STRATEGIC MARKETING PLAN FOR JOHN LEWIS

Executive Summary
The aim of this report is to evaluate the opportunities and strengths that John Lewis has. The two are then used to outline the global marketing objectives of the firm. The report first presents the situational analysis that includes the analysis of the resources and capabilities of the company as well as internal and external analysis in the form of SWOT analysis.
The report then outlines and elucidates the international marketing objectives of the company based on the opportunities. The report then covers the medium-term international marketing strategies that are open for John Lewis as it enters the Chines market. These strategies are the ones that are meant to secure the competitive advantage for John Lewis. The report then critically discusses the marketing mix recommended for John Lewis so as to deliver the aforementioned strategies.

Table of Contents
Introduction 4
Situational Analysis of John Lewis 4
Resources and Capabilities 5
SWOT Analysis 5
International Marketing Objectives for John Lewis 8
International Medium-Term Marketing strategic Plan for John Lewis 9
Marketing Mix for John Lewis 11
Product 11
Price 11
Place 12
Promotion 12
Conclusion 12
Appendix 15
SWOT Analysis for John Lewis 15


Introduction
The dimensions of business have taken a different course. With globalised economies most businesses and firms are expanding their operations into new markets. The growing economies in some areas have made most companies to have the need to expand to such countries. John Lewis a UK based departmental store is one such company that sees the Asian market as a potentially new market (John Lewis Partnership, 2014). The firm is bound to expand to china following the success of other multinational companies such as Wal-mart. There are strategies used in international marketing as well as global objectives for the same. Based on the strengths, weaknesses, opportunities, and strengths analysis the company is able to make preparations for entry into the international market .The aim of this report is to evaluate John Lewis and recommend a marketing plan as well as medium-term strategy that will see it peacefully expand into Chinese market.
Situational Analysis of John Lewis
John Lewis is a chain of up market departmental stores based in the UK. The company has been in existence for 50 years now. The first John Lewis store was established in 1864. The strength of the company is reflected in its vision that has been in existence for over 75 years now. The vision is: “Never Knowingly undersold” (John Lewis Partnership, 2014). John Lewis has received fame in the UK based on its customer services. The partners also provide the customers with high quality products. The company boasts of over 90,000 permanent staff (John Lewis Partnership, 2014). The organization has 43 shops making it one of the largest and well placed departmental stores in the UK.  The company has good relationship with the partners, customers and the suppliers as well as the workers. The company also makes much profit which reflects a good market share in the UK. According to John Lewis Partnership (2014), the company had made a gross profit of about 3 billion pounds (John Lewis Partnership, 2014). Additionally the annual gross sales of the company still stand at 10 billion pounds annually (John Lewis Partnership, 2014). The international market experience of the company is not as clear as its presence is only strongly manifested in the UK.
Resources and Capabilities
John Lewis has 43 shops that are all located in the UK. There are 31 departmental stores, ten at home and 2 in the St. Pancaras international Train station and the Heathrow Airport Terminal. The organization has not expanded into new boundaries in other countries neither does it have a branch in Europe (John Lewis Partnership, 2014). This shows that John Lewis does not have a clear understanding of the international market. There is a rising demand for products globally mainly due to the globalization of business. Depending on local markets alone will not sustain the company as the market will be saturated. This makes it essential for the company to expand its existence into new markets. Currently, the best market as it may seem for John Lewis is the Asian market (John Lewis Partnership, 2014). John Lewis needs to expand into the ten new Asian markets. This will be through targeting of concessions that are within the departmental stores.
SWOT Analysis
John Lewis has a variety of strengths. First off, the company has a strong online presence making it to reach a wide consumer base and process customer requests from various regions in the world (John Lewis Partnership, 2014). Secondly, the brand has strong and well established relationships with its customers, partners and employees who are the core stakeholders of the company (John Lewis Partnership, 2014). John Lewis also has a range of products that are extensive and of high quality. Thirdly, the company has a strong vision that is customer value oriented and reflects its strategic direction. The company also has a strong brand reputation or image among the UK customers (John Lewis Partnership, 2014). This is also likely to be spread through social media interaction between the customers. It also offers good customer service that is entrenched in its organizational culture (John Lewis Partnership, 2014). The pricing of the company is affordable for a range of products. The company also has a large and committed workforce (John Lewis Partnership, 2014). The placement of the departmental stores in the UK is also excellent making it easy to access the products. There is also regular customer service.
Some of the weaknesses of John Lewis include the recent slump in profits. The company also lacks presence in the international market though it has the capability to. The company as aforementioned only depends on the departmental stores in the UK (John Lewis Partnership, 2014). The company also lacks competitive advantage being that it is almost saturating the home market (Glowik & Smyczek, 2011). The company does not have a good and intensified marketing strategy that would jeopardize its existence should the competitors in the market up their marketing strategies.
