Marketing Techniques For Jd Sports

Published Date: 02 Nov 2017

From: Ling Chow

Subject: Marketing

1. Introduction

This report will be describing how marketing techniques are used to market JD and the National Trust for criteria P1, M1 and D1. The report will provide a definition of marketing, explain what marketing objectives are and describing what branding, Ansoff Matrix and relationship marketing are. It will include research from the BTEC book, JD and National Trust websites.

2. Findings

A. Marketing Definitions

Marketing is an essential part in ensuring that the products are what the customer wants and that they are readily available for them to purchase. This is the definition of marketing that is found in Business book 1 level 3 "Marketing is the social process by which individuals and groups obtain what the need and want through creating and exchanging products and value with other (Kotler)." This is the definition of marketing by the chartered institute of marketing (CIM) "Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably."

Marketing was designed to increase customers and the businesses profit. A marketing expert "E. St. Elmo Lewis" in 1898 developed the acronym AIDA. The acronym describes the steps that a customer would go through when deciding if they should purchase a product.

Attention – This is the first stage of the buying process that a customer would go through. A business must get the customer’s attention in order for them to sell their product.

Interest – The next stage is the interest of a customer, a business must create interest for the customer so that they would be curious about the product. Many marketers use storytelling in order to get the interest of their customers.

Desire – A business needs to create a desire, customers would desire to purchase the product instead of being persuaded or forced.

Action – the last stage is for the business to take action and sell the product to the customer.

B. Marketing Objectives of JD Sports

JD’s sport started in 1981 and now it is UK’s leading high street retail store of sports and leisure. A retail business such as JD Sports might be considering in opening new stores or expanding internationally. They would also be diversifying their product ranges or acquiring new companies. It is important for the business to conduct enough market research. Market research helps the company to understand collect information that would help implement changes to the business.

JD sports is a business to consumer organisation, it depends on how desirable its brands are to their customers. By giving them what their customers want they would be able to surpass their competitors. It also keeps them afloat with the challenging business environment.

Mission statement

JD Sport Mission Statement is "To be UK’s best-known sports fashion retailer. To provide customers with a huge range of products, a secure shopping experience, quality and services on huge ranges of men's, women's and kid's trainers and footwear that 80% exclusive to only JD."

This is the Chairman statement of JD "Following the acquisition of Blacks in January 2012, the Group now comprises four divisions being Sports Fascias, Fashion Fascias, Outdoor and Distribution. Our core business is retail and our other businesses largely support the retail proposition and offer benefits to the Group from a strategic standpoint."

Product

JD sells sportswear ranges that can be worn casually in everyday life while targeting different groups of customers who would desire trainers and sports fashion. Many of their products are global ‘power brands’ such as Nike, Timberland, Lacoste, Puma and Adidas which are easily recognised and appeal to large groups of consumers. The suppliers of JD produce exclusive products for the business because of their buying power and marketing knowledge. They work with global suppliers to deliver their own-brand products. For instance, Adidas has developed Training PT footwear ranges and Forest Hills which are exclusive for the JD Group only, they cannot be found in any other retail businesses.

Price

JD prices their products while considering many factors such as the costs it takes to make the product which are lower because they buy in large volumes from suppliers. Their competitor prices, JD must make sure that they don’t charge higher than competitors for products when they are the same or similar. There are also factors such as the level of profit required and the price that customers are willing to pay. By considering these factors before pricing their products they would be able to stay competitive to other sports and fashion retailers. If the product is exclusive or brand named which is more desirable and higher demand, JD would use strategic pricing. JD needs to make sure that their prices are seen by customers as value for their money while obtaining good quality and great services.

Place

In order for JD to be available to their customers they operate in high streets, shopping centres, out of town locations and e-commerce. JD wants to be unique from their rivals in order to do so. They make many innovative displays and creative imagery, this ensures that the store stands out and is exciting to customers. The property committee of JD holds meetings on a regular basis so that they could consider locations to open new stores. They also review on existing store performances and forecast their sales. Choosing the right location to open their stores will limit their costs and maximise their profits. JD has also invested in e-commerce, customers has increased on the use of online shopping. JD aims to improve their functionality and services of the site which allows customers to purchase directly from the website.

