In my study I will use as an example JDK Sports Fashion, which is one of the leading retailers in sport wear and how it progress using market research. The concept of JDK is influenced by giving the products and wanted brands at the correct price and in the proper places to meet with the requirement of the customers. JDK Sport has been created by John Warble and David Making in 1981 as a shop in Bury. In 1983 a shop has been opened in London and since that time JDK Sport has expanded to 900 stores in the I-J and internationally.
For more than 30 years JDK Sport has been growing through organic growth, which means its sales have been increased by it system of stores. Their growth in the last years was through acquisitions, enlarging it y buying in 2002 First sport, 2005 all sport, 2004 Scott, 2007 sank and 2012 Blacks. Their international acquisition contains buying shops in France, Ireland, and Spain. The company is retailing brands like Puma, Aids, Nikkei, Scott, Lactose and many more. These transform the company into a branded fashion with many markets not only in the I-J but internationally as well.
Market research contains examining the competitors, customers and market trend data. JDK uses market research to retrieve the level of requirements for their products and to see what it will be the impact of its decisions to have projects with good return t the end. Like going to the different marketing and opening new shops. Http://fastidiousness's. Co. UK Using marketing research JDK has the opportunity to find what customers want and what they think about JDK products and services. This helps the company meet customer demands and overtake the competitors.
It also helped to develop a business plan to which everyone can work for his achievement. Using this knowledge company can make marketing mix to affect other clients or open stores. Product JDK as a company offers to their customers stylish sportswear for everyday needs. It protester is recognizable from the consumers, because it is from the fashionable brands and they are well known. It products are with high qualities and branding design and that is the key for it bigger sales and reputation. The company buying influence is so big that the production is willing to take its ideas and realize it.
For instance "the Aids Forest Hills and Aids Training APT footwear ranges were developed exclusively for the JDK and cannot be found in any other retailer. " (1995-2013) Business Case Price The price politic for JDK is influenced by the cost of producing it, the profit it will achieve, the price of its opponents and what customers would like to pay. Finding the right price makes it strategy successful and accomplishes its goals. In this way company create value for money. It can choose pricing strategy. JDK can use competitive prices to sell its product at a price which is not higher than its competitors.
This one company is achieving it by buying a big quantity at lower prices. Sometimes the company can use strategic pricing by making some brands more wanted from customers and create requirements. Place In company marketing research JDK decides to function in shopping centers, on the gig street, outside of the town and e-commerce. The politic of the company is to make customers shopping very excited. As an example it shop in "Cardiff won a I-J Retail Interior of the Year reward for its design and ambiance. This included a giant table-football fixture and light boxes to display trainers. (1995-2013) Business case studies Using e-commerce an online shopping company can contact customers in a different way and meet their high expectations for good service and well maintained ordering site. Web designers regularly upgrade its site to make it much better and easier to use. In 2010 JDK was the top performer for perfect communication of its returns and deliveries, simple way of checkout and clear views of the product. Managers of the company are checking the accomplishment of all shops, by their sales and planning sales all the time so they can decide to choose other locations.
Finding the perfect location can maximize a company's performance and profits. By opening a store in a new location the company has to consider the cost, does the location is easy enough to be reached by the right customers and how often and what competitors are there. Http://businessperson. Co. UK/ Promotion JDK promotion is to reach her consumers by focusing their attention with messages. They use above-the-line to promote their products and brands with magazines like FEM., NEE newspapers, TV and radio. As well as these advertisements JDK use posters and t-sides of buses or railway.
With below-the-line as a promotion company can reach its customers by email informing them about its products and promotions. Using celebrity sponsorship for new brands and products, the company can have potentially new customers and create interest in its trade name. Faceable and Twitter help the company to use customer suggestions and proposals as a promotion. Company's marketing research makes JDK one of the kinds. By producing what the customers want as well as high-class brands which can be bought only from JDK make the business grow.
Combining its strategies and evaluating its marketing mix makes JDK more effective and competitive than others. 1. 2. Evaluate the benefits and costs of a marketing orientation for a selected organization There are different types of approaches of orientation and companies need to consider them when it develops their products. This process is business orientations. Product orientation is based on the product chosen by the companies instead of consumers what they want and need. Marketing orientation is based only on the consumers and their needs. Analyzing their needs companies are creating its products and services.
Production orientation is based only at production process itself and nothing else. Sales orientation is based on the price instead of consumers and their needs. In this situation companies are worried only about its selling and how to maximize it. JDK Sport is a company with marketing orientation. It based its products on customer needs. After analyzing all the information the company can decide what it will be its product and marketing mix until it can fulfill those needs. By balancing its strategies around its customers JDK Sport achieves growth for its businesses. 2. Show macro and micro environmental factors which influence marketing decision JDK Company like all other companies is affected by macro environment. Pestle Analyze Political factors can influence the company like taxes. The government is changing the tax law and that is mean that JDK has to increase its prices to the new rules. Economical factors can be the unemployment level of the area the company is situated and every year increasing wages which will reflect on JDK by increasing its wages as well. Social factors influence JDK as well, because it is more open to young people.
JDK as a company uses the latest technology like scanners in the shops, IT infrastructure, delivering its products from the warehouse to all the stores on time, etc. HAT system is used in the stores when customer wants a product for which they do not have its appropriate size to find customer size in different store without the deed to call that store. The environmental factors have another influence on the business. JDK is recycling its products by first keeping them in the store and after that sending it to the warehouse which recycles them.
Legal factor implication is when prices are down JDK need to charge the consumer the same price even this will be negative for the company. There are different factors such as new competitors, changing rules which can influence the organizational decisions and strategy that is why is very important for it to make market researches all the time. 2. Propose segmentation on criteria to be used for products in different markets Market segmentation is used by companies to focus on a different group of consumers who can give more value to its business.
