage more people to have this product (Aronczyk 2013).
Promotional power has the judgmental power to compare the product with other brands. Fortnum
and Mason deliver their products at low rate and this is one of their promotional strategies.
Discount rates are important as people attract for those discount rates and increase sale for huge
number of products.
People culture and their taste is the major concern for this following strategy aspect.
People workplace culture, their environmental condition, drinking habits, physical growth,
psychological understanding and diverse workplace value all these are associated with product
involvement and company upgradation (Christopher 2016). People, economic condition is also
liable for this situation as most of the people opt to choose low price product with good quality.
Though amalgamation of these two aspects is quite impossible still Fortnum and Mason have
done this for company enhancement.
Physical evidence of the company is important as the promotional work and product
philosophy is associated with the gained information of that company. The environment issues
like reduce, recycle, reuse, remove and renew all these are the manufacturing process for the
company. This is innovative business technique where physical evidence is the matter of concern
for customers and wine and confectionary packing is one of them.
The process is the last and final strategic stage that basically delivers the making or the
formation of those products. The product formation and chemical involvement in those products
are key process design that actually attracts people to show or promote them the qualities of the
food that made of. This is an opportunity for customer to know the ingredients of the products or
the actual environment or temperature suitable for those products.

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Market segmentation, Target market, and Positioning
Segmented people and diverse cultures are the main section of market segmentation.
There are several segmentations in people. Behavior is the first aspect that highlighted the need
for people. There are certain good foods which are really high in price so economic conditions of
people and their capacity to have those are the concern reasons behind market segmentation.
People status, brand familiarity, occasions all these are reasons behind food acquisition and as
per the behavior of the people; they choose their style of food (Piekkari, Welch and Welch
2014). The next understanding over market segmentation is Geographic location. Urban
people’s taste is different from rural people so their food culture, habits, availability all these are
different as well. The economic condition of these two genres are not same so their taste of food
must be different, thus the segmentation needs to be analyzed in prospect of the cultural and
behavioral change (Myers 2013). The Demographics segmentation like income, age, gender,
family size, job, education, religion, race, culture, and generation all these are the possible
prospect that can create market segmentation and allows people to choose their relevant options.
The target market for the company is basically all income groups irrelevant to rural or
urban people as the variety of foods delivered by the company is phenomenon. Suppliers are
targeting for better investment and makers or producers are targeting for better sale and revenue
generation. As the prices of those products is so reasonable that all sections of people, love to
have those wines and teas. Setting a target market for mature people is important and Fortnum
and Mason have set that; however they want more people to come and economic, behavioral,
social obstacles are mitigated to improve their business by accumulating people in a large
number (Bosma 2013). Multi-segmental approach and their change in food variety is the major

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High Quality
Low Quality
High Price
Low Price
Positioning of Fortnum and Mason
aspect of targeting market. Mostly at the age of 30 to 60 years, people love to have this so better
management process for them is essential for those people.
Figure 1: Perceptual Map Positioning of Fortnum and Mason
(Source: Created by Author)
In this positioning statement, as per the perceptual map, Fortnum and Mason Company
always serve good quality food at lower cost and this is the reason people accumulation and
revenue generation is maintained throughout the year (Budhwar and Debrah 2013). The
company can serve those foods at this low range just because they earn their resources at very

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cheap price and this is the reason Fortnum and Mason maintain their quality and price in this
competitive market.
Consumer behavior and facility
Consumers’ behavior depends on the situational influence and time. Time pressure is
most critical factor and at this time consumer behavior has changed. This is the time customer
are in hurry so they need the food on an urgent basis, organization needs to understand the
situation of the customer and a special team will be there for those urgent customers and serve
them within few minutes (Cowling et al. 2015). This is a kind of facility that can change the
customer behavior to the organization. Other facilities like free product with some of the other
products are the key attraction for customers. They love to have those facilities and for that
reason, their behavior change may happen. Royalty card facility is another aspect that can please
customer. The card has particular offer that can allow customers to avail 5% discount on every
time of purchase and this is a marvelous opportunity for the customers (Mitchelmore and Rowley
2013). The shop opens for whole night for special occasion, customers go there enjoy their time
and approach and behavior has changed in that scenario. These facilities are just for the
customers and their involvement is the key motive for this occasion.
Importance of market research
Market research on Fortnum and Mason Company is important to evaluate their market
position and to understand diverse possibilities of the company and provide possible outcome of
those situations. This evaluation is important to analyze their positive and negative aspect of
Fortnum and Mason and suggest better opportunities to grow the business in a systematic manner
(Herbane 2013). The target people are the key market for this research. This is the time where

