portfoliomartsmits.files.wordpress.com · Web viewChapter 2: Analysing information17. 2.1 Intern and extern analysis17. 2.1.1 Intern analysis17

Fenwick Canterbury

Branch RetailName Mart SmitsSchool SG De Rooi PannenDepartment tradeClass MCE2bPeriod 12 November 2012 till 26 February 2013Contact at Fenwick Marian Hoile and Daniëlle Wilkinson

2:Proem

My name is Mart Smits and I am studying Marketing at De Rooi Pannen in Tilburg, The Netherlands. In my second year I have to do an internship for 3 months. I chose to do my internship in England at Fenwick. I stayed there for 3 months at a host family, family Friendlander. This was my home for 3 months and I worked at the Cookshop in Fenwick in Canterbury.

Now I reached the end of my internship I leave with two feelings. I really liked it here and it’s a whole new experience in my life which I’ll never forget. Everybody here at the company and at the host family was really nice and they tried to help me with everything. They took me out for a dinner with my birthday and they supported me every day at work. They also helped me with improving my English. On the other side, I am really happy to go home. It was a wonderful time here but it was long enough.

I will thank my colleges from the Cookshop: Terry Dodds, Janet Carter, Lauren Smith and the manager Daniëlle Wilkinson. They were really important for me in England. They supported and helped me with every question I had. Of course I would like to thank the other colleagues as well. The people from electrical and Tabletop and the rest of the staff as well.

I would like to thank Michelle Friendlander as well. It wasn’t always perfect orderly with our dinner and not everything was perfect. But she really tried to make it a good time for us.

I will never forget this experience and I would like to thank everybody for the time I had here.

Marketingplan – ProductivityThursday, 25 May 2023

3:Contents

Proem 2Contents 3Preface 5Management summary 6

Chapter 1: Collecting information 71.1 Motivation 81.2 Extern Information 9

1.2.1 The customer and target 91.2.2 The market 91.2.3 The developments 91.2.4 Environments factors 91.2.5 Position 101.2.6 Competition 101.2.7 Segments 121.2.8 Sources 13

1.3 Intern information 141.3.1 Mission and Vision 141.3.2 Finance 141.3.3 The organisation 151.3.4 Strategy 161.3.5 Proposition 161.3.6 Sources 16

Chapter 2: Analysing information 172.1 Intern and extern analysis 17

2.1.1 Intern analysis 172.1.1.1 organisation 172.1.1.2 Marketing 192.1.1.3 BCG-matrix 192.1.1.4 Financial situation 20

2.1.2 Extern analysis 202.1.2.1 Customer analysis 20

2.1.2.1.1 Segmentation 202.1.2.1.2 Use situation 212.1.2.1.3 Current performance 212.1.2.1.4 Future 212.1.2.1.5 Customer satisfaction 21

2.1.2.2 industry analysis 222.1.2.2.1 Macro environment factors 222.1.2.2.2 General market factors 242.1.2.2.3 Competitive analysis 26

2.1.2.3 Competition analysis 272.1.2.4 Distribution analysis 30

2.2 SWOT analysis 312.3 Main issues from the SWOT analysis 33


4:Chapter 3: Make and propose on operational marketing plan 34

3.1 Describe Proposals 343.2 Analyse the proposals 353.3 The effects of the Proposals 363.4 My final proposal 36

Chapter 4: Elaborate the operational plan 374.1 developing operational marketing plan 37

4.1.1 Marketing goal 374.1.2 Marketing strategy 374.1.3 Product mix 374.1.4 Price mix 374.1.5 Promotion mix 384.1.6 Distribution mix 38

4.2 Financial substantiation 384.3 action plan 40

Conclusion 41Sources 42Appendix 43


5:Preface

This report is my marketing plan about the household department of Fenwick in Canterbury.

At page 6 starts chapter 1 with some information about Fenwick and information about the household department. There you will find the problem and the goal of this whole marketing plan

After that, chapter 2 will start with a couple of analysis. There you can find my intern and extern analysis, which called the ABCD-analysis.

In chapter 3 I will come up with three ideas to achieve the goal. These three ideas will have a PMI-analysis.

In chapter 4, the final chapter, you will find the Product mix, Price mix, Promotion mix and Distribution mix. Of these four mixes I have made a financial and action plan.

At the end of this report you will find the conclusion, in the conclusion I described me experiences of the assignment and internship. After that you will find the sources, which I have used for this report.


6:Management summary

In this report I have tried to give an answer on the problem that the staff is taking too much time to help a customer and I came up with a few ideas how Fenwick can minimize this time without lose quality on the serves Fenwick provided. The investigation phase has different angels. On Micro, Macro and Meso level are a few important threats, opportunities, strengths and weaknesses emerged. The goal I got to reach is to decline the time you need to serve an average customer with 5% before 1 December 2014.

The problem with taking too much time with serving a customer is that some other customer has to wait longer. And if you van decrease this time it´s important to do this. Because the younger generation don´t like it to wait long if they got a small question, and you can lose customers when they have to wait too long. So if there´s a way to decrease this time it´s important to do this.

In the investigation phase I learned a lot of the target from Fenwick. The target is very big. not only the old people, but a big part of the target are young people as well. This is all because in England when you’re 18 you can go to college and the most people whore going on college go and life by their selves. They need kitchen stuff and table stuff as well. So it’s important to anticipate on this part as well. This are the people who don’t like waiting and who don’t take as much time with shopping for the house as the older generation. This generation don’t got a very big spending limit so they want it cheap as well. I learned that there is a lot of competition in Canterbury, there is one other department store like Fenwick and that’s Debenhams and you got Nasons what’s a department store as well. And then you got more other household shops whore selling the same kind of stuff as Fenwick. So the competition is big. But Fenwick is lucky because they got a good position in the market and they are strong on their position. There are a lot changes outside Fenwick as well. The technology is moving on and there are a lot of new systems who makes everything easier.

The strategy I chose for Fenwick after my SWOT analysis is defend. It’s a hard time in the retail on the moment and after I looked at all the threats, opportunities, strengths and weaknesses I think it’s the best to do it slowly. They can work on an attack in a few years but I think it’s the smartest to take it slow and first installing the idea I had. The idea I had after taking a PMI-analysis on the three ideas I had in the beginning is a combination from the first and the second idea. It’s to modernise the till system and make a stock control system. With this idea the customers will be served faster and they are more satisfied without lower down the quality if the serves. It’s an investment for the future as well. It takes a while to putt all the prices and products in the systems but after all it will be a good investment.

So my recommendation is to play it slowly now. Defend the position you god and invest in an new system. After the system is installed an the goal for December 2014 is reached you can prepare an attack against the competition. But first make sure you’re serves and products are good before you start an attack.


7:Chapter 1: collecting information

Fenwick is a family business which was started back in 1882 by John James Fenwick.

John has started his career as an apprentice in a shop in Stockton at the age of 13. Apparently he was so successful that one day his employer dismissed him because “he was too good for the place”.

After this John joined Moses & Brown. The story goes that at a morning a lady came in to buy some expensive shawls but they didn’t have any. John promised her that if she returned in the afternoon he would have a selection for here to choose from. He went out and obtained some beautiful shawls from another store called “Bragg & co”. He was so impressed by the quality of the goods that he decided to work for the company. Soon after that, he became the manager of that store.

When at last he left to start his own business he had built himself a reputation of being a good judge of fine clothes.

John Fenwick opened his first store in Newcastle in 1882. The first merchandise was “a new and exclusive stock of mantles”. By the end of the first year turnover was 2.600 pound.

John Fenwick bought other stores and opened a few new ones himself. Now there are nine Fenwick stores and two Bentalls stores which are all part of the Fenwick chain.

Fenwick Canterbury is a family-friendly department store. This store got everything you need. It’s a one-stop department store. And it is within a few kilometres of the beautiful Canterbury cathedral.

Set over five floors it offers the latest fashion, accessories, electrical, make-up, children’s wear, luggage and household items.

Fenwick Canterbury has also a nail studio on the ground floor (London inc.) and a spa (Clarins skin Spa). On the 3th floor is established a hair dresser (Reggi’s).

Besides that, Fenwick got one of the biggest toy department of the area. Fenwick got two restaurants as well. On the ground floor they got Carluccio’s café, on the first floor is the Carluccio’s restaurant with the food shop and on the second floor they have got the Fenwick’s own terrace restaurant.

