Describe about the various aspect of the Harvey Nichols Company?
This paper presented the several aspect of the Harvey Nichols. The purpose is to measure the marketing strategy for their ninth store in the Singapore. Harvey Nichols stated its store in 1831 in the London. Harvey Nichols produced men and women product such as fashion accessories, beauty product and food. So, all generation of people attracted from their product or services that would raise its sales volume and profit margin of the organization.
This paper enables to determine the external & internal, SWOT analysis, TOWS matrix, growth, competitive & STP strategy, market entry mode and marketing mix of the Harvey Nichols. Singapore is the developed country that has multi-dimensional culture in it. So, it would provide good opportunity if they will open new store in the Singapore market.
This paper described the various aspect of the Harvey Nichols Company. The main objective of this paper is to evaluate the strategy for their ninth international store in Singapore country. This paper cover the external & internal, SWOT analysis, TOWS matrix, growth, competitive & STP strategy, market entry mode and marketing mix of the Harvey Nichols Company to start store in Singapore country. Because of this is enables to determine the international strategy for open new store in the Singapore. Indeed, Harvey Nichols established in1831 as store chain in the London. It sells men and women related fashion accessories, food and beauty products. (Crowe & Rosen 2009) Harvey Nichol will be open ninth store in Doha in 2017 but if they planned to open new store in Singapore then what would be strategy that we would discuss below:
Situational Analysis: Situational analysis looks to evaluate the micro, macro and competitor factor that affect the Harvey Nichols when they open store in the Singapore country. The objective of the situation analysis is to indicate the product position as well as survival of business. In the situational analysis we would discuss the external, market attractiveness and internal analysis of the Harvey Nichols.
External: External analysis of the Harvey Nichols discusses the macro and competitors analysis. Macro analysis includes the political, economic, social, technological and environmental that is described below:
Political: It is significant factor of the macro analysis of the Harvey Nichols. It indicates to government plan that which kind of goods and services they want to offer their public. Singapore is developed country so they would prefer consumer oriented product or service which can satisfy consumer needs or desires. (Yuksel 2012)
Economic: This is important factor of the macro analysis of the Harvey Nichols. The rise of the Singapore economy determines the viability of business operation such as tax rule, exchange rate, tariffs and economic recession. These kinds of operation not only direct affect on the customer needs but also impact on suppliers and distributors. (Perrey & Spillecke 2011)
Social: Social environment includes total belief, practices, customer and behaviour. Social environment of the nation affect the Harvey Nichols Company. Because of different society people have different kinds of view and perception about the product. So, Harvey Nichols needs to deliver quality of product or services as per Singapore society people needs or desires. Harvey Nichols should divide society people generation as per their product variety. (Perrey & Spillecke 2011) However, Singapore is a multi-cultural nation where Chinese, Malaysian and Indian culture living together with the Singapore people.
Technological: It is very significant factor that affect the Harvey Nichols Company plan to start new store in the Singapore. If Harvey Nichols used online shopping technology for the Singapore customer that would helps to customer satisfaction because it would save many time to their customer. In the global competitive market, technology makes company to stable in the competitive market. Through use of technology, company can produce quality product with low price as compare to their competitors.
Environmental: It is significant factor of the macro analysis of the Harvey Nichols. Environment of the company affect the productivity quality. If employee will get work friendly environment then it would raise the Harvey Nichols growth and development. So, Harvey Nichols should provide proper environment to their customers in Singapore plant. (Yuksel 2012)
Internal: Micro analysis includes the customers, employee, supplier, shareholder, media and competitors that are described below:
Customers: Customer is directly affecting the micro environment of the business. Singapore is developed country so people have high purchasing capacity so it is good as well as the Harvey Nichols sales volume perspective. (Nieman 2001)
Employee: Expert employee can affect your business. So, Harvey Nichols targeted to hire qualified and experienced employees in the organization that would contribute in the Harvey Nichols succeed in the Singapore plant. (Van de Weerd et al 2008)
Suppliers: Supplier plays significant role when you planned to open new store in the Singapore country. If supplier has capability to deliver the quality product or service in timely manner then it would help to fulfil customer needs in the abroad market.
Shareholder: if we expand our business then we need more investment then organization should issue public share to collect money form market. Shareholder pressure to raise the profit margin will impact firm strategy. (Van de Weerd et al 2008)
Media: Positive media can make firm while negative media can destroy the firm. So, Harvey Nichols needs to manage media for their success of expansion plan to open new store in the Singapore.
