Marketing Fundamentals Analysis: Poundstretcher and Marketing Mix

This report provides a comprehensive analysis of Poundstretcher's marketing strategies. It begins with an introduction to marketing and the company, followed by an in-depth examination of the marketing mix, including product, price, promotion, people, place, physical evidence, and process. The report explores how Poundstretcher utilizes the STP model (segmentation, targeting, and positioning) to understand its target market and customers, maintain brand positioning, and ensure product availability across the UK. The analysis highlights the importance of each element of the marketing mix in influencing consumer awareness and driving sales. The report also discusses how Poundstretcher adapts its strategies to the UK market's multicultural population and disposable income levels. The conclusion summarizes the key findings and emphasizes the importance of market analysis and strategic planning for business success. This report is a valuable resource for students seeking to understand real-world marketing applications.

MARKETING
FUNDAMENTALS
ANALYSIS AND
EVALUATION -
ASSESSMENT 1

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAINBODY...................................................................................................................................3
Role of marketing Mix.................................................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing refers as a set of actions and processes that undertakes by company for
developing, communicating, distributing and trading offering which give value to the user,
partner, client and society at the wide scale. To understand role of marketing and it’s strategies
has an example of Poundstretcher. It is a discount store subsidiary company which is
headquartered in England, UK. It operates more than 450 location across the UK. It offers wide
variety products i.e. food and drinks, seasonal and others to the customer across the world. This
essay will provide understanding about targeted market, targeted customer and positioning of the
Poundstretcher company with the support of STP model. Then it will discuss that how company
maintain it’s brand positioning and product availability across the UK with the support of
marketing mix strategy in this essay.
MAINBODY
Role of marketing Mix
Marketing mix is a systemic set of marketing tool or tactics that use by company in order
to influence it’s product or services in the business market and sell. However, there is a reason to
say it marketing tool such as it includes seven elements product, price, place, promotion, people,
physical evidence and process which supports to take competitive advantage from competitors
and differentiate brand and it’s product from other brands and services (Camilleri, 2018). The
main goal of the marketing mix is to influence awareness in people about product and services
that attracts them for buying perspectives. This marketing tool also supports to identify that
product or service is fulfilling customer’s need or not.
UK is financially and technologically strong developed country wherein lives multicultural
population and consuming basic and luxury needs. Disposable income of UK’s people is quite
strong so their people able to afford expensive products and services. As same Poundstretcher is
a UK-based subsidiary company which operates in multiple locations across the UK. So, product
availability is quite higher for the customer as compared other subsidiary company. Marketing
manager of Poundstretcher uses STP model to target market, customer and positioning of brand
in the UK market. STP includes three type strategies i.e. segmentation, targeting and positioning
strategy. Segmentation strategy can be defined as the dividing the whole market into different

segments like demographical, geographical, behavioural and psychographic that become easy to
target specific customers effectively. Each segment is further subclassified accordingly customer
such as behavioural segments classify customers on the basis of their spending behaviour and
culture. While demographical segments classify customers based on the age, culture, gender and
others. Poundstretcher uses this segmentation strategy to classified UK’s retail market into
different segments (Datta, Ailawadi and Van Heerde, 2017). It targets all segments such as
demographical, geographical, behavioural and psychographic to target each category customers
in order to gain high profit. Targeting strategy supports to target specific customers like male,
female and children so that can fulfil their needs and in exchange generate high revenue. With
this targeting strategy, Poundstretcher targets women, mans as targeted customers because both
have good spending power. Positioning strategy assists company to determine and implement
great position in competitive market which supports customer to access effectively.
Poundstretcher is a subsidiary company of Crown Crest Group which already has maintained
good brand positioning in the global market. So, it will be valid to say it has good positioning in
the UK market. To differentiate it’s brand and product uses marketing mix strategy by
Poundstretcher. The marketing mix elements are described as follows:
 Product
The product that can be tangible or services can be intangible etc. are framed in order to fulfil
needs and demands of specified customers. Each product tracks effective product life cycle and it
is essential for the marketer to understand and implement each stage of product lifecycle because
each has unique challenge (Thabit and Raewf, 2018). Apart from this, marketer must understand
pain of the customer that will be overcome by the product. When marketers liable to connect
product with customer gain then they can give brief information about product features, benefits
and it’s unique selling proposition. Such understanding supports company to gain sustain growth
of product in the business market. Poundstretcher posses’ wide product portfolio under kitchen
and dining products such as cookware, bakeware, kitchen appliance and Bins. Apart from these,
it has home and furniture as products. With the wide range of product portfolio Poundstretcher
can easily fulfil needs and expectation of different customers effectively.
 Price

