John Lewis & Partners is a public limited company based in the United Kingdom. The company operates a chain of high-end department stores in the country. The company was found by John Lewis in 1864 in Oxford. Its headquarters are in London. The company currently operates 51 stores in the nation (John Lewis, 2017). John Lewis is renowned for its low prices and the ability to match the low prices offered by any other department store in the country. In 2016, the company went international and opened its first outlet in Ireland and later a second outlet in Australia. The company has won several royal awards as well. It has become strongly integrated with the British culture specifically during the time of Christmas where John Lewis advertising campaigns serve as an indicator of Christmas approaching in the United Kingdom (Stone, 2013). In 2017, the company generated revenue of 3.7 billion Pounds and had more than 38000 employees (John Lewis-2, 2017).
Following are the four dimensions of the Ansoff Matrix for John Lewis:
Market Penetration
During market penetration, an organization promotes existing products in its existing markets. The first strategy that John Lewis uses is to actively participate in various festivals and cultural events to promote its brand name. It has become deeply integrated with these events and remains a continuous sponsor of these events. Another strategy the company uses is to offer discounts during these events and festivals to promote its sales. These strategies also promote existing users to purchase more and increase the use of the products the company sells. New designs and variations are also promoted during these marketing campaigns. Augmented promotions are also offered at the company stores where various products are offered in a joint deal allowing consumers to achieve greater savings and the company to make better sales. Price adjustments are also made during sales to attract consumers. Market penetration is an excellent strategy for John Lewis to increase its sales.
Market Development
Market development refers to the act of promoting existing products in new markets. John Lewis achieves this in various ways. The first strategy is to enter new geographical areas. These can include new nations or new outlets within the United Kingdom. New outlets within the United Kingdom are the option most often used by John Lewis. International expansion is slow. However, John Lewis has excellent potential and can further expand into various nations in Europe, Asia, and the Americas. Another strategy the company uses to develop its markets is to offer products that cater to all market segments. It does not target any particular market segment. This helps the company achieve market segmentation even within the markets the company is already operating in. John Lewis has also started online sales to cater to the needs of the market segment that prefers online shopping over conventional modes of shopping. These opportunities help increase sales.
Product Development
When new products are launched in existing markets, product development takes place. The first strategy the company uses for developing its products is to offer new products. These can include products not being sold earlier or variants of products already being sold. For example, a new design of a skirt or pet food being sold at an outlet for the first time. The new products developed by the brand are launched through detailed product development and research plan that focuses on the needs of the consumers and market trends to ensure the product attracts sales. Each new product is promoted through various marketing channels once it is launched. The time to bring the products to the market matters in the retail industry and John Lewis has worked to minimize this.
Diversification
The launch of new products in new markets is the risky act of diversification. The company can establish its textile and other production units to manufacture its products as a part of its vertical diversification plan. It can enter into other related industries, such as apparel, sportswear, hosiery, and others, when horizontally diversifying. The riskiest strategy would be unrelated diversification where John Lewis can attempt to become a conglomerate by moving into various other industries such as fast-moving consumer goods, consumer electronics, heavy machinery, sports equipment, shoes, and so on. Each strategy can help the company expand.
References
John Lewis-2, 2017. Opening and Closing Times. [Online] Available at: http://www.timeo.co.uk/john-lewis-opening-times/ [Accessed 18 Jan. 2020].
John Lewsi, 2017. Annual Report & Accounts 2017. [Online] Available at: https://www.johnlewispartnership.co.uk/content/dam/cws/pdfs/financials/annual-reports/jlp-annual-report-and-accounts-2017.pdf [Accessed 18 Jan. 2020].
Stone, J., 2013. John Lewis Christmas ads: how they evolved from 2007 to 2013. [Online] Available at: https://www.theguardian.com/media/2013/nov/12/john-lewis-christmas-ads-2007-2013 [Accessed 18 Jan. 2020].