Introduction
From WHSmith establishment in 1792, the company has become one of a reputable retailer in publishing, music, newspapertravel industry, fixed and books. However, the sales were reduced in the beginning of this century by several factors including the company's marketing strategies and marketing mix. This drop might be considered a risk to the successful progress of WHS in the future.
1. Marketing management issues and general solutions
1. 1 Products
One of the largest problems confronted by WHSmith today is an enormous range of products which include books, stationary, credit cards, newspapers, publications, CD's and so forth, which make it difficult to keep up inventory and even it complicates the brand image of the company. Thus to create a clear-cut brand image and maintain inventory level at all times, the business should highlight more of these products which has a larger talk about in their profit including stationary and literature and pay less attention on other products, such as CD's, cards and magazines. Perhaps it creates a specific brand image to the company as well as contributes to maintain inventory level at all times which in exchange sustain their customers devoted and satisfied.
1. 2 Place
WHSmith has among the best places to construct its products such as High avenues and the key train channels. Despite there were issues with piling the products to get and creating competitive advantages among its rivals.
Due to the large range of products in WHSmith stores, this causes products difficult to find. It is therefore recommended to arrange the shelves properly as both vendors and customers would be able to find products conveniently. It could save time and boost the loyalty of the costumer. Furthermore, 'reading atmosphere' or suited place for reading can be created where customers could borrow the catalogs, have caffeine and even have conversations with other readers about read books. This can be the ultimate way to entice customer evangelists.
1. 3 Promotion
Comparing to other competitors WHSmith spends less money on its advertising which can bring to the loss of some market share and subsequently reduce the income of the company. The very first thing that company can do is to redesign its advertising advertising campaign and use wider methods of increasing the brand understanding. Currently, although WHSmith works some commercials on TV, it may also use public networking channels, such as Facebook and Twitter where people can share their thoughts unconsciously promote the brand, make ideas. Another treatment for consider is to improve the mono coloured advertisings of the business to the excellent but correct one by causing a good setting in the brains of customers with specific colors which will be associated with the brand. Moreover, there can be made an effective work on pushing customers to get products from the business's web page and be competitive in Internet market at the same time, also deliver more special deals and discounts with clear prices to draw in customers.
1. 4 People
In achieving the goal of high customer satisfaction, one of the main roles is played by personnel, who are somehow engaged into sales process. The service level and the personnel attitude in common are regarded as overall look of the company. Attitude toward consumers, high certification, goodwill of people are key factors in attaining customer satisfaction. Thus creating a strong corporate image and maintaining that image could possibly be the effective marketing tool.
The following tips can be viewed as to make some significant advancements of customer support: 1) Revising the prevailing system of stuff motivation. Development something of rewards for the most distinguished service level employees, as an example. 3) Developing the atmosphere of team heart in the company and clarifying the targets and goals of company for all those workers.
1. 5 Environment
Marketing environment has significantly impacted the performance of WHSmith. Firstly, as a while development, UK retail industry has stepped into a mature stage. The weakness of the entire retail market affects the WHSmith's retail business, which is the dominating business for WHSmith. Meanwhile, the changing competitive environment generates the pressure on sales and margins for WHSmith. Both national and local merchants fiercely fight against WHSmith as well as the web shops, an rising business, will take numerous customers away. Moreover, consumer behaviours may vary frequently in response to the fashion developments, more alternatives of products and changing life-style.
In conclusion, it can be seen that WHSmith market share in a few categories has decreased by its competition such as Waterstones, supermarkets, trusted online retailers and specialists. It really is expected by Verdict's records that this declining might be increase by non-specialists supermarkets that have a variety of products such as Tesco, Asda and Sainsbury (Datamonitor 2010). Therefore, it is strongly recommended that WHSmith should redesign its marketing mix to compete the competition.
2. Segments analysis and recommendation
The nation-wide presences of the highstreet and travel stores extremely enhance the retailing business of WHSmith, which gives the broad range of the merchandise including stationery, adult and children's books, news and periodicals, entertainment, gifts and cards, and so forth. Among those products, books, stationery, media and magazines occupy the dominating market share in each category portion respectively, which get the kids, middle older women, family gatekeepers or middle class and upper middle class of typical aim for customers. Thus, other products might not capture the major focus on customers due to the ambiguous product collection and positioning.
2. 1 Product and customer sections assessment
2. 1. 1 Children's books
In the existing situation WHSmith has a strong market talk about for children's books (18. 7% of the value sales of the total catalogs market) over its main competition which make it the most accepted retailer in the UK. The business's key product categories in the following segment are: customized children books, categories by ages - 0 to 5, 5 to 7, 7 to 9, 9 to 11 and over, children's fiction, standard interests, special e book types. By giving wide sort of products for children WHSmith attracts certain types of customers who are generally family gatekeepers and browsing husbands.
