Principles and Practices of Marketing: Hobbs Ltd Case Study Report

This report provides an analysis of marketing principles and practices, using Hobbs Ltd as a case study. It begins with an introduction to marketing and the importance of the marketing mix. The report then provides a background on Hobbs Ltd, a retail company specializing in women's products, detailing its operations, target market, and marketing channels. Task 1 focuses on effective marketing solutions, discussing the role of social marketing and the impact of technological developments on the marketplace. It also examines the evolution of marketing strategies in response to changing business environments, including globalization and technological advancements. The report delves into various pricing strategies such as premium, penetration, economy, and skimming pricing, and how Hobbs Ltd utilizes vendor, competitive, psychological, and multiple pricing strategies to attract customers, including discount pricing, cost-plus pricing, and competitive pricing. The report highlights the importance of adapting marketing strategies to remain competitive in the market.

Principles and practices of marketing 1

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
TASK 2 ...........................................................................................................................................8
Marketing Theories.....................................................................................................................8
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing is the most important function for every business whether it is a profit making
organisation or non profit organisation. Marketing in other words can be defined as a process
which involves various activities such as market research, promotion of product and services,
customer services, product design and development etc.
In order to make strategies for marketing the marketers make use of marketing mix.
Marketing mix is the most effective way which helps marketers to set the strategies for different
factors such as price, place, promotion etc. In order to understand the principles and practices of
marketing Hobbs Ltd(Fan, Li and Jiang, 2018). company has been used in a study. In order to be
successful in a market company needs to set such pricing strategies which is efficient to attract
customers toward the product. Therefore the study will also highlight the pricing strategies of
Hobbs ltd. The study will also cover the various pricing strategies which is used as a marketing
strategy.
Background.
Hobbs Ltd. is a retail company that deals in products mainly for women. It offers various
products under different categories such as footwear, clothing and accessories for women.
Company was established in year 1981. At that time, firm is the Retailer of shoes. Hobbs has its
operations in different countries like United Kingdom, United States, Germany etc. It has large
number of stores in approximately 55 countries across the world. Company offers its products to
customers in mid range that is not too low and not too high. So that, customers of middle age and
older can easily buy the cloths, footwear and other accessories of the company. Major buyers of
Hobbs Ltd. Are the Duchess of Cambridge etc. Currently, firm is having more than 65 branches
in Ireland and United Kingdom..
Company is marketing its products through various marketing channels. To attract large
number of targeted customers, Hobbs has launched its first online store in year 2008. It has
provided various benefits to the customers such as it enables the buyers to purchase products of
the firm from the company's website that is www.hobbs.co.uk (D’Adderio, Glaser, V. and
Pollock, 2019). The website helps to serve customers of different countries like Germany,
Australia, United States etc. This has provided support to the customers to buy wide range of
products offered by the customers such as trousers, shirts, jackets etc. It is one of the major

marketing channel of the firm because it helps the firm to attract large number of buyers by
offering products at mid range price that can be easily affordable by the customers.
Hobbs is also advertising its products through social media platforms like Facebook,
Instagram etc. for attracting domestic as well as international customers. For effective marketing
of products of the company, Hobbs has also launched its products through online platform that is
bloomingdale's. On bloomingdale's, customers can buy products like tops, midi dress, wrap
dress etc. at price starting from £139. Marketing activities of the company mainly focuses on
underserved psycho-graphic females that are balancing the needs of family, work etc. and
women that are very confident about themselves.
With the help of Marketing activities, Hobbs is satisfying the digital needs of the modern
customers. For Example – Hobbs has started a marketing campaign that is Make an
Understatement in year 2016. Printed campaign is launched in various magazines and
newspaper like Marie Claire, Red, Sunday Times etc. The main objective of this campaign is to
attract women to buy products that company is offering through new product line. Marketing
strategy of Hobbs for offering its unique products is based on targeted audience, communicating
with customers through different communication channels etc. Infrastructure of the company
also plays an important role in attracting buyers to buy the products of the firm. Further, Hobbs
has also modified the infrastructure of stores according to busy work schedules of the customers.
Management of Hobbs has adopted channel-agnostic approach for improving the performance of
the business that will help to increase sales and profits of the company (Fan, Li, X. and Jiang,
2018).
TASK 1
Effective marketing solutions :
According to Oliver Serrat. 2017, as marketing principles and techniques social
marketing is being used which create an impact on behaviour change. Social marketing can be
defined as a concept, application and process which can be used in order to know who is target
customers, what they want, what type of communication channel will be useful, and how the
company can meet the desire of customer. Social marketing also helps company to solve the
problem of society.
J.E rowly. 2001 published a book in 2001. According to which technological led
developments are creating a change in nature of information in marketplace. In order to survive