Fenwick is located at the address below:

St George's StreetCanterburyCT1 2TB

And you can reach them by telephone and e-mail with the next number and address:

01227 [email protected]


mailto:[email protected]

8:1.1 Motivation

This report will be about the productivity from Fenwick and his staff. Fenwick want to respond on a good way on the customer need. There doing this now on a pretty good way but in my eye it could be better. There are a lot of things they could improve so customers will be served better and faster. And a lot of these improvements are good for the staff as well. With these improvements the staff can work faster and customers will be helped faster, more directly and better. Fenwick is caring the image of a better and a chic department store. But they are behind on the technologies on the till and the way they do things like stocktaking. So with this plan I will prove that it’s better to invest in new technologies. That it’s the best for the customer and the best for the staff.

I’m go trying to collect as much information as possible to get a better view about the cost for staff and the productivity from the staff at Fenwick in Canterbury. After that I try to find information about the same things from other department stores. On this way I got something to compare with and after that I can think about ideas to improve the productivity without spending to much money. But of course you have to invest in it, and it won’t be for free.

Customers have special needs. Almost every customer hate it when they have to wait on information. Like when they want to know the product of a price or when they want to know if a product still in stock is. A other need from customers is to get the wright information. So when they ask something about a product they want to get the wright information about that product and they like it when someone is enthusiastic about a product. When a member of the staff is talking about a product and he’s talking with a lot of enthusiastic and knows almost everything about that product the customer is more satisfied with the store and with the product.

The main problem that will be solved with this plan is the productivity of the staff. This means that the customers could be served faster and that other jobs like stocktaking or stockroom counting are going way faster. If this plan will be executed almost every customer will be served faster and will be more satisfied when there leaving the store.

So after this the problem statement I got is: to improve the productivity of Fenwick and his staff.And the goal I’ve set for this plan is: to decline the time you need to serve an average customer with 5% before 1 December 2014


9:1.2 Extern information

1.2.1 The customer and targetThe target of the household department at Fenwick Canterbury is really big. It starts at the age of 18 and goes above the age of 100. The target has an average wage. They didn’t study something specifics and also the religion isn’t something that had any influence on the target from Fenwick. The people who are visiting Fenwick love cooking or need new stuff for the kitchen. The most of the customers from the household department are female, but there are a few male customers as well.

The average that will be spent by each customer is between the 100 and 150 pounds each time they come to Fenwick. Some customers come in and buy a whole new set pans, they pay more than the 150 pounds, but a lot of people are coming in for only a spatula, colander or some other small things.

The average number of visitors at one day is between the 25 and 30. There is a big difference between some days, like a Saturday it is very busy day, but a regular Sunday is very quiet. So Fenwick is doing not so bad at the moment, it could be a lot worse.

1.2.2 The marketThe market from household items is very big in England. Almost every store has a household department and there are a lot of other cook shops. The interest from the English people in the kitchen accessories is bigger than in other countries, like the Netherlands.

1.2.3 The developmentsA big development of the past five years in the retail sector is the internet. Online shopping became one of the biggest fears from shop owners. You can find everything online and more and more people are discovering that. They see that it’s sometimes easier to order something online, especially when the weather is bad or when they have to travel far to go to the shop. This is a disadvantage for the owners of shops, because it increases the number of visitors. There are more developments that make it harder for shop owners to survive, but this one is the biggest at the moment.

1.2.4 Environments factorsOff course a shop got a lot of environments factors. At first it has to be on a good reachable place, not only by foot, but also by car. It is an advantage for a shop to be centralised in a centre of the city. Another important thing for a shop is the weather. They can’t change the weather but when the weather is bad there are for sure less customers. Like when it’s snowing people don’t go to Fenwick for a new colander but they will be waiting a week till the weather gets better. One of the biggest environment factor is the economic crisis. People are spending less money on luxury stuff. So when they like a new set of saucepans but the old one is still fine they will wait or they won’t get a new one because they can’t permit it.


10:1.2.5 PositionFenwick got a good position in the market. It’s a big group off shops divided over whole England. There are eleven Fenwick shops in England, not very much but they are very spread over the country. This means that almost everybody is familiar with Fenwick. Fenwick got a good name and a good image. Because of the big competition in England, the position from Fenwick lays in the middle. It doesn’t have his own brand so the products at Fenwick are available at the other shops as well. But because it’s located in a department store it’s very ideal, because when you need toys, clothes or anything else you don’t have to leave the shop and you can pay it all at ones. So the fact it’s a department shop will help the household department get customers. I think in the thought from the customers Fenwick is easy shopping. Good quality products and friendly staff. This is a reason for people to come back to Fenwick.

1.2.6 CompetitionThe household department from Fenwick Canterbury has some competition in the market. There are two other big department stores, Debenhams and Nasons. Besides that there is one big household shop called Lakeland and you got a few other cookshops like Lakeland and steamer trading. These four shops will be used in my competition analyse. At the following page you can find a self-made schedule regards the competition of Fenwick.

Below I will give you some more information regards the competition of Fenwick:

Debenhams: Debenhams is established in 1778. It’s a department shop which rent a lot of their spaces to other shops or brands. On this way the store is stuffed and Debenhams makes money. However, the household department they got is their own. They got it in a separate big and pretty building. Debenhams is also known as one of the cheaper stores.

Nasons: Nasons is one of the other department stores in Canterbury. They got, like Fenwick and Debenhams, more than only the household items. It’s build in 1929 and they moved to their current location at the high-street at 1962. They got two stores. One store is in the high street and the other one is at Wincheap, the industrial place in Canterbury. They are located here since 1987.

Lakeland: Lakeland is a shop that almost only got kitchens tuff. They got a few things for on the table, but not a wide ranch like Fenwick, Debenhams or Nasons. They are located in a side street from the High-street and sell almost everything you need in the kitchen. Lakeland is established in 1956 and got over the 60 stores in whole the UK.

Steamer Trading: Steamer Trading is another type of shop than the ones above. Of course it’s a cook shop and they sell a lot of the same products, but Steamer Trading is more exclusive. They are more expensive then Debenhams or Nasons.


11:I will give every company a grade in the specific category, a 1 is the lowest number they can get and a 5 is the biggest. On the end you can see the total of number they have and then we see which one we can call the best store.

Fenwick Debenhams Nasons Lakeland Steamer Trading

Location 4 – good location at the main street, and direct at the bus station

4 – in the middle of the main street

4 – in the middle of the main street (across Debenhams)

3.5 – it’s in a side street of the main street

4 – it’s on a big square right in front of the cathedral.

Price 2.5 – high prices

4 – low prices in comparison with some other shops

4 – low prices in comparison with some other shops

3.5 – low prices but some other shops are cheaper

1.5 – really high prices in comparison with some other shops

Quality 3.5 – high quality product only

2.5 – mix of high and low quality products

2 – some high quality product, most low quality

3 – much of high and low quality products

4 – lots of high quality products

Assortment 3.5 – middling number of products, but everything can be order

2.5 – middling assortment of products, if something isn’t in the shop You have to order it online.

2 – small assortment, low opportunity to order stuff

4 – big assortment, big shop with all household items

3.5 – middling assortment and small shop, everything can be order

Staff and service

4.5 – high quality of service and friendly staff

4 – friendly staff and good service

3 – low number of staff on the floor and not friendly

3.5 – enough staff but doesn’t give attention to customers

4 – friendly staff and good service

Total 18 17 15 17,5 17

After this, little, test I did you see that Fenwick got the best grade. Lakeland comes directly after Fenwick and Steamter Trading and Debenhams are following up. Nasons is the last one, so this isn´t not really a competitor for Fenwick.


12:1.2.7 SegmentsIn this section I am going to split the target from the household department of Fenwick Canterbury into several segments.

Geographic – the most of the people who are buying at Fenwick are English people, this because Fenwick sells stuff for at home at most of the stuff aren’t items you take home when you don’t live close. But if we are going to split tis segment in smaller ones you can split it in a lot of small segments. Because Fenwick Canterbury is the only Fenwick in the environs, people from Dover, Broadstair, Hern Bay, Maragate and all the places around are coming to Fenwick Canterbury. That is a positive part for Fenwick Canterbury. Another very small part are the tourists, they are coming from all over the world and they buy things they don’t got at home. A few weeks ago we had a group of tourist from China, they spend with five people more than 400 pound at the Cookshop department. They said they bought it all because it where items they didn’t sell at china. But this part, the tourist part, is one of the smallest one.

