Harrods Audit

Topics: Department store, Marketing, Harrods Pages: 17 (1888 words) Published: October 19, 2014
Brand Audit - Harrods
A Marketing Audit on the brand Harrods on how it markets its products to the British market.

Marketing Management

CHAN LI, Dixie Embleton, Hsin Yi Lee
14/10/2014

Contents

1. Brand Introduction1
2. Marketing Environment1
2.1 Micro-environment2
2.2 Macro-environment3
3. SWOT Analysis4
4. Recommendations7
REFERENCES 9
APPENDIX 13

1. Brand Introduction
Harrods is a department store located in London, and founded in 1834. Global blue (2014) who offers advice to foreign travelers view there is much more to it than a department store, quoting “Harrods is a British institution, rich in history and romance, shaped by its owners and customers and, above all, its staff.” Harrods is famous for being luxurious and its British heritage and they know the importance of their brand image stating that ‘it is one of their most valuable assets.’ (My Private Brand, 2011.) This audit will focus on how the brand is used to market products on the British market. 2. Marketing Environment

Microenvironment
Macro-environment: PEST
Market:
Retail Market
Tourism Market
Political/Legal
Conservatives to cut income tax before 2018 (BBC, 2014a)
Fur Farming (Prohibition) Act 2000 (Legislation, n.d)
Terrorist attacks or scares in London
Increase in minimum wage 2014 (BBC, 2014b)
Customers:
Tourists: Mainly UAE and Saudi. (National.ae, 2013)
British Shoppers. (National.ae, 2013)
Youth Audience, 21-34, Biggest demographic. (Marketing Magazine, 2014) ‘Upper class’ (UK Essays, n.d)
Economic
Increase in employment within London. (ONS, 2014)
Inflation rates fell to 1.5% in August (BBC, 2014d)
London attracts mass amounts of tourists. (ONS, 2013)
Higher cost of staff, Minimum wage increase in 2014(BBC, 2014b) Competition: (Visit London, n.d)
Selfridges & Co
Liberty
Harvey Nickels
John Lewis
Fenwick on Bond Street.
Fortnum & Mason
House of Fraser
Marks & Spencer's
Social/Cultural
Growing trend online shopping (Retail research, 2011) (WARC, 2014) Increase use in social media
Shopping habits: Peak shopping periods. E.G. Christmas.
Distributors: (Harrods, n.d)
Harrods is the distributor
Designer brands: Gucci, Prada, Channel etc.
And their own brand.
Range of products:
Clothes, Furniture/Home wares, Cosmetics, Perfume, Jewellery, Food & wine. Technological
Online shopping (Sky News 2014)
Increase use of social media (emarketer, 2013)
Use of websites. Information can be passed more easily
Improvements in transportation.
Suppliers: (Harrods, n.d)
Designer Brands / Designer Goods.
Food & Wine and Electrical suppliers: E.G. Apple

2.1 Micro-Environment
Research done by the Centre for retail research in 2010 discovered London was the shopping capital of the world and that the UK has the largest online sales - £9.9 billion. The tourism market is a growing within the UK. According to the office of national statistics (2013) London had 16.8m visitors in 2013 which was 51% of the total tourist who visited the UK. (Appendix 1 for more info) Their target market segment is ‘upper class’ customers and it’s thought that people who shop there belong to ‘social class A’ and expect service and quality (UK Essays. 2012). Harvey Nickels is there main rival only being a few meters away from Harrods selling allot of the same products and designer goods. 2.2 Macro-environment

Factors such as; cut in income tax, an increase in employment and low inflation rates will increase disposable income, meaning they have more money to spend in Harrods. Having a higher cost in minimum wage means Harrods have to pay more out to their employees. Fur Farming (Prohibition) Act 2000 banned the production of fur within the UK (Legislation n.d) and over 80% of the UK population is opposed to the sale of fur. Harrods it the only department store in the UK which continues to sell real fur (CAFT, n.d). As shown earlier in the microenvironment the UK is...


References: Baker, R. (2010) International expansion will dent Harrods exclusivity [Internet]. Available from: [Accessed 8th October 2014].
BBC (2014a) Conservatives would cut income tax before 2018, David Cameron says [Internet]. BBC. Available from: [Accessed 8th October 2014].
BBC (2014b) Minimum Wage up to £6.50 an hour [Internet]. BBC. Available from: [Accessed 8th October 2014].
BBC (2014c) UK interest rates held at record low of 0.5% [Internet]. BBC. Available from: [Accessed 8th October 2014].
BBC (2014d) Economy Tracker: Inflation [Internet]. BBC. Available from: [Accessed 8th October 2014].
Department for culture media and sport (2011), Government Tourism Policy [Internet]. Goverment.co.uk. Available from: [Accessed 8th October 2014].
Durham, C. (2011) Harrods: The Premium Private Brand Experience [Internet]. My (private) Brand. Available from: [Accessed 8th October 2014].
Emarketer (2013) Social networking reaches nearly one in four around the world [Internet]. Available from: [Accessed 8th October 2014].
Global Blue (2014) Harrods: a history of the famous store [Internet]. Global Blue. Available from: < http://www.globalblue.com/brands/specials/harrods/history-of-harrods-luxury-department-store-london/> [Accessed 8th October 2014].
Gov.uk (2011) VAT Rates [Internet]. Gov.co.uk. Available from: [Accessed 8th October 2014].
Jobber, D., 2010 Principles and Practice of Marketing [paperback], United States: Mcgraw Hill Higher Education.
Kane, F. (2013) Harrods proving irresistible to Arabs [Internet]. The National.ae. Available from: [Accessed 8th October 2014].
LDN fashion (2012) Harrods: 10 things you might not know [Internet]. LDN Fashion. Available from: [Accessed 8th October 2014].
Marketing Knowledge (2014) Harrods target youth audience first time with vogue festival sponsorship [Internet]. Marketing Knowledge. Available from: [Accessed 8th October 2014].
McCabe,M. (2011) Harrods Launches Media division [Internet]. Brand Republic. Available from: [Accessed 8th October 2014].
Office for National Statistics (2014a) Regions and Countries of the UK Recovering from the Economic Downturn [Internet]. Available from: [Accessed 8th October 2014].
ONS (2013) Tourism in London 2013 [Internet]. Office for National Statistics. Available from: [Accessed 8th October 2014].
Retail research (2011) World Shopping Capitals 2011 Survey - Which City is the Biggest Shopper? [Internet]. Available from: [Accessed 8th October 2014].
Sky News (2014) Spending more on online Shopping [Internet]. Sky News. Available from: [Accessed 8th October 2014].
UK essays (2014) Insight into the Behaviour of Consumers at Harrods Marketing Essay [Internet] UK Essays. Available from: [Accessed 8th October 2014].
WARC (2014) UK Leads European online shopping [Internet]. WARC. Available from: [Accessed 8th October 2014].
Appendix
Appendix 1: Tourism in London 2013, (Office for national statistics, 2013)
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Harrods Edition 17 Lesson Resource Staff Retention 2 Essay
  • Department Store and Harrods Essay
  • Harrods Research Paper
  • Information Technology Audit Essay
  • Essay about Marketing Audits and Its Importance to an Organisation
  • HARRODS MISSION STATMENT Essay
  • Harrods Essay
  • Marketing Audit Essay

Become a StudyMode Member

Sign Up - It's Free