Sample Paper on Harrods Marketing Plan
Introduction
This paper discusses the merging of Harrods’ marketing department in the UK. The paper recommends a marketing plan for Harrods that will sustain growth for its future. The marketing plan will incorporate several marketing strategies and tools, examining both internal and external environments and the competition force of Harrods in the marketplace. Furthermore, new avenues for the organization will be recommended as a way of enhancing its position in the market by putting in place effective tools and ensuring strategic objectives are attained.
Harrods Organization
Harrods was established by Charles Henry Harrods in 1834. The organization is acknowledged for its department store, which is located on Brompton Road in Knightsbridge London. Harrods organization offers a variety of product lines including the famous collection of fashion clothing, housewares, mementos, gifts, foods, and restaurant among other products and services. The organization has placed itself as a prominent store in amenity market through an unmatched shopping experience to all its customers (Durham 2011). As a way of attaining this objective, Qatar Holding, which is the contemporary holder of Harrods since 2010, disbursed million of pounds in the renovation and reconstruction of the store (Ruddick 2013).
Mission Statement and Objectives
Harrods’ mission is to develop a leading department store across the globe for exclusive luxury exclusive products, upholding an exceptional level of retail morals, capability, and effectiveness. With millions of people across the world visiting the department store annually, the organization is recognized for its exclusive provision of high standards of customer service. Its objective is to promote itself through several marketing approaches to the entire world and enhance its brand. The common approach used by the organization is effective communication through public relations practice aimed at creating and upholding goodwill and mutual understanding with its publics (Oliver 2008). Harrods has several ‘publics’ that it keeps in touch with, for instance, its personnel, stockholders, government, and the media. Goodwill among these groups is core to the realization of the company objectives.
SWOT Analysis
The SWOT Analysis of an organization entails the internal analysis of products, strengths, weaknesses, opportunities, and threats (Osita et al. 2014). Harrods’ key strength is its rich legacy and history of offering a variety of products and services. The firm is also a respected, brand tourist attraction destination that covers a broad range of clients from different backgrounds and age groups. Moreover, the organization’s location in Great Knightsbridge is another strength of the organization, as it has adequate space for its staff and delivers services effectively. The store also offers underground car parking, which is convenient for customers who buy everything in one store at a time. The quality and range of products also serve a great advantage for customers searching for superiority designs.
Harrods organization has several weaknesses. Firstly, the extensive product range makes the entity not well acknowledged for a specific brand. The consequent low customer loyalty to the brands provides little motivation for customers to visit the stores regularly. Furthermore, the organization’s customers are limited to mainly tourists with a small percentage of a regular customer base with a low-income rate. The value of maintaining such a gigantic store, expenditures, and personnel expenses is high for the organization.
The organization’s opportunities include a strong retail culture that many customers prefer. Moreover, the organization does not have a specific in-house brand, which implies that it requires investing more into its specific products to maximize profits. Harrods also needs to venture into more international airports since it targets tourists and other affluent global customers who are known to make several trips globally. In line with the advent of globalization through technology, Harrods also needs to extend its wide range of products and services online.
The organization faces a number of threats. The greatest threat is the affordability of its line of products. Other comparable and competitive shops like Harvey Nichols, Selfridges, and Fenwicks sell similar products at a lower cost. Considered as old shaped by generation X, it is apparent that Harrods will drop its high-end reputation as a result of its high costs of products. Furthermore, with the advent of online shopping, the organization will also miss out on customers who prefer to shop in the comfort of their homes.
PESTLE Analysis
Originally, the PESTLE analysis was designed to scan the business environment. It involves analysis of the external macro environment in which an entity operates (Babatunde et al. 2012). The analysis entails features that are beyond the control of a business. Nonetheless, such factors are significant in developing the organization’s marketing plan. The political environment refers to the period of the present political surroundings that an organization exists in. The organization needs to assess the conditions of the impact in relation to the government factors, for instance, the legal provisions associated with departmental stores. Harrods adheres to the requirements of departmental stores. Economically, it is apparent that the success and failure of an organization is determined by the role of the economy of a nation. Harrods’ state of performance is positive as a result of the favorable economic environment. Such an environment has enabled the organization to earn revenue and make positive figures in its previous financial years. In terms of the social environment, the success of an organization is determined by the societal factors. The societal element within which an organization operates is important in shaping the image of the brand, appearance of the products in market. Harrods’ social environment is positive since many people have identified themselves, as depicted in the customers’ choice, demand and other requirements.
Technology is changing the current world, and it has been the case with Harrods organization. Initially, the report indicated the huge sum that the present owners of the firm invested in marinating its image in line with the current technology. Moreover, for the purpose of preserving stock and maintaining its reputation, the organization has put in place several computers supported technologies that enhance its service provision. Environmentally, the organization upholds the ethical practice of business through which the sustainability of environment can be attained. Legally, the department store has observed all the obligatory legal and procedural edicts of the nation, primarily law of contracts, consumer law, and health and safety requirements among others.