Promotion

High profile brands will prefer to sell products to JD because they are likely to sell more than their competitors. This gives JD competitor advantage, JD has a mix of above-the-line and below-the-line promotions. Above-the-line promotion includes advertising on TV, Radio, newspapers and magazines such as FHM and NME. These types of advertisements can be costly and it is difficult to measure the response rate. JD has also made kit deals for professional football clubs and supplying kits for playing and training wears. They also advertise their football club shops and around their grounds, this targets young male audience which also establishes their brand in local communities.

JD’s below-the-line promotional offers opportunities to communicate with their consumers. They use e-mails, magazines and leaflets to give customers promotional offers and present them with their products. Sales incentives, promotions and the use of celebrities generate excitement for the customers. With Facebook and Twitter, they are able to use customer recommendations as part of its promotional activity.

C. Marketing Techniques for JD Sports

JD conducts primary and secondary research. Primary research is known as field research, quantitative and qualitative are the two types format. JD’s quantitative research which are numerical based are conducted by using exit surveys which are face-to-face with customers as they leave the store, shopping bag survey which are monitored by looking at the customers carrier bags that the customers as they enter the store and on-site field work what are research in to new locations.

Qualitative research focuses on interviewing consumers on their products or services. They use methods such as focus groups, which is speaking with small groups of people for a length of time. This typically run in schools and colleges, this would let JD know how customers view the business. They also use depth interviews which is when a researcher accompanies a customer on a shopping trip in the store. They would be able to find out more on the shoppers behaviour and their reactions to stores layout and products. Because of the large amount of data that primary research creates, one way of managing it will be to use sampling methods. The sampling method involves in taking the responses of a representative group of customers that are likely to reflect the opinions of the whole group.

Secondary research is known as ‘desk research’. This research uses collected data by another organisation to provide market information. They use government census data which is conducted every 10 years across the whole UK. This consists of data on factors such as the number of people, their ages and occupations in a certain location. The business also takes geo-demographic data which are collected by specialist agencies. The information collected is based on life stage and lifestyle of people that live in areas of UK. Commercial market research reports are prepared by research experts. These provide estimates of the volume of sales on each product or market category. At JD this information is invaluable when assessing new product markets or international opportunities.

The Ansoff matrix of JD Sports

Existing products

New products

Existing products

Market penetration

Product development

*Introducing new products at a lower price to help increase on market share

*Advertising on newspapers and magazines such as FHM and NME which have high circulations with men

*TV and radio advertising allows JD to quickly target their key customers which are 13-20 year olds. It is designed in a way that young people would find relevant to their daily hobbies and interests

*They do promotions and sales of certain products in order to draw more customers and customers that do not usually shop at JD

*They use outdoor advertising as well, which are poster and t-sides on main roads, public transport and around key stores

*JD sells sports clothing such as tracksuits, trainers, hoodies, t-shirts, football kits, football shirts, jackets, leggings, swimwear, vest, shorts, polo shirts, sports bras, track tops, gilets, jeans, chinos and performance clothing

*Junior, children and infant footwear and clothing

*Women and men accessories such as backpacks, sunglasses, team souvenirs, hats, watches, gloves and scarves

*Footwear such as trainers, classic trainers, hi-tops, skate shoes, boots, shoes, fitness footwear, running shoes, football boots, canvas, plimsolls, flip-flops and sandals

*They sell brands from Adidas, Nike, Umbro, Mc Kenzie, Converse, Diadora, Locasote, New Era, Skullcandy, Reebok, Asics, Puma, Bench, Carbrini, Sonneti, Nickelson, Eto, Fred Perry, Timberland and Fila

New products

Market development

Diversification

*JD has expanded their stores more rapidly in recent years through achievements

*They have significantly increased their JD stores by purchasing All sports (2005), Scotts in 2004, Blacks in 2012, Bank in 2007 and First Sport in 2002

*The Group has also made purchased international brands such as Sprinter from Spain, Chausport from France and Champion Sports from Ireland. This has helped the JD Group to expand its business overseas

* The JD Group has now got over 900 stores all across the UK and Europe. Their reputation for stocking stylish ranges and exclusive products has increased

