This report explores the marketing channel problems that David Jones, a high-end Australian department store chain, is currently experiencing. Since it was founded in 1838, David Jones has expanded to the 35 stores, two warehouse outlets, and the online site that it now operates. It is Australia’s second-largest department store chain and sells a range of the finest national and international brands. After suffering from a substantial decrease in sales and profits, David Jones implemented a Future Strategic Direction Plan in 2012, which saw its successful transformation into an omni-retailer, which consistent increases in the online sales since the new channel’s establishment. Woolworths Holdings Limited offered a takeover bid in 2014 …show more content…
The total sales figure also dropped from $1961.7 million in 2011 to $1867.8 in 2012, as shown in the graphs below (see Figure 1 & Figure 2) taken from the David Jones Limited 2013 Annual Report (2013). These results marked 2012 as the department store chain’s “worst performance in nine years” (Dent, 2012, para. 1).
Future Strategic Direction Plan
In response to the poor performance, David Jones unveiled its Future Strategic Direction Plan on 21 March 2012 (2012b), which aimed to address the company’s challenges through a “three point strategy” (2012a, p. 9). With an implementation process expected to prolong over time, the plan set out to transform the company into a leading omni-channel retailer whilst simultaneously growing the in-store network and strengthening the core business (2012a). Through their Future Strategic Direction presentation (2012a), David Jones has highlighted the following attributes as the company’s strengths:
• Leading branded department store in Australia
• Distinctive ‘Home of Brands’ positioning
• Best range of national and international brands
• Strong customer service heritage
• Excellent in-store design and ambience
• Stores conveniently located for our target customer base
• Strong brand affinity with loyal and attractive customer base
• Profitable and well positioned store portfolio
•
David Jones Ltd (DJS), one of Australia’s oldest and most recognised department stores was founded in Sydney in 1838 and is a retailer of diversified products ranging from clothes to daily home products. This report’s purpose is to provide the David Jones’ Board and Senior Management advice through the assessment of SWOT, resources, capabilities and strategies with a Balanced Scorecard and Strategy Map as the measurement of the strategies.
The Australian market is extremely competitive and the company has positioned itself as a luxury products company. The organization 's current market position is that of a market leader. It follows mass marketing strategies. In case of marketing a new product the first consideration to be made by the marketer is that the target market includes the mass market or the targeted segment. Employing several developmental distribution tools including new distributors, online distribution, direct distribution and franchise distribution can be beneficial to the firm and its product as it is well aligned to the product and the firm 's requirement as well as objective. In this way the firm is able to create a brand that is popular and well known to its target
In the past, JCP had, on average, one price campaign every day. The stores were full of sale signs and retail rise was getting out of control. JCP partnered with numerous exclusive collaborations which was hoped to bring about an expansion for the firm. However, due to the economic slump, the oversaturation of the market, and an expected lack of quality in the goods from the consumer perspective, JCPenney’s success was degrading in contrast to its competitors. (Sloan, 2010).
The retail industry is saturated with substitutes, in part to low entry barriers. Online shopping and small boutiques stocking similar lines, brand names and designs provide David Jones potential customers with many substitutes. It is the David Jones experience that cannot be substituted; shopping in a large, upmarket department store. For the sector, substitutes are low.
Helen’s is an upmarket fashion boutique store in Sydney’s east. Falling sales have been reflected by surveys that reveal consumers view the business as outdated and no longer relevant to consumers’ needs. Strong competition in the area has placed considerable pressure on pricing. The business’s target market, 50-65 year old females, no longer dominated the now younger demographic character of the area.
The company’s brand image in clothing and increasing business in food sector together with successful marketing strategies will ensure sustainability of business. M&S is investing in Multi-channel store (online stores) to increase its capabilities in this field which will be fruitful for the company in future as it already showed quit improvement in online sales. Further, the company’s commitment
To sell “the best and most exclusive goods” and to carry “stock that embraces the everyday wants of mankind at large”
In this assignment I will identify what competitive factors and changes Tesco faces in the retail sector and how it might respond to these under the following headings; retail environment using PESTEL, and competitive environment based on overcoming barriers to entry, pricing, new markets and mobile population. In this assignment I will be talking about how Porter’s five forces are being used by Tesco.
The intensity of rivalry and the threat of substitutes are strong components for J.C. Penney to consider as they continue to strive for increased revenue and market share. Their two primary competitors are Macy’s and Kohl’s, both of whom have fiercely competitive strategies to be strong retail operations. For instance, while Macy’s offers a multitude of promotional deals and is working hard to choose products based upon demographics and geographic segmentation, Kohl’s is attempting to reduce their inventory levels and improve their marketing strategies in order to become a stronger competitor in the department store segment of the retail industry. In order to compete with their competitors, J.C. Penney aims to focus on their previously successful promotions and home department segmentations by bringing in new reputable designers in order to attract a larger customer base. Due to the fact that the intensity of rivalry and threat of substitutes are both moderately strong in the retail department store industry, J.C. Penney ought to be diligent in their implementation of strategies in order to achieve success in the retail business.
it is important to identify key strengths of the company over upcoming threats and weak points. Macy’s differentiate itself from competition with upscale “Celebrity” brand exclusivity, merchandise based on local preferences, and unique store design atmosphere. Based on analysis performed the company weighted strategy is to move towards the online and technology advances with maintaining Macy’s upscale storefront culture, integrating new product offerings with revising promotions to satisfy its target market and expanding operations to a new markets with present demand. From opportunities analysis strategy can be divided in three fragments
Jones Blair Company, JBC, currently faces a unique challenge in which the upper level management must act in order to maintain its profitability. Jones Blair current market position is in the process of being eroded due to the mass merchandising efforts of companies like Kmart and Sears. In developing their strategy forward, Jones must address two key issues to address the problem statement. First, Jones Blair must determine which marketing medium they will use to access their potential customers. Secondly, they must determine the geographic locations in which
This document represents The i-Fusions Consultant’s Report on BRITA. The company’s current business situation is analysed and various options for action considered. The report aims to identify a clear marketing strategy for Brita in order to address the current issues facing the company the associated falling sales.
Topshop in terms of gaining the competitive advantage inside UK’s fashion market tries to differentiate itself by promoting its online business, its international brand position and its collaborations with popular celebrities. The company’s objectives are following the SMART framework. The objectives are oriented on increasing UK’s market share, re-positioning the brand name in UK and following a tighter stock management. The Topshop marketing mix strategy is based on its STP strategies and is shaped by the UK’s external environment. However, the company is still strong focused on its digital performance and international expansion. Finally, the company in terms of examine the effectiveness of its strategies and objectives should implement, control and evaluate its strategies in depth.
The David Jones is iconic department store in Australian retail industry, but the net profit of David Jones has been decreasing because of the rapid retail environmental changes, unhealthy cultures, and global online attack. The problems of declining net profit in David Jones are creating make it essential to apply the most suitable change management for company.
The Fashion Channel (TFC) has the second largest female viewership and the second largest viewers in the 18-34 age-groups among the competitors. It operates 24 hours a day, 7 days a week and has an average rating of 1.0. The national consumer survey was carried out to judge cable subscribers about their attitudes towards fashion and TFC. The results indicated that most people agreed that it was important for them to remain updated about fashion, and that they rely on television reports on fashion to plan what to wear and are willing to subscribe to these channels. Moreover, most of them agreed that watching fashion programs on television has a lot of entertainment value for them.