Competitor: Competitor can affect the initial growth of the organization. So, Harvey Nichols needs to make stable as compare to their competitors in the Singapore market. (Nieman 2001)
Competitive analysis described the potential strength and weakness of the competitors. Louis Vuittion is the main competitor of the Harvey Nichols. Both produced fashion accessories product in the market so it is very hard for the Harvey Nichols to compete with them. Both companies stated business in mid of 18th century and have strong market in the worldwide. Gucci is the main competitor of the Harvey Nichols consumer goods product items. So, they should produce high quality product with low price as compare to their competitors such as Gucci and Louis Vuittion. (Xu 2005)
Market Attractiveness: Market attractiveness is the evaluation of the potential value of specific market. Market size, growth, pricing trends, intensity of competitor, overall risk and opportunity to different kinds of product are key elements that would to determine the market attractiveness. Due to these elements stability of the Singapore market, the Harvey Nichols will to open a store in the Singapore market. (Olsen 2015) Further, Singapore government promoted high level of saving and investment through central provident fund policies that would helps to raise their sales volume of the Harvey Nichols. Singapore has highest GDP ratio in the world around 400 percent in the 2008-2011 that is very attractive for the Harvey Nichols to open new store in the Singapore. (Wilson 2014)
(Source: Olsen 2015)
SWOT Analysis: It is useful tools to understand the strength, weakness, opportunity and threats. Here, we would discuss the SWOT analysis of the Harvey Nichols Company that is described below:
Strength: Harvey Nichols brand has strong image in luxury items. So, it is able to attract rich people and they are capable to pay higher amount so it would raise the profit margin of the company. It has many products such as bags, cloths, belts for men and women that attract all kind of customer in the company is the main strength of the company because customer is king of the market. It was focus to expand its business every time in the global level that is main strength of it. It has existing distribution channel and sales networks. (Perrey & Spillecke 2011)
Weakness: Harvey Nichols don’t have stores in emerging nations such as India, China and South Africa that is main weakness of it because these countries has long consumer market. Premium brand attract the rich customers only while company need all kinds of product so they will sold in all market so it is main weakness of it. (Dyson 2004)
Opportunity: They can develop its brand image though new marketing and promotion strategies that is main opportunities. The company can extend its business through entering in developing and emerging market in the world.
Threats: The main threat of the Harvey Nichols is to those other companies offering same kinds of product and services. Most of its brand product have similar product in the market that affect its sales volume and profit margin so it is threats of it. (Perrey & Spillecke 2011)
TOWS matrix: Harvey Nichols evaluated threat first. Because of some competitor of the Harvey Nichols produced same product that would harm the sales volume of the Harvey Nichols. After evaluation of threats, they need to evaluate the opportunity in the Singapore market. Harvey Nichols brand image contribute it to open new store in Singapore country. Harvey Nichols don’t have store in emerging country such as China and India so they need to evaluate new plan to open store in the emerging country that would be strength of it. (Dyson 2004)
Strategic Options: Strategic options take advantages of trends, facts, opportunities and threat of the outside world. It help you to evaluate the where your business now and what is further option might be available in the market for short, medium and longer term perspective. We would evaluate the growth, competitive and segmentation, targeting & positioning strategies of the Harvey Nichols when they interred into Singapore market.
Growth Strategies: Harvey Nichols focuses on produce fresh and stylish product for their Singapore customer that is main growth strategy of it. Singapore is developed countries so they prefer quality and fresh product in the market so Harvey Nichols focus new, stylish and fresh product because they offer beauty product, fashion accessories and food product those need style and freshness especially in developed countries such as Singapore. (Wong 2014) Harvey Nichols growth strategy in the Singapore market is to manufactured product as per requirement of the all group of the generation.
Competitive Strategies: Competitive strategy is known as long term plan for specific firm in order to acquire competitive advantage of its competitors. Harvey Nichols decided to buy raw material from local market when they opened store in Singapore. Because of it would reduce its manufacturing cost so they can compete with their local competitors of the Singapore market. In the global competitive market, it is significant strategy to reduce its production cost as compare to their competitors. (Wong 2014)
Segmentation, Targeting & Positioning (STP): The STP process is significant in the Harvey Nichols Company. First, they need to segment the Singapore market into similar group such as 0-13 age group, 14- 25age group and 26- 40 age group and 40 to till death age group. Then, the Harvey Nichols must target the market that which age group Singapore market is more demanding for their product. Singapore is developed country and most of people belongs to 26-40 age group so they should focus on these age group people and make a plan to satisfied these age group people. After the target customer they need to focus on positioning the market. So, Harvey Nichols decided to open store in Singapore due to fast consuming market in the worldwide. (Havaldar 2005)
Strategic Choice and Justification: Strategic choice is an option to select one from various choices of strategy for organization. So, the Harvey Nichols need to select Singapore consumer oriented to raise their new store in this area.