Segmentation, Targeting and Positioning
Segmentation
In a typical market, there are various segments of customers. Despite Harrods being perceived as an organization for the affluent, it is striving to make different groups’ approaches for each segment of the market. The organization, through appropriate strategic policies, is trying to harmonize several segments of customers throughout its market. Certain critical features are important in deciding about specific market segments. The demographic element is crucial, which depends on the age, gender, and economic condition of the customers among other issues. Moreover, the psychographics, which depend on the standard of living, social category, and personal views, are also significant. Lastly, the geographical factors, which are based on the customers’ location, nation and what is available within the specified areas, must be considered.
Targeting
As a way of growing and expanding the international market of the organization, targeting concurrent segments is an effective approach for the organization. Moreover, the distinct segment target practiced by Harrods is important in demonstrating its products. It assists in evaluating the demand of the market. Nonetheless, through multiple multi-segment targeting, the organization will be in a position to penetrate and grow the business to many nations (Yakhlef 2015).
Positioning
Generally, an organization attracts and retains customers through its goodwill and reputation of its brand. Harrods’ mission is inclined towards this objective, making it successful in the market. The goodwill and brand value, which the organization upholds, has been effective in maintaining its position in the market.
Strategic Recommendation
Harrods organization needs to incorporate an E-commerce form of doing business. This approach will enable the entity to undertake its business across the world in one location as it is merging all the departments. Such a strategy is also significant since many customers are running away from the bulk of getting into the ever filled chain stores physically to buy products yet they can do it with a touch of a button. Furthermore, this strategy will also allow the organization to open additional stores across the globe through evading local obstacles.
The organization also needs to introduce a private brand. Since Harrods provides fashion products, the private brand would be significant for it since it will be able to develop a distinct brand, for instance, clothing and market via its stores. This process will definitely attract the existing and new consumers.
Harrods organization also needs to be active in the social media form of communication. Social media communication, for instance, Facebook or Twitter is an appealing platform that besides attracting more customers, it provides important information about an organization’s products (Blythe 2006). Social media form of communication is also significant since it communicates in such a way that the content truly involves its audience (Wong et al. 2011). This is significant in converting prospective and retaining the existing loyal customers. Furthermore, social media will enable the organization to reach out to a more assorted and younger audience through regular updates besides being used in partnership with external entities. Since the organization offers different products, for example, luxury brands the firm can work with other external stores through social media connection to ensure all important marketing information about such products adhere to its brand and guidelines. Moreover, effective teamwork is undertaken through social media enablement, for instance, retweeting, sharing, which makes the information reaches a broader audience.
Marketing Mix (7Ps)
Harrods needs to concentrate on the quality aspect of its products without focusing much on the products themselves. This will enable the organization to attract new customers besides giving value to the sustainability aspect. With regards to price, it is apparent that the firm should deal with its suppliers directly. This will reduce any form of excessive expenditures that will impact on the products. The organization needs to put in place approaches of products promotion to ensure maximum volume of sales. The organization should also offer quality services to satisfy customers besides encouraging good employee relations and satisfactory recompense. In terms of place, the organization needs to find appropriate places where customers can easily get into the chain store. Its business process also needs to be easier not only for attracting customers but also for ensuring that the business is conducted effectively. As it concerns the physical evidence, Harrods organization should strive in its employment procedures to ensure that a sufficient number of floor employees are available to assist all customers in the stores.
The main objective of the plan is to promote itself through several marketing approaches to the entire world and enhancing its brand. The main approach that will be used in the evaluation of the proposed marketing plan will be through observing the number of customers that will start signing up and trading online. The growth in the number of signed up members will be significant in making the customers loyal hence increasing sales. The organization also needs to assess the number of sales volume for its brand after introduction to the market. The stores must also be able to provide feedback for the organization’s brand product as a measure of control, which will be able to meet the customers’ needs and increase sales volume through brand loyalty.
Conclusion
The present marketing plan has examined the current position of Harrods organization. The organization has joined all its marketing departments. In assessing the current position of the global organization, different organizational methods were utilized, for instance, PESTEL, the five forces, and SWOT among others. Therefore, it is clear that the promotion of the organization and its brand across the globe through various marketing strategies is important for its further growth and development.
References
Babatunde, B. & Adebisi, A., 2012. Strategic environmental scanning and organization performance in a competitive business environment. Economic Insights-Trends & Challenges, 64(1).
Blythe, J., 2006, Marketing. London: SAGE Publications.
Durham, C., 2011, Harrods: the premium private brand experience. [Online] (updated 29 Nov 2011) Available at: http://businesscasestudies.co.uk/harrods [Accessed 12 June 2017].
Oliver, S., 2008, Public relations strategy. Strategic Direction, 24(5).
Osita, C., Idoko, O. & Justina, N., 2014, Organization’s stability and productivity: the role of SWOT analysis an acronym for strength, weakness, opportunities and threat. International Journal of Innovative and Applied Resources, 2(9), pp. 23-32.
Yakhlef, A., 2015, Customer experience within retail environments: an embodied, spatial approach. Marketing Theory, 15(4) pp.545-564.