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This covers the latest trends of marketing principle, indulge user about the facts of new erological trends of business.
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ContentsIntroduction............................................................................................................0
Assignment 1: Macro – Micro Environment Analysis.........................................................2
Assignment: 2.........................................................................................................4
Elements of Marketing Process...............................................................................4Segmentation......................................................................................................6Targeting...........................................................................................................8Positioning.........................................................................................................9Consumer Behaviour Model................................................................................10Marketing Mix..................................................................................................13Extended Marketing Mix....................................................................................16B2B vs. B2C......................................................................................................17Marketing it abroad...........................................................................................18
Conclusion...........................................................................................................19
References............................................................................................................20
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Introduction
The first step to Good Health is Personal Fitness. Taking special care of Personal Fitness is a
reflection of our own self respect and dignity and tells us how much we love ourselves.
Personal Fitness is not only about muscular body and well-toned body but a lot more than all
of this. For women especially, personal fitness is something more than this (Tilt, 1952). It
includes taking special care of their body parts as they have to manage office and homes.
Hence the consumer demand for personal fitness products continues to grow with people
growing more conscious of personal appearance and fitness. Although there are a large
number of specialized personal fitness products marketers, very less are available for selling
these fitness products online. People these days are so much occupied with their busy and
hectic lifestyles that they seldom get time to shop for their fitness product needs.
The company JD sports is one of the limited number of players in the market that sell
sportswear and other fitness products in the market. They have understood the importance of
fitness for men and women and teenagers because of the growing hectic lifestyles and long
hours at work. Customers these days look for convenience and places where they can shop
for all their needs. The customers don’t prefer to go to different shops to buy things related
to same need. The customers don’t prefer buying sports apparel from one shop and sports
gear from the other. They prefer buying the same under one roof. JD sports in U.K is the one
stop solution for them. It was established in the year 1980 in U.K and since then has served
the customers of U.K addressing their various needs of fitness. The store sells all kinds of
sports apparel and equipment. The stores have a large variety of both goods and even
provide personal training facilities for customers.
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Assignment 1: Macro – Micro Environment Analysis
Macroeconomic factors are the external environment factors and broad economy factors that
influence our market decisions and marketing strategy. The Microeconomic factors are the
internal and factors related to the immediate surrounding environment that influence our
marketing strategy and marketing decisions.
The Macroeconomic factors that help in influencing the marketing decisions and marketing
strategies are: -
Political – The political environment of the U.K where the company plans to implement
their marketing strategy is susceptible to change. The People have become fitness
oriented and more and more people are enrolling with gyms to keep themselves fit.
Economic – The economic factors are susceptible to change w.r.t to the government
changing. Also the economy is dependent on multiple geographies which can change
any instant. The disposable incomes of people have grown and the awareness has grown.
Thus more and more people prefer enrolling in fitness programs (Kim, 2011).
Social – The social culture and the environment in the customer’s eco-system is
dependent on the values and the social circle of the customers. The social setup of the
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society has become such that increasingly people get their friends to enrol with them for
the fitness service. It becomes a place for social gatherings as well.
Technological –The technology is dynamic. It is changing constantly according to the
change in the market dynamics. The customers’ needs are also changing and they are
influenced by the changing technology and its elements. More and more people prefer to
shop online as it is a convenient way to shop.
Legal –the legal implications and policies of the countries also keep on changing with
the changing times. Earlier it some technologies were not patented but later on some
technologies are patented and other companies wanting to implement the same cannot do
so because of the legal implications. These days most of the sellers are selling their
product through the online medium.
The Microeconomic analysis for the company is as given below: -
Strengths
o Online Retail Store
o Low cost
o More Number of Centres and
proximity to people due to large
penetration of internet and presence
in the country for a long time.
Weakness
o Supplier base is less
o Less products available online that
in store.
o Servicing cost is extra which is
majorly delivery
Opportunities
o Fitness awareness amongst people
Threats
o Substitute products
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o Hectic lifestyles providing no time
for consumers to indulge in fitness
shopping outside.
o New entrants in the fitness market
o No Barriers to entry for other
players.
