Promotional mix policies of UK clothes retailer Next plc


Term Paper, 2018

16 Pages, Grade: 5.50


Excerpt

Background NEXT PLC

NEXT PLC is a retailer based in the territory of the United Kingdom, providing to its customers products such as women’s clothing, accessories, and shoes, as well as in menswear, childrenswear, and homewares. An important fact for this retailer is that makes distribution via three main channels; namely, Next Retail, having 450 stores in UK and Eire, Next Directory home division having 4.5 million active consumers in the country and overseas and finally Next International Retail, possessor of over 200 franchised stores (Nextplc.co.uk, 2017). Moreover, the Next Directory provides customers with access to a credit facility for purchases named nextpay. Via brands such as Lipsy and Label the directory of Next offers premium brands to its buyers (Nextplc.co.uk, 2017).

The clothes fashion retailer maintains average prices, starting from £10 to £200 for the range of clothes and accessories; namely, the prices are compared to the quality and the brand name of the organization. Thus, the designer brands directory is regarded as a premium with prices starting from under £10 to £500. In fact, the pricing strategy of the retailer is a combination of market skimming pricing and market penetration pricing.

The prospective market of the organization is focused on both genders, namely young professionals within the age group from 20 to 48, possessors of middle-class income (Nextplc.co.uk, 2017). Despite that fact in order to achieve the previously determined objectives the company should start to target customers aged 15 and above. In brief, they are addicted to fashion and stylish trends and this makes them cost-effective segment for the company (Emeraldinsight.com, 2018).

For 2017, the sales of the organization have recorded a slight decrease of -0.3% in comparison to the same period of 2016 (Nextplc.co.uk, 2017). Besides, the turnover of the company up to January 2017 was £4,097m, again registering a slight decrease up to January 2018, when the recorded turnover was £4,056m. The total number of employees of the company for 2017 was 49 033 people.

NEXT in store experience

One of the physical stores of the brand is situated at 120 Oxford Street, London, allowing great access from all types of consumers due to its strategically important location. Its layout stimulates consumers’ imagination and urges them to wear fashionable clothes in a novel manner. The store by itself has a lot of open space, with digital and light boxes displaying lifestyle images. In addition, the fitting rooms of this flagship store offer a specifically designed area with refreshments. The Art Deco style is completely felt in the women’s section of the store, completely matching the architectural history of the building a former department store from 1894-1983, while the children department resemble the sense of gaiety (Dennis, 2018).

The shop window of the store is in compete match with the inner layout, showing to the wide audience the newest trends in fashion and alluring them to step inside. In addition, the organization provides customers with an easy access to purchase from smartphones, computers, catalogs, and even telesales. Moreover, the store area is also essential, as it is 40,000sq ft (Limited, 2018). The international website of the company also plays a significant role in the enhancement of its annual sales, as well as the ordering of their catalog.

Abbildung in dieser Leseprobe nicht enthalten

NEXT store at 120 Oxford street. Source: (Dennis, 2018; author’s own work)

The UK clothes retailer Next provides its customers with an extensive range of products. It comprises in women’s clothing, accessories, and shoes, as well as in menswear, childrenswear, and homewares. The website of the organization embodies the products offered in the physical stores with special Christmas and New In section, as well as the regular women, men, baby, girls, boys, shoes, lingerie, home, sports, beauty, and brands. Essential fact for the marketing of UK fashion brand is the products are planned by expert teams and originating straight from its suppliers. Having in mind the level of products, Next demonstrates high quality, as well as clear and cosmopolitan patterns (Limited, 2018).

Abbildung in dieser Leseprobe nicht enthalten

Screenshot NEXT website products. Source: (Limited, 2018; author’s own work).

The clothes fashion retailer maintains average prices, starting from £10 to £200 for the range of clothes and accessories; namely, the prices are compared to the quality and the brand name of the organization. Thus, the designer brands directory is regarded as a premium with prices starting from under £10 to £500. In fact, the pricing strategy of the retailer is a combination of market skimming pricing and market penetration pricing. For instance, the organization is utilizing minimal prices for new arrivals in order to engage the attention of the wide audience (Limited, 2018). As is acknowledged by Porter (1998) the market skimming is used by placing high prices for exclusive offers and as an approach is striving to augment profits (Kotler et al, 2008). In the case of next, the usage of that type of pricing strategies attracts a different number of consumers in various age groups. As evident from the website of the company and the Clearance section, numerous items are at the special prices starting from £5 for hat and £15 for a bodycon dress to £84 for a jacket at the present moment(Limited, 2018). The annual delivery pass of the company for unlimited free home delivery is also available on the website.

Abbildung in dieser Leseprobe nicht enthalten

Promotions NEXT website. Screenshots. (Source: Limited, 2018; author’s own work)

The CRM is an important part of the company strategy; namely, the organization possesses an effective website and call center that is fully capable to respond to the needs of its present and future customers. Further, the company uses various types of research so as to evaluate consumers’ opinions and levels of satisfaction from the products Next offers. Not only that but also the organization constantly supervises website and operations of the call center to guarantee that they are at the required level (Nextplc.co.uk, 2017).

The staff working in the physical stores of the brand are regarded as polite, always ready to help and being especially understanding towards people with disabilities. What is more, consumers are even expressing their content from the shop layout, fitting rooms and minimal waiting time at tills. Regarding the online aspect of sales, the experience is perceived as more than satisfactory with friendly and helpful employees, as well as the website with many options to choose from such as store collection within an hour, next day delivery and return service (Reviews.co.uk, 2018).

[...]

Excerpt out of 16 pages

Details

Title
Promotional mix policies of UK clothes retailer Next plc
College
Manchester Metropolitan University Business School
Grade
5.50
Author
Year
2018
Pages
16
Catalog Number
V459722
ISBN (eBook)
9783668908772
ISBN (Book)
9783668908789
Language
English
Tags
NEXT PLC, in store experience, shop window, Away from store promotion mix, Digital, AIDA technique, Above and below the line technique, push technique, pull technique
Quote paper
Kostadin Ruychev (Author), 2018, Promotional mix policies of UK clothes retailer Next plc, Munich, GRIN Verlag, https://www.grin.com/document/459722

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