Marketing Principles based on David Jones

Question: Describe about the Marketing Principles based on David Jones? Answer: Introduction: The article states about the plan of David Jones to open more stores on boutique in order to reach their customers needs. Despite of economic instability, the customers did not stop spending on products of David Jones. According to the Chief executive of David Jones, the sector is not going to be affected with the economic downturn. The company had planned to spend around 30 million dollars for improving the stores of David Jones. The strategy of David Jones is to increase its number of stores based on the opportunity of Customers to do their shopping from David Jones. The aim of David Jones is to build departmental based stores that would have enough strength for competing in the Global forum. The use of marketing intelligence: With the help of marketing Intelligence certain data helped David Jones to build these strategies, and they are: Woolsworth Holding invested $2.1 billion to take over David Jones. A spending of about $30 billion has made a remarkable growth in year-on-year investment. There has been a 10.3% rise in operating profit of DJs within 5 months on higher margin. The online has been accounts of 3% for the sales of David Jones and out of them 6% holds the loyalty card. With these information David Jones had decided to increase their online accounts of loyalty cards to 70-80 percent. The rise in operating profit has helped the company as a good reason to increase their number of stores boutique (David Jones, 2015). The plan of David Jones: David Jones had planned to open around 10 stores for the next five years which will be based mostly on boutiques assuming that customers need a scope to shop in David Jones. This is a marketing strategy depending on the increase in customer, choices and affordability of customers following a distributional strategy (Heffernan, 2015). This strategy states that products are made available to the customers so as to increase the sale of the products (Kurtz and Boone, 2011). DJs and its Marketing Concepts: There are basically five concepts of marketing, they are- societal marketing concept, marketing concept, selling concept, product concept and production concept. For David Jones the production concept states that people will buy the products of DJ if they becomes widely available in the market, this includes geographical proximity also (Pride and Ferrell, 2014). Depending on the quality of DJ, the brand name people will spend on the products despite of economic downturn. For selling concept, the promotional strategy is to increase the Loyalty cards on Online DJ stores. The marketing Concept of DJ distinguishes its strategy in comparison to its competitors Myers. the Loyalty card customers are lower in DJ than in Myers to which DJ decided to compete with more available stores in boutique. Conclusion: The companys strategic plan is expanding their business stores within country for their customers. They focused on the fact that not only their customer needs to get easy access of their products but the customers should also know what are available in the store. More stores mean more customers buying their product. Today there is a big competition among individual stores and malls and it is very obvious that people will prefer malls over stores. It is so because in malls there the customer is getting more options to buy homogeneous product than buying limited products from one store. Both Myers and David Jones is confronting with this big challenge. References David Jones, (2015).About Us - David Jones. [online] Available at: https://www.davidjones.com.au/About-David-Jones [Accessed 19 Mar. 2015]. Heffernan, M. (2015).David Jones says retail spending up significantly, more boutiques planned. [online] The Sydney Morning Herald. Available at: https://www.smh.com.au/business/retail/david-jones-says-retail-spending-up-significantly-more-boutiques-planned-20150215-13dt5z.html#ixzz3RxeMEymd [Accessed 19 Mar. 2015]. Kurtz, D. and Boone, L. (2011).Contemporary marketing. Mason, OH: South-Western, Cengage Learning. Pride, W. and Ferrell, (2014).Marketing. 17th ed. Cengage Learning, p.832.