2. 1. 2 Adult books
The main buyers for adult literature category in present time naturally are women (63% of all clients), men get 39 % which is quite less. By socio-economical diversity it is Stomach muscles who likely to buy adult literature from WHSmith more (63%), DEs stand on second place (30%). Based on it we can say that the overall market segment of WHSmith for adult literature is middle-aged people with average income and above average income.
2. 1. 3 Stationery
Out of WHSmith's gigantic product line, the stationery products have an integral role to play with 21% of earnings share on the market, which simply indicates the strong sales of stationery products on the market by WHSmith. The primary customers that the company aims to sell their stationery items are the students or other individuals related to education field. In addition, because of its strong brand image and the traditional and travel locations of the WHSmith stores, the middle and upper course groups of the society tend to be probable to choose the products.
2. 1. 4 Magazines and Magazines
Newspapers and magazines are also the major impulse products of WHSmith. Although, a solid rivalry from WHSmith's competition such as newsagent and supermarkets, the marketplace share of providing newspapers and journals remained continuous in 2008/9 (Datamonitor 2010). It has diverse types of magazines in several demographic sections such as children, women, men, education and business periodicals. Many of these target different types of customers. On another hand, older consumers especially from higher and middle income are the main targets of papers.
2. 1. 5 Entertainment
The lists of the product categories provided by WH Smith are CD-s, video, video games and other entertainments. As the consequence of low-margin products the company continues to decrease its existence in this category. There's a poor penetration for everyone sections in WHS entertainment commodities. In general all generation consumers are active in this sector, however pre-family and people older than 45 are least likely to buy from WHS. The company's share of video recording is more significant for children (almost 9%) comparing to adults. Furthermore, a number of consumers (under 35) prefer to acquire CDs than the others products of the category.
2. 1. 6 Items and Cards
In the retail market of items and cards, WHSmith provides a volume of products for invitation, understanding and Xmas greeting to the drop-in customers rather than the typical target consumers. However, the comparative thin range of gifts and cards can not meet the major aim for customers as the 85% women and family gatekeepers dominate in this consumer market. Conversely, Clinton cards plc, the main cards company in UK, supplies the most extensive stock portfolio of quality greeting cards and gifts for all the holidays and situations use, which effectively approaches almost all the needs of concentrate on customers. Maybe, WHSmith's gift ideas and credit cards business still uses Clinton strongly and defeats the rest of the credit cards company.
2. 2 Recommendation
Due to the speedy growth of the kids market, it is recommended that WHSmith pay more attention to penetrate the kids market. To commence with, improve the number of video recording designed for the children and make competitive benefit among its competitors, as the demand of children for this product category keeps growing increasingly. Second of all, children's journals also give a significant opportunity to develop and boost the company`s market show. Therefore, by using line extensions strategy which expands its existing periodicals category to new series of children's magazines such as children's fashion and children's games magazines. Finally, in line with the current target market of WH Smith which is actually consists of men, the company can truly add new services in the foreseeable future such as playgrounds, reading places, provide different free toys and games for children to attract the actual market segments.
Consequently, the campaign strategy can be changed to approach the kids market segments. WHSmith got a cooperation to market its products by dealing with the main famous company McDonalds which includes influenced the sales up for the children's section. Concentration on promotional aspects as introducing educational game titles for children will give to the business a big opportunity to stay ahead.
According to the significantly well performance of the stationery, adult literature, entertainment and credit cards business, the substantive suggestion may be a strengthening the existing position on the market using promotional and advertising strokes. On the other hand, revising the existing books range in order to find less or not included in main competitors books categories and their further enlargement in the stores allows WH Smith to get its area of interest.
3. Marketing Communication
According to the analyzed information on WHSmith advertising strategy, the business spends about 10. 3 million pounds per Xmas one fourth for different communication mixes. Over fifty percent of the amount was allocated to Television advertisings including advertising campaign called "Bookworm and friends". Mailing, which addresses Christmas club credit cards programme, leaflets falling, catalogues and press are also sufficient parts of current communication mixture of the company.
By analyzing the problem with a case study, the next is discovered:
absence of outdoor advertisement
absence of internet advertisement
mono colour ads aren't effective for children's booklet and gift ideas
Although WH Smith targets enhanced promotion over the Holiday period, it is limited by reasonably poor promotions as proliferation of simple leaflets to the doors instead of providing expensive catalogs and present ideas. Back again to customer's reviews, company needs to concentrate on the quality of pricing and present more information about sales marketing promotions in stationary products.
