Next Plc: Evaluating Promotional Mix and Marketing Strategies Report

This report provides an analysis of the promotional mix strategies employed by Next Plc, a UK-based clothing retailer, with a focus on their application in locations like Oxford Street. It examines various promotional techniques including advertising, sales promotion, personal selling, public relations, and direct marketing, supported by relevant examples and academic literature. The report also evaluates promotional models such as AIDA, above/below the line, and push/pull strategies in the context of Next Plc's operations. The study highlights Next Plc's background, revenue, and corporate social responsibility efforts, and discusses the impact of online and offline advertising, sales promotions, and personal selling on the company's performance. The report concludes by emphasizing the importance of a balanced promotional mix for enhancing brand awareness and driving sales, while also addressing the challenges and opportunities faced by Next Plc in the competitive retail market.

Principles and Practice of Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
PROMOTIONAL MIX OF NEXT PLC.........................................................................................3
Advertising..................................................................................................................................3
Sales promotion...........................................................................................................................5
Personal selling............................................................................................................................6
Public relation..............................................................................................................................7
Direct marketing..........................................................................................................................7
PROMOTIONAL MIX MODELS..................................................................................................8
AIDA...........................................................................................................................................8
Above/below the line.................................................................................................................10
Push and pull promotional strategies.........................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
List of figures
Figure 1: Revenue chart of Next Plc................................................................................................2
Figure 2: corporate social responsibility ranking of Next plc.........................................................2
Figure 3: Front look of Next' store at Oxford Street........................................................................4
Figure 4: AIDA model for promotion.............................................................................................8
Figure 5: Push and Pull Mode.......................................................................................................10

INTRODUCTION
The marketing refers to the process of promoting products and services for grabbing the
attention of customers and ensuring the consistent growth of the business in the international
marketplace (Morgan, 2012; Slater, Hult and Olson, 2010). The marketing includes the
promotion, public relation, advertising and sales (Baker, 2016). In this context, the present report
consists the promotion mix of Next plc, which is a UK based clothing brand that sells the
exclusive range of clothing and accessories for men, women and kids. Along with this, the Next
plc also offers the book and home decor product globally in 70 countries with the aim to offer a
high-quality product with fashionable designs to the consumer at suitable pricing strategy (Next
Plc, 2018). In this context, the different promotional techniques such as advertising, direct
marketing and sales promotions are critically analyzed with the help of several studies. Apart
from this, the promotional models including AIDA, push and pull, and above/ below the line are
analyzed in the context of Next Plc.
Background of Next Plc
The Next plc was found in 1864 by Joseph Hepworth and continuously growing across
several countries. In the growing stage the Next plc firstly brought Kendall and Sons, the
womenswear retailer and enlaces the collection with woman wear. It grew the business with 600
stores in Britain and called Next. After this business expansion, the Next continuously growing
by adding variety of products for offering the customer likely menswear, home interior products
and exclusive range of children wear. In this series, in 2010 Next supplies the clothing and
homeware products for London 2012 Olympic and Paralympics Games (Next Plc, 2018). It
created a big opportunity for Next plc to promote the products in the global public and increase
the demand for Next's product in the public (Annual report, 2012). Apart from this, in 2013
Next started the online business across in 70 countries such as Africa, Europe and Asia and uses
many marketing strategies through it offers many services to the customer such next day delivery
and more attractive flagship store for attracting the customer towards the Next. In this context,
Next operates 200 franchising stores for reaching the target customers (Financial Times, 2018).
Similarly, the Next targets the age range between 20 to 40 and middle-class market segment by
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offering the affordable price of the products (Reference for business, 2018). It also helps Next
plc for retaining the customer and ensures the successful long run.