in this competitive era it become necessary for various stakeholders, and players to form new
strategies in order to survive in this rapidly changing market. This new strategies should be such
that which will help company to identify the new market segments, to introduce new product in
market, to manage the relationship between suppliers and customers etc.
According to Jim Blythe, 2013 the principles and practices of marketing help amarkets to
achieve success in their planning. Marketing does not lay emphasis on promoting goods and
services but it is also concerned with providing a services too. Wiht the change in business
environment and market the marketing strategies also change. The reason behind change in
business environment can be globalisation, digital technology, increase in competition etc. The
change in trends of market is one of the important factor due to which companies has to change
its marketing strategies.
As per the views so Thomas T. Nogle, George Miller, 2017, the pricing strategies and
tactics help the company to manage the market strategically. It help company to plan strategies
which help company to increase profit.
However by seeing the above literature it can be said that marketing strategies of
company does not remain same. Every company or marketers need to make changes in its
strategies with change in business environment. The marketers change its marketing strategies
which is related to price, product, place, promotion, etc. The company does not always apply the
same strategies throughout its product life cycle. With the change in business environment such
as impact of globalisation, impact of technology company has to make changes accordingly.
There can be several reasons why company needs to regular make change in its
marketing strategies. The various outside forces may also create pressure on company to make
changes in its strategies. Some of the reasons are change in customer demand, product life cycle,
increase in competition etc.
In order to attract customers toward the product and services of a company it become
essential to make use of promotional strategies. In order to make the proper marketing plan
marketer needs to understand its clients, develop financial goals and create new strategies for
business.
Pricing strategies
As the use of social media is increasing day by day therefore it has become necessary for
almost all types of organisation to go on board. If the company fails to do so it might result in

loss of company. In order to remain in market companies need to use effective marketing
strategies. Pricing strategy is one of important marketing strategies which help company to
attract customers toward it. As the market is changing vary rapidly and competition is also
increasing therefore it is necessary in such condition that companies should use the proper
marketing strategies which will help the company to remain ahead of its competitors and attract
customers toward is products. There are 4 different methods according to which can be used for
pricing :
Premium Pricing :- this is used by those industries and companies who intend to establish
themselves in the upper segments of society. The companies lying in this circle have less
competition and their brand value is extremely high. The prices charged by them is extremely
high and the companies usually practice niche marketing targeting only a particular segment of
customers. This strategy tends to exploit the belief of consumers that the higher a product is
priced, more will be their quality and the changing trends and the desire to follow them is the
main motivating factor behind this strategy(Dahl, 2018).
Penetration Pricing :- Here, the emphasis is on attracting larger number of consumers by
initially setting low prices. Once, the company is able to establish a market successfully, they
increase their prices. Penetration pricing is generally done through a product having smaller
amount than the usual so that the product can spread rapidly in the market establishing
themselves. This pricing strategies are usually adopted by those companies who are entering the
markets and such lower price levels helps them in creating a high demand market base so that
later when the prices are increased, they can successfully retain the majority of the market.
Economy Pricing :- This can be categorized as a no frills low pricing strategy. Under this, the
company keeps its marketing and promotional costs to a minimum level and hence the customers
are charged very less so that maximum benefits can be given to them. This type of pricing
strategy is usually adopted by airline companies where they sell the few initial seats at very low
prices and charge highest prices for the last few seats. When a economy is in recession, the
company practising economy pricing experience Higher sales a it is able to attract more number
of customers.
Skimming Pricing :- Under this, the product is placed at high price levels which although
minimizes sales but helps in gaining higher profits which help the companies in achieving their
break even point and recover the costs incurred. It is usually done in case of electronics like