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the better communication, interaction, involvement is important to know the actual feeling of
consumers. The recommendation process is implemented so that better progression in interaction
and public relation has sustained. In terms of sales promotion profit and loss ratio has been
identified over market and this is the evaluation for financial aspect of the company (Kardes et
al. 2013). Slow or high scale rate may underline the economic status of the company. Key
information from within an organization will put their commercial procedures, community
awards, and industry accumulation. The corporate literature and the financial understating are
important for this kind of organization deliverance.
Recommendation
Fortnum and Mason Company have some effective engagement with their customers and
this physical, mental and social investment is the key aspect of the organization. Better
communication and effective customer engagement is the key prospect that can considered as a
recommendation. The perception of customer commitment relates to uninterrupted and repeating
conversation which goes on flanked by the company and its consumers. The recommendation
like better tea process, free delivery, call on delivery, innovation process of food making, Royal
card for customers, customers loyalty prize all these are motivating factors for the company. An
organization has to provide some innovative procedures for customers so that business will
sustain and upgrade in an effective manner (Chand and Tung 2014). Pricing strategy needs to be
different for rural and urban areas so that people from each area can avail facility to have the
food. Business alteration and market segmentation need to be sustained in a systematic genre
where age difference and the difference in drink must be segregated. Government initiation must
be needed in that situation. There are some other companies who are quite up in rank in
perceptual map; in that scenario, Fortnum and Mason needs to invent some better strategy so that

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organization enhancement will persist. There will be different business plan and the company
needs to organize some franchisees so that business can sustain and develop in external and
internal market and better promotional way will open for business.
Conclusion
Therefore from the above findings, it can be concluded that Fortnum and Mason need to
implements some strategy so that business market can sustain. The customer experience and
engagement is good for the company but the implementation of 7Ps’ marketing strategy is more
influential in business and more marketing opportunities will come in that process. Best brand
wine, chocolates, and tea all these are available in the company so better customer engagements
are required from the company perspective. Better customer experience and better opportunities
are only provided by the hotel if they follow those recommendations. There are different
facilities that may change the scenario of the organization and consumers are happy to utilize
those opportunities. The market segmentation of Fortnum and Mason also needs to be different.
They need to select some of the wine brands for particular age group. The basic demographics
stated this view and Fortnum and Mason have to follow this for safe and secure wine delivery
that analyses the chemical involvedness according to age. In case of market positioning the
organization is very much satisfied with their customer satisfaction; still, more involvedness will
raise up if all those facilities and innovative thinking can enrich quality of products and improve
the culture of the company. Market research is important in this scenario to evaluate the state of
the company and judge this company from other companies' point of view. A judgmental
approach is needed in that case as Fortnum and Mason have already had a diverse range of
collections so customers' can actually point out the better implements or thinking what needs to
be taken as recommendation.

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References
Aronczyk, M., 2013. Branding the nation: The global business of national identity. Oxford
University Press.
Bosma, N., 2013. The Global Entrepreneurship Monitor (GEM) and its impact on
entrepreneurship research. Foundations and Trends® in Entrepreneurship, 9(2), pp.143-248.
Budhwar, P.S. and Debrah, Y.A. eds., 2013. Human resource management in developing
countries. Routledge.
Chand, M. and Tung, R.L., 2014. The aging of the world's population and its effects on global
business. The Academy of Management Perspectives, 28(4), pp.409-429.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Cowling, M., Liu, W., Ledger, A. and Zhang, N., 2015. What really happens to small and
medium-sized enterprises in a global economic recession? UK evidence on sales and job
dynamics. International Small Business Journal, 33(5), pp.488-513.
Piekkari, R., Welch, D. and Welch, L.S., 2014. Language in international business: The
multilingual reality of global business expansion. Edward Elgar Publishing.
Ferraro, G.P. and Briody, E.K., 2017. The cultural dimension of global business. Taylor &
Francis.
Fortnumandmason.com 2017 FORTNUM & MASONRetrieved from:
https://www.fortnumandmason.com/ [Accessed from 31st December 2017]