Figure 1: Revenue chart of Next Plc
(Source: Financial Times, 2018)
The Next plc gives employment to 28.32K employees globally and treated equally all the
employees of the organization through which it ensures the 14.59% profit margin (Maccroaxis,
2018). However, the corporate social responsibility is also important for the business to elevate
the market reputation. In this context, the Next plc has 44% females in the Board of directors
(Next plc, 2018). Apart from this, the company have a higher ranking in the CSR. In this context,
Next plc continuously enhances the engagement with key stakeholders as supplier, customers,
employees, community, shareholder and government. It reveals that the company has active
participation in the CSR which enhances the reputation of the company in the general public
(refer to figure 2)
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Figure 2: corporate social responsibility ranking of Next Plc
(Sources: CSRHUB, 2018)
Next plc constantly develops the product range to enhance the performance the product
of the company in the public. Further the Next plc acquires the third-party brand Lipsy for
enhancing their exclusive womenswear collection. Along with this, Next plc set to open a new
flagship store in the shopping centre at 120 Oxford Street which is nearby the Tottenham Court
Road Tube station. It is helpful for Next to attract the Crossrail's travellers for visiting the store
(Santamaria, 2016). On the other hand, the Brexit negatively affects the sales of Next plc's stores
and decreased the sales by 8.3% but the online presence of Next increased the online sale by
5.7% which helps to minimize the impact of Brexit (BBC News, 2017). Therefore, the company
has survived in the typical conditions rise from Brexit by selling the product through different
channels and processed the aim for continuous growth.
PROMOTIONAL MIX OF NEXT PLC
The promotional mix includes the blends of several of promotion techniques such as
advertising, sales promotion, personal selling, public relation and direct marketing (Sunday and
Bayode, 2011; Obasan and Yusuf, 2012). Every promotional mix technique attracts public in a
different manner. In this regard, Next Plc, the multinational clothing brand uses the promotional
mix for enhancing brand awareness in the public. The promotional activities by Next plc are
mentioned below-
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Advertising
The advertising is a business strategy which persuades the customer for buying the
product or services (Malär, Krohmer, Hoyer and Nyffenegger, 2011). The different modes for
advertising like online or offline advertising are helpful for enhancing the public interest (Aaker
and Biel, 2013). For example, Next plc invests a huge amount money in online advertising to
attract a larger mass of the public. In this regard, the Next plc elevates the sale by increasing the
investment in the online business to 25% because of in 2017, the sales went down to 7.9% and
negatively affected the profit which falls by 24% (Hammett, 2018). This is because online
advertising is helpful to retain the attention of the large mass of public in minimum time. Along
with this, the company also uses many advertising techniques such as broachers and fashion
magazines to promoting the exclusive apparel in the public (Zhang, 2015). In this context,
Valette-Florence and De Barnier (2013) mentioned that print media is a cost-effective
promotional tool for promoting the products in target market with more engagement with the
public in comparison to online advertising because the public gives more importance to reading
magazines rather than website surfing.
For offline advertising, the Next plc unveiled a new campaign with seven dancers to
promote the different outfits in public (Whitelocks, 2011). In this context, Huang and Sarigöllü
(2014) asserted that adverting is a communication tool which represents the brand personality to
the consumer and other marketers. Apart from this, to attract the public at the Oxford street the
Next modernize the front view of the store and turn from simple and old view to the frameless
glass covered front for promoting the new image of Next in public (refer to figure 3).
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Figure 3: The Front look of Next' store at Oxford Street
(Source: Bere, 2018)
The front window of store shows the latest and elite apparel for man and women through
the mannequin and high quality of images of the model wear Next’ exclusive range of clothing.
This authentic front view of store encourages the public to visit the store and buy fresh products.
Owing to this, by using the different mode of advertising the Next plc reveals the brand
personality in the public as well as in the competitors.
The balance between online and offline advertising is more important for enhancing
online and in-store selling (Sethuraman, Tellis and Briesch, 2011). In this regard, the CEO of
Next plc focuses on the integration of the online and offline store system through which
shopping becomes easier and improve the competitive edge of the company (Hammett, 2018).
