Background of Next Plc

The marketing refers to the process of promoting products and services for grabbing the attention of customers and ensuring the consistent growth of the business in the international marketplace (Morgan, 2012; Slater, Hult and Olson, 2010). The marketing includes the promotion, public relation, advertising and sales (Baker, 2016). In this context, the present report consists the promotion mix of Next plc, which is a UK based clothing brand that sells the exclusive range of clothing and accessories for men, women and kids.

Along with this, the Next plc also offers the book and home decor product globally in 70 countries with the aim to offer a high-quality product with fashionable designs to the consumer at suitable pricing strategy (Next Plc, 2018). In this context, the different promotional techniques such as advertising, direct marketing and sales promotions are critically analyzed with the help of several studies. Apart from this, the promotional models including AIDA, push and pull, and above/ below the line are analyzed in the context of Next Plc.   

Background of Next Plc

The Next plc was found in 1864 by Joseph Hepworth and continuously growing across several countries. In the growing stage the Next plc firstly brought Kendall and Sons, the womenswear retailer and enlaces the collection with woman wear. It grew the business with 600 stores in Britain and called Next. After this business expansion, the Next continuously growing by adding variety of products for offering the customer likely menswear, home interior products and exclusive range of children wear. In this series, in 2010 Next supplies the clothing and homeware products for London 2012 Olympic and Paralympics Games (Next Plc, 2018).

It created a big opportunity for Next plc to promote the products in the global public and increase the demand for Next’s product in the public (Annual report, 2012).  Apart from this, in 2013 Next started the online business across in 70 countries such as Africa, Europe and Asia and uses many marketing strategies through it offers many services to the customer such next day delivery and more attractive flagship store for attracting the customer towards the Next. In this context, Next operates 200 franchising stores for reaching the target customers (Financial Times, 2018). Similarly, the Next targets the age range between 20 to 40 and middle-class market segment by offering the affordable price of the products (Reference for business, 2018). It also helps Next plc for retaining the customer and ensures the successful long run.

Advertising

The Next plc gives employment to 28.32K employees globally and treated equally all the employees of the organization through which it ensures the 14.59% profit margin (Maccroaxis, 2018). However, the corporate social responsibility is also important for the business to elevate the market reputation. In this context, the Next plc has 44% females in the Board of directors (Next plc, 2018). Apart from this, the company have a higher ranking in the CSR. In this context, Next plc continuously enhances the engagement with key stakeholders as supplier, customers, employees, community, shareholder and government. It reveals that the company has active participation in the CSR which enhances the reputation of the company in the general public (refer to figure 2)

 Next plc constantly develops the product range to enhance the performance the product of the company in the public. Further the Next plc acquires the third-party brand Lipsy for enhancing their exclusive womenswear collection. Along with this, Next plc set to open a new flagship store in the shopping centre at 120 Oxford Street which is nearby the Tottenham Court Road Tube station. It is helpful for Next to attract the Crossrail’s travellers for visiting the store (Santamaria, 2016).  On the other hand, the Brexit negatively affects the sales of Next plc’s stores and decreased the sales by 8.3% but the online presence of Next increased the online sale by 5.7% which helps to minimize the impact of Brexit (BBC News, 2017).  Therefore, the company has survived in the typical conditions rise from Brexit by selling the product through different channels and processed the aim for continuous growth.      

The promotional mix includes the blends of several of promotion techniques such as advertising, sales promotion, personal selling, public relation and direct marketing (Sunday and Bayode, 2011; Obasan and Yusuf, 2012). Every promotional mix technique attracts public in a different manner. In this regard, Next Plc, the multinational clothing brand uses the promotional mix for enhancing brand awareness in the public. The promotional activities by Next plc are mentioned below-

Advertising

 The advertising is a business strategy which persuades the customer for buying the product or services (Malär, Krohmer, Hoyer and Nyffenegger, 2011). The different modes for advertising like online or offline advertising are helpful for enhancing the public interest (Aaker and Biel, 2013). For example, Next plc invests a huge amount money in online advertising to attract a larger mass of the public. In this regard, the Next plc elevates the sale by increasing the investment in the online business to 25% because of in 2017, the sales went down to 7.9% and negatively affected the profit which falls by 24% (Hammett, 2018).  

