Market environmental analysis (?)Preparing a marketing environmental analysis is an essential step in understanding the external local, national or international forces that might affect your small business. These factors are largely outside your direct control, but you can adapt your business and marketing strategy to take advantage of the opportunities they present while minimizing the potential threats. A PESTLE analysis is the most common way of undertaking such a review; PESTLE stands for the Political, Economic, Social, Technological, Legal and Environmental factors you need to consider.Source of information above: http://smallbusiness.chron.
com/prepare-marketing-environmental-analysis-57550.htmlFixing the marketing target (?)Although John Lewis have stated that they don’t have a target market, in a report done compiled in 2013: http://www.independent.co.uk/news/business/news/john-lewis-pulls-in-younger-customers-and-more-men-8914149.html it said that John Lewis attracts more male customers and younger customers than female adult customers. Managing director Andy Street said: “Men now account for 44 percent of customers and we are seeing them as more assertive in their shopping habits and taking more care in their appearance and clothes than ever before.”The revelation comes as part of a report by the store into shopping habits that also found 39 percent of customers are under 34 years old while just 28 percent are over 55.
As well as that, the report revealed that ’42 percent of customers have a household income of less than £30,000, despite John Lewis’s image as a high-end retailer, although Mr Street insisted he was not trying to target the less well-off.’However, when I buy products such as a mobile phone or clothing, I don’t go to John Lewis because although the research goes against it, I believe John Lewis is for the wealthy and older people and I’d feel uncomfortable walking through one of their stores.Setting the marketing strategy (?)The net result of opportunity analysis is the formulation of marketing objectives designed to achieve overall organizational objectives and develop a marketing plan. The marketing planning effort must be directed toward establishing marketing strategies that are resource efficient, flexible, and adaptable. The marketing strategy is the overall company program for selecting a particular target market and then satisfying consumers in that segment.
John Lewis satisfies a lot of people with an annual salary of below £30,000. The report stated that 42 percent of customers have a household income of less than £30,000 despite John Lewis’s image as a high-end retailer, although Mr Street insisted he was not trying to target the less well-off. One of the theories as to why people with lower salaries shop at John Lewis is because John Lewis has a reputation for high quality, and if someone earns less money they would want the products that will last for a long time, even if they have to pay an increased amount of money because they won’t necessarily have the resources to continually buy new products. For example, people with less money are likely to buy a fake Christmas tree because it is cheaper and it will last longer than a real Christmas tree which would need replacing every yearSource of underlined information above: https://www.
channelmanagement.com/blog/5-steps-marketing-planning/Marketing mix (?) For the marketing mix, there are four main P’s as part of the marketing mix: Product, price, place and promotion. Product is what the business is selling.
Price is how much the business charge for a customer to purchase a product or acquire a service. Place is the location in which the products are sold. The locations could be physical (such as London or any other city) or through the internet.
Finally, the promotion is about how the business promotes its products such as through social media, TV advertisements, the internet or e-mail etc. in addition to that, the promotion involves WHEN the product is promoted. For example, it’s not smart to promote thermal clothing when it’s a really hot summer as people would want something to warm them down instead such as a fan.Marketing controlling (5/5) Control involves measurement, evaluation, and monitoring. Resources are scarce and costly so it is important to control marketing plans. Control involves setting standards. The marketing manager will then compare actual progress against the standards. Corrective action (if any) is then taken.
If corrective action is taken, an investigation will also need to be undertaken to establish precisely why the difference occurred.Source of information above: http://www.marketingteacher.
com/marketing-controls/PESTLE AnalysisPoliticalThe political factor has impacted John Lewis enormously. New laws bring limits on what they can do and what is legal to do. There are a few major laws that have affected John Lewis more than others:Sales of good act 1979, goods must be:To a satisfying standardMade to work for the purpose known by the sellerAs describedThis law makes sure that John Lewis produces goods to a satisfying standard and that they actually work for the purpose that the seller knows. All products must be as described making the marketing job harder as they must not be biased.Trade descriptions act 1968, good must be correctly described including:The way they were made or processedWhat they are made ofTheir fitness for purposeThis is similar to the sales of goods act and ensures the customer that the items are correctly described.Data protection act 1998, the information collected by marketers must be:Obtained fairly and lawfullyUsed only for the purposes stated during collectionAdequate, relevant and not excessive in relation to the intended useAccurate and where necessary kept up to dateNot kept for longer than necessaryProtected from unauthorised useAvailable for inspection and correction by the individualSubject to procedures to prevent unlawful processing, accidental loss, destruction and damage to personal dataProtected from transfer to an area outside the European Economic Area (EEA), unless adequate protection exists for that data in the areaSource of information above: https://www.ukessays.
com/essays/business/pestel-analysis-john-lewis-oxfam-5051.phpEconomical The Economic factors affect the cost of capital and purchasing power of an organisation. These factors also include economic growth, interest rates and inflation. If John Lewis are able to purchase their products at a cheaper cost, they will be able to charge less for their customers which would lead to increased sales for the business and more repeat customers.
