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Copy of Strategic Marketing (David Jones Case)

Week 9 case study on David Jones and Services Marketing Strategies
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on 4 August 2013

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Transcript of Copy of Strategic Marketing (David Jones Case)

Week 9 Services Marketing
Case Study
Steven Robb & Rachel Knight
Content
Brief History of David Jones & Relevancy to the Case
Service Marketing Strategies
Group Activities
Question Analysis
Conclusions and Findings
History of
7P's

People

Process

Physical Evidence
Service Marketing Strategies Continued...
Intangibility

Heterogeneity

Inseparability

Perishability
Service Marketing Strategies
Strategy
Retail Industry
Performance
David Jones Customer Segments
David Jones
in Terms of SERVQUAL
Tangibles

Reliability

Responsiveness

Assurance

Empathy
David Jones
& Strategic Alliances
Competitive Landscape
Should the company be content with this?
Who?
What?
Where?
?
Should it attack Myer's market share
http://www.smh.com.au/lifestyle/fashion/rush-for-stella-mccartney-at-target-20101029-176pv.html
Does it need to be concerned about Target?
1838
2010
1900
2012
Store founded by David Jones (with the intention to sell the best and most exclusive brands)
Remodeled store to resemble similar European stores
David Jones launched their own brand that was manufactured by the company
1945-60
David Jones became famous for European style fashion shows
1980's
1990's
2000
2005
Alliances allowed for a nationwide roll out of stores, including re-branding of Buckley & Nunn in Burke street mall.
90's recession saw the end of alliances and a need to raise capitol, David Jones floated for $800m @ $10 a share
From 97-2000 stores were refurbished, David Jones expanded the successful food-halls,
DJ's expanded into the online retail market. Both these strategies were failed growth strategies.
Mark McInnes returned the company back to the foundation strategies that made the company successful in the 19th century(scrapped food-halls, online business which saw a return to growth.
David Jones is performing well with current strategy, McInnes resigns over sexual harassment claims by a fellow employee,
Wheels start to fall off the wagon!
Women by different age cohorts
Middle to upper income households
Affluent suburbs or city centres
Exclusive Brands
Customer Service
Competitive Prices
Recommendations
Thank you for listening &
your participation!
Our References
Thank you for listening &
your participation!
New CEO Paul Zahra announces new omni-channel strategy, heavy investment in customer service
Enrich customer service by making the encounter more tangible/valuable
Try to deliver consistent levels of service satisfaction to the customer
Decentralize and provide multiple outlets for the ease of the customer
As services cannot be stored, maximize customer interest for non peak times and flexing capacity
In trend terms, Australian turnover rose 2.5% in February 2012 compared with February 2011.

The following industries rose in trend terms in February 2012: Clothing, footwear and personal accessory retailing (0.7%), Other retailing (0.3%) and Department stores (0.4%). Food retailing (0.0%) was relatively unchanged.

The following states and territories rose in trend terms in February 2012:

Qld (0.4%), WA (0.6%), ACT (0.4%) and NT (0.2%).

Vic (0.0%) unchanged.

NSW (-0.3%), SA (-0.1%) and Tas (-0.1%)
Failed American Express credit card reward scheme
Exclusive brands to David Jones like new domestic labels like; Carla Zampatti & international designers like; YSL, Trelise Cooper, Alice McCall
Consumer sentiment is low
Australians have increased their savings rate to 13%, the highest rate since 1984. In addition
consumers have been focusing on reducing debt
85% of online shoppers do so to save money and 65% use the internet to compare products and prices
International heavyweights Topshop, Gap and Zara have entered the Australian market and
High Australian Dollar
Banana Republic, Hennes & Mauritz, Uniqlo and Old Navy are also reportedly considering opening stores on Australian shores
Author Unknown, 2011, Average Weekly Earings, Australian Bureau of Statistics, viewed 18 April 2012

Author Unknown, 2012, Average Weekly Earnings, Australian Bureau of Statistics, viewed 18 April 2012

MacGowan, I, 2012, Clothing Retailing in Australia, IBISWorld Industry Report G5221, viewed 18 April 2012

Ford, J, Ibrahim, E, West, D, 2010, Strategic Marketing: Creating a Competitive Advantage, 2nd edn, Oxford University Press, New York
Need to create interesting places for customers
Cutting edge omni-channeled retailing.
Stop following competitors like Myer and be more proactively innovative
Development of market leading service processes.
Overhaul of outlets using European and American department stores as inspiration
David Jones fashion lounge, providing shoppers fashion inspiration by displaying the latest trends with service staff on hand.
However, only 4.1% of clothing sold in Australia is sold online and only around 10% of online sale are on foreign websites
Around 75% of online shoppers who purchase from international sites indicate that prefer to purchase from an Australian retail but identify customer service and range as the leading reasons for shopping offshore
The good and bad of the
External
Rivals
New Players
Full transcript