John Lewis in China Report

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  • Topic: John Lewis Partnership, John Lewis, China
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  • Published : April 26, 2013
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John Lewis entering China

John Lewis entering China
Group Project Coursework BMKT507: Principles of International Marketing Group Project Coursework BMKT507: Principles of International Marketing

Table of content

* Executive Summary …………………………………………….3

* Key Recommendations……………………………………...…3

* Background Briefing…………………………………………….4

* Environmental Analysis and Market Audit……5 to 9

* Company Objectives and SWOT…………………..9 to 11

* Choice of Markets and Market-Entry Strategies…11

* Recommended Marketing Plan: ……………….12 to 15

Executive Summary

The purpose of this report was to critically analyse the potential expansion of John Lewis in China in order to provide clear and relevant recommendations, fitting the values promoted by the company and the market situation. Research for this report not only included an environmental analysis but also a competitive and a SWOT analysis. The company’s short and long-term objectives have also been defined. Our paper is based on findings and research from newspaper articles, online websites, official department stores websites, and books. We then analysed and used these sources to develop our proper analysis.

The major findings indicate that there are some risks, as there always are when entering a new market especially in a country with such a different and special culture and past. John Lewis should so be precautious when entering China and taking care of the competition there.

However in this report we saw how John Lewis can minimize those risks and how it has the capabilities to bring its Western strategy in China. We also saw how John Lewis can be able to make a successful entrance in the Chinese market.

Key recommendations

After an in-depth analysis of the retailers market in China and an understanding of the complexity of the environmental factors, the recommendations for John Lewis in order to be successful are the following:

* Focus on the middle and upper classes
* Choose the first location in Beijing or Shanghai
* Adjust the product and service strategy in the future depending on competitors and customers’ need * Maintain a balance between standardization and adaptation * Choose a joint venture strategy

* Adapt the communication strategy to the target and culture * Keep most of the suppliers that the company already has in the UK * Develop new partnerships with local suppliers as well
* Maximize the control over the supply chain
* Keep the pricing strategy “Never knowingly undersold”

Overview

The well-known British company John Lewis was initially founded as a drapery store in 1864 in Oxford Street, Central London. Today, the company owns 39 stores across the country and hires more than 84,700 employees (John Lewis Partnership, 2013).

Most of the stores are considered as being department stores as John Lewis manages a wide product portfolio within its shops, including furniture, clothing, cosmetics, toys, IT products as well as insurance services. This positioning allows John Lewis to reach a large number of potential consumers and therefore to satisfy different demands. Hence, offering quality and luxury products the company tends to focus mainly on the middle and upper classes.

Furthermore, the food retailer Waitrose is also part of John Lewis. As matter of fact, the up-markets and super markets chain is owned by John Lewis since 1937, and manages today 290 stores (John Lewis Partnership, 2013). This allows the company to gain differentiation with competitors and reach another market in the UK. According to a Verdict research, Waitrose has been rewarded in 2010 as the best food seller in the country (Waitrose Jobs, 2011).

John Lewis’ marketing strategy is essentially based on the commercial proposition “never knowingly undersold” (John Lewis Partnership, 2013). Indeed, the famous slogan is now a guarantee of superior...
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