Strategic Marketing in the Digital Economy-BUSM4302

Introduction:

SDK Jewelers is the SME Company of the UK that sells jewelry products to the people through its stores. In the current research study, PESTL analysis and analysis of bargaining power of the suppliers and customers is done. Analysis of the threat from the rivals and substitutes is also evaluated. STP strategy for the business firm is also developed and marketing tactics that firm will follow in its business is also given in the report. Finally, conclusion section is prepared in the report.

 

Situation analysis:

PESTLE analysis: 

• Political factor: Due to the BREXIT factor there is lots of uncertainty in the UK market and due to this reason demand for the jewelry decline in the UK market as can be seen in appendix A. Due to the uncertainty over BREXIT terms and conditions which are not set between the UK Government and the EU till the time fear factor is seen among the people (Shariff, Ahmad. AndShabbir,. 2020).
• Economic factor: Currently, corona pandemic is going on and economic condition of the nation is not so good. It is expected that its GDP growth rate may become negative. Many people lost their job and are receiving low salary on their job.
• Social factor: Social factor to great extent affect the SDK Jewelers as it can be observed that UK people are regularly making an investment in gold related products as they feel it 39s a safe zone for making investment. Demand of the gold consistently elevates in the UK(SDK Jewellers in top 20 fastest growing companies. 2020).
• Technological factor: Technology factor to great extent affect the SDK Jewelers as it can be observed that in a current time period there are advanced machines by using which jewelries prepared are appearing in eye catching ways. Firms are using advanced technologies for doing marketing of their products. Hence, it can be said that technology factor to great extent affect the SDK Jewelers.
• Legal factor: There are multiple laws like labor law, etc. that firm has to strictly follow in its business. In case of violation of these rules and regulations Government will need to take strict action against the SDK Jewelers (Sung and et.al., 2020).

It can be said that all these factors to large extent affect the business firm and it need to identify threats and opportunities that are present in the market. The firm needs to formulate a strategy to counter threat and capitalize opportunity in the market. It can be said that firms need to be very cautious in its business.

 

Porter five forces model

Threat from new entrants: There is a high threat from the new entrants because the UK market is very attractive and new player when enters into the market it bring innovation and new ways of doing things as can be observed in appendix B. This creates a lot of challenges for the SDK Jewelers it also needs to consistently upgrade its product portfolio according to changes in the demand of the people.
Bargaining power of buyers: Buyers have better bargaining power as other jewelers are also present in the market that can offer demanded item at the right price to the people (Baloch and et.al., 2019). Hence, SDK Jewelers need to offer demanded item at the appropriate price to the customers. If firm will not do so, they will shift to the rivals.

 

SWOT analysis:

Strength

1. SDK Jewelers have years of experience in the UK market and it is its major strength. Due to the good experience firm can take a wise decision even in the complicated situation.
2. SDK Jewelers are advertising actively through traditional channels of the marketing like radio, print media etc.

Weakness

1. SDK Jewelers need to increase its store based presence in the UK.
2. Mentioned firm need to do marketing through social media channels as it is consistently focused on the traditional channels of communication.

Objective and strategy

To observe elevation in the sales growth by the 20% in upcoming year.

Target is to achieve a sales growth by 20% in the upcoming year. In this regard, the focus will be on the social media marketing channels and through them attempt will be made to improve the performance of the business firm and attempt will be made to generate more sales in the business.

 

To elevate brand awareness among the people in the UK.

Second target that firm wants to achieve by doing social media marketing is to elevate its brand awareness in the UK. In this regard, through the social media channel approach will be made to the people of the different states.

Market segmentation

Market segmentation is the approach under which entire market is classified into the multiple sections. There are a number of ways in which market can be divided into the varied parts of the business firm. These are demographic, psychographic, behavioral segmentation. In the case of the SDK Jewelers segmentation will be done based on the demographic factors like age and income. This is because jewelry is available at the highest price in the market and everyone cannot purchase it (Herhausen and et.al., 2020).

 

Targeting:

Targeting of wealthier people will be done that, have moderate to good income and fall in the age group of 25 to 50 Those individuals who make purchase jewelry as an investment will also be targeted by the SDK Jewelers. Considering the varied factors that drove demand targeting will be done. Age factor affects the choice of jewelry products and due to this reason target of individuals is done between age group 25 to 50.

 

Positioning:

Positioning is the one of the one of the most important strategy because the ways we develop image of the brand among the people create its image in the market. Every product has its core strength and based on that core strength image of the product is developed in the market. SDK Jewelers is known for offering jewelry products at the affordable price and with the attractive 9 designs and due to this reason positioning of the SDK Jewelers will be done based on the value of the money factor. It is very important to position brand, according to the person &39s value system (Sample, Hagtvedt and Brasel, 2020).

Tactics and control:

SDK Jewelers will do advertisement of its jewelry on the social media platform because today & 39s largest population is on the social media channels. Hence, social media channels will be the best option for the business firm. For a varied sort of jewelry in terms of price range and considering social status factor varied campaigns will be developed. Under these campaigns varied ad sets will be prepared. In the ad sets target audience is determined (Rauschnabel, Felix andHinsch, 2019).

 

CONCLUSION:

On the basis of the above discussion, it is concluded that SDK Jewelers have good brand image in the market, but it need to shift its marketing efforts more from the traditional channels to the digital marketing channels. In this regard, the firm will do marketing through FB and will target individuals that fall in the age group of 25 to 55 and belong to upper class and upper middle class. Positioning will be done based on price and designs of the jewelry. Economic, political and technology factor create threat for the firm. The threat from the rivals and substitutes is very high and customers as well as suppliers have high to moderate bargaining power.

 

 

 

 

REFERENCES

Books and Journals

Baidoo, M. K. and et.al.,2020. Understanding informal jewelry apprenticeship in Ghana: Nature, processes and challenges. International journal for research in vocational education and training. 7(1).45-66.

Baloch, M. A. and et.al., 2019. Gems and Jewels: Passing Down Specialized Knowledge and Skills in Pakistan’s MineralRich Province of Balochistan. International Journal of Economic and Environmental Geology. 10(3).64-69.

Cheng, V. W., Choi, S. H..and Cheung, H. H. 2019. Mixed Reality for Virtual Jewellery Fitting. Journal of Marketing Development and Competitiveness. 13(3).