Assignment: 2
Elements of Marketing Process
The various elements of the marketing process are: -
Discovery –It refers to the whole marketing research process to find out what the
customer needs are, what are the needs and desires that are to be addressed, what the
market size is and what the competitors are doing in this area to gain the competitive
advantage. This process performs in detail the market, customer and competitor analysis.
Strategy –On the basis of the information gathered during the marketing research process
will help in outlining your marketing strategy. This includes planning for the product, the
time line and what all will be implemented to fulfill the objective. It will also determine
the overall marketing strategy and action plan for introducing the new product or service.
Implementation –This is stage that is the moment of truth. At this stage, whatever
planning and strategies have been devised are put into action to achieve the required set
objectives. Before you proceed with the implementation the marketer needs to be sure of
the fact that the resources that are required as part of implementation are in place.
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Measurement –This phase determines the results of the implementation phase. Whatever
strategies and plans were implemented, their results are measured against the expected
results and improvements if any are incorporated so that the plan is fine-tuned. The
results are quantified in terms of different metrics to arrive at definite conclusions and
steps to be implemented thereafter.
The market of personal fitness products has been growing at a phenomenal rate in recent
years. The overall trend of the personal fitness products is also seeing a shift from
“Generalized” products to “Specialized” products that cater to specific needs of the
customer. For example there are specific product variants of a shoe for specific functions.
We have different shoes for gym, casual wear, sportswear etc. Similar is the case for clothes
as well.
Though the market of personal fitness products is growing for general products, a large
segment still remains unexplored for such specialized products and that too being sold
online. People generally think that what’s the use of buying different types of clothes and
shoes for different fitness programs but then once they get involved in this kind of an
activity they realize that body comfort should also be looked at. One cannot do exercise
while wearing leather shoes. Similarly one cannot go to meetings or outside for dinner with
your gym shoes (Grimley et al., 2006).
To cater to this need the market has a range of fitness products that JD sports offers online.
They are trying to cut down on their stores and infrastructure cost and leverage on the
technology aspect of marketing.
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Also the growing awareness of personal fitness and the opening up of the culture to
education and awareness has led to the demand of a specialized product for this segment.
Segmentation
Segmentation refers to dividing the market of the products into small parts on the basis of
similar needs or demographics in order to promote the product.
The identification of the target group for the product is based on primary research. The
primary research was basically conducted to gain insight into the customer mind-set. The
research was conducted in two stages. The first stage consisted of a survey of 200 people.
The survey was based for two broad objectives:
To judge the readiness of individuals to try new products in the market
To identify the need of a Sports Apparel across different age groups.
The results of the survey have been shown below:
13-19 yrs 20-29 yrs 30-40 yrs >40 yrs
78.6 80.3 75.7
45.5
Percentage Preference of Women & Men for New Products as per age group
8
29%
40%
19%
12%
Percentage Preference Consumers for these Products
13-19 yrs20-29 yrs30-40 yrs>40 yrs
According to the findings of this survey as shown above, the target segment for the company
should be in the age group of women and men and children of 13-40 years with a special
focus on the 20-29 years age group. This group was selected according to their preference to
adopt new products and use sports apparels and other products (Moschis, 1981).
Another method that was adopted was personal interviews in which about 20 females and 20
Men across different age groups were selected to gain a better understanding of the lifestyle
of the target customer. The composition of the females interviewed was:
Age Group 13-19 years 20-29 years 30-40 years
Number of
Females
6 8 6
Number of Men 8 6 6
Thus on the basis of the research the segments chosen were Males in the Age group of 13-40
and Women in the age group of 13-30 as percentage of men who are more fitness oriented is
larger in the age group of 30-40 years.
Knowledge source: http://hndassignments.co.uk/courses/regent-college-unit-4-
marketing-principles
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/
Targeting
Targeting is referred to as selecting a suitable segment on the basis of the product and
devising a strategy to promote the product in the chosen market segment. The targeting
strategy that has been chosen to promote the product is differentiated strategy as the two
segments of Men and Women have totally different needs for physical activity. Thus the
promotion activities will be accordingly chosen.
