Detailed Marketing Audit Report: River Island's Performance Analysis

This marketing audit report examines River Island, a high-street fashion brand, by analyzing its micro and macro environments. The report includes a background of the company, PESTEL analysis (political, economic, social, technological, environmental, and legal factors), micro analysis (mission, strategy, board of directors, suppliers, marketing intermediaries, and customers), competitive analysis (Zara and H&M), and a SWOT analysis to evaluate its strengths, weaknesses, opportunities, and threats. The audit assesses the brand's strategies and market position, providing insights into its operations, competitive landscape, and future prospects. The report highlights the brand's Omni-channel strategy and its focus on the young and trendy consumer base.

Marketing Audit
Report

EXECUTIVE SUMMARY
River Island is a high street fashion brand which manufactures and makes fashionable
products for the people. The study discusses the micro- and macro-environments that affect
organisations' working. The River Island directors must administer many of the
organisation’s business and evaluate the relevant techniques used to increase sales globally.
The corporation succeeds in its plans that are effectively established by them. That helps
them manage their business in the right manner.

Table of Contents
INTRODUCTION.................................................................................................................................4
MAIN BODY........................................................................................................................................4
Background of the company..............................................................................................................4
Macro analysis...................................................................................................................................5
Micro analysis...................................................................................................................................6
Competitive analysis..........................................................................................................................8
SWOT analysis of River Island.......................................................................................................10
CONCLUSION...................................................................................................................................11
REFERENCES....................................................................................................................................12

INTRODUCTION
The marketing audit offers indicators for tracking potential marketing activities and outlines
suggestions for improving the firm’s sales action's quality and results. An organisation that
reviews its sales plan also makes use of a business plan (Chen and Komal, 2018). Business is
an entity in which contractors purchase and distribute operations for the delivery of products
and services. Marketing standards are set goals for a company. They describe the sales
player's objectives, give specific guidance for organization to work and provide managers
with data to assess and assist. River Island has considered in this report. It is founded by
Bernard Lewis and brother and is founded in year 1948. The headquarters of this organisation
is in London, England, UK. They offer clothing to various categories of people such as
women’s, men’s and kids wear. This report includes background of the organisation, macro
as well as micro analysis, competitive analysis and SWOT analysis.
MAIN BODY
Background of the company
River Island is a London-based high-street retail company operating in many countries
around the world. This enterprise is established in 1948 in London by Bernard Lewis and his
brothers. River Island is a Lewis family-owned private enterprise. Everything started in 1948
when one person called Bernard Lewis tried to establish a company. However, he initially
decided to offer this isn't clothes. The four brothers began developing independent
supermarkets in London under the brand "Lewis Separates." Brothers quit the firm in the late
1970s, left Bernard, David and the relatives in control. They founded the Lewis Trust Group,
under which David operated the other enterprises that include hospitality, assets and finances.
The group expanded to menswear in 1982, when Design Man launched shops until they
combined with Chelsea Woman in 1988, has become one of River Island's retail brands.
There are now over 350 stores globally in River Island. They are mostly in the United
Kingdom and Ireland, but there are shops in North America, Southeast Asia, the Mid East or
elsewhere in Europe. River Island is among the most popular and popular companies on High
Street, and has over 60 years of presence in fashion dealership. Our trendy, inexpensive style
makes us glad (Christensen and et.al., 2020).

Macro analysis
PESTEL is the method adopted by the enterprise to evaluate its macro variables that
affect organisations' activities. PESTEL analysis of River Island research helps to assess
strategies used to evaluate different political, economic, social, technological, legal and
environmental variables. Following is the following model:
Political: This factor includes political stability, government policy, tax policy,
foreign trade, corruption, labour law and trade restrictions.
Positive impact: Trade policy affect positively on selected organisation as it helps them to
survive in the place for the long period of time (De Mooij, 2019).
Negative impact: Political instability impacts adversely on River Island which affect the
business operation and activities which lead to decrease in growth and profitability.
Economic: It consists of economic growth, exchange rates, interest rates, inflation,
unemployment and disposable income.
Positive impact: Growth in the economy impacts favourably as it help them to build
performance of enterprise because increase in buying power of customers for buying the
brand products.
Negative impact: Fluctuation in the exchange rate impacts negatively on River Island as it
hinders the industry for the growth and to earn profit in an entity.
Social: Population growth, age distribution, career attitudes, lifestyle, safety
emphasis, health consciousness and cultural barriers.
Positive impact: Change in lifestyle attitudes affect the River Island as it helps them to
expand their business operations by launching new and stylist clothes for the people.
Negative impact: Due to COVID 19 individuals are conscious about their health as they have
to wear organic clothes and many more which impacts negatively to selected company to
produce and manufacture different types of clothes for all people.
Technological: This factor comprises of technology incentives, level of innovation,
automation, research and development activity and awareness about innovation. Improved
technology in processing and information collection has allowed business companies to
develop their production capacity (Deepak and Jeyakumar, 2019).