Demographic – at the Cookshop are coming more woman then man. I think the ratio is 20% man and 80% women. They are all between the 18 and 60, but like 70% of the men who are coming are above the 50 years. I don’t know why, but most of the men are older than the women. We can’t split the target in religion because there are coming Christians, Muslims and more different religions.

Socio-economic – the people who are buying at the household department in Fenwick got a good wage. They earn a little bit more money than the average person. We can’t split them in separate jobs, because some customers are housecleaners who are working a lot and making more money and the other one is an director of a company. There are coming customers who are earning an average wage as well, but this is a smaller group of persons. We can’t split this group in education, because some customers went to the university and other ones didn’t.

Psychographic – The target from Fenwick is easy to split in the different life styles. You got the people who like to cook a big dinner, with starter, main course and dessert. You also got people who make the main course but if they got a change they even don’t cook. And then you got the people between this. The first segment spend a lot of money they are inviting friends very often and they want to have nice plates, nice cutlery and everything in the kitchen to make the perfect dinner. The people who don’t like to cook spend almost nothing, they got a saucepan and a frying pan. Than you got this last group, the average group. They want nice plates and nice cutlery, but not too expensive. They got everything in the kitchen what they need and a few accessories but not too much.

Behavioural – You can split the market easy in behaviour. You got the people who use their kitchen every day. They are cooking always and making nice meals, they are the heavy users. It’s not like with psychographic that these people always like cooking, because there more reasons to cook every day. It could be the money because it’s cheaper to cook at home or because they got kids. Than you got the normal users. They use their kitchen like five days a week. They´re going out for dinner ones and the other day there making pizza out the oven or have take-away food. Finally you have got the light users. These people use their kitchen stuff like three or four days a week. The other days they are going out for dinner or get some take-away food, because there too lazy to cook or they got a really busy.


13:1.2.8 sources

For the part above I used a few sources.

www.fenwick.co.uk/fenwick - I used this website for information about Fenwick

Daniëlle Wilkinson / junior buyer for table top and Cookshop and manager from the Cookshop – she gave me information about the target and about the department

www.debenhams.com – I used this website for information about Debenhams

www.nasons.co.uk – I used this website for information about Nasons

www.lakeland.co.uk – I used this website for information about Lakeland

www.steamer.co.uk – I used this website for information about Steamer Traiding

www.wikipedia.com – I used this website for general information about Fenwick, Debenhams, Nasons, Lakeland and Steamer Traiding

www.google.com – I used this website for pictures and general information


http://www.google.com/

http://www.wikipedia.com/

http://www.steamer.co.uk/

http://www.lakeland.co.uk/

http://www.nasons.co.uk/

http://www.debenhams.com/

http://www.fenwick.co.uk/fenwick

14:1.3 intern information

1.3.1 Mission and VisionFenwick got only one main mission, and that is to satisfy the customers. Fenwick wants the customer to be happy when they are shopping and they want that, when the customer is talking to friends, they say how great it was at Fenwick.

They are working hard to achieve this mission. The staff is friendly and will be tested two times a year by undercover customers. On this way the management will know how the staff is working and if their good and friendly enough.

The vision for Fenwick is to grow slowly to one of the biggest chains in England. The word slowly is included in this statement, because every store has to meet the requirements of the Fenwick formula.

There not very aimed at this vision because they want to do it slowly, and the stores who are open now got priority.

1.3.2 FinanceFenwick has a big finance department, with more than six people working fulltime. This all because there is so much finance work. They have to do the administration, see on which level they can improve or save money and they have to work with the Fenwick customer card service as well. The main costs for the shop are hiring the building, the staff and paying for water, electricity and gas.

On a normal day (Monday to Saturday) they have to make a turnover of 30.000 pound to play even. When they are making less, they are losing money that day. Of course there are days that they won’t reach it, but that’s because on some days it’s quieter than other days.

All the money that’s coming in at Fenwick is coming from the customers. An average customer spends between the 70 and the 130 pound each time. This sounds not so high, but that´s because we got some food as well. It is pretty high, the most food items are between the 0,59 and the 10 pounds and the average customer buys only one or two items when he is buying food, so that takes the average down.


15:1.3.3 the organisationFenwick has a great organisation within the company. Because it is a big department store it is important to organize everything really well. There are more than 70 departments so this means that there are more than 85 tills at least. They got a special money office where every manager can get their money bags for the tills and on the end of the day they have to bring it bag to this office. When there is money missing or something else, the department manager needs to solve that mystery.

The structure of the management is great as well at Fenwick. They really thought about it and everybody got his own part to be responsible for.

ChairmanMark Fenwick

Managing directorMichelle Stewart

Personnel Retail operation Head of Finance Buyers & buyerManager & admin director ManagersMarion Hoile Adam Bateman Paul Strong

Accounts DepartmentWarehouse ManagersPortersRestaurantMaintenance

SellersWeekend staffWork Experience

There are more floors but I didn’t show them all because then it’s getting too big. But between the floor manager and the normal staff the senior sellers, these are the people who are working there for more than four years, they get more access and can sign for returns. And of course there is a big difference between normal staff and work experience, but when you´re looking at it like up here than it’s good. Because official the work experience of people is as high as normal staff.


16:1.3.4 strategyThe strategy from Fenwick is to let the customer back themselves. So to be sure they got a good time when they´re shopping at Fenwick. When they like it the first time, they will come back the second time. If they don’t like it or getting a wrong product it’s harder. At Fenwick when you want to return a product it’s no problem at all. So if stuff is breaking at home soon after they buy it, they can change it, no problem. But they have to come to the shop and that cost time. So it’s the best to be sure the products are good so the customers don’t have to come back to change it. Of course Fenwick is advertising like almost all the other shops in the world. But what Fenwick wan to reach is via-via advertising. When a women is coming to the shop and she is satisfied she will tell it to her friends women B, and she is coming to Fenwick because she trust her friend, she is coming and is happy and she tells it on a party to women C and D and so everybody is coming to Fenwick. It’s the best way for advertising because when they read an ad in the paper people are thinking yeah of course their thinking there the best, but when they hear it from a friend it’s more credible.

1.3.5 propositionThe proposition of the Fenwick household department is big.You can buy there anything for on the table, think about plates, cutlery, tablemat, table cloths and much more. At the electrical department they sell everything you plug in the outlet, microwaves, blender, water cooker, mixer, wash machines and much more. And then we got the Cookshop, there you can get everything for in the kitchen like colanders, trays, spatulas, wooden spoons, grill pans. But also everything for baking like baking trays, sandwich pans, muffin makers and much more. So when you need something you can use on and around the table, thing you plug into the outlet or things you need in the kitchen you can come to Fenwick Canterbury on the lower ground floor.

1.3.6 sourcesI used for this part not so much sources as the last part.


Book for beginning at Fenwick / a book we had the first day – I used this book for general information about Fenwick and the organisation structure.

www.intemarketing.nl – I used this website for some information about a few questions.


http://www.intemarketing.nl/

17:chapter 2: analysing information

2.1 intern and extern analysis

2.1.1 intern analysis2.1.1.1 OrganisationFenwick in general got a big organisation. You got the Fenwick headquarter where the big bosses are settled. They have a lot to say about the Fenwick stores. But one of the big strengths of Fenwick is that every branch has his own marketing and communication plan. Of course there are rules which are important to follow, because every store is wearing the name Fenwick, but the sales in Canterbury and London aren’t the same. Every store can decide their own events. One big asset is that everything is more local. Because they have to set up their own events they can do the events just like their targets likes it. Of course every household department at every Fenwick is almost the same. But not total, in the south of England are the same kind of targets but they got another culture, so they need other events to reach their target.

There is one thing that Fenwick is doing from the headquarter and that is the online shop. England is not as big in online shopping as The Netherlands, but it’s growing really fast in England as well. So Fenwick got one online store, that will be managed by the headquarter.

Below you will find the organisation chart from the housekeeping department.

The first three rows are the managers and buyers, they are the most important persons at the department. You got the senior buyer on top, after it the junior buyer and the clerk, the clerk is the person who deals with the paperwork marking down ,marking up, invoices and that kind of work. After that the manager. Of course you also need sellers on a department. You can buy what you want but you have to sell it as well. On top you got the Senior sellers, some departments got more as one and some departments got none. But a department manager can do everything what a senior seller can, so a senior seller isn’t necessary. After the senior sellers you get the junior seller, so that is like all the other staff.


