Application of the SOSTAC model to the marketing strategy used by NEXT PLC in Romania


Project Report, 2018

16 Pages, Grade: 5.50


Excerpt

TABLE OF CONTENTS

BACKGROUND

I.SOSTAC NEXT PLC in Romania
1. SITUATIONAL ANALYSIS
1.1 PEST ANALYSIS
1.2 NEXT PLC SWOT ANALYSIS ROMANIA
2. OBJECTIVES
3. STRATEGY
4. TACTICS
4.1 PRODUCT
4.2 PRICE
4.3 PLACE
5. ACTION

II.SOSTAC USED BY THE FASHION RETAILER IN THE UNITED KINGDOM
1. PRODUCT
2. PRICE
3. PLACE
4. APPLICATION OF THE STRATEGY AT THE INTERNATIONAL MARKET

III. USAGE OF STRATEGY IN THE INTERNATIONAL MARKET
1. GLOCAL
2. ANSOFF MATRIX

IV.REFERENCES

BACKGROUND

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.

I.SOSTAC NEXT PLC in Romania

1. SITUATIONAL ANALYSIS

The SOSTAC analysis of the company and its chosen international market of Romania is necessary so as establish its current performance, based on user experiences review and mostly on the process of reporting and monitoring. Important for the SOSTAC are questions regarding present and desirable position for the company, as well as tactics details and action plans (Smartinsights.com, 2018). Simply put, these are the responsibilities and structures, the processes and systems, the internal resources and skills that needs to be taken into account. Additionally, the segments, target markets, objectives and positioning play an important role in the establishment of SOSTAC structure.

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Diagram 1. SOSTAC OF NEXT PLC in Romania

1.1 PEST ANALYSIS

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Table 1. PEST analysis (source: Author’s own work)

1.2 NEXT PLC SWOT ANALYSIS ROMANIA

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Table 2. SWOT analysis Next PLC Romania (Source: author’s own work)

2. OBJECTIVES

5 S’s OBJECTIVES

SELL – the target is to augment the number of its physical stores in Romania.

SERVE – aims to address the continually changing customers’ needs by diversifying its product portfolio and applying novel technological and social tendencies.

SIZZLE – have as a focal point the usage of digital technology in-store and on the website.

SPEAK – supplementary features in-store and online like virtual fitting rooms and multichannel retail.

SAVE – preserve the awareness of the brand as it will have a positive effect on its revenues.

SMART OBJECTIVES

1. Increase market share and sales of the company via the usage of innovative marketing and technology solutions within a period of three years for the territory of Romania.
2. Increase physical store and online brand attachment by the end of the second trimester of 2019.
3. Increase the number of customers with a minimum of 10% by the year end 2019.

3. STRATEGY

Having in mind, the objectives developed so far, Next PLC needs to be ready to imply a strategy that fulfills customer constantly changing demand, a way of life and patterns of purchase. As seen from the detailed PEST analysis Romanian society is keen on technology innovations and on their utilization in the shopping environment. Hence, what the company could perform in the country is to utilize the so-called virtual fitting rooms. Moreover, they make the shopping experience more enjoyable and fun. Some of the competitors of the brand in the United Kingdom like Topshop are already using this technology. In brief, the virtual fitting room allows the customer to take a piece of clothing from the rack without the need to try it on. The process is made easier by the utilization of hand gestures. Besides, that kind of innovation could be used in the online shop of the brand, thereby benefits its online customers.

The expansion of communication channels is another part of the strategy used by the company in the international market. Simply put, the latter means that the customers of the company will be able to make purchases, making use of various applications and locations. In turn, that will fulfill customers’ needs and they will become more devoted to the brand. Further, that type of experience will boost the in-store sales of the company.

4. TACTICS

4.1 PRODUCT

The products offered at the Romanian market will be almost identical with the ones, already offered on the English one; namely these are womenswear, menswear, childrenswear, accessories, shoes as well as homewares. The thematic products, offered for holidays such as Christmas and Easter will be presented to the Romanian market as well.

The products is in the growth stage of their lifecycle in the country, as the online store of the brand is familiar to the population. In fact, the company is trying to extend the life of their products by offering new and brightened up packaging (Nextplc.co.uk, 2017).

[...]

Excerpt out of 16 pages

Details

Title
Application of the SOSTAC model to the marketing strategy used by NEXT PLC in Romania
College
Anglia Ruskin University
Grade
5.50
Author
Year
2018
Pages
16
Catalog Number
V459725
ISBN (eBook)
9783668879782
ISBN (Book)
9783668879799
Language
English
Tags
SOSTAC, NEXT PLC, MARKETING, PRINCIPLES, PRACTICES, PEST ANALYSIS, SWOT analysis, objectives, smart objectives, strategy, tactics, action, control, product, place, glocal strategy, standardization, adaptation, Ansoff matrix
Quote paper
Kostadin Ruychev (Author), 2018, Application of the SOSTAC model to the marketing strategy used by NEXT PLC in Romania, Munich, GRIN Verlag, https://www.grin.com/document/459725

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