Positive impact: River Island has adapted artificial intelligence which helps to know the taste
and preferences of the customers and know which products they like more and help them to
make their bills.
Negative impact: To follow the new automation machine and other advancement technology
to attract the users they have to invest lots of money to remain in the competitive position.
Legal: It involves employment laws, consumer protection, copyright and patent, health and
safety, discrimination and antitrust law (Hoang, Jamal and Tan, 2019).
Positive impact: Consumer protection law is adapted by River Island which impacts
positively on them as it brings attraction towards their brand and increases the performance of
the business.
Negative impact: Non-compliance of any law impacts negatively on selected enterprise as it
will be affected on the brand reputation and image of the organisation in the country in which
they operate their business.
Environmental: It is the factor such as environmental policies, climate change,
pressure from NGOs, climate as well as weather. Consumers are increasingly concerned
about the sustainability impacts of companies across sectors. Companies are centred on
enhancing the viability of marketing strategies so that their sales practices can mitigate
environmental impact.
Positive impact: Changes in weather affect positively as they can manufacture their clothes
based on the climate whether summer or winter clothes.
Negative impact: When they do not follow rules and regulation such as recycling of products
by reducing the goods then it reduce the sales and growth of enterprise.
Micro analysis
The company
Mission statement: The goal at River Island is "to provide our customers with the warmest
unique outfits. It is also founded on a conviction that businesses should be successful and
accountable that there is a lasting dedication to fair trade. River Island intends to manufacture
men's and women's trendy clothes on an exciting budget. Our goal at River Island is "to
provide our customers with the warmest different looks. In this way, they can achieve the

objectives of organisation so that they can retain their position in market (Kotler, Kartajaya
and Setiawan, 2019).
Strategy: The main strategy of River Island is that they have adopted Omni channel
strategy which means online and physical services can be expected to be connected to each
other by seamless digital interfaces as the digital transformation programme of River Island
keeps growing. Even so, if one thing is certain, the manufacturer will continue to invent
Omni channel, leaving not sticks or flips for the other, but instead developing new ways in
which both connectors can be linked.
Board of directors
Will Kernan (CEO): Will is now the CEO of the international fashion chain River Island.
Before that Will he was the Chief Operating Officer and Group Managing Director of Wiggle
and Chain Reactions (2017-19), The White Company (2011-2017) since 2009.
Bernard Lewis (Founder, President): Bernard Lewis, FBA, was a British American historian
specialising in Eastern science, from 31 May 1916 – 19 May 2018. He was also regarded as
an academic and political public observer.
Suppliers: River Island runs a multinational distribution network, supplies its goods
worldwide and manufactures them. The development of good, long-term and sustainable
manufacturing partnerships is crucial to our continuing progress. The partners in the supply
chain are vital to them.
Marketing Intermediaries: Marketing intermediaries advertise the item by means of
marketing platforms which develop customer connections and thereby raise customer
satisfaction and recognition. Repeating consumegrs which impact success of the company as
well as loss as it helps them to properly developing an advertisement, promotions and
packaging strategy (Nargundkar, 2020). It seeks to extend the delivery network by the
multiplication of agreements with distributors. For several years, a great secret behind the
growth of River Island has been to build processes enabling it to easily enter new trend lines
– and this rationalisation strategy fits perfectly with its channel consumer satisfaction needs.
The launch of foreign delivery services was declared by River Island. The clothing store said
on his blog, it will now include clothes with effect immediately far beyond Australia and
New Zeland.