18:CarolineSenior BuyerFull-Time

Daniëlle IlonaJunior Buyer ClerkManager Cookshop Full-timeFull-time

Jennie TonyManager Tabletop Manager ElectricalsFull-time Full-time

Janet NigelSenior seller Cookshop Senior seller ElectricalsPart-time Full-timer

Terry Ben DaveJunior seller Cookshop Junior seller Cookshop Junior seller CookshopFull-time Part-time Weekend help

Inneka Lynn SandraJunior seller Tabletop Junior seller Tabletop Junior seller TabletopPart-time Part-time Part-time

StephJunior seller TabletopWeekend help

DarrenJunior seller ElectricalsFull-time

Here above you can see how many members of staff are working at the household department. And sometimes they got a Work Experience guy like me there as well.


19:2.1.1.2 marketingBelow I am going to discuss the 5 P’s of marketing about Fenwick

Product: the product which the household department of Fenwick is delivering is everything you need in the kitchen, on the table or electrical machines. You can go there for one coaster or a whole dishwasher. They offer more than 1500 different products. From pans to coasters, table cloths to freezers. Everything you might need in the kitchen will be sold at the household department. And is there a product they don’t sell? They will order it for you!

Price: the price of the products at the household department depends of the products of course. Some products will be sold for three times the buying price and some other products only for 0.5 time of the buying price. This sounds a little bit weird, but you can’t only look at the price you are paying for a product. You have to look which price the customer is prepared to pay as well. You can sell an item for three times the buying price but if it’s too expensive for that product you won’t sell any and you are losing money.

Place: the location of the household department is great. It’s on the lower ground floor of Fenwick, which is a big department store. Fenwick is located on the end of the high-street. Directly around the corner is the Canterbury bus station and it’s within a several kilometres from the cathedral. There is a parking garage below Fenwick and if you want to use Fenwick park&ride you will be dropt of right before the main entrance of Fenwick.

Promotion: the promotion from Fenwick isn’t that big. They aren’t advertising on television or on the radio. When there is a special event they are placing an ad in the local newspaper but that´s all. Another kind of advertising what they are using are the windows. When they got the new spring line or when they want to show something to the customers they set it up in the window. Because the building is directly on the high-street everybody see those windows.

Personnel (Staff): Fenwick got a lot of staff. Like you see above at chapter 2.1.1.1 you need a lot of people for running a department. One of the best things about Fenwick is, is that the till system is the same at every department. So when someone at gifts is absence, somebody from toys our household will cover for him/her. On this way you always got staff at every till point.

2.1.1.3 BCG-matrixFenwick is a star. They got a high market share and a high market growth. They are growing bigger by getting the latest products and listing to the customers. They got a high market share because they are better as the most stores. If you go to the household department you can redecorate your whole kitchen and dining room. Even your table and chairs you can get at Fenwick. Not at the household department but there is a furniture department as well.


20:2.1.1.4 Financial situationThe financial situation from Fenwick is not perfect. This because of the recession and there are a lot of unemployed people. When you’re unemployed and don’t have so much money you don’t buy new stuff. And because of the recession people are saving more money for later. At the same time they have to open the doors, hiring staff, putt on the lights and everything. So the costs are even as last couple of years only the income is less. On this way the financial situation is going down.

I’m not saying that Fenwick got a bad financial situation. Comparing to some other shops I think they’re doing pretty well. Because you see some shops closing down because there bankruptcy and can’t pay the bills anymore. Fenwick is doing well for the time of the year but it was better a few years ago. According to the numbers people are spending 0,5% more money in December 2012 with respect to the same period a year earlier. And the people are buying 2.1% more items. So it is getting better but the recession isn’t over yet. The average weekly sales where in December 2012 in the sector household goods store 0,7 billion pounds. And 6,1% of this (41,8 million pounds) where online.

2.1.2 Extern analysis2.1.2.1 Customer analysis2.1.2.1.1 SegmentationBelow I will make a customer analysis. This analysis will be about the customers from the household department of Fenwick. With customers I mean more than only the people who are buying products at Fenwick. I mean the suppliers, the traders and the real customers.

There are a few groups who shows comparative behaviour. Like the man who are shopping at the department are buying almost the same stuff as the women. It’s not that the mans are buying different kind of stuff. This is the same with the different ages. You got a women from 60 who is buying a shallow casserole and after it it’s not strange when a 20 year old girl is buying the same pan. So we got a few segments. Which aren’t divided on age, work, sex, education or something like that.

You got the one who loves cooking, they like to have all kind of accessories in their kitchen. They want a garlic peeler while they can do it easily without. But these kind of segment want the new stuff, and wants to be the first one who got everything on the kitchen area.

You got the one who must cook, this can have different reasons. Money, time, they got a family or something else. But they don’t like cooking and don’t need the newest and most expensive stuff for in the kitchen.

You got the one who know nothing about cooking, this is the kind of people who likes good food but can’t cook. They always try to make a nice meal but they can’t. Most of these people think it’s because the stuff in their kitchen so these people got most of the time the newest stuff as well.

These are the three biggest segments you got at the household department.


21:2.1.2.1.2 Use situationsMost of the things that customers are buying at the household department at Fenwick is for using. They got at the tabletop side a few things for ornamental but most of the products are for really using. Of course the products got two sides. When you are buying glasses you use them for drinking, but you want them to look nice as well. But all products will be used for cooking, eating, drinking, baking or cleaning. So every product is for really using and not for the ornamental.

The value of the product is very important. The price/quality need to be good. For instance, we got the Le Creuset pans. They are very expensive but they got a ten years or life-time guarantee. People are prepared to pay more for these pans because the quality is high and they are really easy to use. Would we sell some Tefal pans for the price of the Le Creuset people won’t buy them. Further they got other store value’s, they want the store to be clean, it has to be a nice temperature and more of that. People most feel they are at home in our shop.

The importance of the price/quality is very important. When you always ask too much money for products who aren’t worth it, people aren’t coming back. They are thinking you are a too expensive shop and you never see those customers back.

2.1.2.1.3 current performanceThe household department is doing well. In comparison with one year back they’re doing really well. The turnover is getting bigger. It’s not as high as five years ago but it’s not bad. This department got a few big distinctive power in comparison with the other shop. It’s inside Fenwick. So when it’s raining or really cold people don’t have to leave the shop if they want to eat something. Further is the household department not very big, so when you’re coming in at Tuesday with a question and the next Thursday you’re coming back for the answer the other staff knows about it as well. They got one communication book where they wright everything in that’s happening. A few days later the staff from that moment knows how the problem can be solved or how the question can be answered.

2.1.2.1.4 futureIn the future there should be a lot of changes for Fenwick. They should update their till system and other systems. They probably don’t do that, so there is where this plan is about. If it’s really possible to make profit out of that investment. Further there will be some other changes. It will be more quiet in the shops. The following years I think England is going to discover the online shops. They know it is there already, but they don’t use it very much. Like u saw before in this report only 6.1% of the purchases in December 2012 where made online.

2.1.2.1.5 customer satisfactionThe customer at this moment is satisfied. A research from 2012 under the customers showed that 73% of all the customers where satisfied and happy with the services from Fenwick. Some of the customers had problem with their products, but the problems were solved friendly and fast. From the remaining 27% gave 17% Fenwick a sufficient and the other 10% an insufficient. So one thing where Fenwick can work on is making that number smaller.


22:2.1.2.2 Industry analysis2.1.2.2.1 Macro environment factorsBelow I will show the DESTEP analysis. On this way I go further on the Macro environment of the household department. This analysis will consist six groups. Each group get the extern things which Fenwick can’t change but they can respond on this factors.

Demographic Age structure – the age structure is very important. People who are children now are getting older. And there making more use of the internet.

Growth and size – there are more people who living in the city and leaving the country side. They are all potential customers so you can play in on this target group.

Size of households – the average of households are getting smaller. In the past it was very normal to have 6 or 7 children in England, now are the most people stopping at 2 children. So they need less stuff for cooking and less plates.

Degree of urbanization – the way who people life is changing. They use to have all own houses whit big kitchens. Now there life in a apartment with a small kitchen. So they want product who need not to much space.

Economically Taxes – the taxes in England are getting higher. Not only the taxes on products, but the taxes on houses and everything. People got less money to spend so there saving on unnecessary stuff, like kitchen accessories.

Purchasing power – the average salary in England is low. People who are working full-time in a department store as normal or senior seller make only 6 to 8 pound an hour. But the prices aren’t really lower as in countries like the Netherlands. So they don’t got so much money to spend.

Unemployment – the unemployment in England is the highest since 17 years. So there will be spend less money as a few years back because people are saving, or need al there savings to get food.