However, sometimes, the advertising negatively affects the brand reputation and creates the
causes for business losses. Apart from this, the advertising needs the proper amount of
investment; thus, it is the responsibility of management to plan proper advertising activity and
increase the profitability of the company.
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Sales promotion
Sales promotion is a short-term approach to promoting the product in public
(Chaharsoughi and Yasory, 2012). The sales promotion includes two types of promotion activity
one is consumer promotion and another is trading sale promotion. In the consumer sale
promotion, the promotion activity is created by considering the end user of the product such as
discounts on the product, sample testing and gift vouchers (Teck Weng and Cyril de Run, 2013).
This type of sales promotion fosters the customer for purchasing the product. In this regard, the
Next plc offers to discount on several products such as kids clothing, men clothing and 20% off
on the shopping with the friends at Next store for boost up the sale (Mailonline, 2018).
Nonetheless, the consumer promotion helps for maintaining the inventory effectively because the
outdated stock sells quickly in discounting which reduces the inventory cost and resulted in
profitability (Teck Weng and Cyril de Run, 2013). Therefore, sales promotion increases the sales
and managing inventory in an effective manner. Apart from this, the company offers half of the
price sale on the apparels of Next and uses a promotional campaign which shows the awareness
of sale on products in the pets of the family (Campaign, 2017). By using this campaign, the Next
targets the customer’s awareness and forced them to grab the Next’s product at the half price.
In the present era, it is necessary for a clothing business to motivate the distribution
channel for enhancing the sale of products because they directly interact with customers
(Pearson, 2016). In this regard, the trade sales promotion is the promotional activities which are
created by considering the dealer, salesperson and distributor of business (Odunlami, and
Ogunsiji, 2011). In this type of promotion activity, the company offer incentives to the dealer for
boosting the sale. For instance, the next plc motivates their sales executive by providing them
extra monetary benefits to sales executive for over target sell. Apart from this, the Next plc also
offers seasonal discounting to the distributor for encouraging them.
Personal selling
Personal selling leads the direct interaction with the customers. In this type of promotion
technique, the salesperson uses interpersonal skills for forcing the customer for buying the
product (Liao, Chen and Hsieh, 2011). This type of product promotion activity is more
influencing because the sales personnel involves their personal opinion of the product and
convey the customer that how product become beneficial for them. In this regard, Poon, Albaum
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and Shiu-Fai Chan (2012) stated that the salesman represents the product in an effective manner
to the customer and enhances the satisfaction of the customers for purchasing product. In this
manner, the HR manager of Next plc hires the skilled salespersons and enhances the existing
sales executive’s skills by providing the training and development program (Next Careers, 2018).
On the other hand, the personal selling also helpful for elevating selling of brand-new products
because the with the help of personal selling, the skilled sales executive publicized the product to
the customer and enhances the demand of new product (McClaren, 2013). For this purpose, the
Next plc launches the new product in store under the selling of expert sales executive.
In the Next's store, the sales advisor and customer service representative create the
customer's general shopping experience to a wonderful experience (Next Careers, 2018). These
types of customer services are helpful for retaining the loyal customer for a long time. Apart
from this, for online selling, the Next provide the mobile app and website for selling the product
with improved communication with the customer (Hobbs, 2016). In the promotion of products,
the celebrity endorsement is more helpful for enhancing the awareness of public for the product
and forcing them to buy the product. This is because the celebrity has a large amount of follower
which tries to follow the lifestyle of the celebrity such as dressing, hairstyle and makeup (Spry,
Pappu and Bettina Cornwell, 2011). In this manner, the Next also uses the celebrity endorsement
for promoting the product. In this regard, Joan Smalls, one of the top models for advertising
promotes the Next’ product at the homepage of the website. Hereby, the Next appoint Arizona
Muse as brand ambassador from 2011 to 2013. It reveals that the Next uses each type of
promotion activity (Marriott, 2014).
