Marketing Plan For Signet Jewellers Limited: Objectives, STP, Marketing Mix, And Financial Forecasting

Marketing Objectives

With Signet Jewellers intending to improve its overall sales, it is essential for the plan to evaluate and succinctly elaborate how this will be achieved. It is due such a requirement that the marketing plan is designed to include specific and general objectives that needs to guide the plan during its implementation phase. Furthermore, evaluation of the market situation and the intended positioning, targeting and segmentation plan is essential. For this reason, this paper is highlights the objectives, STP, marketing mix and financial forecasting Signet Jewellers will follow with regards to the plan.

As Signet Jewellers plan to maintain its high market share in the industry, it is designed to fulfill three critical objectives.

• Recording a 10% increase in sales across Europe annually.
• Increasing online purchases by at least 5% across the world.
• Increasing the number of sales relative to the expenses incurred during marketing.

With these objectives in mind, the company will focus on ensuring that it manages to increase its sales in all consumer segments by 10% so that to keep up with the growing competition and volatility in the market. The plan to raise the sales will be a combined effort of improving online purchases as well as improving the image of the brands globally. As a result, the competition with other players in the industry will be well managed and avoid being overshadowed by the competitors in the market. Furthermore, this primary objective will be measured quarterly to check the progress of the marketing plan in achieving it within the timeframe. Although other companies will respond to the marketing campaign by launching theirs too, this measurable and time constrained objective will be possible to maintain given the positive brand image the company has as well as the changing consumer patterns that favour the industry (Jain, Khan and Mishra 2017, p. 13).

Based on market research, Signet Jewellers customers are mainly from the United States and the UK and further, most come from the middle-class income level. However, this marketing plan will focus on the entire population based on three major segmentation types. First, the plan will focus on demographic segmentation. This involves using income levels, religion and race to compose marketing messages to be used. Despite there being other factors including age and gender, the plan will not restrict itself to these other variables due to the open-ended nature of demand for luxury across all age groups (Jain, Khan and Mishra 2017, p. 8). As a result, this segmentation is poised to help the company generate more sales in bridal, fashion and watches categories of their products.

STP

Second, psychographic segmentation will be used to focus the marketing to the consumers based on their lifestyles, activities or opinions. For the plan to work effectively, it will be necessary for the company to understand the different cultures and customs of the different countries. Through research and development reports, this information will be made available to assist in the marketing campaigns. Ideally, understanding the psychographics of a target population is essential in marketing (Blythe 2014, pp.21-26). Lastly, the plan intends to use geographic segmentation to focus its marketing campaign aimed at raising sales by 10%. With these segments placed identified, targeting the right markets and consumers will be possible.

Due to the size and diversity of the consumers in the segments identified, targeting becomes the primary concern in the marketing plan. This marketing plan will target different regions in Europe and Asia based on their various market values. In marketing, targeting is geared towards ensuring the set objectives are achieved with the given resources (Blythe 2014, p. 18). From research, the global market for jewellery is worth over $165 billion US dollar (Statista, 2018). The markets to be targeted have the different valuations as shown below. Furthermore, the plan is to target the young and middle-aged population since they compose the greatest percentage of the current global market.

                                          

                                                                     Figure 1: Market values of Jeweller

The marketing campaigns will be designed to position the various brands owned by Signet Jewellers in a strategic place that would see their image improve. Undertaking this milestone will need shaping the opinions and perceptions of the consumers through carefully designed messages that highlight the key features that stand out from all the competitors in the market. Although the psychological manipulation of consumers is considered an unethical business practice in marketing, using the right information about the brands would ensure the customers receive exactly what the company advertises (Blythe 2014, p. 24). In this regard, the positioning of the brands for Signet Jewellers will be achieved. To put this in perspective, the positioning map below illustrates the expected different positions of its brands.