*JD Group has invested a huge amount of money to expand on e-commerce in order to reach more customers. The businesses web designers constantly aim to improve the functionality and design of their website

*They have achieved young branded and outdoor fashion market after purchasing Scotts, Blacks and Bank

*JD has started selling Skullcandy headphones in order to attract customers that listen to music while conducting sports

*They sell different types of McKenzie sunglasses and other small accessories

*Different ranges of Adidas watches for both men and women which has different functions

* JD Group has purchased the rugby brand Kooga and Canterbury which is over 100 years old. Which international rugby teams from South Africa and Australia wear

The brand of JD is well known in UK as the best high street sportswear retailer. The unique and diverse products they sell attract large groups of customers and suppliers. They communicate with customers through e-mails which help them to send promotions and product information. By using magazines and leaflets JD is able to present the latest products and lifestyle content of the business. Using promotions and competitions they are able to attract customers and create excitement which promotes the brand. JD is able to provide VIP tickets for winners to 02 Areana events because they are partnered with Adidas. The growth of social media has enabled JD to use their consumer’s opinions to contribute on their idea of promotional activities.

D. Marketing Objectives of National Trust

National trust is an independent registered charity opened to the public and relies on membership fees, National trust stores and donations. There are 61,000 volunteers and over 3.7 million members within the charity looking after over 350 gardens, historic houses, ancient monuments, forests, beaches, moorland, islands, farmlands, archaeological remains, villages, castles, nature reserves, beaches and woods.

National Trust is adopting modern marketing techniques and a new strategy in order to attract and excite younger audiences. This would help them to generate new members and enhance their position as an employer for young people.

Mission statement

"As a charity, we rely for income on membership fees, donations and legacies, and revenue raised from our commercial operations." The Trust attracts different varieties of customers, families, young, old, nature lovers and history lovers. Their mission is to encourage the nation to grow on their love for special places "For ever, for everyone", their aim is to inspire as many people as possible by using different methods. These methods include guided walks across its estates and countryside, themed events created to celebrate the history of UK, performances of Shakespeare, music festivals and firework displays.

Product

The product of National Trust is the events, crafted goods sold in National Trust stores and enjoyable experiences that people get when going to National Trust’s protected places. Visitors are given the chance to add a wide range of activities to their memberships. These activities include bird watching, camping, archaeological digs, holidays in cottages and activities that would help people to learn new skills.

Price

National Trust is a non-profit organisation. The organisation gains their income from membership fees, entrance fees to the protected sites, donations, sales through their stores and websites. As national Trust maintains their sites they incur in a lot of costs for the upkeep and repairs. The membership and visitor fees only manage to cover a third of the costs. It is vital for them to cover the rest of the costs through fundraising and commercial activities.

If their income is lower than their costs then the Trust would not be able to fulfil their mission. That is why they remain competitive with the price of their membership fee. They would need to show customers that it is good value for the price in order to attract more visitors and members.

Place

National Trust has increased their efforts to reach customers through the internet. They redesigned their website in order to make it easy for people to purchase products and memberships online. Their website has an online shop that sells a wide range of cards, crafts, farm produced products and even virtual gifts. Memberships can be brought for individuals or to be used as gifts to other people.

Promotion

National Trust’s main promotion strategy is by using social networks sites and digital media as mediums. They use Facebook to highlight the huge variety that the Trust offers. Trust can offer its visitors and members and to promoting National Trust jobs of all types. These channels enable the Trust to present practical and personal insight into different job roles, such as skilled professional posts, catering staff or young volunteers, through the use of employee profiles, articles or guest blogs.

Above-the-line promotion is typically associated with traditional forms of advertising media. These might be through newspapers, magazines, TV, cinema, radio, billboards or internet poster ads. The National Trust uses radio and places advertisements in magazines and press which are relevant to its different audiences. For example, an advert in Country Life magazine would appeal to its traditional members or the Trust might use national newspapers to promote a specific job. However, less than 36% of Trust recruitment advertising is now done in this way.