Market Entry and Selection: Market entry is technique of delivering product and services to a target market. Exportation, licensing, franchising and joint venture are the modes of entry in the Singapore market. Harvey Nichols has several products in their retail shop and most of them are very heavy so they will open new store in the Singapore market. They could attract their customer because it would be available in lower cost due to local manufacturing of it. Harvey Nichols needs to get licensing from Singapore government to open store in Singapore. Through franchise distribution they can open store in the Singapore because they will support them. Harvey Nichols can open store in the Singapore through joint venture with some local companies. Out of them, Harvey Nichols should select joint venture entry mode for the Singapore ninth store because other options are not appropriate for new store in the Singapore. Harvey Nichols joint venture with local company of the Singapore region would beneficial for new store in the Singapore. Because of it would reduce heavy investment in the initial stage. (Thompson & Martin 2010)
STP for chosen market: The STP plan to open ninth store in the Singapore market that they need to make strategy for their generation of people group. Which kind of product mostly used by which generation they need to segment market according to generation group. Harvard Nichols has many products such as beauty product; food, fashion accessories and many more so they need to segment first then the Harvard Nichols need to select the available market for their product. Out of product variety which kind of people or generation like them after that they need to implement their strategy which products are mostly used by people so Harvey Nichols need to manufactured as per required quantity. (Havaldar 2005)
Marketing Mix: Marketing mix is technique used by marketers to support evaluating the brand offering. The 4Ps linked with marketing mix which is developed by E. Jerome McCarthy in 1960. In the 1970s, it was acknowledged by marketer that marketing mix must update. So, it extended in 1981 by Booms & Bitner with three new elements of the 4Ps. These 7Ps of marketing mix is described below:
(Source: Marc 2014)
Product: The Harvey Nichols is retail Sector Company that has several products such as fashion accessories, food product and many more. Harvey Nichols need to adopt unique product features to attract their all generation of people. Product quality affects the sales volume of the organization. Harvey Nichols has branded product that helps to sell in the Singapore market. Harvey Nichols has planned to open store in the Singapore so they need to create product as per Singapore people needs or demands that would help to satisfy the Singapore people desires. (Marc 2014)
Pricing: It is not necessary that product should be cheapest because customers are willing to pay little high price for something really works for them. In the global competitive market, price affects the consumer behaviour so Harvey Nichols needs to provide maximum quality in reasonable price because most of people are unable to pay high price in the world especially in the Singapore market.
Place: Product should be available in every market where consumer can buy it easily. Harvey Nichols should produce all kinds of product in all regional area of the Singapore market. Due to easy availability people will buy easily from market that would increase sales volume of the Harvey Nichols in the Singapore store. (Masterson & Pickton 2014)
Promotion: It is very important element of marketing mix in the current competitive era. Harvey Nichols should adopt mail order marketing for promote their product in the Singapore store. It is cheap and directly affect consumer who use the product. So, initially stage it is good for the Singapore new store. (Liu 2001) Due to lack of promotion and marketing strategy many organizations was unable to compete with their competitors.
People: Harvey Nichols needs to hire qualified people those can handle all conflict in the new Singapore store that would helps in success of the Harvey Nichols new branch in Singapore. The Harvey Nichols need to evaluate the Singapore people behaviour before open new store in this area that would help to satisfy need of the Singapore consumer.
Process: Process is significant elements of the marketing mix. A well-designed process helps it to maintain the Harvey Nichols competitive position in the Singapore market. The process must ensure that all deliver services are same for every customer. (Masterson & Pickton 2014)
Physical: It is very significant elements in the global competitive market of the marketing mix. Harvey Nichols must provide physical evidence in their product for the Singapore people because he have plan to open a store in their place so local people will trust if they provides physical evidence about the product. (Marc 2014)
Conclusion
From the above discussion, it can be concluded that clear external & internal, SWOT analysis, TOWS matrix, growth, competitive & STP strategy, market entry mode and marketing mix strategy as well as ability to adopt new technology in the Harvey Nichols helps it to maintain its competition in the worldwide retail market.
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