From the positioning map, it is apparent that the marketing plan will focus on communicating on price levels as well as the quality of the jewellery sold by the company. These two are always the critical elements consumers look for when making any purchasing decisions (Jain, Khan and Mishra 2017, p. 10). Consequently, by communicating on affordability and durability of the company’s brands will be essential in positioning the products in a more stable position in the targeted markets. Furthermore, more awareness of the different features of the jewellery will be communicated through the campaign messages to place the brands in a better position. By occupying the 2^nd and 3^rd quadrants in the perception map indicates that the marketing plan is geared towards ensuring the consumer are in a better place to purchase more of the company’s products.

Targeting

                                        

                                                        Figure 2: Expected Signet Jewellers’ Position Map

With the objective of achieving a 10% increase in sales annually, the place, product, price, and promotion of Signet Jewellers brands need to change from the current approach. This is attributed to the fact that the market is also changing and new technologies are also emerging making change inevitable.

Product	The current products offered by Signet Jewellers are categorized into three broad categories, bridal, fashion, and watches. Each category has several products in it’s including rings, chains, bracelets etc. in the bridal section. These products are marketed as a whole without individual consideration of specific goods that need to be boosted in the market. Furthermore, the products the company offers do not have a standardized price and varies across most of its stores in Europe and America.	In this marketing plan, the focus will be on individual products rather than categories. This arises from the fact that some of the goods record very low sales due to lack of product-focused approach in marketing them. Additionally, it is usually advisable to use consumer behavior to compose marketing campaigns that can be effective in achieving the set objectives (Hanssens et al., 2014, p. 539). A second rationale for the change is based on the evolution the jewellery products is experiencing in the market at the moment. Therefore, it is better to focus the marketing on individual products to improve their sales and category’s performance in the long run.
Price	Currently, the pricing strategy employed by the company is based on the expenses incurred in raw material, distribute on and processing costs before the final product is produced. The approach is further intertwined with the set target profit margins the company has on specific products. Further, the pricing strategy employed is based on the market conditions and fluctuations of currency exchange rates within countries in which the company operates. Although there are price limits, there are some common problems that destabilize the existing pricing strategy of the company	This marketing plan is designed to slightly alter the pricing strategy Signet Jewellers use to arrive at the various prices of their commodities in the market. First, the price will be based on prevailing market conditions and the quality assurance of the products the company is selling. In essence, the price is determined by how the market conditions are and the success of a marketing program put in place (Kotler and Armstrong 2012, p. 93). Second, the price limits for the jewellery will be removed to pave way for even high incomes in the event of a rise in market demand for certain products. Doing this will allow the company to makes more sales during the seasonal periods of high-value jewellery.
Place	Signet Jewellers has for a long time distributed its products to the market through its stores across Europe and America. Additionally, through malls and its subsidiaries, the company has been able to retail the jewellery in large volumes although not to the extent of the company-owned stores (Khalamayzer, 2018). Despite the advent of technology, there has been less distribution of the products through online purchases.	A new mechanism of distributing the products to reach out to even a larger geographic region is embedded in this marketing plan. Through an online-store, the company is going to advertise its products and allow online purchases and deliveries made in the requested physical locations. This approach has been implemented to curb the growing threat of local distributors and allowing a continuous growth of sales to reach the estimated target of 10% annually. Furthermore, the diversification of a distribution network in marketing is a milestone in capturing a larger market share in the long run (Kotler and Armstrong 2012, p. 57).
Promotion	Advertising, sales promotion offers, and public relations have always dominated the promotion aspect of Signet Jewellers. In most instances, communication of their new products or improved version of existing products is passed through its public relations or adverts on different media platforms. Also, the company has limited special offers to loyal customers thus losing some to the competitors who have an elaborate reward system for their consumers.	In this marketing plan, the promotion aspect will not be changed but rather improved to fit the market conditions. Communication of new or rebranded products will be done through social media, digital and analog adverts as well as through the company’s public relations department. These multiple channels are necessary to ensure that the information reaches as many potential customers as possible (Schultz and Block 2014, p. 213). However, the rewarding system will remain regulated to ensure that the company makes the expected sales increment of 10% every year.
People	Signet Jewellers is fully staffed. All departments have professionals and being led by a CEO (Signet Jewellers 2017, p.14). Ideally, the success of the company is owed to the enterprising employees it has had since its inception.	There are no foreseeable gaps in skills in the company. Therefore. It will be prudent to let the current staff of the company continue and carry out the marketing plan.
Processes	The company currently have well-tailored processes that have made it stood out in the market. Its distribution system is unique but needs adjustments in sales processes for revenue growth (Signet Jewellers 2017, p. 136)	Signet will now focus more on improving the sales staff skills and approach to clients. This will be to ensure the business is running effectively.
Physical Evidence	The current locations of the stores owned by the company provide a comfortable user experience. New customers find the stores secure, spacious and attractive (Signet Jewellers 2017, p. 7).	This aspect of marketing does not require any changes as it may interfere with the branding of the stores as well as the perception of the consumers. However, any arising need for improvements in either security, attractiveness or shifting the locations will be incorporated as the plan continues to be implemented.