The National Trust’s advertising is turning to new technology in order to reach younger potential members. Its use of ‘augmented reality’ featuring the characters Wallace and Gromit is a groundbreaking example of how the National Trust is reaching new audiences in surprising ways. Augmented reality allows mini animations of the characters to ‘hide’ in the Trust’s newspaper adverts, which readers unlock with their Smartphones and tablets.

Below-the-line promotion uses methods over which organisations have greater control. It covers many activities, which are more easily tailored and targeted to selected and relevant audiences. These might typically include news articles and press releases, direct mail, sales promotions, exhibitions, sponsorship or events.

Wallace and Gromit

In order to achieve its new strategy, the National Trust is focusing on delivering an integrated promotion campaign to send its messages to clearly defined target audiences. For example, as 2012 is the Queen’s Diamond Jubilee, the National Trust devised a promotion around the Wallace and Gromit characters.

An exclusive film – A Jubilee Bunt-a-thon – was created in partnership with Aardman Films and premiered at Trust events during the year. It led to Wallace and Gromit parties at Trust properties, has inspired Gromit workshops for children at its sites and helped to develop special merchandise such as Wallace and Gromit jigsaws for sale in Trust shops. This type of exclusive activity has generated considerable press coverage for the National Trust, which in itself is a key below-the-line form of promotion.

Social media

The National Trust has embraced social media and new technologically-inspired below-the-line activities to increase the ‘shareability’ of its messages. This broadens the Trust’s reach beyond existing members or fans. Different parts of the National Trust use social media for marketing and promotion in different ways. For example:

use of Twitter helps the National Trust to engage more flexibly and informally with the public and members and both receive and capture their ideas

guest articles about its activities and properties on blogs show younger people what the Trust can offer them

Facebook updates and employee profiles help to demonstrate the Trust’s job opportunities and widen the pool of possible applicants for jobs.

Drawing on Smartphone technology, the National Trust has launched an iPhone app so that users can always have its handbook in their pocket. This provides not only listings and descriptions of all Trust gardens and properties in England, Wales and Northern Ireland, but also the ability to browse events and set favourites. Similarly, the current Facebook app showcases the range of special places it owns – from pubs to Paul McCartney’s childhood home, encouraging users to create their dream day out.

E. Marketing Techniques for National Trust

The marketing aims and objective of National Trust is to increase their membership by 2020 to five million which is a 25% increase. To achieve this they have now adopted a new strategy by 'Going local '. This aims to ensure that the Trust can respond quickly to local issues on the ground and get more people involved as members, volunteers or employees. It will also put the Trust at the heart of communities so that everyone in the UK can feel like a member.

Its properties regularly appear in film sets, such as in the recent Sherlock Holmes and Harry Potter films. However, its interests extend far beyond just bricks and mortar. Much of the Trust’s work reflects its interest in getting people outdoors and closer to nature, as well as wider global and environmental issues, such as

National Trust also conducts primary and secondary research. For primary research, National Trust conducts quantitative research which are numerical based are conducted by using exit surveys which are face-to-face with customers as they leave the store, shopping bag survey which are monitored by looking at the customers carrier bags that the customers as they enter the store and on-site field work what are research in to new locations.

Qualitative research focuses on the opinions of their consumers on their products or services. They use methods such as focus groups, which is speaking with small groups of people for a length of time. This typically run in schools and colleges, this would let JD know how customers view the business. They also use depth interviews which is when a researcher accompanies a customer on a shopping trip in the store. They would be able to find out more on the shoppers behaviour and their reactions to stores layout and products. Because of the large amount of data that primary research creates, one way of managing it will be to use sampling methods. The sampling method involves in taking the responses of a representative group of customers that are likely to reflect the opinions of the whole group.

Secondary research is known as ‘desk research’. This research uses collected data by another organisation to provide market information. They use government census data which is conducted every 10 years across the whole UK. This consists of data on factors such as the number of people, their ages and occupations in a certain location. The business also takes geo-demographic data which are collected by specialist agencies. The information collected is based on life stage and lifestyle of people that live in areas of UK. Commercial market research reports are prepared by research experts. These provide estimates of the volume of sales on each product or market category. At JD this information is invaluable when assessing new product markets or international opportunities.