23:Socio-cultural Way of life – a thing that’s coming up the

last few years in England is healthy food. So a lot of English people is cooking at home because they know what their eating and how fat it is.

Leisure –a lot of people in England aren’t working in the same city as their living. So they need 20 minutes to 1 hour to travel. They don’t got a lot of spare time so they want’s to eat easy and fast. But healthy

Number of two income household – almost every household where the children are 13 or over got 2 incomes. This because the people are making to less money that they need it to make ends meet, but it’s also because the people are bored when their sitting at home

Technological Information services – the internet is coming up really big now in the UK. They had it on the same time as the rest of Europe. But they are discovering things like online shopping now. All because they can stay inside when there ordering online

New products – because the kitchen word with all there accessories is so big in England they got a lot of new products. And when you now which kind of people your target group consist you can decide about taking the newest products or not.

Ecological The weather – the chancing weather the last few years is getting big consequences for the retail market. When it’s raining or very cold people don’t like going out for shopping.

Environment – the environment is getting more important. So people want green products or products which they can recycle easily.

Political-legal Influence of the government – the government got a lot influence in the retail world. This because they are the one who increase the taxes and they are making the rules about minimum salary

This is my DESTEP analysis. With this analysis I analysed the different groups and this will help me make other decisions later this report.


24:2.1.2.2.2 general market factorsThe household market is a very big market in England. It’s more popular as in the Netherlands and you’ve got a lot of shops who selling these products. Only in Canterbury you got at least four other household shops. This market is that big, because the people in England are more interesting in that kind of products. They want the newest stuff and are “too lazy’ to do a lot of preparing work. They don’t want to peel the garlic with their hands but they want a gadget for this

The market with the real stores isn’t growing really fast. It’s the online market who is getting a head start on the moment. This market is growing really fast and is getting bigger and bigger. There are more and more websites coming up where you can order you’re household items. There are always people who like to come in the shop and feel the items but this group is getting smaller and the change they have to do this, is getting smaller as well. Then the online shop is growing really hard the real stores will be closed and then you have to travel more for feeling your item.

Below you can find the lifecycle of the real life household stores:

Like you see below the shops are making a good turnover. A reason can be that the older people of this time still like to go to the stores. They don’t trust the online market. The new generation does trust the online market, so this number will increase in the future.

It will take for sure a couple of years before they are going down faster, because it’s going really slow at this moment. The online shops aren’t that good yet. But after it, it will be hard to make a good turnover. You have to work hard. When other shops are closing the remaining shops are getting a little “boost” because these customers have to find another shop. But it will never be as good as a few years back.


25:The online shops are getting better. They are now in the growth and getting fast to the adult cycle. When they reach the adult cycle the real shops will be go to the decay cycle. Not all together but it will be almost the same for all the shops.

As you can see the online shops are over the middle of the growth. This means that it’s going fast. I think that in a few years they will be in the adult cycle. But because there are coming more online shops it won’t be as fast as the past two years. The competition in the online market will be growing as well.

The household department of Fenwick is doing better than the other shops. This because they are established in a department store. People are still passing this department and buying stuff. The department is more quiet as a few yours ago, and it will me more quiet the next few years. But they always will be a few years behind the normal household shops.

As you can see the household department of Fenwick is still in the adult cycle. This because of the place of the department in Fenwick.


26:Below I will show some odds and threats. I found these because of the analysis up here.

Odds: - Go and fight against the online market. let people know that it’s better to buy in the store as online- Try to attract the people who are earning less money. But make sure you don’t change your image by doing this. So don’t scare the people off who are here now

Threats: - The online shop is coming up and wants to take over the normal market. don’t let this happen and fight against the online market.- The place where people life is getting smaller. Be smart and come with

products that are ideal for these kitchen so people are coming to you

2.1.2.2.3 Competitive analysisBelow I will make a competitive analysis. I will do this by using the five forces model of Porter. With this model I will get a good view of the competitor and how it’s working at the household department of Fenwick.

At the market are a lot of suppliers. There are a lot different providers for pans, chopping boards, plates, cutlery and everything. So the suppliers don’t have a lot of influence. When Denby demands to much, we just stop with selling this. Of course there are a few products that you can’t just stop selling, because you got a contract with them. But in that contract are a lot of rules and the store has more power than the supplier. Because the supplier want to sell their product and if Fenwick the supplier rejects they got nothing. The supplier is most of the time working in only one industry. They are working with other stores and these other stores are competition of Fenwick. So the supplier got a big influence on the industry. Because when the supplier does a price increase every store has to do it or stop with selling their products. When you, as store, chain a lot of fight with some supplier has. You can think about creating your own line. When you’re a big chain it’s good for your profits to make and design your own product. But Fenwick isn’t as big as Lakeland (who got their own bake ware) so for Fenwick it wouldn’t be a good idea.

The customer got a lot of power in this world. You can make the prices as high as you want. But the customer needs to pay the price and if they don’t pay the price you got a negative turnover. And this would be very bad for the shop. The customer got a high importance by the most of the products which are available at the household department of Fenwick. But there is a difference between a pan and a pan. Everybody needs a pan for cooking, but they can buy a pan of 15 pounds or a pan of 150 pounds. Obvious when the customer buys the cheap pan the store is making less profit and a smaller turnover. So the people need most of the products but there is a difference between the one and the other product. One positive point of Fenwick is that most of the products are standard. They sell standard products which everybody knows and which most of the people use as well. So it’s good that they don’t sell exclusive items, like special collection items or something.

When the buyers conclude contracts it could be expensive to get over to another supplier. And some suppliers could prohibit you to sell products from other supplier. So when you conclude a contract you have to make clear rules and make sure you can do what you want. One other very important thing is to make sure what the prices are. In the Cookshop there is a product what they’re buying for 2,55 pounds. They sell it for 9,95 pound, the 7,50 pounds isn’t all profit. You have to pay taxes, staff, electricity, light and all that kind of stuff. So when the supplier increases their prices so much and you didn’t agree about something in the contract, you can sell as many products you want. Your profit will be a minimum. So the profit is very different at each supplier and product.


27:There are a lot of replaceable stores for the household department of Fenwick. There are more than two cook shops and two other department stores. So Fenwick has to be careful. There are at least four other shops who want the place of Fenwick and want to get rid of the competition. They have to be cheap but they have to keep their image as well.

To enter the household market you need a starter budget. When you’re in the business for longer you get discount with the supplier and you got a customer base. When you have to rent a shop, you make more costs than when you already buy your shop. And at this moment of the economy you have to save every penny. An advantage is that it isn’t hard to get to the suppliers. It’s kind of an open business and you can go to the supplier whenever you want. It’s not a hard business on that way. So the barrier to enter for new stores is low. You only have to compare with the shops who are open already, you don’t need undue much money.

There is competition on the market but not very violently. They all want to be the best of course but they are not trying to make each other bad or something. Of course it would be great for Fenwick when Lakeland go bankrupt, but when a customer is asking for a products that Fenwick don’t have, they send him to Lakeland. So they award each other a lot.

Below I will show some odds and threats. I found these because of the analysis above.

Odds: - a big odd is that it’s a very open market. if you want to change from supplier it’s no problem if you got a good contract.- When you stop with selling from the one suppliers there are a lot other

suppliers to sell from. This is a big odd for the stores.Threats: - when you got a bad contract it’s possible that your supplier does a big price

increase and that you going bankrupt because a situation like that.- It’s easy to accede the market. So there is a lot of competition.

2.1.2.3 competition analysis.

The direct competition of the household department from Fenwick is :- Household Debenhams- Household Nasons- Steamer traiding- Lakeland.

These are direct competition because they are selling the same kind of products as Fenwick. But there is indirect competition as well. These competitions are almost all the other shops. They don’t sell the same products as Fenwick, but when someone buys an expensive item in another shop they won’t spent so much money at Fenwick. I will enumerate a few other stores in Canterbury but actually are all the shops competition:

- Canterbury cathedral shop- Bon Marché- Burton- Fat Face

These shops don’t sell any product what the household department of Fenwick is selling but it’s still a kind of competition.


28:The competitions which I’m analysing are, Debenhams, Lakeland and Steamer Trading. Like you can see in chapter 1.2.6 Nasons isn’t really a competitor for Fenwick.

Debenhams: the strategy of Debenhams is too responding as good as possible to the customer. Their goal is to make sure the customers are coming back some day. Thus so they want to create patrons. Debenhams is doing well, but the only reason for this is because it’s a well-known chain. Debenhams is passive but not so much as Lakeland. Because Debenhams is a department store like Fenwick there is a little fight going on. The sales will be promoted really well and all this is bigger as with Lakeland of Steamer Trading. Fenwick don’t expect an attack because we just had the Christmas period and now the shops are living on that.

