Introduction of the commissioning organisation
David Jones Limited is an Australian iconic department store. It is a high-end upmarket department store chain, the locals proud. It was founded in 1838 in Sydney, and currently has 38 stores trading (Wikipedia, 2014). Department stores have struggled due to weak retail environment and low consumer confidence. (Ibis world, 2014). In 2013, David Jones launched its own call centre, a production studio and IT system focused on online shopping website. (David Jones, 2014) However, despite the ongoing investment of increasing value of the brand, in FY 2010-2013, David Jones suffered continuous plunge in sales and profit, annual gross profit dropped 50 Million (figure 1). On July 17th, Woolworths Limited had successfully taken over the Australian historical company David Jones (ASX media release, 2014)
David Jones are currently under a transformation, including new ownership, re-structuring, new investment, new brands and product, and much more. This $5billion investment will mark a historical change in the retail chain. The goals and determined spirit have increased consumers’ confidence in David Jones. The risks and challenges remains with the uncertainty of consumers expectation and possible reactions to the new business strategy.
(Source: http://www.davidjones.com.au/For-Investors/Financial-Statistics-and-Share-information) Background of any factors that prompt the need for research
New CEO Ian Moir is optimistic about the take-over, aiming to turn David Jones annual profit to 130m within 5 years. (Korporaal, 2014) ‘Retail shopping is not dead. Bad retail shopping is’ says Ian Moir. His plan for David Jones involves several key strategies including 1. Increase frontline specialists in al stores to increase customer shopping experience, hence increase foot traffic, conversion and customer engagement. 2. Introducing new brand including lifting ‘company owned’ brand. Woolworths limited successfully doubled Woolworths supermarkets profitability in South Africa in as short as 90 days by bringing ‘home brand’ to the market. It is believed that increasing the ‘company owned’ brand in store from 5% to 20% will increase consumers’ confidence. 3. Technology enhancement. This project includes new POS online system, automatic consignment system and inventory management. (David Jones, 2014) Department managers from IT, Stores, and supply chain are all the ones facing critical decision as they are the ones in need of evidence to support their respective departments’ budget proposal from board members. Currently, the main department store rival of David Jones is Myer. The trend of increased online shopping, numbers of designer brand detailers, and low price clothing supermarket such as Coles and K-Mart, are also impacting on the revenue of David Jones. Ongoing marketing research is critical to keep up the market trend and maintaining competitive edge. The problem here is therefore to have an expounded analysis of the attitudes of consumers towards competitors, suppliers, government policy and other internal and external factors that will affect the success of David Jones. Purpose of the research
Despite the fact that David Jones is a well-established corporation, the new ownership and market strategy requires more detailed knowledge of all factors that will affect the future investment. At the moment, there are very little studies conducted for the underlying reasons of declining figures in the past years. Without the knowledge the reasons of the relevant factors, David Jones future investments are at risk of not being appreciated and recognized. Research Objectives
In order to successfully implement the new changes and to increase sales and revenue, David jones are determined to get a deep and thorough insight of consumer’s perceptions and other factors that may affect managers decisions. The objective for Market Research Company is to explore and evaluate...
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