Discussion Guide that was used to conduct these interviews addressed following factors:
Lifestyle of the target segment – disposable income, daily schedule, clothing, etc.
Attitude towards sports and fitness
Education and awareness about fitness
The conclusion from this personal interviews were that the customers preferring a product
for fitness from online retailers are generally the ones who have
High disposable income
Conscious about their personal fitness
No apprehensions of spending on her personal fitness and care.
Very busy in their jobs and don’t have time to go for shopping outside
Hence, the main results of the survey were that the acceptance of the product was less in
people above 40 yrs. and more in people from 13-40 yrs. with the above mentioned features.
Hence this age group was selected as the target segment for promoting our brand JD Sports
as a brand for Ultimate fitness
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Positioning
The brand of JD sports has been positioned as the one stop shop for all your sporting and
exercising needs. It is a website wholly dedicated to sports war shopping only. JD
Sports is an online and store based sports fashion retail brand based out of U.K. It was first
established in the early 1980’s when not many people were fitness conscious. This brand
used to market its products to the sports persons of the country. It has a long history of
association with some of the elite sportspersons of England. It was only in the late 2000’s
that JD sports began marketing and selling goods to the customers who were not
sportspersons. The segment of customers who are fitness conscious and believe in maintain
a level of personal fitness were the key audience and target market of JD Sports (Kim,
2011).
JD sports listed its online e-commerce portal in 2010 thereby catering to the entire UK
market. JD sports also got itself listed on the London Stock exchange. It was the first of its
kind dedicated sports fashion retail e-commerce portal to do that. Other major players also
followed suit. JD sports brand has been endorsed by famous sports personalities in the past.
To understand the openness of the e-commerce based business model we need to understand
the consumer behaviour of people with respect to online shopping for sportswear.
The competitors in this arena were very less as compared to the competitors on field. The
sports equipment and apparel stores in the U.K. The online apparel sellers and other e-
commerce players basically market casual apparels with a small product line for the range of
sports apparel. There are very less players that are a dedicated market place for sportswear
and sports fitness equipment. The barriers to entry for this kind of a business are low as very
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less infrastructure is required. The company just requires a website or an e-commerce based
website where consumers can transact. The key competitors in this area are Foot Locker, JJB
Sports etc. These are established players but catering to a large market and audience. They
deal in all kinds of products and brands. The key advantage and opportunity for JD Sports is
the fact that they are one of its kind with a big brand name that are wholly into sportswear
and fitness equipment based selling. The JD sports group operates a website by the name of
www.jdsports.co.uk which is the e-commerce website for transacting. They have tie ups
with leading brands of sportswear namely Adidas, Nike, Speedo, Reebok etc. These
companies are actual suppliers of JD sports. They have successfully eliminated the middle
man and other small suppliers which is also one of the differences from other e-commerce
websites. This is advantageous for JD sports as the probability of listing of counterfeit goods
and damaged goods is minimum and they can leverage on the same.
Consumer Behaviour Model
Consumers may be defined as individuals or households that buy and use goods or services.
Consumer behaviour primarily deals with decision making process of the consumers taking
into consideration the social, economic and psychological factors (East, 1997).
Understanding the consumer behaviour and the factors affecting the decision making
process is of special interest to marketers to develop an effective marketing strategy for their
product. The analysis of consumer behaviour helps to understand the psychological and
sociological factors that influence the customer. (Moschis, 1978)
The consumer behaviour model which can portray the effectiveness of a promotion strategy
advertisement is the Learning theory. Learning theory is the process by which continuous
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experience leads to a change in the knowledge attitudes or behaviour of the consumer.
Learning may take place intentionally as well as un-intentionally.
Learning theory helps to understand the following:
The way in which consumer needs are satisfied.
The methods of developing the specific tastes of a consumer.
The frequency of repeating an advertisement.