With the increasing competition for the retail market from online providers, it is vital for the company to increase their ad expenses and choose some new and progressive ways to draw in potential customers to keep customer loyalty in the market. Company should use Internet communication programs, displaying commercial link-banners in internet sites and other websites, that may provide customers with information on latest discounts and products of the company. In addition advertising on the internet remains one of the cheapest amongst others.
Another idea to enhance the advertising strategy of the company is business of special happenings throughout the year, in addition to Xmas. It will appeal to customers to WHSmith stores since people can be interested and interested. In this case focus on children segments which is the greatest one is strongly recommended. Situations can be related to famous & most loved films, literature or game titles, where customers can buy journals, clothes and related accessories.
TV advertisings are actually the simplest way of appealing to customers. Despite many costumers got a feeling that the" Bookworm and friends" Television set campaign lacked friendliness, it acquired a good feedbacks and was recognized as distinctive, thus it is expedient to run this campaign again taking into account all received recalls from costumers.
Reducing the cover Press advertising will cover other communication channels as online banners and event promotions
Budget for mailing and catalogues are recommended to be at the same level.
4. Sustainability and Corporate responsibility
4. 1 Environment
WHSmith considerably emphasizes on sustainability issues as well as implements environmental safety activities in terms of energy ingestion management, transport management and waste products management. Within the facet of energy intake management, WHSmith regularly reviews the energy used in light and heating to ensure it in order. Meanwhile, energy management team intimately cooperates with operation team to arrange energy efficient tools without dissatisfying customer experience. Furthermore, a series of energy awareness campaigns including energy decrease competition, inner workshop and communication are launched to encourage store staff to save energy. However, although many work have been made, their goal of reducing 15% energy consumption by the finish of 2010 can't be accomplished.
Reduction of CO2 emission is another major task for WHSmith to contribute for sustainability. They attempt to boost the logistic operation through productive store delivery scheduling, which can decrease the number of plans moved. In addition, WHSmith introduces a fresh system to enlarge the fill capacity of every store as well as doing the container consolidation method, successfully reducing 175, 000 packages taken to High pavements. This results in 40% reduced amount of CO2 emission from 2004 to 2009.
WHSmith also put into practice the throw away management looking to reduce product packaging in types of the cardboards and the vinyl shrink wraps. "Say no to a handbag and yes to a tree" of creative campaign is launched to seed 10, 000 trees in UK as well as conversing the knowing of reducing bags. On the other hand, they also set up recycling facilities to help customers gain waste and encourage them to use email for acquiring product information. Although 700 a great deal of bags were eliminated, it is only occupies 2% which is definately not of their expectation of 4%.
4. 2 Community
WhSmith is a appreciated member of community across the UK and also have been a dynamic member in community services and charity. The company spends over 1% with their pre-tax profits on charity and community assignments. Whsmith makes investment in community through following ways:-
WhSmith Trust: The business in cooperation with the WhSmith trust works for the advantage of the contemporary society in quantity of ways like, the kick off of a structure known as "Summer months read" which targeted at keeping literacy levels and develop reading behaviors in children.
Products for Charitable Triggers: Company provides charities with a financial contribution, the sales of these products also increase consumer knowing of the work these organisations do and help them to get new followers. In time 2009, on Xmas, WHSmith lifted 88000 for seven charities by sales of charitable Holiday cards.
Employees support in local Communities-The employees working with WHSmith in various stores are motivated to serve the neighborhood communities in the best possible way they can. This can be done by donating Xmas items or some food to the needy.
4. 3 Workplace
WHSmith has a large number of stores in the high avenues and these stores has a wide array workers working night and day for the company, thus the business have a responsibility towards them, which they fulfils in pursuing ways:-
Embedding ideals within the business enterprise culture- The organisation works to embed their prices such as Customer Concentration, Drive for Results, Value the individuals and Accountability in all their employees and these ideals have also been used as a key part in the recruitment and training processes.
Training and Development-There are individual Training and Development team in WHSmith retail which targets developing the skills of the employees so that they can attain their personal goals combined with the overall organizational goals.
Health and Safety-The mother board maintains high specifications of health and safety in the business. The management team supported by professional safety advisors, displays key safe practices performance indications.
4. 4 Marketplace
The major goal of WHSmith is the fact meet their customer's needs. Due to that the company eager to provide various types of products to satisfy their expectations. Additionally, WHSmith conducted a study twice annually to measure the customer's satisfaction.
WHSmith emphasized that the product's materials should derive from legal options such as forests. They measure the forests sources through the 12 months by collecting information off their suppliers. Due to that, the number of material from professional jungles and recycled sources increased by 7% in 2009 2009 compared to 2008. This success is a result of implemented engagement program with large suppliers which aimed to enhance the forest sourcing. As well as, they'll apply this program for the next three years to improve the forest sourcing of the small suppliers.