The opportunities of the company include the expansion into the international market. The market that is potentially open for John Lewis’ entry is China. This is because the foreign direct investment into China is higher than any other Asian market (Saee, 2011). The FDI stood at $123.9 billion by the end of 2013. The Chinese economy is also increasing and china has been dubbed the economic powerhouse of Asia (Bhattacharya et al., 2013). The total imports of China at the end of 2013 were $1949.3 (Bhattacharya et al., 2013). Compared to other markets such as Japan, China’s market is progressing exponentially and at a steady rate over the year (Saee, 2011). It is also forecasted that the retail sales will increase at the end of 2015.
Secondly, John Lewis has the ability to develop new and peculiar selling propositions based on the rich information available about the Chinese population’s culture and buyer behaviors (Ku, Shira, & Associates, 2014). Thirdly, the formation of strategic partnership s with existing and well developed multinational retail stores so as to penetrate the market (John Lewis Partnership, 2014). There is also new product development capability so as to introduce products that suit the international markets and appeal to the customers. The new products will also create an appeal to the customers thus loyalty (John Lewis Partnership, 2014). Delivery services are also another opportunity for the retail stores. The rising number of corporate in the global arena as well as favorable laws and regulations is also another opportunity (Ku et al., 2014). Lastly, the rise of social media marketing also makes an opportunity for John Lewis. The other opportunity is the success of Wal-mart and Auchan Group that are successful international companies that are there for John Lewis to learn from (Ku et al., 2014).
There are threats that John Lewis is bound to face. These threats if well researched on may be overcome through well formulated strategies. The first obvious threat is failure to integrate well into the market (Keegan & Green, 2014). This is due to cultural differences between the customers in the two countries (Keegan & Green, 2014). Secondly, negative and profound effects of new legislations that is a must for one to operate in the global market. This includes registration fees and terms, taxes and revenues. The other threat is the problem of cash flow due to currency differences and dynamic exchange costs (Keegan & Green, 2014). The other threat is language barriers that will make the company to spend much in recruiting a Chinese based workforce so as to sell effectively. The other threat that is obvious in any market is the emergence of new competitors with strong competitive advantage (Global Strategic Management Inc, 2010). Additionally, the company is also likely to face the already established companies (Global Strategic Management Inc, 2010). Some of the multinational companies such as Wal-Mart stores, Tesco, Carrefour, and Auchan Group. These companies have been in the market for long and have large market shares in China.
International Marketing Objectives for John Lewis
The global marketing objectives should be smart that is specific, measurable, achievable, realistic and time-bound. The first marketing objective for John Lewis is to become one of the best departmental stores in China (John Lewis Partnership, 2015). Secondly, the objective is to have a wide consumer outreach through diversified products at the best price (Doole & Lowe, 2011). Thirdly, the company’s marketing objective is to increase its market share in the international market (Doole & Lowe, 2011). Fourth, the organization also needs to ensure that part of John Lewis’ revenues is accounted for by the revenues in the market. The target is 45% of the total revenues of John Lewis. The departmental store also yearns to obtain a minimum of 15 percent departmental store in Beijing and Shanghai which are the largest markets in China (John Lewis Partnership, 2015). John Lewis also intends to have an annual growth rate of 20% in the international markets. The other marketing objective is to form strategic partnerships with major local company in China after entry into the market so as to level of competition from multinationals like Wal-mart (John Lewis Partnership, 2015). The other objective is to leverage of the good relations between China and UK to ensure that there is creation of export and cash flows (Doole & Lowe, 2011). The other objective is to come up with products and marketing mix that will suit the cultural difference between Chinese and UK customers (John Lewis Partnership, 2015). Last but not least, to break the trade barriers between the two countries, this promotes globalization of trade (Hollensen, 2012).
International Medium-Term Marketing strategic Plan for John Lewis
John Lewis should integrate its traditional business strategy that has ensured its success in the UK when entering the Chinese market. This strategy that has been useful involves targeting high income earners and offering them high quality products and efficient customer service at premium prices (Ku et al., 2014). The target market segment for John Lewis should be males and females between 25 and 45 years. This represents the middle income working class that attaches value to high quality products (Glowik & Smyczek, 2011). This is because of the rise of this population in the last few years reflecting a good opportunity for the companies entering the country. John Lewis should be positioned in the high end streets in China so as to serve the high populations. The departmental store should also leverage on the foreign language internet so as to be able to reach a wider consumer base especially in the Chinese market (Kotabe & Helsen, 2011). The latter will help defuse the problem of language difference especially for the convenience of the customers (Glowik & Smyczek, 2011). The online presence will make the company have better access (Doole & Lowe, 2011). The organization should also leverage on the development of its mobile applications through the partnership with App developers so as to roll out in the technologically inclined global business world.
John Lewis branding in the Chinese market should be developed in a manner that that it will integrate with the Chinese consumers perception of brands such as prestige, social status symbols and achievement (Ku et al., 2014). The brand should be in line with the Maslow’s hierarchy of needs so as to fulfill the needs of each customer (Lee & Carter, 2012). This approach will be successful as the Chinese consumers attach value to the products they purchase. The Chinese consumers value the reference groups, family and opinion leaders when making purchase decision. This means that John Lewis should come up with a marketing communication mix elements that includes advertising, publicity and public relations as well as social media marketing as assured means of getting the support of the opinion leaders (Kotabe & Helsen, 2011).