Social John Lewis customers often shop there because they want the latest fashionable products which are high quality, and that it what John Lewis offers. People don’t want to be wearing unfashionable clothes because they have a reputation to uphold and if they’re wearing fashionable clothes people won’t take them seriously. For example, if someone turns up to a job interview to work in a bank, they would need to wear smart clothes so they can impress the employer before they even say a word.TechnologicalInternet shopping is the main trend for the retailing industry, directly influence the sales approach. Paperless operation, the management and administration of the company are mainly carried out on IT systems, which are accessed through secure servers and make available flexibility in the operation of the business. There are both benefits and drawbacks to John Lewis of using IT systems to complete conduct the operations of the business.
One of the benefits is that the work is all in one place and it’s very easy to edit although some drawbacks include the threats from online hackers who could mess with company information which would be very damaging for the business. With a piece of paper, there is a risk it gets lost/damaged although if you take good care of the information there will only be a small possibility of the company information becoming damaged.Source of underlined information above: https://businessteacher.org.uk/pestel/john-lewis.phpLegal National legislation has been stiffened for health and safety both in terms of consumer rights and production of own natural renewable resources for making clothes. As well as that, legal factors include discrimination law, employment law and health and safety law.
These factors can affect the way John Lewis operate their costs and the demand for their products.Source of underlined information above: https://businessteacher.org.uk/pestel/john-lewis.
phpDiscrimination law- It is unlawful to discriminate against a person because of their age, disability, gender reassignment, marriage and civil partnership, race, religion or belief, gender, and sexual orientation.Source of information above: https://en.wikipedia.
org/wiki/United_Kingdom_employment_equality_lawEmployment law- Employment law regulates the relationship between employers and employees. It governs what employers can expect from employees, what employers can ask employees to do, and employees’ rights at work. Source of information above: https://www.
cipd.co.uk/knowledge/fundamentals/emp-lawHealth and safety law- Health and Safety at Work etc Act 1974. Often referred to as HASAW or HSW, this Act of Parliament is the main piece of UK health and safety legislation. It places a duty on all employers “to ensure, so far as is reasonably practicable, the health, safety and welfare at work” of all their employees.
Source of information above (for the 3 difference laws):http://www.healthyworkinglives.com/advice/Legislation-and-policy/Workplace-Health-and-Safety/health-safety-legislationEnvironmental The renewable source of resources used in production, namely cotton and wool are environmentally friendly. The threats are in terms of legal penalty for livestock’s in terms of health and safety.
Western companies have been appealing to bigger businesses to reduce their carbon footprint and increase energy efficiency. This is just not a backburner issue anymore and every firm will have to prove they are reducing their impact on the environment.Source of underlined information above: https://businessteacher.org.uk/pestel/john-lewis.phpSWOT analysis for John LewisS: Strengths of John Lewis.
W: Weaknesses of John Lewis.O: Opportunities for John Lewis to invest into.T: Threats to John Lewis such as a rival organisation which includes Marks and Spencer.SWOT analysis (table)Strengths One of the most upmarket retail stores in the UK.Offers a wide range of fashion brands to choose from and also their own brands.Also offers the option to shop online along with international delivery.The company has over 35,000 employees.
The chain is known for its policy of “Never Knowingly Undersold”.Weaknesses The range of items offered is limited compared to super-markets which limits the options available to consumers.The prices of items are higher than supermarkets and grocery stores which might limit the target group.
Opportunities More young professionals living away from home are brand and image conscious. Hence their target group is increasing fast.Increasing purchasing power parity leading to improved lifestyles.Expand network, product selection and reach to people by opening up more flagship stores and subway brands along the lines of their growth strategy currently being pursued.Threats Robbery attempts and other threats lead to high priority security concerns for property loss and the safety of employees working late into the night.Intense competition from corner stores, supermarkets, grocery stores and host of other convenience stores.Competition laws and lack of large-scale development space leading to a merger of many convenience stores.Source of information above: https://www.mbaskool.com/brandguide/lifestyle-and-retail/9226-john-lewis.html