+ 44 20 8144 3706Introduction:
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). People are expecting that UK economy may observe jerks in the future time period. Hence, they do not prefer to make investments in the jewelry. This severely affects the SDK Jewelers.
- 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. This to large extent affect demand of the SDK Jewelers products in the market and it observes decline in its revenue. With the passage of time period economic condition may improve but it will take time to observe growth in the demand of the jewelry in the UK market.
- 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’s a safe zone for making investment. Demand of the gold consistently elevates in the UK(SDK Jewellers in top 20 fastest growing companies. 2020).Price of the gold increase on a constant basis and due to this reason, if long term investment is made it give better results in the future time period. Hence, from investment point of view gold trading trends matched to the person’s value system (High returns high risk) (Maddikunta and et.al., 2020). Due to this reason SDK Jewelers get benefit the UK market and it achieves good success in the market.
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.
- Threat of substitutes: There is a high threat from the substitutes because rivals of the SDK Jewelers are able to offer unique jewelry items to the customers on their demand. In case SDK Jewelers is offering products at the right price but items design is not according to the customer value system, then it have alternatives and can purchase same item elsewhere. Hence, there is the highest threat of the substitutes.
SWOT analysis:
Strength
- 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.
- SDK Jewelers are advertising actively through traditional channels of the marketing like radio, print media etc.
- It has a good brand image in the market and due to this reason it has a loyal customer’s base in the business as can be seen in appendix C.
Weakness
- SDK Jewelers need to increase its store based presence in the UK.
- 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 different states people.
- To promote brand engagement on the social media platform.
Content need to be developed in such a way that lead to the generation of the more likes, comments and share on the social media platform and this will reflect level of engagement people do with the business firm (Cheng, Choi and Cheung., 2019).
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 the jewelry products and due to this reason target of individuals is done between age group 25 to 50. Apart from this, this group will also be classified as 25 to 40 and 41 to 50. Targeting will also be done based on the income factor because it plays a crucial role in determining what sort of the product customer will purchase (French and Gordon, 2019). On the other hand, targeting will also be done based on the profession because it also determines whether the individual fall in category of upper status, middle status, upper middle status. SDK Jewelers offers wide variety of jewelry and age, income, class directly affects the person’s choice about the jewelry products. Due to this reason, targeting of the people will be done in the multiple ways considering varied factors.
Tactics and control:
SDK Jewelers will do advertisement of its jewelry on the social media platform because today’s 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). In case of both campaigns age factor will be same which is 25 to 50 but social class will be changed like in one campaign, it will be upper class and in other one it will be upper middle class. Under these ad sets varied ad will be developed which will contain an advertisement message and photo or video or ad can be developed in the carousal format. In this way, in multiple was targeting of the customers will be done in the business.
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 jewellery apprenticeship in Ghana: Nature, processes and challanges. 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).
French, J..and Gordon, R. 2019. Strategic Social Marketing: For Behaviour and Social Change. SAGE Publications Limited.
Heinze, A. and et.al., 2020. Digital and social media marketing: a results-driven approach. Routledge.
Herhausen, D. and et.al., 2020. The digital marketing capabilities gap. Industrial Marketing Management. 90. 276-290.
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