Why are people buying at Debenhams: Debenhams got a big name and a lot of people are buying because of this name. They know Debenhams so there going to that shop.Why is/isn’t Debenhams successful: because it’s such a big chain, people are coming back. They hear stories about products friends bought there and they want to take a look their selves.What is important for the customer: for the customer are a few things important, price, quality, service and assortment. These things together are making sure people returns.

Lakeland: the strategy from Lakeland is to provide an as large as possible assortment. For Lakeland it’s the most important part to provide as much products as possible in their shop. Lakeland is doing fine on the moment. They have no big burden of the online shops yet. The prices aren’t too high there, so people are prepare to pay the price. Lakeland is passive. They aren’t fighting with the competitors. They got their sales but don’t do this to eliminate the competition. So Fenwick don’t expect an attack from Lakeland. Lakeland doesn’t want to grow the next couple of years.

Why are people buying at Lakeland: Lakeland is big, a big assortment and a reasonable price. So people like this. It’s not as perfect as it sounds, because the staff isn’t that friendly at all. Why is/isn’t Lakeland successful: Lakeland is successful because of the things I said here above. The price, and the big assortment.What is important for the customer: for the customer are a few things important, price, quality, service and assortment. These things together are making sure people returns.

Steamer Trading: the strategy from Steamer Trading is different. They provide a big assortment as well but this is not their main goal. They are more chic than Lakeland. They want to provide friendly staff and want to give you a big shopping experience. Steamer Trading is very passive as well. They only got their own sales and don’t do this whit big announcements. Fenwick don’t expect an attack from Steamer Trading. But the next couple of yours will be hard. They can’t fight against the upcoming online shops. They are too expensive to compete with them

Why are people buying at Steamer Trading: people are buying at Steamer Trading for the great service and the high quality products.Why is/isn’t Steamer Trading successful: Steamer Trading is not so successful because it’s too expensive for this generation. You get great service, but you can get the same service and quality at a lot of other shops.What is important for the customer: for the customer are a few things important, price, quality, service and assortment. These things together are making sure people returns.


29:In chapter 1.2.6 you can find a small chart about the competition. In that one Nasons is included. Now I’m making an extensive analysis. In this one Nasons won’t be called. So this one is going about Lakeland, Debenhams, Steamer Trading and Fenwick

I give every company in every category a grade. The difference between this one and the one in chapter 1.2.6 is that here every category got a weighting so some categories are more important.

Assortment: the grades will be from 1 to 5. 1 is a small assortment and 5 means a big assortment. This category counts 2 times because the assortment is a very important part of a shop

Price/Quality: the grades will be from 1 to 5. 1 means that the price and quality aren’t matching and 5 means that they match really much. This category will counts 2,5 times. Because it’s a really important thing for customers.

Service: the grades will be from 1 to 5. 1 means a bad service and 5 means a great service. This category counts 1,5 times because it’s important that the service is good but there are other things who are more important.

Assortment: Price/Quality: Service: Total:Fenwick 3,5 x 2 = 7 3 x 2,5 = 7,5 4 x 1,5 = 6 20,5Lakeland 4 x 2 = 8 2,5 x 2,5 = 6.25 2,5 x 1,5 = 3,75 18Steamer Trading 3,5 x 2 = 7 3 x 2,5 = 7,5 3,5 x 1,5 = 5,25 19,75Debenhams 3 x 2 = 6 2 x 2,5 = 5 3 x 1,5 = 4,5 15,5Total: 28 26,25 19,5 73,75

So as you can see in this schedule Fenwick scores the highest. After it comes Steamer Trading. That’s a real competitor for Fenwick. After Steamer Trading you got Lakeland and after that you got Debenhams. The reason that Debenhams scored this bad here is because there’s counted on a different way. Because some things they are good at don’t counted as much as other things which they are not so good at.

The future of this industry is very unsure for the shops. Shops like Debenhams and Fenwick will subsist that’s almost sure. The household department won’t be shut down, but the shops like Steamer Trading and Lakeland are very insecure. Because the online market is growing and when they lose customers they will be bankrupt. So I think in about ten years there are none or one household shop remain in Canterbury.

So the most important things I found here in this analyse is that competition is hard. Even when there indirect or passive they are still fighting for the customer. Especially in this time of the year. Every customer is important until October. So Fenwick should look out for Debenhams, this is the only competitor who is working on the same way. But Fenwick should certainly not lose their eye on Lakeland and Steamer Trading. These competitors could attack them when they don’t expect it.


30:2.1.2.4 Distribution analysisThere is nothing special on the distribution of Fenwick to the customer. The customer comes into the shop, take there item, pays and take it home. Fenwick doesn’t have a special way of distribute to the customer. If they won’t come into the shop they can order it by phone and Fenwick will deliver it. But that are the only two ways for a customer to get the product. This is going to change soon. With the upcoming online shopping people don’t have to go to the shop anymore. They can order what they want from there lazy chair. The customers want it easy. They don’t want to fill in forms or something. They want to be served by friendly staff and going home with their product. One good thing for Fenwick is their customer collection point. Almost every department store got something like that, but Fenwick got something special. If you buy something you can pick it up later with your car. If you buy a new food processor or something, but you have to go to some other stores you can pick it up when you done with shopping.

Another distribution from Fenwick is the warehouse. This is the big stock room for household, furniture and toys. It’s really nice because you got more stuff in stock as normal. So you can have those products over in like a day. If you have to order them it takes much longer. There is a van driving four times a day from warehouse to the shop, so the customers can get their items very soon.

The best way distribution from Fenwick remains the simple one. Getting the stuff in the shop. It’s the fastest and easiest way for the shop.

The distribution of Fenwick is the same as the competition. Just present your items in the shop. The only thing where the competition is better is the online market. They got a web shop where you can buy there items and they got a system which will help them look of they got something in stock. At Fenwick they count every month what they got and they write it down. But you can never say to a costumer if we still got that product in stock.


31:2.2 SWOT analysis.

Strengths (Intern)S1: Established in a Department storeS2: Friendly an good staffS3: Large assortmentS4: Good locationS5: Big warehouseS6: Home delivery’sS7: Not to expensive comparing with the quality

Weaknesses (Intern)W1: Behind on the systemsW2: To much part-timersW3: They need permission from the chairman for every sale and new brandW4: Older staffW5: No online storeW6: Image as expensive shop what could scare some other customers

Opportunities (Extern)O1: Enter the online marketO2: A lot of shops are going bankruptO3: People always need kitchen stuffO4: It’s a very open market. if you want to change from supplier it’s no problem if you got a good contract.O5: When you stop with selling from the one suppliers there are a lot other suppliers to sell from. This is a big odd for the stores.O6: Try to attract the people who are earning less money. But make sure you don’t change you image by doing this. So don’t scare the people off who are here now

Threats (Extern)T1: The online marketT2: The economic crisisT3: Low income in EnglandT4: Lot of unemployed peopleT5: A lot of competitionT6: when you got a bad contract it’s possiblethat your supplier does a big price increase andthat you going bankrupt because a situation likethat.T7: It’s easy to access the market. So there is alot of competition.T8: The place where people life is getting smaller. Be smart and come with products that are ideal for these kitchen so people are coming to you

The most important thing we learn from this SWOT analyse, is that it’s a hard world with a lot of opportunities but a lot of threats as well. So Fenwick need to be smart and make sure that they don’t suffer under the threats. Here below you can read about the strategy and witch strategy I think is the best one for Fenwick.


32:Strengths Weaknesses

Opportunities Grow: if Fenwick combine there opportunities with their strengths they can grow really high. If they are starting an online shop and combine this one with their local shops it’s a great service like they always provide but then online.

Improve: if they use there opportunities to improve the weaknesses they will become a better shop. This is the time of the new systems and everything. So if they invest in new systems which they can combine with their online shop it will be a great store. The only problem is that there is a lot of older staff who have to learn how it works.

Threats Defend: the market on the moment is though. So if they use their strengths to fight against the threats they maybe will survive. If they lower their prices or do another sale people will come. Because a lot of people are unemployed or poor.

Pullback: if it’s all getting too much and the weaknesses and the threats are going to combine them. Than the best thing is to pull back. When the older staff can’t handle the online markets it’s better to find our new staff or pull yourself back before it’s too late.