Customers: In the U.K., River Island has a very wide variety of trendy yet low cost
clothes for men and women in 18-30 age groups, often in the midmarket. River Island wishes
to reduce online competitors through renewed consumer service. River Island focuses on its
young, trendy and technologically-functioning core customers.
Competitive analysis
A competitive analysis defines and compares your rivals' tactics in order to identify their
strengths and weaknesses in relation to the company. A competitive analysis is a method of
identifying rivals and determining their strengths and weaknesses in comparison with the
company. It assists you in determining how to deal with rivals and fine-tuning your approach.
A competitor analysis is used to determine your rivals' strengths and weaknesses in contrast
to your own, as well as to identify market gaps (Rust, 2019). A competitor analysis is
essential because it can show you how to outperform your rivals in these groups in order to
hold your customers' attention. An enterprise differs from its competition for a comparative
edge. It helps to increase costs, increase client satisfaction and brand recognition. Setting
such a benefit has been one of the business's most critical objectives. Business growth is
crucial in modern environment.
Company Strategy Strength Weaknesses Competitor
reaction
Zara Zara SA,
abbreviated as
ZARA, is a
Spanish clothing
retailer
headquartered in
Arteixo, Galicia.
Clothing,
footwear, shoes,
swimwear,
makeup, and
perfumes are
among the
business's quick
fashion
Clothes are
designed at a
low cost and
also with the
latest up-to-date
and trendy
designs. Zara is
a well-known
brand name all
over the world.
Much of their
systems, such as
operations and
production, are
centralised,
In comparison to
other brands,
there is less
promotion and
advertisement.
Zara's fierce
rivalry means a
small market
penetration and a
lot of changing
between brands.
In other words, it
can be said that
they have low
The reaction of
this is analysed
of this is that
they sell trendy
clothes so that
they can attract
the visitors and
customers
towards their
brands. They
manufacture and
produce
different types of
clothes based on
the season and

offerings. It is
the leading
market within
the Inditex
group, which is
the country's
largest retailer in
the world. Zara
oversees up to
20 clothing lines
a year as of
2017.
resulting in
relatively low
supply chain
management
costs.
safety stock. they have
various
promotional
tools for the
brand awareness.

H&M Hennes &
Mauritz AB is a
global apparel
retailer based in
Sweden that
specialises in
trendy fashion
clothing for
men, women,
teens, and
children. H&M
exists in 74
countries, with
over 5,000
outlets under
different
company names
and 126,000
full-time
equivalent jobs
as of November
2019.
The strength is
that they have
strong global
presence and
increase brand
value. The high
customer
satisfaction level
and sell goods
and services in
an affordable
prices. They
have stable
financial
condition in their
organisation.
The weakness is
that their
products can
easily be
replicate with
other
organisation.
The rising trend
of online
channel as they
have to keep
their inventories
in their online
stores. There is
slow response
from their
customers as
they only buy
fresh products
and trendy
clothes.
The reaction of
the competitors
is that it has
strong market
presence
domestically as
well as
internationally.
But they have no
strong online
platform to sell
their products
and services
which becomes
weakness for the
brand from its
competitors.
SWOT analysis of River Island
SWOT analysis help the organisation to understand more, identify faults, threats to
discourage, benefit from prospects, use your talents to advantage and establish business
objectives and tactics to achieve them (Visconti, Peñaloza and Toulouse, 2020). The SWOT
analysis of selected organisation is mentioned below:
Strength
 River Island has convenient physical
stores in the market where customers
reach easily.
 The stores are located in shopping
malls and the individual showroom.
Weakness
 River Island has many products in
their store which confuse the
customers to buy clothes which they
actually want.
 They have only presence in United

 They have lots of traffic in their
stores which helps management of
River Island to increase sales in
business.
 The advertisement is done by
celebrities who enhance them to
attract users.
 River Island have different segments
such as women’s, men’s and kids.
 They sell high quality products at the
normal prices as it increase the brand
awareness in the UK market.
Kingdom and make them popular in
that country but they are not
expanding their business in other
countries.
 A change in the weather is faced by
River Island because they have to
predict and forecast which products
are suitable in which season which is
difficult for them.
Opportunities
 They can expand their business
domestically as well as
internationally.
 River Island innovates and launches
the online websites which leads to
increase in sales and performance of
business.
 Adapting various technologies in their
organisation helps them to innovate
new products and services such as
design, style and material of the
clothes and many more which reduce
the overall cost of production.
 Involvement of celebrities gives the
brand image and reputation in the
marketplace which encourages them
towards brand.
Threat
 Competition between various
companies such as Zara, New Look
and H&M.
 Substitute of the products which
allow customer to shift from one
organisation to another.
 Keeping particular trend in the
enterprise hinder the brand image and
performance.

CONCLUSION
The above report shows that a marketing audit is necessary for companies in order to develop
a successful marketing plan. External review of a company is a key aspect of a
communications audit that understands the consequences of external considerations such as
politics, the economy and the law. It can be achieved by the application of PESTEL analysis,
a method developed to evaluate a firm's natural climate. Microanalysis is a component of a
business plan, including the knowledge of the techniques used by the company and its
vendors. Market research requires the scope of perception, shortcomings, tactics and
reactions of the companies' primary competitors. In order to perform marketing audits, this
SWOT review is crucial. This analyses the strengths, drawbacks, menaces and chances of the
organisation. This encourages the development of an ambitious marketing campaign that
allows the organisation to succeed in all commercial efforts.