Preview

The Marketing Strategies to Maintain and Increase Profitability of a Department Store

Good Essays
Open Document
Open Document
691 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Marketing Strategies to Maintain and Increase Profitability of a Department Store
Yedo is a successful Tokyo-based Department Store chain with six outlets in Japan and two more in London and New York. Recently, the performance of Yedo have been very dissapointing and few solutions have been recommended to solve the problems. The marketing strategies needed to maintain and increase profitability of Yedo are widely globalise it's stores by opening more outlets in East countries, provide more products with low prices but good quality and concentrate on cost-cutting effort. 80

Some people insist that Yedo Department Stores should focus more towards customer-centric in order to increase profitability. Their opinion is that if customers are satidfied with the services, they will come back. However, there is a better way to solve the problem of increasing competitors which is to widely globalised Yedo Department Stores by opening more outlets in the East countries. By opening more outlets globally, Yedo can diversify its industry to target other countries widely, hence increasing its reputation. For example, Wal-Mart's emphasis on expansion in the developing world which has included acquisitions in China, Chile, and Brazil, comes as the retail giant looks to prop up sluggish, mature marketsnsuch as that of the U.S. ( Sonne and Stewart, 2010 ). 'Wal-Mart International also reported $100.1 billion in sales in the fiscal year ended Jan 31, up to 11% from a year earlier when stripping out currency fluctations' added by Sonne and Stewart. Besides Wal-Mart, Fast Retailing.co also has more than 800 stores across the globe, with Uniqlo outlets in China, Hongkong, the US, France and planning to expand into India, Austrialia and Thailand to increase their sales and reputation. ( Tan, 2010 ) 190

Yedo must also provide more products with lower price and good quality to solve the problem of aiming for brand conscious customer only. This is because lower price and attract

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Ansoff Matrix of Tesco

    • 566 Words
    • 3 Pages

    They are the world’s leading retailers, They have a well established strategies on which they work, which constitute the very strong base for their growth.…

    • 566 Words
    • 3 Pages
    Satisfactory Essays
  • Better Essays

    Over time the company grew enough that Walton decided to venture into uncharted territory by opening Walmart Supercenters, Sam’s Club Warehouses and the company’s first international stores in Mexico. The company now has “11,000 retail units under 71 banners in 27 countries and e-commerce in 10 countries. We employ 2.2 million associates around the world — 1.3 million in the U.S. alone” (Walmart Corporation, p.1, 2014). The company has been very successful but still must keep in mind where a store is placed, what market to target, and how the company will promote the new store.…

    • 1193 Words
    • 4 Pages
    Better Essays
  • Best Essays

    Around the world, retail business has been in demand for quite some time. Therefore, expansions and changes due to technology are developed daily to help innovate and maintain the competition worldwide. These changes help prepare the retail business to be successful, to operate smoothly, effectively and efficiently. This paper will tell how being an executive of XYZ, Inc., a high-end retail chain that sells luxury watches, jewelry, and hand bags, enable me to make short term, small scale changes in Shanghai our first international store; then later into a long term, large scale change within the organization by having additional stores in Brazil, Russia, India, and China (also known as the B.R.I.C. countries). I will also discuss the change model used during these short and long term changes and the effect it will have on the organization.…

    • 1757 Words
    • 51 Pages
    Best Essays
  • Better Essays

    During the past decade, retail markets have undergone many changes in their processes, services, and formats. The last part of distribution of the market strategy, retailing serves as a bridge between the final consumer and the mass producers of products. Retailing has reached every corner of the globe, and Wal-Mart has been eying areas where the retail market is unorganized or poorly organized. It, along with other corporations, has used liberalization, privatization, and globalization to become potential players in the commercial opportunities these areas embody. “Wal-Mart Stores, Inc. operates Wal-Mart discount stores, Supercenters, Neighborhood Markets and Sam’s Club locations in the United States. The Company operates in Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico and the United Kingdom.”…

    • 1307 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Nordstrom a promising and upcoming departmental store in U.S has shown phenomenal growth in the business of retail chain business. The credit for this would go to the founder and promoter’s philosophy of inverting the pyramid and putting the customer on the top, followed by employees and it was the share holders who were accorded the last place in the priority list of company. Nordstrom working as departmental store in the retail industry would be effected by all the forces in the marketing environment.…

    • 1651 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Complete an analysis of the traditional department store industry and of Macy’s as of 2005. Which factors in the external environment could (positively or negatively) affect the success of Macy’s new strategy?…

    • 961 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Change Management

    • 1224 Words
    • 5 Pages

    XYZ, Inc.’s plan to expand its business in other BRIC Countries depends on the success of its first international store in Shanghai. The lessons learnt from the opening of first store, positive or negative, will be applied in the long term expansion of the company in BRIC countries, which entails long term changes in the organization. The long term changes for the second phase of international expansion (i.e. in BRIC countries) will be dynamic and continuous in nature. These changes would also take more time to be executed completely and will help in the long term profitability and global competitiveness of the company.…

    • 1224 Words
    • 5 Pages
    Powerful Essays
  • Better Essays

    Globalization of Wal-Mart

    • 1167 Words
    • 5 Pages

    As the world’s largest retail store in the world, Walmart wants to be in every market that they can be prosperous in. They know they rule the United States market, so why not try to expand overseas and dominate those markets as well. Now that they have reached limits on expansion here in the U.S., the next step was to test the water in other nations. As they began to go international, there were many critics saying they will never make it because their business practices and culture wouldn’t work in other countries. Yet the company’s globalization efforts progressed at a rapid pace. Its more than 4,263 international retail units employ more than 660,000 associates in 15 international markets. Their international sales have made up over 24.7 percent of the company’s total sales. This is expected to increase substantially over the next decade. (International business 13th edit, pg. 251)…

