Strategic marketing - Management: Debenhams (titre original)
Debenhams opened its first store in 1905, and in 1929 listed its shares on the London Stock Exchange. Nowadays Debenhams is one of the most important department store chains in the United Kingdom.
In this depressive economic situation, Debenhams has to fight every time more to retain and target new consumers. The inflation rate is around 3% and people are being more and more careful about private and leisure expenditures. For few years ago there is an interesting trend which makes people (in particular men) more aware about fashion and clothing. Specialists call this trend the "David Beckham phenomenon". But clothing is fighting against technological goods when men make shopping.
There are more and more men who are going to shop clothes, and Debenhams has also to consider some women when they sell men's wear. The actual trend is also to sell goods by online shopping websites.
The actual market leader is Marks&Spencers, but there is an interesting opportunity for Debenhams to attack this leader, and propose to consumers more fashionable goods. Clothing sales would still grow in the next years.
The Debenhams operational margin is about 14% of sales, and sales are expected to grow continuously by 2010 around 2/3%. Debenhams opens more and more department stores and is refurbishing old ones which is the actual trend (to make store more designed stores).
Debenhams has to propose more adapted goods to men, like clothing. There is an opportunity to make a product extension by creating clothes which are mixing up fashion and adaptability. This opportunity would make Debenhams getting more market shares and fighting against the actual market leader. Debenhams can target a market share growth around 5% by 2010 and sales growth around 5%.
This strategy aimed to make Debenhams fighting against Marks&Spencers, and selling not only goods but also services to consumers (in store advices, free delivery in case of bad stock management).
[...] These marks should be based on emphasis with consumers, smiling, and helpfulness. At the end of each term best employees would receive special awards with a bonus. (II)To control the entire store we need also to use mystery shoppers who be sent once a term in each Debenhams store. The mystery shopper would evaluate the entire store including staff, decoration, looking, products and cleanness. Best store would be awarded Performance analysis (I)Each term Debenhams performances would be analysed by Marketing staff and the head quarter. [...]
[...] Local advertising have to give locations of local Debenhams stores. The national campaign has to insist on advantages and values of the product line extension and services provided by each Debenhams stores / Timing and frequency (I)Debenhams need to differentiate 2 important steps during the promotion campaign: - First, during 2 months after the D-Day of new products launch, the promotion campaign has to be high and powerful. TV and Radio advertising are included in this plan. Public relation is also an important part of this plan to communicate through fashion and urban magazines. [...]
[...] However big spenders and stylish had a slowdown. Well-dressed typology is the most numerous trend by English people with 23% of shopping. 57% of English people feel that it`s important to feel well-dressed. (III)Since 2000, people are spending less and less money on Data, AV and clothing expenditures. Whereas leisure (including culture) is staying at the top expenditures of English people Debenhams` customers profile (I)In majority Debenhams consumers are third age people and families but every category of people is shopping at Debenhams outlets. [...]
[...] This year Debenhams group tot of liabilities which is lot. It could be a weakness in the future if Debenhams continue to make investments (Opening new stores, re-designing store) without looking to refund liabilities. (II)Bleary positioning Debenhams has a bleary positioning. It`s hard to see which population Debenhams is targeting. Debenhams has to target more clearly people. On positional map Debenhams can`t differentiate from leader retailers like M&S Environmental opportunities (I)Keen interest in Fashion Fashion products and clothes become more and more present in magazines. [...]
[...] They have to wear Debenhams clothes during their time working. (IV)To help every managers and shop assistant to give good advices to every consumer the Debenhams Intranet service would provide every week lot of information about new Debenhams products and fashion trends Physical evidence (I)Debenhams needs also to consider its physical evidence as an important part of its marketing mix. Every store would be re-designed as the new trends. Debenhams had already started its store refurbishment. (II)Store managers have to take attention on stores appearances, everything has to be clean, and products have to be tidy. [...]
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