This element includes realistic amount of product that are expected by users or customer to pay.
However, product demand or perceived value and price of the product are inversely proportional
to each other such as when product price is higher or perceived value is lower than product will
not sell. In other case when product price is lower or perceived value is higher that increase
demand in customers for the product. Poundstretcher posses’ such product which reduce pain of
the customers and brings perceived value for the product (Išoraitė, 2016). So, such valuable
products support company to give values to the customer and in return enables to generate high
revenue on it’s each product.
 Promotion
It is another important element of marketing mix that supports to create awareness in people
about product and brand effectively as well as builds strong relationship with customers by
offering a interactive communication model. This element includes all promotional tools i.e.
advertising, seasonal discount offers, public relations, direct selling and others. These all
challenges are quite effective that bring wide communication between company and people. So,
this element considers just communication aspect for the whole marketing functions (WuL and
Li, 2018). Poundstretcher uses this marketing element in order to influence awareness in people
about product and brand. It uses both communication media i.e. online and offline. The reason
behind is that UK’s public has become highly advanced for e-commerce market. With online
media company aware those customers who are highly active at social site. While offline media
supports to target those public who still believe in traditional shopping.
 People
The people have to have a transparency which needs to be present in the organization with
the customers so that there is going to be better functioning. The changes in Poundstretcher are
according to the culture, populations, etc of the location where the organization is situated. The
needs and demands of the population are increasing which is why it is very important for the
company to be able to maintain their reputation in the market (Żak, 2017). The focus of
Poundstretcher is on the employees and the customers so that they can provide the best of
services and products which is matching the lifestyle and expectations of the customers. This is
going to help the organization have higher profitability and the organization will also be able to

expand them with the help of a strong portfolio which is going to be very helpful for a long run.
There are skills and communication which is going to be very helpful or the organization to be
able to reach out to the customers and employees of the organization so that the changes in the
company can take place effectively which would be very helpful for a long run in the market.
The organization will have to make the loyal customers be there for a long run and for that there
are a lot of changes in the operations and productivity which has to take place in the
organization.
 Place
The company will have to be present in areas where the customers can find it easier to be
able to approach the stores. The company has been able to expand themselves in UK at 450
stores which is a great achievement for the company but the business has higher opportunities in
the market so that they can capture a larger number of customers in the market. The competition
in the market is increasing and that has to be controlled by the organization which is going to be
very helpful for the organization to be able to expand them globally (Sherif, 2018). Online
platform is a very good place for Poundstretcher to start services and products to the customers
on time. This is a platform which can make the customers aware of the stores and the company
even more which increases the sales and profitability of the organization and that is a very good
factor for the organization. The organization will be able to take direct feedbacks from the
customers and the organization will be able to improve effectively.
 Physical Evidence
The company has had an experience in this field for 39 years which is a great factor for the
company and this can make the company have better improvement. The company has to make
the stores attractive and accepted by the culture and social factors so that the company can have
loyal customers. The company will have to improve according to the customers which are
coming in Poundstretcher. The products and services are very innovative and attractive for the
customers (De Mooij, 2018). The clothing line of Poundstretcher is improved very frequently so
that the organization will be able to have a loyalty of the customers which is going to be very
beneficial for the organization. The company will have to have a right strategy for themselves so
that they can improve the satisfaction level of the customers which is going to be very helpful for

a long run. The products are mostly focused on by Poundstretcher so that there is going to be a
good satisfaction level and the company will be able to operate effectively in the market which is
going to be very effective for a long run. The employees and the customers have to be satisfied
because of which Poundstretcher is providing the employees with the best of environment to
work within which is going to be very helpful for a good performance in the market.
 Process
There have to be right changes which have to take place in the company so that there is going
to be a higher satisfaction level of the customers which is going to be very helpful for a long run.
The company can get a higher competitive advantage if the organization has a better decisions
making and strategic planning for themselves in the long run. There are a lot of objectives and
goals which are set by the organization and they have to be achieved on time so that the company
will be able to function effectively in the market (Wang and Kim, 2017). The competition in the
market is also increasing and proper communication with the loyal customers is going to help the
company be able to have a stable economic factor for a long run. There are a lot of options for
strategies and measures which the company can take for having higher productivity but
Poundstretcher has maintained their technological improvement in the organization so that they
can have better functioning and the demands of the customers which are increasing can be
fulfilled. Poundstretcher is trying to have a good profitability in the market so that they can
operate and invest in further expansion of the organization globally and that requires a strong
portfolio in the market (Grubor and Jakša, 2018).
CONCLUSION
The businesses present in the market will have to analyse the market for themselves so
that the further decisions and measures can be taken by the organization. There are a lot of
changes which are required in an organization so that there is going to be a better functioning.
There have to be measures which have to be taken by the organization so that there is going to be
a better performance and the profitability can be well maintained in the organization. Portfolio of
the company has to be maintained and for that the satisfaction level of the customers have to be

well maintained so that the organization will have to be better and planning will have to have
good functioning.

REFERENCES
Books and Journals
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equity align with sales-based brand equity and marketing-mix response?. Journal of
Marketing. 81(3). pp.1-20.
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Grubor, A. and Jakša, O., 2018. Internet marketing as a business necessity. Interdisciplinary
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