The use of visuals, symbols, sounds and other techniques to make promotion more
effective.
There can be different types of learning theories:
Cognitive Learning or Thinking: In this type of theory the consumers learn through
information processing and changes in the mental process. (Greenwald, 1968).
Behavioural Learning or Conditioning: According to this theory the consumers learn
through association. It is also known as classical conditioning. Behavioural Learning also
includes learning through reinforcement. This is called instrumental conditioning.
Modelling Processes: This type of learning is also called as modelling and is based on
observation of outcomes and consequences experienced by others
The Learning theory basically helps the marketers to promote the association of the brand
with its consumers. The learning model which may be applied to the proposed promotional
campaign is the cognitive learning theory.
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The Cognitive approach to learning emphasizes on the fact that learning by the cognitive
model is primarily because of the changes in the mental process. This can be done in two
ways:
Learning by rehearsal: According to this method, the desired information like the
brand name or the product features are repeated again and again so that the
consumer memorizes it.
Learning by elaboration: This method involves learning by creating correlations
with the current knowledge. Learning by elaboration mainly depends on the ability
and the motivating power of the consumer to learn new things.
The cognitive theory of learning basically targets on the various ways and means to increase
the retention of the consumer. The various methods by which the memory of the suggested
promotion strategy has been used as per the cognitive theory have been explained below:
Visual Impact: Visuals always help to increase retention. The packaging and layout
of website has been given a sporty look so that people can quickly relate and recall
the brand linked to sportswear and other apparels.
Brand Name: The brand name itself is a big retention of the need and the use of the
brand. If the brand name is abstract it is difficult to memorize it and correlate it with
the use. The name of our brand is very catchy i.e. JD sports itself suggests that it is a
brand for promoting sports goods. .
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Brand Benefits: Communicating the benefits of the brand is important to generate
good recall. The benefit that needs to be communicated is of convenience and
performance improvement (Rosenstock, 1988).
Frequency of Advertisement: The most important element to increase the retention is
the frequency of the advertisement. However, too many advertisements can also
make the consumers lose interest in the advertisement. The duration of the
advertisement should also be limited to 30 sec.
Marketing Mix
Product
The brand name and logo of any brand is important as that is the first image of the brand the
consumer gets. The logo of JD Sports has been designed in a curved font to give it a more
casual look. The next important element is to select the right medium for promotion. For this
the Men, Women and Teenagers in the age group of 13-40 who are ready to adopt new
products were surveyed about the main influencing factors for trying the products.
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60%26%
8%6%
Influencing FactorAds Family/FriendsDoctors Others
The graph above indicates that the people in target age group who are open to trying new
products and adopt new products primarily based on the advertisement rather than
recommendations from family or peers or instructors / doctors. Thus the advertising and
branding of any fitness product should be strong. (Resnik, 1977).
Price
The price of the products will be competitive and according to the market prices however
convenience fee would be charged for delivering the products to the residence of the
customers.
Place
The distribution strategy for the products would be mainly online and exclusive stores where
internet penetration is less. The Customers can place the order from anywhere and the goods
would be delivered from the warehouse in that region. Each country would list its available
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products on the website dedicated to the same. JD Sports would eb having separate websites
for different countries.
Promotion
TV and print ads should be used to make people aware of the product and since the product
deals with a sensitive issue, the television and print ads will be brief without details. Teasers
and print ads may be given in sports related magazines, newspapers and fashion magazines.
Another method of promotion can be through Television commercials. The ads would
primarily highlight the benefits of the products and not the usage details. The ads will
emphasize on all day long freshness and performances that can be enhanced using
designated sportswear especially in sports like swimming, athletics etc. (Shamdasani, 1993).
The JD sports brand can also use the medium of Social media to market its stores and e-
commerce portals. The sports brand needs to be endorsed by famous athletes from the U.K.