There is a different marketing segmentation demographic, cryptographic, geographic and behavioral. JDK Sport uses checkout survey for building information regarding its consumer's profile, it is carried out at the till by collecting customer's age, gender and choice of product. This type of collecting data is more cost effective and JDK Sport is using it very effectively by understanding additional facts for their consumers. Sometimes a company can use its online information or ask questions regarding the purchase.
For example, if parents are buying products for their children or asking older customers what they think about its new range of polo shirts and casual wear. This helps not to misunderstand the results. In its survey are included 350,000 people and it is taken out for a period of two weeks' time. This helps JDK Sport to analyze: - How long the consumers need to travel to their stores and what opportunities they have if they ecocide to open a new store in this location. - What are the customer's gender, lifestyle and age?
A company can access this knowledge using its loyalty cards even it is expensive to run. Evaluating all the data helps the company to do in advance the level of pressure that consumers may put on its products and forecast its sales. Using the information provided by its online surveys JDK can become more competitive and have more international prospects. 2. 3 Choose a targeting strategy for a selected product/service Targeting strategy Soot analyses for JDK Company Strength Good management is used for achieving targets. Loyalty of the customers to the company.
Pricing power - JDK is keeping its consumers even they charge them more. Exclusive product, which cannot be find anywhere. Well known brand name, because consumers put additional value on it. Good technologies are used to meet consumer's needs. Weakness High staff turnover, changing valuable employees will cost more Not very good customer service Opportunities Expanding their international market Using a different product to diversify its consumer base. To make growth of its on-line Market. Get assess of new markets Threats Economical inflation can make an impact on the company's prosperity.
Powerful competitions Replace products at a lower price The ability of the company to keep its strength and its ability to benefit from all the chances bring it better profits and lower costs. Using Insofar matrix to evaluate the risk, JDK can choose which market strategies to use. Http://fastidiousness's. Co. UK/ By emphasizing on the needs of the customers, JDK Sport builds business which can overtake its competition. The company uses market penetration to understand customers and giving them what they need and want.
With market penetration it can expand its market share by providing other low cost products. Using marketing development JDK Sport can access different retail sectors. The company is focusing its attention at different customers who wants to use sports brands for their casual daily life. With increased product development in a new product company can expand its new brands. JDK Sport is doing this by creating products with good characteristics and reorganizing its resources. A company can choose diversification if it decides to take different trend.
JDK Sport has done this by acquisitions. Buying Scoots, First Sport and many more companies diversified its business into global sport fashion. 2. 4 Demonstrate how buyer behavior affects marketing activities in different buying situations Primary and Secondary research of JDK Sport, regarding buyer behavior Environmental factors Buyer's black box Buyer's response Marketing Stimuli Environmental Stimuli Buyer Characteristics Decision Process Product Price Economic Technological Political Cultural Demographic Natural Attitudes Motivation Perceptions Personality Lifestyle
Knowledge Problem recognition Information search Alternative evaluation Purchase decision Post-purchase behavior Product choice Brand choice Dealer's choice Purchase timing Purchase amount http://en. Wisped. Org/wick/consumer_behavior. Primary research JDK Sport is using qualitative and quantitative research for buyer's behavior. Examples of quantitative researches are exit surveys, shopping bag survey and on- site fieldwork. Company exit survey is made by customers when they leave the shop.
This survey is used in all the stores to obtain information regarding customer opinion bout other locations. JDK uses the results to understand why the customers are visiting them, how often, what they like and doesn't like in their products and brands. Company shopping bag survey is based on consumer's carrier bags. This gives information what other shop's customers are visiting and are these stores similar to JDK Sport. The company uses on-site fieldwork to make a research for new locations. This information includes what is the influence of its competitors and how busy the location is.
Qualitative research is based on customer opinions regarding JDK products and services. Qualitative research is a depth interviews and focus groups. The company is making depth interview with its customers to understand better their shopping behavior and their opinion about the shops. JDK Sport is making focus group's survey in the schools and universities about its new products and brands so it can get their direct opinion. Secondary research JDK Sport uses secondary research to collect information about the market.
These include government census data, Ego-demographic data and commercial market research report. Government census data is made by the government every ten years ND collect information about the peoples who lived in different areas. The research includes peoples age, occupation and number. This helps the company to decide which areas are better for opening a new store. Ego-demographic data are made by special agencies and include information about people's marital status, their children and their activities. JDK Sport can use this data for its product development plan.
The company uses commercial market report to assess the information about new markets and international availabilities. 2. 5 Propose new positioning for a selected product/service ID sport is horizontally integrated production company. They expand its market share through acquisitions, by buying other sport brands. In this way JDK sport eliminates its competitions and become a well-known branded sport fashion not only in the UK but internationally as well. Using product line filling, by adding new branded sports to its existing ones, is JDK sport answer to her customer's needs and demands.
New ways of positioning a product There are different ways of positioning new or existing products and services that JDK Sport can use: Promoting them on-line, by updating regularly Twitter and Faceable ages Re-shooting existing products with better descriptions or new sizes Managing the lower selling lines by merchandising them Promoting products and services on emails In store promotions and packing design In the last years, the UK trade industry has changed a lot with many demanding circumstances.
In spite of this economic inflation, JDK Sport has accomplished to keep its growth by taking its chances. Using and understanding market research company has the ability to assess consumer tendency and observe the competition. JDK Sport as a result creates very good research methods to give continuing feedback. These require using of qualitative and quantitative market information gained from customers and public researches. By knowing the customers expectations, company has created a name as the leading seller of sports and branded leisure clothes.