Well the Pullback strategy is certainly nothing for the household department. They will be saved by the Fenwick heat quarter when it’s going that bad. I think the best thing to do now is just defend. It’s a hard time for the economy now and I think it’s better to defend than attack. In a few years you can change the strategy and attack if you want. But on this moment it’s all about surviving. And when you defending, you got time for investing in new systems. So after all the changes you can go and attack.


33:2.3 Main issues from the SWOT analysis

The main issue from the SWOT analysis is that the online market upcoming is. You can see it, it’s an opportunity but a threat as well. So with that one Fenwick has to be careful. The economic crisis is another important thing. It’s hard for the shop because people are saving more money. But it’s an opportunity as well. Because other shops are getting bankrupt and the people who were going to those shops are going to another shop now. So there is less competition. Another thing what is good for Fenwick is their investing in new systems. This because people can work faster and customer can be served faster. And in this time it’s very important to keep the customer satisfied. A big strength of Fenwick is their assortment. It’s not a very big department but when there’s something not in stock they will order it. So you can get whatever you want. A good opportunity on this market is that there are a lot of suppliers. So you can sell almost every product and if the one is too expensive there are four other ones waiting.

After this report I recommend for Fenwick to be careful. It’s quiet on the market on the moment but it can change every moment. Be prepared for an attack from the competition and go on with the time. Invest in your systems and go online. Start an online shop so people can buy at Fenwick from their kitchen table. The strategy I will recommend to Fenwick is defending. Make sure that you’re not available for an attack from the competition. So I think that when Fenwick is doing these things they will survive.


34:chapter 3: Make and propose an operational Marketing plan3.1 describe proposalsNow I will describe three ideas to make Fenwick better and improve the productivity of Fenwick and his staff. With these ideas the average time a staff member spends on an average has to be declined with 5% before December 2014. With the ideas I will describe they can accomplish this goal.

Idea 1: the first idea is to put all the prices in the till system. Now when a customer comes to the till and you scan a product you have to enter the price manual. It takes more time to add all the prices so the costumer has to wait longer. And it’s possible that you make a little mistake and that you enter the wrong amount. In that case you have to void the product when you notice it on time. But when the customer notice it at home they have to come back for their money back. Another disadvantage is that customer can change the barcodes. The barcodes are separate stickers so they can change the one from a product that costs 50 pound with a cheaper one and then they’re paying less as they supposed to pay. So this idea will decrease the time you spend on a customer and it will be easier for staff, customer and clarks.

Idea 2: the second idea is to make a digital stock system. On this moment they have got at Fenwick a big book with stock lists. On those lists is written down how many we got in the shop and in another book is written how many we’ve got at the warehouse. The prices from a product are printed in these stock books as well. A big disadvantage from this system is that it takes too much time. First of all you have to count every month and then you still got never an up-to date stock list. Because when they sell something they don’t change it in the books. So this way of working is old and out of time. When a customer want’s to know what the price is of a product, the staff has to take the big stock book and search for the product, this will take five to ten minutes. Or if a customer wants to know if something still in stock we can’t say it for sure. We can look around the store and the stock room, but if it isn’t there we have to call the warehouse and they have to look there. Whit a digital system you just enter the product and you know directly if the product is still in stock. It will be easier for the customer and for the staff.

Idea 3: my third idea is to give every member of the staff an own sector. So you’ve got a member who know everything about all the pans, one for the baking stuff, one for the dish washers etc.. If a staff member or customer has a question, they know directly at who they can ask their question. So the customer get a fast answer on his question and the customer can be sure the information is right.


35:3.2 Analyse the proposalNow I will analyse the three proposals from chapter 3.1. I will do this with a PMI-analyse, so I will call 3 positive points, 3 negative points and 3 interesting points of every idea. With this analyse it will be easier to make a choice between the three ideas.

Idea Positive Negative Interesting1. Putt the prices in the till.

1. customers will be served quicker2. it’s easier for the staff because they don’t have to add all the prices manually3. people can’t cheat with barcodes from other products because the price is set in the till

1. takes a long time to put all the prices in the till2. if you got a new product you have to call to Newcastle because they are the till operators3. you still have to put all the prices on the products or on the shelves otherwise the customers don’t now the prices.

1. it’s impossible to put the wrong price in the till2. you don’t have to take the stock books anymore when a customer want to know a price3. you don’t have to work with dissections anymore so for the clark is it easier as well

2. The digital stock system

1. you know faster what you got and what you need to order2. you can tell a customer for sure if a product isn’t in stock anymore3. customers don’t have to wait so long anymore

1. you have to putt every order in the system2. when something is stolen the system will say there is 1 in stock but actually there isn’t3. you have to invest in new computer systems

1. if you link the system to the till you can make one big system of it.2. if the systems are crashing you have nothing left3. when there is an error people don’t know how the old system work anymore

3. everybody own sectors

1. the staff know everything about their sector.2. customers get for sure a wright answer3. if there is an product training you know who have to go to the training

1. customers will be redirected to other member of the staff2. if someone is sick nobody know anything about that sector3. you have to plan the holidays of your staff really well otherwise you got people on a sector who don’t know anything about it

1. customers will be helped faster if the person from that sector isn’t busy2. if the person from a sector is on tea or lunch you have to make sure there is another member of staff available for that sector3. making of the roasts will be much harder.


36:3.3 The effects of the proposalsBelow I will describe for each problem from chapter 3.1 what the effect will be if the idea will be performed.

Idea 1: if the prices will be added in the till system Fenwick will be on a better position, because the customers will be served faster and don’t have to wait as long as normal. They know exactly if the product they want is in the shop and the price. The problems with a missing barcode will be over as well. The barcodes are on the products itself, so you don’t have to call if you got a product from another department without a barcode. If they’re agree with this idea I think the turnover will be raise. The waiting time decreases and customers can ask all their questions at one staff member, so the service will even be better.

Idea 2: if they got a digital stock system there a lot of things that will be changed. Fenwick get a better name because the costumers will be helped faster and get a straight answer right away. So people are served faster and that’s what the customer wants. But that’s not the only thing what will happen. For the buyers it’s easier as well, because they know exactly what they got in stock. On this way it’s easier to order new products and you got a better overview. You never order something that you think is sold out but on the end it shows that you still got it a few but not on the normal please. So there will never ordered stuff that you don’t need. On this way the turnover and profit will be bigger. The customers and the staff will be happier because everything will be faster. I think this is a good idea to use in Fenwick. Not only the household department but these ideas will work for all the departments.

Idea 3: if everybody got his own sector it’s easier to serve a costumer. You know right away to which college you have to send the customer to. So the customer gets his information faster and they can ask whatever they want, because the member of staff where they talking to knows everything about the products. It’s also a little bit comfort for the customer. When you know that that’s the sector of that member you, as customer, can be sure that the information in right and that the member of staff knows where he or she is talking about. It will be better for the shop, the customer and for the staff. The only change that is harder is making the roasts. You need to be sure that you got a member of the staff for every section and that there is always someone on the shop floor who knows all the information.

3.4 my final proposalMy final proposal will be a combination of idea 1 and idea 2. It’s my idea to put all the barcodes in the till system from now. And to install a new stock control system. The stock control system and the till system will be linked together so that when you sell something on the till the number in the stock control system changed immediately and the numbers are always up-to-date. And if a new order is coming in at the warehouse the warehouse will put it in the system immediately. Another advantage is that when a customer comes with one product but he wants 5 of it, you only have to scan it and you see directly if you got is in stuck as much as they want it. So this is my final idea.


37:Chapter 4: elaborate the operational plan

4.1 developing operational marketing plan4.1.1 Marketing goalThe goal of the household department from Fenwick is “to decline the time you need to serve an average customer with 5% before 1 December 2014” and I got a great idea to complete this. The idea is to develop from two ideas I had before in chapter 3.1. I combine idea 1 with idea 2 and got one great idea to decline the time you need to serve a customer. So the productivity from the selling and buying staff will be improved and so is it possible for a member on the staff to do more in the same time. So there are two systems that will be improved in this plan and if Fenwick agrees it’s better for customer, staff and the company.

4.1.2 Marketing strategyAfter analysing the intern and the extern factors in chapter 2 and making a SWOT analysis I got a great marketing strategy for Fenwick. When they are defending themselves they got time for investing in the systems. The investment will take a while because all the products have to been added in the till system and in the stock system. But because they are defending they don’t need to prepare for doing an attack. They’ve got all the time to make sure that the systems are working.

