The Marketing Strategy and Its Implementation for David Jones - Case Study Example

Title: David Jones Table of contents: Serial number Subject Page number 1 Executive Summary 3 2 Situation Analysis – demonstrating linkages to applicable marketing concepts/issues within analysis (breadth of analysis and justification) 4 3 Evaluation of alternative managerial decisions arising from situation analysis (the pros and cons) 7 4 Final recommendations 8 5 Analysis 9 6 justification of action plan 9 7 References 10 1. Executive Summary David Jones, a chain of department stores in Australia is executing its business through thirty seven stores as on sustainable and profitable basis. The management of the store has adopted a business strategy with a diversified approach and a marketing strategy purely based on restricted tools of the marketing like through publications for the introduction and information of the products to the potential customers as on regular basis. The marketing strategy is mainly consisting of the segmentation of the products with clear cut boundaries, targeting specific social classes as on the basis of their economic positions and positioning of the customers as well as of the staff of the stores for the sales and purchases of the products as on win-win basis(Duncan,1972)(1). The main thrust of the management is to attract the youngsters through their innovative products and marketing strategies for the sustainability of the business through the profits as earned in favor of the store. The management has faced a number of administrative and business issues while executing its business in the retail sector however the same have been tackled with the adoption of workable business tools for ensuring acceptance of the products by the valuable customers(Kazanijan,1986)(2). The issue of departmental stores as has been witnessed at the world over by the management of the David Jones through the policy of the observance of the fundamental strategic business principles that is to cater the needs of the customers on priority basis a slogan that "there is no other store like David Jones". The marketing strategy as adopted by the top management of the David Jones will serve as a model strategy as the same has proved to be a successful strategy during the year 2005, the management has achieved a record profit of $ 77.9 million as in favor of the department store and the same could be replicated by other similar business organizations for ensuring their sustainability and profitability through their respective businesses. 2. Situation Analysis David Jones is executing is business since 1838 with its original name in the retail sector. The administration is offering a wide range of services as for example florist to provide a set of flowers to the customers, bridal registry for attracting young and aspiring youth in the purview of the business for earning extra income as on seasonal basis, interior decorator for the promotion of aesthetic sense of the customers and revenues in favor of the business entity and an online wine club (Maznevski, 2000) (3). The diversity in businesses as a part of the business plan has a set of advantages like: a) Supply of a variety of services to the customers is a business tool for attracting the greater number of customers and the same will have a synergetic impact on the sale of the other products, b) Increased number of business deals is directly proportional to the level of the profit as earned through the sale of the stores' products, c) The seasonal slums in the business will not take their roots as for a longer period of time as a slow down in one product will be covered through the high sale of the other products at the same time, d) The store's staff will be trained as on diversified basis and therefore will acquire new business tactics for the execution of the businesses as on profitable basis and subsequently sustainability of the business will be the end product as in favor of the management of the David Jones. The businesses are executed through the supply of goods and services with the adoption of a business plan for making profits as in favor of the organization. The rental businesses as for example in case of the David Jones are mainly consisting of the supply of a diversified range of goods through a set of trained man power. The organization is offering the products with the utilization of optimum financial and human resources with an objective to maximize the profits as in the shape of a selection of an appropriate marketing plan for the introduction of the products with the customers. The final objective of the whole business strategy is to maximize the sales levels and therefore to enhance profits in favor of the organization. The marketing strategy as selected by the David Jones is mainly consisting of a print advertising as in the shape of publications. The print advertising publications is selected by the top management for the organization as the same has inherit advantages as compared to that of the other marketing tools like electronic and e-networking marketing plans. The advantages are as under: a) The marketing through the publications and advertising is accomplished through magazines and catalogues. These publications are having source of entertainment for the customers for a longer period of time. These magazines along with the marketing messages of the David Jones are delivered to the customers with a regular interval. The customers are having special interests for the graphic representation of the fashions relating to the clothes, shoes, cosmetics and undergarments for men and women. These customers while noticing their respective items are also receiving sale messages from the corporation, b) The publications are specially preferred by the youth and therefore the products as offered by the David Jones are accepted by the same group of the customers. The items as offered through the publications are the daily use items and their manufacturing, sales and utilizations are interconnected and are inter related and the completion of the business cycle is a guarantee for enhancing the profits as in favor of the organization, c) The publications are having a variety of drawings and color combinations therefore are liked by the potential customers for their acceptance. The marketing strategies are based on the variety of the products as offered by the business entities and a combination of items is a marketing tool for the promotion of the