Assignment

On
Strategic Marketing of Kingfisher PLC

Executive summary
Strategic marketing is such a system that helps a company to introduce its product to its target
market. As a successful and leading company Kingfisher plc is running its operation in the
country as well as outside the country, so selecting proper strategic marketing strategy is one of
the most urgent issues. At present, the market position of the company is well but it can change
any time because the sector is very much sensitive. Considering the current market position of
the company, it has been found that the company is in good position because of its strengths. As
a marketing consultant, I have shown the Kingfishers current competitive market position,
advising the company to plan and implement about the competitive intelligence system, and
recommending about marketing campaign strategies. If the company follows these
recommendations, it has great chance to get benefits in the future.

Contents
Executive summary.......................................................................................................... 1
1

Introduction............................................................................................................. 2

Company overview.................................................................................................... 3

Current competitive market position............................................................................... 3

3.1

SWOT analysis............................................................................................... 4

Competitive intelligence system.................................................................................... 6

4.1

Clearly define the basic objective of intelligence...........................................7

4.2

Data about external environment..................................................................7

4.3

Appropriate interpretation of data.................................................................7

4.4

Intelligence publicizing.................................................................................. 7

Marketing strategies for future campaigns........................................................................8

Potential benefit of proposals...................................................................................... 10

Conclusion............................................................................................................ 12

References................................................................................................................... 13

Introduction

At present, the business world is more competitive than it was before, so choosing a competitive
strategy to get better advantages over rivals is very crucial. To remain in the market with
profitability is too tough for any company. As a marketing consultant, I have analyzed my client
organization named Kingfisher plc and its current competitive market position, advising them
which strategy should follow to achieve desired goal and profitability, help to SWOT analysis,
target market analysis, and which marketing strategy should follow in the future. The kingfisher
company conducts its business in eleven countries. For this reason, same strategy is not
applicable for all the country, so it needs applying different marketing strategies for different
countries considering the demand of individual people. The Company is in strong market
position compared to its competitors and also growing rapidly and the growth in economic profit
is $74million.

Company Overview

Kingfisher is the third largest world as well as British multinational retailing company which
offers products for home improvement in Asia and Europe. It conducts 1176 stores in 11
countries and it is listed in London Stock Exchange. The company was founded in 1982 and
belongs to the retail industry. The products of the company are home furnishings, garden
supplies & plants, hardware and home appliances. Covering the market with special strategy, the
company has become famous in the world and its operating income was 781 million in 2013.
The Company is in strong market position compared to its competitors and also growing rapidly
(kingfisher.com,2014).

Current Competitive Market Position

Where people are interested to spend a handsome amount for decorating their home, there is only
few well known manufacturers of home improvement appliances that have made the industry
attractive. Kingfisher has opened new 68 stores in different countries as its target in this year. Its
B&Q, main garden center retailer and YID is double in size than its closest competitors. The
Company is in a defensible position if we compare it with other similar company. Though the
company is in better position through innovation and acquisition, it needs to develop its current
technology and R&D process. Kingfisher is always bringing affordable products such as air
conditioner, dishwasher, clothes dryer, freezer, refrigerator, kitchen stove, water heater, washing
machine, alarm clocks, TV set, cameras etc for customers besides giving them home decoration
related advice. As it tries to be restorative to environment as well as not to waste anything it is
having a positive impact on its business. The company has become able to make more profit by
reducing its cost. One survey found that in the last three years the company has saved
approximately $30 million just by recycling and improving energy efficiency. Most of the home
appliances companies are not using recycling so it is giving the company competitive position in
the market over its rival groups. Its energy saving product & service helping customers to save
up to 7 TWh equals to $450 million every year. So customers are normally choosing its products
as they are both economic and quality products. Earnings per share of Kingfisher in the last year
have increased (Dunning, 2013). Because of quality product and reasonable price, its market is
becoming larger every year. Its acquisition of different other companies is the main proof of its
better market position. Its total sales density has increased by 75% in 2013/14 and the common
product sales have increased to 9% where it was 8% in 2012/13. In 2014/15, it wants to achieve
2% organic growth (Kuznets, 1966). In this year, one store has received planning permission
whereas other six is expecting to have also. It is so tough for other companies to grow as fast as
Kingfisher. Without capital expenditure, its free cash flow is $559 million and growth in
economic profit is $74million. It has been included not only in Dow Jones sustainability index
but also in FTSE4GOOD with highest rating in retailer industry. Like the previous year
according to CR index in this year also it is going to achieve Big Tick Award as well as top
employers reward in the field of remuneration, career development (Salvayre and Davey, 1997).