mobile phones etc. This strategy is adopted only for a limited time period and after a particular
amount of time passes, the prices are restored to their appropriate levels. This helps the
companies in avoiding setbacks .
Pricing strategies which is used by Hobbs Ltd.
Hobbs ltd. Which is a retail company in UK use different pricing strategies in order to attract
customers. The company uses various types of pricing strategies. The company pricing strategies
include vendor pricing, competitive pricing, psychological pricing and multiple pricing. In
discount pricing the company give discount on the its different products such as clothes, shoes,
handbags, dresses etc. The company provide discounts when the company has many old products
with it. Therefore company applies this pricing strategy which help company to attract customers
and easily sale its outdated products( (Jalili and Pangburn, 2018).).
Hobbs ltd. Also make use of cost plus pricing strategy. The company use this strategy in
order to cover the cost of raw material as well as cost of processing.
competitive pricing is one of the important pricing strategies which is used by the company. As
there is large number of competitors in market therefore company tries to use this strategy in
order to attract customers toward the products of company.
In order to attract customer the company introduce offers and discounts on its product in
festive seasons. Which help company to attract more customer towards it.
As there are large number of choices available to customers in market. Therefore
company use this strategy along with high quality of customer service. There are basically two
types of competitive pricing one is pricing below competition and other one is prestige pricing or
it can be also called as price above competition. In price below competition the price of
company's product is lower than the price which is offered by other company. While in case of
prestige price the retailer usually provide such quality of merchandise to the customers which
make them unique. And customers are ready to buy the products are higher price.
Hobbs Ltd. Use the first pricing strategy i.e., the company provide price which is low to
the pricing of competitors. The company provides price for its product which is easily affordable
by customers. The benefit of such pricing strategy is that it help customers to easily buy the
product of Hobbs ltd. And as a result of this company get successful in creating a large customer
base and also it helps in increasing profitability of a company.

Along with different pricing strategies the company also make use to various other
marketing strategies such as use of social media such as twitter, Facebook, Instagram etc, other
online platforms as well as offline platforms.
The company make its pricing strategies by keeping in mind the needs and wants of its
customer. As the market is changing therefore company make proper use of digital platform
which help company to be competitive in this tough market scenario and face its competitors.
TASK 2
Marketing Theories.
Marketing theories says that, to increase the products of the company, Marketing
Manager has to position the brand image of firm as well as brand image of products in the
market. So that, customer believe that product will provide various benefits to them in terms of
price, quality, convenience etc. Marketing theories in retail firms focuses on attracting buyers
towards physical and online stores to purchase the products. Success of every retail companies
depends upon the quality of service it provides to satisfy the demands of customers. To remain
competitive in the market, organization has to understand the trend of changing modern lifestyle,
shopping behaviour of the buyers (Foltean, 2019).
Every organization should adopt strategies actions for promoting its goods or services for
increasing the sales and revenue of the firm. Marketing tactics includes sales promotion, offering
discounts, pricing strategies such as skimming or penetrating pricing. It also includes providing
special offers to targeted segment of customers so that, they will buy the products of the firm.
Organization should use the above tactics by keeping in mind cultural factors, demands of
buyers, purchasing power etc. that can influence the decision-making process of targeted
customers
There are various tactics that Hobbs Ltd. will use for promoting the brand image of the
clothing items, footwear and other accessories. So that, it will help to improve turnover and
profitability of the company. These are as follows -
Discounts -
It refers to the reduction in price of products or services. Companies offer discounts to
existing as well as potential customers to influence them for placing order of the products offered
by the firm either in physical stores or through online platforms. Company deducts the amount of

discount from original price of goods and customer is required to make payment for net amount.
There are mainly two types of discounts that company offers to the buyers. First is cash discount
that seller provides to customers to motivate them for making payment quickly. Another is trade
discount that company provides only when buyer orders goods in large quantity (Lam, W. and
Harker, 2015).
Marketing Manager of Hobbs Ltd. should use discounts as a marketing tactic for
increasing the sales of wide range of products of the company. Manager of the retail firm should
offer coupons and vouchers to customers on apparels. So that, they will influence to place the
order for buying the products of the company.
Currently, in year 2019 in the month of July firm is offering discounts in terms of
percentage on selected range of clothing, footwear and other accessories for women. Hobbs Ltd.
has organized a summer sale for offering selected range of women clothing items and footwear
such as blouses, sandals, occasion wear etc. at the online website of Telegraph at 50% discount
(Mason, Kjellberg, H. and Hagberg, 2015). Further, company has also offered discounts on
luxury and affordable clothing items like shoes etc. Discounts as a marketing tactic of Hobbs Ltd
has provided various benefits to customers as well as to the firm. Hobbs Ltd. is also offering
footwear at 50% discount to customers if they are purchasing flats, high heels etc. in Hobbs sale
event.
Other than this, firm is also offering discounts on Monday and black Friday on various products.
One of the major advantage to the customers is that, they are able to buy luxury clothing items,
footwear etc. with high quality at a discounted price lower than other retail firms. Therefore,
these type of offers are providing an opportunity of savings to the buyers. Not only customers get
the benefit of discounts but, Hobbs Ltd. also get various advantages. Discount as a marketing
tactic is highly effective in increasing the sales of the company. Company is using this tactic
from past many years. For Example – In year 2018 total sales of the firm is £132.6 million
which is higher than £109.8 million in year 2017. Turnover of Hobbs Ltd. has increased by 20%
in year 2019 as compared to last year. It also helps to improve the brand image of the firm in the
minds of targeted customers.
Therefore, retail firms should use offer discounts and vouchers to buyers to influence them to
buy the products of the firm.
Sales promotion -