The Ansoff matrix of Amazon

Existing products

New products

Existing products

Market penetration

Product development

*National Trust advertises on internet through different websites and other search engines by using "Pay Per Click", when people search on site Amazon would has their advertisement on the side. This brings in thousands of customers without using bold bright banners

*Outdoor and TV advertising for Amazon products, but they do not specifically advertise their e-commerce business and website

*Partners of Amazon advertises their products and that it could be purchased on the Amazon site

*Amazon e-mails existing customers that has registered to the site, they send them product information and promotions/sales

*Amazon uses social media to effectively advertise to their customers. This helps Amazon to find customers that uses the internet and persuade them to shop online

*Amazon sells grocery, health and beauty products

*The business sells a large ranges of electronics such as a camera, TV, home cinema, audio devices, phones, PC, computers, laptops, Kindle products and video games

*They have produced their own e-reader "Kindle". The device is sold on the site along with accessories and e books

*Amazon also sells products for home, garden, sports and pets. Home ware, furniture, kitchen, dining, pet supplies, camping, hiking, golf, bikes, scooters and other athletic and outdoor equipment

*The business also sells cars and motorbikes, Sat Nav and car electronics

New products

Market development

Diversification

*In 2008, Amazon opened Fulfilment Centres in Swansea Bay, Wales

*Opens Customer Service centre in Sapporo and Japan in 2011

*Amazon launches free shipping and scheduled delivery in 2010

*In 2004 Amazon buys Joyo.com what becomes the largest online Chinese bookstore in the world in 2006

* Amazon launches their Webstore on Outlet in 2012

*Amazon launches Tools & Building Supplies, software & TV game store in 2011

*Amazon introduces Game Circle, Game connect

and international mobile application distributions, Amazon Appstore and cloud player for Android

*In 2010 they launch Amazon MP3, Nippon and Pet items stores

*Amazon master card which is 0% for 13 months, customers would be able to collect points which would reward them gift vouchers

*Launches their grocery Store in July 2006

The National Trust is running a number of important campaigns which involve social media activities. ‘50 Things to do before you’re 11 and 3/4’ on the Trust’s website aims to promote the excitement of being outdoors to young people.

This campaign encourages the target audience of children aged 8-12 to take part in activities as wide-ranging as canoeing and abseiling or just climbing trees. They can collect stickers and digital badges for activities completed. The 50 Things micro-website uses avatars, games and videos to stimulate the children’s interest. To generate a longer-term response to this campaign, the Trust is asking its communities to make suggestions about other activities that should be included in the list. This effectively ‘crowd sources’ ideas for next year’s campaign so that activities will reflect members’ needs.

One particularly exciting campaign is centred on the National Trust’s appeal to raise the £1.2 million it needs to buy a very special place - the last part of the White Cliffs of Dover that it does not already look after.

The Trust has created a virtual White Cliffs on its website where users can carve their names and faces on the cliffs in exchange for a donation. Supporting the website application, the Trust carried out a major direct mail and email campaign to encourage donations. This was targeted at existing Trust members and supporters as well as the general public.

F. Comparison of JD Sports Marketing Techniques compared to Amazon - M1

Amazon and JD sports uses very different marketing techniques, because amazon is an e-commerce business it is not often that the face their customers face-to-face. JD sports are regularly face-to-face with customers so this is where their marketing techniques are mostly based.

JD Sports uses quantitative research such as exit surveys which are face-to-face with customers as they leave the store, shopping bag survey which are monitored by looking at the customers carrier bags that the customers as they enter the store. The advantage of this method is that customers are studied in detail so that results would be accurate. The disadvantage of this is that this type of method collects a huge amount of data which takes a huge amount of time to be process and used to improve the business. They would need to study a large population in order to get accurate results.

They also use qualitative research, the advantage for the early stages of research and it does not have a strict design plain. This gives the researchers freedom so that they could let study be more natural, there are written descriptions or photographs for visual and written evidence. The disadvantage is that the researchers are a major part in the research which could create biased results. It is time consuming and can last for months or even for years.