The current sales recorded by Signet Jewellers totals to around $6,253,000,000 as at 1^st January 2018. The cost of goods was registered as $4,063,000,000 and finally, profit after tax and the reduction of other expenses stands at $519,300,000 as shown in the table below (Barchart, 2018). The primary basis for projections is based on the marketing objective that seeks to improve sales by 10% annually. Following the same trend, the sales and profits are expected to grow proportionally every year. Furthermore, this is based on the financial capability the company depicts in its annual report of 2017 (Signet Jewellers 2017 p. 72)

	$6,253,000,000	$6,878,300,000	$7,566,130,000	$8,322,743,000
	$4,063,000,000	$4,063,000,000	$4,063,000,000	$4,063,000,000
	$519,300,000	$571,230,000	$628,353,000	$691,188,300

Table 1: Financial Projections for Signet Jewellers

From the table, it is clear that the sales of the company are expected to grow at the expected rate of 10% annual to a total of $8,322,743,000 by the year 2021. The profits are also expected to grow at the same pace given that the cost of goods will remain fixed or lower than the recorded amount. With this financial focus, it can be expected that the company will experience tremendous growth after a successful marketing campaign. Ideally, Signet is expected to achieve its three objectives after a successful implementation of the marketing plan.

Conclusion

Despite competition being stiff in the jewellery industry, there are still loopholes to be utilized to gain a competitive advantage. With Signet Jewellers already having a stable brand equity and image in the market, this marketing plan is designed to help it achieve its set objectives of becoming the market leader through a 10% annual sales increase. If the market conditions remain consistent and the consumer behaviour continues to favour the industry, it is expected that the company will achieve its sets objects more easily.

References

Barchart (2018). Signet Jewellers Ltd (SIG) Stocks Income Statement. Available at: https://www.barchart.com/stocks/quotes/SIG/income-statement/annual [Accessed 23 Jul. 2018].

Blythe, J. (2014). Principles & practice of marketing. London: SAGE Publications Ltd.

Hanssens, D., Pauwels, K., Srinivasan, S., Vanhuele, M. and Yildirim, G. (2014). Consumer Attitude Metrics for Guiding Marketing Mix Decisions. Marketing Science, 33(4), pp.534-550.

Jain, S., Khan, M. and Mishra, S. (2017). Understanding consumer behavior regarding luxury fashion goods in India based on the theory of planned behavior. Journal of Asia Business Studies, 11(1), pp.4-21.

Khalamayzer, A. (2018). How Signet polishes a conflict-free jewellery supply chain. Available at: https://www.greenbiz.com/article/how-signet-polishes-conflict-free-jewellery-supply-chain [Accessed 23 Jul. 2018].

Kotler, P. and Armstrong, G. (2012). Principles of marketing. Boston: Pearson Prentice Hall.

Schultz, D. and Block, M., (2014). Sales promotion influencing consumer brand preferences/purchases. Journal of Consumer Marketing, 31(3), pp.212-217.

Statista (2018). Worldwide diamond market selected figures 2008 & 2018 | Statistic. Available at: https://www.statista.com/statistics/829677/global-diamond-market-selected-figures/ [Accessed 23 Jul. 2018].