Customers should be able to relate to the person endorsing the brand. The company also
sells football related accessories. The game of Football originated in England. They can
endorse the highly followed English premier league in U.K to market their products. JD
sports should try and leverage the USP of offering branded goods and comparatively cheap
prices as they have eliminated the presence of external suppliers. They directly procure the
products from original suppliers like Nike, Reebok etc. and get the products listed on their
web portal. Special discounts can be offered in the form of coupon codes for frequent
shoppers of JD Sports.
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Extended Marketing MixIn addition to the four P’s of marketing mix, that are Product, Price, Place and Promotion,
there are three additional attributes that are part of the marketing mix. These are: -
Physical evidence – This is the fifth element of the marketing mix. When the consumer
goes to the store to buy the product whatever he sees externally is the packaging and
availability of the product. Whenever consumer sees competitor products, he / she tends
to pick the product whose physical attribute is more appealing and influences the
decision.
Process– This is the sixth element of the marketing mix. Every product influences the
customer in a different way. The process attribute is the way the customers are handled
after sales. The complaint handling of service issues would be through a dedicated call
centre and product delivery would be through a known courier company like DHL,
FedEx etc.
People –People is the seventh element of the marketing mix. People are the helm of all
strategies that are implemented to successfully market and deliver the product to the end
consumer (Hoch, 1986).
JD sports needs to understand that apart from the key marketing mix the extended marketing
mix is also important. JD sports needs to ensure the packaging of the products should be
based on the sports theme. They can offer free sportsperson posters to the customers on
ordering goods from their website. The JD sports brand needs to be positioned as a dedicated
sports fashion website and store which shall sell sports apparel to men, women and
teenagers in the age group of 13-40. They can also market products for people above the age
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of 40 who are interested in personal fitness. These products can be basically home gyms and
other portable sports and fitness equipment.
B2B vs. B2C
The fundamental differences between Business to Business and Business to Consumer
marketing is that: -
In business to business (B2B) marketing the focus of the communication is the product
and its features and specifications. Whereas in business to consumer (B2C) marketing
the focus of marketing communication activities is the customer needs and how the
product addresses the needs i.e. the use of the product.
For B2B business the company focuses on only one distribution channel whereas in B2C
the company focuses on multiple distribution channels to ensure customer convenience
(Shamdasani, 1993).
The B2B market is more interested in the knowledge about the product and in depth
reading materials whereas in B2C the customer just cares about the benefits and till what
extent these benefits address the needs of the customer.
In B2B market there is no emotional decision involved. The decisions are based on logic
whereas in B2C market the decisions are more emotional and less scientific.
In B2B marketing the focus is always the relationship and buying is in Bulk. In B2C
marketing the focus is the sale and buying can never be in bulk.
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JD sports can market the products to schools and other colleges for the sports team practice
and playing purposes. They can also arrange for tie ups with the same to enlarge their
customer base. They can sponsor inter college sports events to market their products.
Marketing it abroad
The key differences between International and Domestic marketing are: -
Domestic marketing is limited to the marketing of a product or service in a particular
geography whereas International marketing has no such limitations. It is across
geographies and across regions.
In domestic marketing there is a limitation on the use of technology whereas in
international marketing there are more opportunities and there is no limitation on the use
of technologies.
Political relations are not tested in domestic marketing whereas they are tested in
international marketing. They become an important point of influence and consideration
of the marketing strategy (Tilt, 1952).
In International marketing, more resources and more cost is involved as distribution
system is to be developed according to the laws of the entering geography. In domestic
marketing there is no such requirement.
JD sports needs to work on its distribution strategy to sell the products in other countries.
They need to custom make their website to cater to a particular geography and tie ups with
the supplier in that geography itself to avoid incurring high costs on the same. They can use
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a hub and spoke model to distribute the ordered products in the respective geographies by
focusing on a single stored warehouse.
Conclusion
In this ever growing industry of e-commerce, products based on only fitness and sports are
increasingly being made available. Owing to the growing awareness of people especially in
the age group of 13-40 years, the target segment presents a huge customer base for JD
sports. The convenience based business model of selling online is definitely the strategy that
should be pursued by JD sports going forward (Solomon, 2009). They should also plan to
explore new geographies for marketing these products.
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