Public relation
The public relation (PR) is a communication process used by an organization to build a
healthy and beneficial relationship with the target audience and enhance the brand understanding
(Daymon and Holloway, 2010). The main purpose of building PR is creating a positive brand
reputation in the stakeholders of the organization. In this regard, for creating public relation the
organization use Word of Mouth (WOM) marketing by consisting social media and other
communication channels to interact with the public (Gu, Park and Konana, 2012). In this way,
the liable employees of company upload the video related to the company on YouTube and gain
the response of public from the publicity of the company. This type of promotional activity has
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more influence on the customers in comparison to advertisement because the customers have a
great belief in the friends and family's suggestion rather than conventional advertising (Sweeney,
Soutar and Mazzarol, 2012). In this manner, the Next plc also focuses on the PR by enhancing
the relationship with the public by conducting the several social activities and uploads the video
on social media.
Direct marketing
Through direct marketing, the company establishes direct contacting with the target
customer group instead of an indirect medium between the customer and company and
determines the best result of marketing (Yeshin, 2012). For this purpose, the company uses
several of connecting medium such as direct mail, SMS, telemarketing, social media and
exhibition in trade shows. This type of promotion activity also helpful for maintaining the
marketing budget because of the absences of intermediates (Verhoef, Kannan and Inman, 2015).
Apart from this, direct marketing creates an easy way for the customization of promotion activity
and bring the valued relationship with the target customer (Yeshin, 2012). Owing to this, direct
marketing has many advantages for the product promoting company. In this manner, the Next plc
sends mail to the customers for the new product launch and any discounting scheme offer in the
store which creates a new business opportunity for Next to offer product according to the market
demand.
PROMOTIONAL MIX MODELS
In the present era, it is important for an organization to create different promotional
strategies for promoting the product with minimum investment and greater outcome of
promotional activities (Allender and Richards, 2012). In this regard, the several promotion
models are mentioned below which is used by Next Plc.
AIDA
The AIDA model helps the management of an organization for achieving promotional
objectives by effective thinking and putting feeling in the promotional activity (Wijaya, 2015).
This model divides the promotional activity into four components including attention, interest,
desire and action. Every buyer goes through each component of AIDA mode as it begins with
their desire to focus on a particular to its final purchase decision (Rawal, 2013). In this manner,
the Next Plc gains the public attention through its lucrative advertisement in the magazines and
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store display (Zhang, 2015). For example, the Oxford Street store of Next plc is updated on the
basis of new arrivals and accordingly which gain the attraction of buyers (Bere, 2018). However,
the model itself indicates that attention leads to interest through which buyers want to know
more about the specific product or service. This interest is generated through offering more and
more information related to new arrivals, discount and any special event which may be organized
by the brand. For example, Next plc announces about its new arrivals on the online application
before the apparels actually arrive at the online or physical store.
Figure 4: AIDA model for promotion
(Source: Hanlon, 2013)
The Next plc also use unconventional advertising for publicizing the great discount on
the product by showing the awareness of family pet for new discounting in TV promotion. This
keen interest of potential buyers generates their strong desire to go for the promoted products or
services which in turn influence them to finally take the purchase decision. In this context, the
Next plc gives timely information about new discounting by email or SMS to the target
9

customers and enhances their wants for the product. Along with this, it shares the success of the
high demanding product to the customer for turning their thinking for the product from like it to
want it. This desire forces the customer for making the final decision for purchasing. Therefore,
by using the AIDA model the Next plc enhances the public awareness for new arrivals and
encourages them for buying.