3.1 SWOT Analysis (Here you should use porters five forces model for
analyzing current competitive market position. SWOT is not appropriate
here)
By analyzing the SWOT of the Company, the followings are found:
Strengths
Loyal customers

Weaknesses
Low market share

Opportunities
High growth rate

Threats
Heavy competition

Brand

Low R & D

Innovation

Political instability

Acquisition

Cheaper technology

Pricing
Supply chain
Strengths

The company has already achieved customer loyalty by providing quality appliances. The
strengths of Kingfisher are brand value which attracts the customers, supply chain as well as
pricing strategy. In this year, the company has achieved Guardian sustainable award 2014 for
continuous sustainability (Bohm, 2009).
Weaknesses
The Company holds low market share which hampers the overall activities of the company and
lack of enough research and development would be the obstacles to improve the products.
Opportunities
The Company has acquired other companies like Castorama of Europe, B & Q, Comet etc. for
its high growth in the market over time. Through the innovative process, the company can go far
way.
Threats
Kingfishers success is affected by political instability of different countries where it operates.
Nowadays, the number of competitors is increasing in the industry as the products demand is
huge to the customer.

Competitive Intelligence System

Competitive intelligence refers to the task of analysing, gathering, and distributing intelligence
about the customers, competitors, product and any aspect of the environment that help the top
level management in making strategic decision (Gilad, 2004). To remain competitive, every
company needs to have continuous knowledge about what is going outside the business.
Competitive intelligence which means analysed data is just like radar for a company to predict
future and formulate decision on ethical ground. It helps management to identify the scope of
new business and the same time to bit rival groups using new product and technology. The
industry where Kingfisher plc belonging is very much lucrative to the manufacturers, because
every person is interested to decorate their home attractively as they can and for that intension
they are willing to forgo lump sum amount.

Figure: Competitive Intelligence system of Kingfisher plc

4.1 Clearly Define the Basic Objective of Intelligence
Firstly the company has to decide what is the purpose of its data collection? Kingfisher PLC
wants to achieve market leadership by providing convenient quality product to its customer. So

its data collection will be on basis of its objective that is how it can achieve market leadership
(Livermore, 2013).
4.2

Data about External Environment

Kingfisher has to collect information about its customer needs, competitors market position,
competitors product value to customer, innovation of new technology, market economic
condition etc. The company can collect information from its financial report, secondary data,
primary research, social media etc. Kingfisher plc also collects information about their
competitors from their tweets, and videos in social media to understand what creates interest
among customers about competitors product. In case of data collection, the primary source can
be most useful. The company can use the opinion of the market specialist preparing a
questionnaire and taking feedback from them. Direct customer judgement can be taken about
what change the company should bring. Kingfisher needs carefully analyzing the market trend,
brand awareness, brand preference of the customer as well as pricing, acquisition, product line of
the competitors (Mercer, 1998). Political stability also affects business and so data about political
condition have to collect. Through primary survey practically kingfisher plc can collect reliable
information.
4.3

Appropriate Interpretation of Data

Kingfisher plc has to collect the same data like other market researchers from the market but
interpret in such a way that will predict what the company should achieve leadership in the
market. They can match their elucidation with the prediction of market specialist to judge the
correctness of their analysis. The analysed information will also recommend what new
technology, product redesign is required.
4.4 Intelligence Publicizing
At last company needs to publicize the gathered information in right time. That means sending it
to top level so that it can take decision about what should do actually for strongly sustaining in
the marketplace.

Marketing Strategies for Future Campaigns

The purpose of using marketing strategy is getting competitive advantage as well as increasing
sales of business. Campaign is a useful tool to boost up sales of a new product or to introduce a
new product (Bradley, 1991). A company should select such a marketing strategies in its
campaign that best suit its budget and purpose. All marketing strategies are not appropriate for all
countries. As Kingfisher is a multinational retailer, it have to sellect such campaign strategies that
will need relatively low cost but will serve for the best purpose.
Using Questionnaire for Customer Feedback
Kingfisher plc uses questionnaire to know where is the lackings of their service as well ws what
their actions should be for providing better services. They can use open ended questions that
enable the customer to express their opinion without limitations. Customer satisfaction should be
judged and decision should be taken whether it should launch new product or improve existing
product line (Grusa, n.d.).
Celebrities
A common phenomena is that people want to use the product his or her favourite person using.
Kingfisher can take the help of celebrities who are very popular with their followers and have
very much potential to influence their lifestyle. For example, it can run its campaign with an
aged celebrity who will say that I am using Kingfishers products for a very longtime. It is to
remind that, a good image can always fetches benefit everywhere and so Kingfisher can use this
strategy to have their expected sales to generate revenue.
New Product Promotion
Before launching a new product, the company should run a promotional campaign so that it can
know the desire of market for the product. Creating emotional appeal is too tough but very
advantageous (Bahm, 1959)
Providing much more home improvement advice services
Kingfisher plc increases its advisory service about well furnishing of home and thus can achieve
better market position. Many company provides home appliances but most of them do not not
provide any advisory service, so it can be a way for reaching in a better competitive position.
Social media

The most effective media nowadays is the social media like facebook, tweeter where it can run
its campaign giving the advertisement of its product to attract people (Gifford, 1999).
Visiting door to door
Door to door leaflet distributing can be effective as it will give the opportunity to have
knowledge about its product. Moreover sales representative can explain the advantages of using
Kingfishers product. It must keep in mind that during campaign excellent representation of
products advantage is a must to draw the attention of target customer.
Feel good campaign
Good perception about a company can be very beneficial for a company. It results in increasing
sales as well as profitability for the company. In future campaigns, Kingfisher has to be careful
in making positive perception among the people about it by clearly showing how it is serving for
the well being of the society as well as humanity. The Company recycles useless product to
produce new product and at the same time helps the environment not to be polluted. When
people will come to know about this from the campaign, they will obviously like the company
and buy its products making the campaign purpose successful.