    • 1167 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    A retailer can spend years rolling out a brand in the largest U.S. markets and more years penetrating smaller markets before looking overseas. Today’s globalization makes moving internationally sooner to become a much more attractive opportunity. Retailers call global expansion a key source of revenue and a necessity, not an option, for them. They also see the growth of middle class consumers around the globe as a key driver of these international opportunities.…

    • 4921 Words
    • 20 Pages
    Powerful Essays
  • Satisfactory Essays

    Case Study 2

    • 935 Words
    • 3 Pages

    International expansion is different from the domestic expansion because geography areas, culture, tradition, behaviors and characteristics of the consumers are not similar, thus the management, concepts and strategies will be different in the expansion of international markets. The strategy will have to be careful according to the culture, geography and behaviors of the customers. Wal-Mart has taken this expansion as critical part of its strategy to achieve the goal in its targeted markets. The strategies should be drawn out with serious consideration and discussion to be fit into targeted geographic areas. Since they are taken as critical part, it is not surprising that Wal-Mart has been working on the right path of strategies and concepts to reach to the succeed.…

    • 935 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Macy's Essay

    • 859 Words
    • 4 Pages

    Overall, Macy’s consolidation and repositioning strategy have many advantages since the company converted 15 department stores to Macy’s brand; Remodelling stores promote a pleasant shopping experience to customers, displaying fashionable clothing to attract trend-followers, and developing private brands to increase profits. As mentioned above, the first strength to this change is the decision to consolidate. By using the same brand name, this will reduce advertising costs, customers will easily recognize the brand, and since all stores carry same products they may have bargaining power over suppliers. Next advantage is locations. Since Macy’s now have approximately 810 stores in 50 states, customers can visit any Macy’s stores without inconvenience. Moreover, because all stores carry same products, services, and designs, buyers can visit any stores to buy what they need. Last strength is Macy’s focus on affordable fashion. People nowadays value fashion so much that they simply won’t purchase clothing that is boring and bland. By recognizing these factors, Macy’s are working with top designers to attract and show buyers their brand is fashionable and also affordable. Despite of these advantages, Macy’s also have weakness to worry about. Customers are complaining that the price of merchandise increased and they would shop elsewhere. Macy’s would reduce these complaints by offering coupons or to perform customer relationship program to recognise those who are loyal to the store and give special incentives or…

    • 859 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Propelled by challenges in China, Mexico, as well as Brazil, the global revenues by Wal-Mart increased by only 1 percent in 2013 whereas there was a decline of 4.2 percent in its revenue per square feet (Idowu et al., 2013). Now that Mexico is a principal global site for Wal-Mart, serious results from Mexico represents a big consternation for this big departmental store. The Chinese market is as well critically important towards Wal-Mart in relation to enduring perspective, despite the fact that nothing more is added to the profits of…

    • 1514 Words
    • 7 Pages
    Better Essays
  • Better Essays

    Introduction I would like to begin stating the reason why I decided to choose this case and, above all, this topic. Since the beginning of my academic career field I’ve always found more interesting the “human” side of business sciences, especially those concerning the behavior of organizations in the environment in which they operate and consequentially of the people that materially make them work. This because organizations are “living structures” created by men in order to reduce the uncertainty typical of every “open system” like the real world, as opposed to what scholars call “closed system” to indicate an environment where all the variables are controllable or at least predictable (Thompson, 1967). So the reason that led this choice was not that the case itself (even if Wal-Mart still represents one of the most successful firms in the world) but the more general organizational change behind it and the question common to probably every firm: why do organizations change and what is the best solution possible? Wal-Mart Despite being one of the biggest multinational retailer corporation in the world for revenues (446.950 billion $ in 2012) and employees (2.2 million as of 2012), WalMart remains a family owned business since its foundation in 1962 by Sam Walton, and even after his death members of the family keep on having key places inside the company: one bright example is Robson Walton, eldest son of Sam and Chairman of the company at the present date since 1992. The success of the firm is mainly due to an aggressive cost leadership strategy (Porter, 1980) that ensured the company with a huge competitive advantage, but that has not been completely free from critics: low specialized labor force and the exploitation of the “arbitrage” offered by countries such as China are a few examples. The company was even accused of child labor exploitation. Being…

    • 1282 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    The real change in the retail industry is technology; trade laws, competition, product sourcing, brand recognition and customers all affect global expansion. The changing economics of both industrialized countries that have reached full production capabilities and have well developed in fractures and technologies, as well as those countries that are still developing offer retailers the chance to expand into foreign countries (Poloain, p.212).…

    • 872 Words
    • 4 Pages
    Satisfactory Essays
  • Powerful Essays

    Costco vs. Wal-Mart

    • 1269 Words
    • 6 Pages

    With $401.2 billion revenues, the retailing giant, Wal-Mart, has been ranked as the 2nd place of 2009 Fortune 500 companies. This company is seen as the most successful business in the world today but also viewed as the vital indicator to observe the status of financial crisis recovery. Wal-Mart has won market share during the recession by offering customers lower prices as its successful marketing strategy. Moreover, Wal-Mart is long for expanding its kingdom all over the world. In 2005, Taiwan once was one of Wal-mart’s plans to join the overseas expansion, nevertheless, Wal-mart veered round to China at the last minute.…

    • 1269 Words
    • 6 Pages
    Powerful Essays

Related Topics