IY1 MARETING Coursework 1
1. How does JD Sports apply a winning marketing strategy and records substantial profits while a similar company in the same sector (JJB Sports) has failed and gone into liquidation? JD found its own model of marketing in the difficult economic and competitive market. It has a successful plan about marketing mix and SWOT analysis. JD’s target is very exactly and it is good at exploit opportunity. It also did well on the information exchange with consumers and builds a good brand image in consumers’ brains. So JD can have a profit financial performance. But for JJB, because its bad management and commonplace product, it got a bad performance and failed. 2. What specific factors may be used to summaries the success of JD Sports? Firstly, JD has a good marketing mix. Its perfect product, price, place and promotion target made consumers have a clearly impression to the brand of JD. Secondly, JD offers its features to customers and made its business keeping growth. Thirdly, JD always interacts with consumers, so it knows what customers want. By constantly adapting and changing its marketing mix through a focus on consumers, it has effectively managed to stay ahead of the competition. 3. Compare and contrast the marketing mix and financial performance of both companies. Marketing mix is a set of factors which can be control by companies. These factors are Product, Price, Promotion and Place. Marketing mix can affect the demand of product, which is the tool or method to launch the sale. In these case studies, JD did well on marketing mix but JJB didn’t. Product — Customer Value
Product means the thing which can meet consumers’ demand. It can be goods or services. It also includes factors such as quality, design, after-sales service and branding. In the cases, JD’s products are comprehensive and have a large audience. And what is more, JD has its own distinguishing feature on many kinds of product. But, JJB’s own strategy and this has firmly positioned them in the middle of the market, so the narrow audience made it loss a lot of consumer. Price — Customer Cost
The changing of production’s price will lead a profound impact to the marketing strategy. JD’s product price ware decide by many factors like the cost to make it, the level of profit required, competitor prices and the price consumers are willing to pay. They are in relation to the quality of goods and services. But for JJB, the prices of its goods JB got caught in the middle between the relentlessly price focused Sports Direct and the upmarket sports-fashion focused JD Sports. Basically fewer shoppers have been walking through JJB’s doors and those who have, haven’t been spending enough. Promotion — Customer Communication
Promotion means all kinds of way to communicate that sellers used to attract consumers. Consumers in different groups can understand the product through advertisement, public relations, personal selling and sales promotion. JD has a lot of project above-the-line, advertises on television backdrops, in club shops and around the grounds to attract young people. Below-the-line, it also communicates directly with consumers through many promotions. By contrast, JJB’s promotion is monotone and slick. Place — Customer Convenience
The right place of product is easy for customer to get and increase sale quantity. JD’s shops are on the high street, out of town locations, shopping centers or e-commerce where customers are easy to observe and find. But for JJB, because of its debt woes, its stores are closed. Compare the financial performance of JD and JJB we can find that JD got a better result. Despite a loss of £2.2m from the newly acquired Blacks business, group profit before tax and exceptional exceeded consensus market expectations, final dividend payable have an increasing and its net cash at year end was £60.3 million. The bad one, JJB have debt woes with growing losses. 4. Discuss how JD Sports may have...
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