 Specifically, John Lewis’ advertising strategy should focus on the development of adverts that are represented through Chinese celebrities and successful people in the nation. This would bring a good representation of the face of the brand to the culture oriented Chinese consumers. Public relations and publicity should be achieved through periodical release of press articles and publications (Kotabe & Helsen, 2011). This could also be backed up with public speeches, posters and community relations with the consumer’s traditions and nationality (Global Strategic Management Inc, 2010). A compelling marketing campaign sells itself and is likely to be spread faster (Dess, 2012).  John Lewis should use social media that are locally used in china such as Punyou, Weibo and Renren to facilitate a viral marketing campaign.
There are various market entry strategies in the global market (Bennett, 2012). The market entry strategies open for John Lewis include exporting, subsidiaries that are wholly owned, joint ventures, franchising, licensing and turkey contracts (Bennett, 2012). However, through fully owned subsidiaries, John Lewis will be able to perfectly enter the Chinese market. Wholly owned subsidiaries will offer the company advantages such as protection of technology, selection of strategies, positioning and global strategic coordination (Lee & Carter, 2012). While implementing this, the company will achieve its vision through forming strategic partnerships with major businesses in Chinese market (Lee & Carter, 2012). This will mutually benefit the two parties involved and increase the competitive advantage and freedom of operations (Gilligan & Hird, 2010). This will also come with associated risks and disadvantages such as high cost (Hill, 2010). The other best entry alternative is joint ventures, licensing and franchising (Hill, 2010). Though the last three are associated with lack of control over operations and compromise the freedom of the company to formulate strategies and implement them (Hill, 2010).
Marketing Mix for John Lewis
Marketing mix is a combination of four elements meant to reach the customers of a product. It comprises of product, price, place, and promotion (Kotler & Kotler, 2010; Pride, Hughes, & Kapoor, 2011). These are also the marketing mix that will be used by John Lewis while entering China.
Product
The product should be different from those being offered in the UK stores this is because of the slight cultural difference and thus consumer perception (Pride et al., 2011). The positioning of the product should be considered the most (Dess, 2012). Product positioning is a scenario where the customer’s perception is catered for based on the needs, competition and communication channels available (Pride, 2011). The products or packaging should reflect the traditions, culture, prestige, success and social class that are expected by the consumers (Gilligan & Hird, 2010).
Price
The second element is price, which refers to the actual amount paid when purchasing a good or service and reflects the value attached to the products or services (Dess, 2012). To achieve great sales in China, John Lewis should ensure that the price is relative to the services and products (Pride et al., 2011). The best pricing should be that of premium level considering the target segments (Pride, 2011). This will be backed up with the perceptions of the customers on the brand alongside the services offered.
Place
In terms of place John Lewis should that there is a stable and working online platform since most of the Chinese like shopping online (Ku et al., 2014). Secondly, the company could open up departmental stores in modern shopping streets and the high end streets so as to reach the Chinese customers (Ku et al., 2014).
Promotion
The promotion element of a marketing mix is used by marketers so as to inform, persuade, and remind the potential buyers of the existence of a product so as to influence them to purchase the product (Pride, 2011). The promotional strategies that should be adopted by John Lewis include advertising, public relations, persona selling, and sales promotion (Pride, 2011). Greater focus should be on advertising using various platforms to portray the face of the brand (Kotler & Kotler, 2010). The advertising campaign should take root on the social networking sites to be efficient.
Conclusion
John Lewis has all it takes to enter the international market as can be seen in the numerous strengths that have been outlined in the report. There are also opportunities that then form the objectives of the marketing campaign for John Lewis as it plans to enter China. Similarly, there exist weaknesses that should be done away with for the company to sail peacefully through the market entry process. A number of strategies could be used by the company in entry and penetration of the Chinese market as identified in the report. However, wholly owned subsidiaries have been identified to be beneficial being that there is control of operations. The main hindrance of getting the target customers as identified is the cultural differences between the home country and China. However, integration of this through effective branding and promotion will ensure that the company enters and penetrates the market. Lastly, there are different marketing strategies the company could leverage on in ways that have been shown in the report.








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Appendix
SWOT Analysis for John Lewis
Strengths
Strong online presence.
Well established relationships.
Good customer services.
Quality premium priced products.
Excellent brand reputation.
Strong vision.
Committed workforce.

Weaknesses
Slump in profits
Absence in the international market.
Dependence on UK market.
Lack of proper marketing strategies.
Saturation of the UK market.


Opportunities
Expansion to the international market.
Robust Chinese economy.
Well established retail sales in China.
New selling proposition.
New product development.
Successful multinational retail. Companies in China.

Threats
Competition from well established multinationals and local companies.
Cultural differences.
Language barrier.
New Regulations.
Cash flow problems.
Exchange rates fluctuations.