Potential Benefit of Proposals

Benefits of using social media or online campaign strategy

Reaching to more people at the same time is possible only by using online campaign or
internet access. It may be easy for a company to operate face to face campaign in a country.
But for Kingfisher it is impossible as it has retail store in eleven countries other than its own
national border. So the best way is advertising its product in online and in different social
media to make people aware about its product with features (Mendelberg, 2001).
Online campaign is less time consuming helping to get update response quickly from the
target market. If kingfisher wants to extend its product line and wants to know which product
to develop, it can do it easily by using online survey from customers (Bimber and Davis,
2003).

 Online campaign can reduce campaign cost, so there is no need to print papers, leaflet and
other things.
Benefits of questionnaire
Within the country Kingfisher can use questionnaire for having an idea about their
current market position as well as customers need. It can ask its customers to identify
where improvement is necessary and what is the future expectation of the people about
the company. Their opinion will help the company not only to take future decision but
also to perform better.
Using questionnaire, customers opinions are gathered on the same questions that help to
know the actual position of the companys products in the marketplace.
Benefits of taking celebrities in campaign
When someone will see that his or her favorite one is using Kingfishers furnishers in
decorating her home the person will generally be influenced to buy Kingfishers furnishers
for his own home. Say, if people see that jukerburg is using Kingfishers chair then what
will happen? Most probably all the people will be willing to purchase its products as they
will have a good idea about the company. Instant credibility for the company can be
bought by celebrities as well as their purchase decision can be influenced.
Brand awareness refers to the fact that how many people are familiar with the brand and
its company. It will take very little time to spread a brand and its products to the target
market if any famous celebrity makes its campaign. When kingfisher launches a new
product it can make its promotion by celebrities where the celebrity will explain the
features as well as advantages of the new product. For example Kingfisher wants to
introduce new garden supplies which price is relatively high. It will help the company to
make the product easily known to people if it uses any famous one for campaign.
As its brands B&Q, Castorama etc. is already popular with people so to attract new
customers in new area it can use celebrity campaign.
Benefits of new product promotion

 Before launching a new product if Kingfisher plc operates a promotional marketing

campaign, it will be able to gather customer feedback about the new product. If it finds that
the market is huge for the new product then it would launch the new product. Promotional
campaign helps the company to decide whether it should run the new product or not.
If there is any mistake in product, it can be corrected in the initial stage on the basis of
customer data. Such corrective action will save the company from great loss that could occur
because of the mistake in the product.
Benefits of providing home improvement advice services
There are very few companies who provide advisory services on how one can beautify ones
house. As Kingfisher is already providing this service, it should increase its service level so that
the customer will be attracted to the company. Cause at the same time, they will get advice as
well as home improvement equipment in the same place (Gladstone and Bottomly, 1984).
Benefits of door to door campaign
Kingfisher plc can use door to door campaign for local market customers as it is the cheapest
form of advertising. The sales person will distribute leaflet that is a list of all kinds of product
the company currently offering to its customer. Like a list of all home appliances -bed, basin,
table etc will be there with their features and prices. As well as sales representative will
describe the advantageous of buying its product. It will increase companys sales and revenue
in the local market.
When salesman will physically go to ones home, willing or unwillingly she have to hear
about the product. Promptness of salesperson can increase sales in that case if he can smartly
represent the products with their advantages.
The company will get quick response from such procedure.

Benefits of good feel campaign

Kingfisher has been awarded different awards not only in this year but also in previous years.
While campaigning, the company will describe its contribution to the society people will have
good feeling about the company that will lead them to buy the product of the company.

Conclusion

Not all the companies are successful in their own sectors success, it depends on different factors.
Kingfisher is such a company that is not only a successful company but also a model for other
companies. Its strong marketing strategy and business environment have taken it to the pick of
success. To go far way and maintain its reputation as UKs leading retailer company have to
collect and analyze data carefully as well as need to predict future promptly. Kingfisher plc
should depend on primary data collected directly to understand the need of its customers. As a
multinational company kingfisher can exercise online campaign, door to door campaign, or
campaign with celebrity. The company has to conduct its campaignin such a way so that it can
reach to its customers as well as possible. If nothing negative happens, it can be expected that the
company will expand through acquisition in the future and will preserve its leading position.

References
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