It is one of the major component of promotional mix. It includes various types of
communication channels that helps the firm to improve the availability of the product or create
the demand of the product in the market. For Example – Organizing contests, offering rebates,
display at point of purchase, coupon etc. Sales promotion tools can be used for customers, for
distributors etc.
Sales promotion is another important marketing tactic that will help Hobbs Ltd. to attract
potential customers as well as to retain existing buyers of the firm and it will also support the
company to gain competitive advantage over other retail companies. For example – Hobbs Ltd.
Has already created a Loyalty Program for attracting large number of customers. Under this
program, firm offers' birthday gifts. One of the benefit is that customer will receive birthday gift
to any of the store of Hobbs like Arnotts, Bentalls etc. Company provides free next day delivery
to customers that are residing in UK. It also offers attractive offers to influence the buyers to buy
products of the company. In April 2018, Management of Hobbs Ltd. has organized Spring
Styling Sessions and Events for the customers and offer 20% off on original price of the clothing
items, footwear and other accessories for women (Dahl, 2018). Company also notify the
customers regarding promotional events and offers at any of the department stores.
To promote the sale of products, in year 2016 company has started a print campaign to
influence women to buy wide range of products that firm is offering to targeted segment of
customers by launching a new product line. Hobbs has launched the campaign in Marie Claire,
Red Magazine, Sunday Times etc. It has also targeted female who are admired for the cloths they
are wearing. The name of marketing campaign was 'Making an understatement'. This
marketing campaign is highly effective in attracting middle age and old women and satisfying
the needs of modern women.
Further, to increase the sale of Apparels, firm has also featured the models that are
wearing cloths of Hobbs brand. All the above tactics that are used by the management of the
retail firm is highly effective in improving the sales of the products at various stores of Hobbs
that are located in different countries like Ireland, UK etc. Company is using social media
platforms like Facebook and Instagram. Approximately 1,71,228 people are following the page
of Hobbs London on Facebook. It means that, promoting the products on online platforms has
resulted in increase in the demand of clothing items, footwear and other accessories among
targeted segment of customers (Foltean, F.S., 2019). These platforms have help customers to buy

the products of the Hobbs brand. It helps the firm to get reviews and feedback from the buyers
that has purchased the product. Many of customers has given positive reviews regarding the
price, colour, quality of the clothing items such as wedding hat, evening dress, prom dress, top
and skirts etc.
CONCLUSION
The various marketing strategies prove helpful to the companies in order to survive in the
market. Various practices which the company use for marketing purpose help company to
achieve there goal. Marketing strategies related to product, price, place, promotion etc. help
company to sell their products to the customers. Various marketing strategies which company
make use of help company to attract customer towards it product and services.
The marketing strategies of any company cannot be remain same for the whole lifetime
of product. The company has to make regular changes in its marketing strategies. There can be
many factors which can cause the company to change its marketing strategies such as
globalisation, technology, change in market demand etc.
The study helps in understanding the importance of principles and practices of marketing
strategies. It also helps in understanding the various pricing strategies such as price skimming,
price penetration, low pricing strategies, competitive pricing strategy etc.

REFERENCES
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Jalili, M. and Pangburn, M.S., 2018. Price Discounts and Rewards Programs: When Does
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Mason, K., Kjellberg, H. and Hagberg, J., 2015. Exploring the performativity of marketing:
theories, practices and devices.