sales. The items as selected by the David Jones are all having a greater level of the profitability as through the sales of the products. The corporation has categorized the customers on the basis of their education, income and occupation. The categorization of the customers into a set of potential customers is called as the segmentation which has a set of advantages as in favor of the organization (Einstein, 2001) (4). David Jones has divided the customers into five major groups as AB, C, D, E and FG. Each group is representing twenty percent of the customers with the following composition. Each group has been divided on the basis of education, income and occupation and the segmentation is helpful to the organization as for the categorization of the customers and their targeting on the basis of their positions. Serial number: Segmentation Criteria Percentage 1 AB Education= higher Income= higher Occupation= executive 20% 2 C Education= high Income= high Occupation= medium executive 20% 3 D Education= mediocre Income= middle strata Occupation= middle category 20% 4 E Education= lower mediocre Income= lower middle strata Occupation= lower middle category 20% 5 FG Education= poor Income=poor Occupation= lower class 20% 3. Evaluation of alternative managerial decisions arising from situation analysis The situation analysis as described above is purely based on the two major components of the business plan as adopted by the organization which includes segmentation and the marketing strategy for the promotion of the sales. The segmentation as based on AB, C, D, E, FG has an advantage over the neo-Consumers Classification Segmentation as the latter is purely based on the desirable high value consumers and is representing a small group of the customers. The success of the David Jones is mainly relying on the category of the marketing plan and the nature of the segmentation as adopted by the organization. These positions are based on socio-economic classification of the customers and facilitate the managers and the staff to deal with the customers on the basis of their qualification and potential incomes as the group AB needs a little efforts from the staff for the acceptance of the products as offered by the company as compared to that of D, E and F G segmentation of the customers. In addition, a set of alternatives are available with the organization for their adoption as a segmentation on the basis of neo-consumers and marketing strategy as based on electronic ad e-marketing strategies. These strategies are helpful as an alternative for the execution of the businesses and programs as selected by David Jones for running the affairs of the department stores in Australia. The same will provide an alternative business route and up-gradation of the overall chain of stores for making profits as in favor of the organization. 4. Final recommendations The following recommendations are made for their adoption by the David Jones for the execution of its business as on profitable and sustainable basis as in favor of the organization. a) The classification of the customers and their segmentation needs to be reevaluated as AB= 10%, C,D and E as 25% each and FG as 15%, the revised percentages will provide an opportunity to the staff to focus on each category along with a proportionate time and it is expected that the profits will be enhanced, b) Simultaneously, the organization needs to mix Neo- consumers classifications at the big stores, c) New methods of marketing strategies may be introduced for the up-gradation of their stagnant and obsolete type of the marketing strategy. 5. Analysis The observance of the recommendations as given above will benefit David Jones as in the shape of more sales, diversification of the business and more profits in favor of the organization. The organizational setup with the adoption of modern business tactics and the acquisition of technological advancement will help in the expansion of the business as per its growing needs in the retail business category(Tausky, 1978)(5). More customers, more sales and more profits will be the achievements of the organization as on the basis of its slogan as, "There's no other store like David Jones". 6. Justification of action plan The action plan as introduced in the recommendations portion is based on the new and emerging trends in the retail business as through the chain of stores. The world is experiencing a global expansion phenomenon in all its fields including the retail business. The organizations are running their businesses as with the adoption of modern business tools and the promotional marketing strategies. The steps as recommended will not only expand the business of the organization as on diversified basis but also enhance its sales and subsequently, profits as on sustainable basis. Diversity in the population, the workforce, and the marketplace is a fact of life no manager can afford to ignore today. The trained workforce is an important organizations resource, besides money, core competencies and equipment. All managers daily face the challenge of managing employee diversity. The management of employee diversity entails recruiting, training, and fully utilizing workers who reflect the broad spectrum of society in all areas gender, race, age, disability, ethnicity, religion, sexual orientation, education, and economic level(Pfeffer ,1995)(6). The e-marketing, e-networking and e-commerce techniques will attract new customers for the selection and purchase of modernized products with good quality of sales services as from the customer's friendly sales staff of the David Jones. 7. Reference 1) Robert B. Duncan, “Characteristics of Organizational Environment and Perceived Environmental Uncertainty.” Administrative Science Quarterly 17 (1972), 313-327. 2) Jay R. Galbraith and Robert K. Kazanijan. Strategy implementation, Structure, Systems and Process, 2d ed (St: Paul, Minn: West, 1986) 3) Joseph J. Distefno and Martha L. Maznevski, “Creating Value with Diverse Teams in Global Management,” Organizational Dynamics 29, no.1 (Summer 2000), 45-63. 4) Susanne G. G. Scott and Walter O. Einstein, “Strategic Performance appraisal in team based organizations” 2001, 107-116. 5) Curt Tausky, Work Organizations: Major Theoretical Perspectives (Itasca, lII,:F.E. Peacock, 1978), 42. 6) Jeffrey Pfeffer, “Producing Sustainable Competitive Advantage through the Effective Management of People,” Academy of Management Executive 9, no.1 (1995), 55-69. Read More