4.1.3 Product mixThe quality from the products from Fenwick isn’t the problem. The products are from a good quality and they are worth the price. The brands Fenwick sells, are good brands. They got clear appointments with the suppliers, so the prices aren’t increasing unexpectedly. The services from the suppliers are good as well. Fenwick can change broken products easily because they got good contracts with the suppliers about refunds and getting credits. Fenwick don’t have his own brand. So everything you buy at Fenwick is from an other suppliers this mean that the packing of the products are all different. Of course a supplier got all their products in the same packaging, but you see different packaging on one shelve. The assortment from Fenwick is very good. They got everything in a cheap and an expensive sort. Of course the quality from the expensive ones is better, but for every budget you can come to Fenwick. The products won’t change with this idea. The only thing that will change is the till system and that everything will be easier.

4.1.4 Price mixWhen Fenwick gets a new product in their shop they always start with the high price. They have to sell the product for a minimum of 28 days for the high price. After the 28 days they are allowed to put the lower price on the product. Before the product even arrived the high price and the low price are known by the shop. And it’s always between the 28 and the 35 days before a product go’s to the lower price. It’s a very special case when they keep a product on the high price for longer as 35 days. Than the product sells really well or is really important. There isn’t any price discrimination in the shop. The only people who get discount are the members of the staff and when their paying with their staff card. Even the customers with a Fenwick card don’t get any discount. With the products which are longer in the assortment will be played with the prices. Sometimes there on the lower price and sometimes on the high price. This difference is just to make it better for the customers, when there is a sale or something. This idea won’t affect the prices of the products. They stay the same.


38:4.1.5 promotion mixFenwick don’t promote a lot. They got their own windows where they show some products but they don’t have any big advertising posters or something. When there is a big sale coming up, they will advertise in the regional newspaper. They don’t use any social networks like Facebook or Twitter. The bus station is right behind Fenwick, it’s located at the main street and on a busy street. So they don’t need more advertising. The staff is helping with maximize the selling. The staff is always friendly and try to help the customers wherever they can. If a customer wants to unpack something or if there not sure it’s the right one it’s no problem. They got 28 days to return an item and they still get a full refund or credit on another product. Happy customers are one of the best advertising you can get. And if Fenwick agrees with my ideas it will be better.

4.1.6 distribution mixFenwick got a direct distribution to the costumer’s but an indirect to the suppliers. Suppliers are delivering at the warehouse and not at the shop. So when something is delivered it takes one more day to get it in the shop, because the warehouse makes prices for the items and store the stock. If we need something we have to call it over from the warehouse to the shop. This takes normally one day. To the customers the distribution is direct. Customers can take their items home on the same moment they are paying. It’s not coming in a parcel or something. They take it home there selves and the customer got direct contact with the shop because their coming in the shop. It’s an intensive distribution because it’s always running. The distribution from Fenwick never stops. There are deliveries every day, only from warehouse to shop are four times a day and there are always costumers. The distribution between the suppliers is competitive because they want to deliver as much stuff as possible. They don’t want the competition to deliver stuff but they want to deliver it. So they try to enter your store with low prices and after it when you got a contract they will increase their prices. With my plan the distribution will be easier. Because you know what’s over the warehouse and if you make a smart system you can call it over to the shop floor with only one button.

4.2 financial substantiation.My plan will be a big investment. It won’t be cheap to change the whole system of Fenwick. The till system don’t need to be changed. The only thing that’s necessary is that the prices and the original product barcodes are in the till system. This will cost some days of work so the staff who will doing this will cost money, but the till system don’t have to change.

The system for the stock is another story. For every department you need a computer with a system that will save the stock. It all has to be online because when they add something in the warehouse it has to be added at the shop floor as well. You also need a training for all the members of the staff to work with this system. If every floor manager follows this training, they can learn it to the normal sellers.

Here below you can see what I think that the total costs will be of this idea.


39:What? Remark CostsStaff program the tills 4 members for 5 days a week from 9 to 5 = 160 hours.

They earn 7 pound per hour7 x 160 = 1120 pound

New stock system for 100 departments and the warehouse.

800 pound (this is an estimate after visiting a few website like http://www.barcodesinc.com and http://www.igcseict.info/theory/7_2/stock/index.html ) for the system each department and the computer (105 computers and systems)

800 x 105 = 84000 pound

Training department managers

Each department manager has to follow a training of 1 hour, so the 100 department managers and 5 people from the warehouse. The average salary is 7 pound

105 x 7 = 735 pound

Maintained training for stock control system

1 person an extensive training for maintained the system. The training is 4 hours (spread over 4 days) average salary is 7 pounds (information from www.payscale.com)

7 x 4 = 28 pound

total Total costs for this idea 1120 + 84000 + 735 + 28 = 85.883 pound

Like you can see it will cost about 86000 pounds. This is a lot of money of course , but it’s an investment. You won’t make any direct profit from this idea, but customers are more satisfied and will return with other known people. So in long term it will pay itself back and that’s why it is an investment.

There are no real risks on this idea, because you know what is cost from the beginning. And it can’t fail. If you train the staff it has to succeed that’s almost for sure. And if it fails you didn’t waste your money, because it’s still an investment in the systems and staff.


http://www.payscale.com/

http://www.igcseict.info/theory/7_2/stock/index.html

http://www.barcodesinc.com/

40:4.3 action plan

Action and description Who End date priorityOrder the system Store manager March 2013 HighPut prices in till system Till maintained,

accountsMarch 2013 High

Installing the new systems on all departments Till, ICT maintained

May 2013 High

Training for system maintained System maintained

May 2013 Medium

Training for floor managers and warehouse Floor managers, warehouse

May 2013 High

Floor managers giving training to staff Floor managers, staff

May 2013 High

Working for 100% with the system All staff June 2013 highSee if the system made some profit Accounts December

2013Medium

See if goal is achieved Accounts December 2014

High

After this action plan we can see if the ideas where as good as I thought and if the goals are achieved. If we didn’t achieved the goal it isn’t bad. The system is an investment for the future and not directly for this moment.


41:Conclusion

After setting up this report and working at Fenwick I learned a lot. I saw that a big company like Fenwick, is really complicated. You need a big organisation to run a company like this. Because it’s such a big company I took only the household department for this report. I learned a lot about England with my researches here. That a lot of English people are unemployed and what there average income is. In practice I learned that the most English people from nature don’t work so hard and they call themselves sick very often. Of course this doesn’t apply for all the English people, but the ones who got standard jobs.

I really enjoyed it here and I learned a lot about the English culture and the people here. I learned a lot about Marketing as well. Not from the company, but just being busy with the report. It is an experience I would never forget and I will carry the things I learned here with me for ever.

I saw at Fenwick that a company like that is working on a really old way. That’s the reason I chose for improving the productivity. The systems their using a very old and the way they are working now is very old.


42:Sources

For my report I didn’t use as much sources as I expected in the beginning. This, because I had a lot of information from Fenwick. Statics I saw at Fenwick aren’t in my report because it’s against the rules to take them out of the Fenwick building.

Websites:

www.fenwick.co.uk/fenwick - I used this website for information about Fenwick

www.debenhams.com – I used this website for information about Debenhams

www.nasons.co.uk – I used this website for information about Nasons

www.lakeland.co.uk – I used this website for information about Lakeland

www.steamer.co.uk – I used this website for information about Steamer Traiding

www.wikipedia.com – I used this website for general information about Fenwick, Debenhams, Nasons, Lakeland and Steamer Traiding

www.google.com – I used this website for pictures and general information

www.intemarketing.nl – I used this website for some information about a Marketing plan and questions I had with some parts of the assignment

http://www.statistics.gov.uk/ - I used this website for some number about the market from the retail in England

http://www.payscale.com/ - I used this website for information about the average salary in England.

Remaining:

Book for beginning at Fenwick / a book we had the first day – I used this book for general information about Fenwick and the organisation structure.



http://www.payscale.com/

http://www.statistics.gov.uk/

http://www.intemarketing.nl/

http://www.google.com/

http://www.wikipedia.com/

http://www.steamer.co.uk/

http://www.lakeland.co.uk/

http://www.nasons.co.uk/

http://www.debenhams.com/

http://www.fenwick.co.uk/fenwick

43:

Appendix

In this report I don’t got any appendixes because I don’t got any external papers to attach at this report.


Documents

portfoliomartsmits.files.wordpress.com · Web viewChapter 2: Analysing information17. 2.1 Intern and extern analysis17. 2.1.1 Intern analysis17