The advantage of Amazons marketing technique "Pay Per Click" is that it generates instant increase on traffic. The advisement is set up on networks so that in a few minutes or hours it is visible on the site. Amazon can choose when they want their advertisements to be displayed and the maximum amount that they are willing to pay. They can modify their costs for advertisements, this helps them to save money and advertise when it is more effective. The disadvantage of Amazon using "Pay Per Click" is that the traffic lasts until the business pays, visitors only go through if they click on to the advertisements. Amazon would need experienced personnel’s in order to set up the advertisement because there are high chances of losses.

JD Sports do not conduct "Pay Per Click" like Amazon, but both businesses have partners that advertise their only products using different types of media. This helps both businesses to save money on marketing their business and products. Compared to JD Sports, Amazon does not spend as much on marketing and the techniques they use are not face-to-face with customers. Amazon does not have large amounts of data that is collected with quantitative and qualitative research like JD Sports.

G. Evaluate the effectiveness of techniques in one organisation - D1

Amazons marketing techniques are very cost effective and fast while attracting thousands of customers every day. The business has reduced on offline marketing during the years. They have studied that TV and billboards advertisements are not as effective compared to direct or online marketing. The cuts have not affected their success and their strategy has further increased and boasted sells. Online shopping has increased drastically over the years, Amazon’s strategy is to give customers what they want online. This has helped the business to save huge amounts of money that they have now used to develop their site further and to acquire more partners or products.

Amazon uses "Pay Per Click" marketing technique, this saves the business money because they would only need to pay for the advertisement when a customer clicks onto the site. The advertisement is placed on search engine sites, when someone searches something they would find it on the side relating to their search. This has brought thousands of customers to the business and they did not have to pay for any huge amount of advertisement charge.

Amazon is conscious of money, the business uses email to interact with customers while marketing their products. This saves the business a lot of money and brings in huge amounts of customers. The emails that Amazon sends to their customers are always related to previous searches and purchases they have made on the site. This interests the customers and creates a desire within them. This method increases the sales of the business.

The business spends millions to improve their website in order to give customers a simple and easy site to use. Amazon analyses their online traffic aggressively so that they could make changes based on what they see to increase the effectiveness of the site. When the businesses site is fast and easy to navigate, this increases the amount of customers which would also increase their profit.

Every product on Amazon has option for customers to leave a review. The product review allows the customers to rate and comment on the product. This helps other customers to see how the product works and if they should purchase it. Rather than having a specialist persuading the customers, having other customers tell them how it really is would increase the trust of the customer. It gives customers a sense of responsibility and belonging. Making the customers feel a part of the site has increased the purchase level and given Amazon many loyal customers.

3. Conclusion

Conclusion

All marketing activity needs to be tailored to reflect a business’ target audience. It also needs to be able to show return on investment. For a non-profit making organisation like the National Trust, ensuring its promotional activities give value for money is critical.

The use of social media aims to improve public perception, but the Trust’s campaigns have also shown savings in time and money. For example, each recruitment campaign by the Trust used to take about 53 days and cost around £2,400 per person hired. By using social media, costs have now been reduced to about £800 per person hired and the time taken to recruit is down to 42 days.

By using social media as a key part of its marketing campaigns, the National Trust is able to reach one of its key target audiences – young people – more easily and can convey its messages in a format that suits the audience.

To help it achieve clear brand awareness through its campaigns, the Trust has devised highly structured guidelines to ensure all its campaigns and activities are carried out to the same high standard, whether for promoting Trust properties to potential members or for recruiting potential applicants.

Marketing is important for any business such as a sports retailer like JD or an international e-commerce Amazon. UK retail industry has faced major challenges in recently year, but JD has managed to maintain the growth of the business through the understanding of market opportunities. Market research is an important aspect, it is an on-going process that must be monitored on a regular basis. This helps the business to stay competitive and for them to increase their understanding and needs of their customers.

JD Sports have developed to use different marketing techniques at the same time. They use primary and secondary research. They let the business to become closer to customers and find out their needs. Amazon uses costs effective marketing such as the "Pay Per Click" and through their partners. This saves the business huge amounts of money, they would not need to conduct as much offline marketing as other businesses.

The Ansoff matrix is important when marketing a business, it shows how the business can grow and what they would need to improve on. It identifies the potential areas of growth, it could be international, national or even local. The matrix also allows the business to assess the levels of risk and what strategy they would need to focus on.