Above/below the line
The above and below line model divides the promotion activity into the two segments
which are above the line and below the line. Under Above the line, the promotion includes social
networking, magazines, print media, TV and radio to promote the brand in conventional media
(Mayer, 2011). For instance, the Next plc targets a large mass of audience by advertising the
product in the fashion magazines. By using this type of advertising, the Next plc enhances the
reputation in the market by enhancing the organization's responsibility in the advertising. In this
regard, the Next plc offers the variety of products for the different needs of consumers. This is
helpful for building the brand image because the consumer communicates for the availability of a
product at the store and gives benefits to the brand.
Below the line, advertising includes the specific penetration of advertising activity which
offers easy control over the advertisement activity (Mayer, 2011). In this manner, the Next plc
uses outdoor advertising for the promotion of the products. By using this type of promotional
activity Next plc promote the product at the public place and reaches a particular group of the
consumer (Whitelocks, 2011). Apart from this, the company also sends tailor-made email and
SMS which are created according to the need of a specific group of customers. Owing to this, the
Next plc ensures the attentiveness of targeted public for the brand and enhances the connectivity
with the target audience. However, outdoor advertising reveals a limited message to the target
audience in a very short time (Iveson, 2012). Therefore, proper use of above / below the line
advertising in the promotion of products, the Next plc elevates the connectivity with a large mass
of public as well as target consumer. This is also helpful Next plc to maintaining the public
relation because of the connectivity with target audiences.
Push and pull promotional strategies
The push and pull strategies are the combination of two different strategies wherein the
push strategy promotes the product in the lower level of the institution in marketing and pull
10

strategies promote the product directly to the end users of products (Daine, Winnington and
Head, 2011). The push strategy based on the sale of the products and most of them are used
when the business is newly established and develop the market whereas the pull strategy is
marketing oriented and a great use for building the extra demand of the existing product (Chiou,
Wu and Chuang, 2010). For example, the Next plc offer discounts to their distributors for
promoting the sale of the product and encourages personal selling by rewarding the sales
executive for beyond the target sells (Next plc, 2015). By offering discounts, the Next plc sells a
high volume of product. However, the discounting for distributors reduces the profit of the
company because the fixed amount is given to the distributors.
Figure 5: Push and Pull Mode
(Source: Diy and Industrial trade news, 2017)
The customer demand is important for the elevating the sale of the product (Li, Sun and
Montgomery, 2011). In this regard, the pull strategy is helpful for enhancing the consumers’
demand by establishing direct contact with customers (Alexander, Rhodes and Myers, 2011). For
example, the Next plc uses many TV promotions for elevating the public attention for Next's
11

products and services. However, the TV Ad does not focus on the target customers; thus, the
only TV promotion cannot be successful for the success of any retail business (Danaher and
Rossiter, 2011). Owing to this, the Next plc uses the PR to establish better connectivity with the
potential buyers for enhancing the market demand. Apart from this, by using pull promotional
strategy, the Next plc delivers the product to the customer in minimum time. Nonetheless, this
strategy does not help when the supply chain is not integrated which occurs the problem in
supply chain and negatively affect the transportation of the product.
CONCLUSION
On the basis of the above report, it has been concluded that the promotion of the product
is most important for an organization for increasing the demand for the product in the market.
The Next plc uses the effective promotional mix for promoting the product in the public. The
active participation of Next plc in promotion enhances the selling of products. Apart from this,
on the basis of promotional mix analysis of Next plc, it can be concluded that the store design
also plays a major role in the attraction of the public for a store visit. On the other hand, the Next
plc enhances the investment in the online promotion as well as the offline promotion of the
unique products. Similarly, the motivation of salesperson is also important for elevating the sale
and creating a healthy relationship with the customers. However, the PR is the main focus of
Next plc for enhancing the brand image in the public. Even, the regular contacts with the
potential customers through email or messaging are helpful for an organization to retain the loyal
customers. At the same time, on the basis of the strategic analysis, it can also conclude that, by
using different promotional strategies the Next plc enhances the customers’ desire for purchasing
the product. Therefore, the management practices for promoting the organization's products play
a significant role in the changing of buyer's behavior towards the product.
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