Sales Promotion

This is because online advertising is helpful to retain the attention of the large mass of public in minimum time. Along with this, the company also uses many advertising techniques such as broachers and fashion magazines to promoting the exclusive apparel in the public (Zhang, 2015). In this context, Valette-Florence and De Barnier (2013) mentioned that print media is a cost-effective promotional tool for promoting the products in target market with more engagement with the public in comparison to online advertising because the public gives more importance to reading magazines rather than website surfing.  

 For offline advertising, the Next plc unveiled a new campaign with seven dancers to promote the different outfits in public (Whitelocks, 2011). In this context, Huang and Sarigöllü (2014) asserted that adverting is a communication tool which represents the brand personality to the consumer and other marketers. Apart from this, to attract the public at the Oxford street the Next modernize the front view of the store and turn from simple and old view to the frameless glass covered front for promoting the new image of Next in public (refer to figure 3).

The front window of store shows the latest and elite apparel for man and women through the mannequin and high quality of images of the model wear Next’ exclusive range of clothing. This authentic front view of store encourages the public to visit the store and buy fresh products. Owing to this, by using the different mode of advertising the Next plc reveals the brand personality in the public as well as in the competitors.

The balance between online and offline advertising is more important for enhancing online and in-store selling (Sethuraman, Tellis and Briesch, 2011). In this regard, the CEO of Next plc focuses on the integration of the online and offline store system through which shopping becomes easier and improve the competitive edge of the company (Hammett, 2018). However, sometimes, the advertising negatively affects the brand reputation and creates the causes for business losses. Apart from this, the advertising needs the proper amount of investment; thus, it is the responsibility of management to plan proper advertising activity and increase the profitability of the company.

Sales promotion

Sales promotion is a short-term approach to promoting the product in public  (Chaharsoughi and Yasory, 2012). The sales promotion includes two types of promotion activity one is consumer promotion and another is trading sale promotion. In the consumer sale promotion, the promotion activity is created by considering the end user of the product such as discounts on the product, sample testing and gift vouchers (Teck Weng and Cyril de Run, 2013). This type of sales promotion fosters the customer for purchasing the product. In this regard, the Next plc offers to discount on several products such as kids clothing, men clothing and 20% off on the shopping with the friends at Next store for boost up the sale (Mailonline, 2018).

Direct Marketing

Nonetheless, the consumer promotion helps for maintaining the inventory effectively because the outdated stock sells quickly in discounting which reduces the inventory cost and resulted in profitability (Teck Weng and Cyril de Run, 2013). Therefore, sales promotion increases the sales and managing inventory in an effective manner. Apart from this, the company offers half of the price sale on the apparels of Next and uses a promotional campaign which shows the awareness of sale on products in the pets of the family (Campaign, 2017). By using this campaign, the Next targets the customer’s awareness and forced them to grab the Next’s product at the half price.       

In the present era, it is necessary for a clothing business to motivate the distribution channel for enhancing the sale of products because they directly interact with customers (Pearson, 2016). In this regard, the trade sales promotion is the promotional activities which are created by considering the dealer, salesperson and distributor of business (Odunlami, and Ogunsiji, 2011). In this type of promotion activity, the company offer incentives to the dealer for boosting the sale. For instance, the next plc motivates their sales executive by providing them extra monetary benefits to sales executive for over target sell. Apart from this, the Next plc also offers seasonal discounting to the distributor for encouraging them.  

Personal selling

Personal selling leads the direct interaction with the customers. In this type of promotion technique, the salesperson uses interpersonal skills for forcing the customer for buying the product (Liao, Chen and Hsieh, 2011). This type of product promotion activity is more influencing because the sales personnel involves their personal opinion of the product and convey the customer that how product become beneficial for them. In this regard, Poon, Albaum and Shiu-Fai Chan (2012) stated that the salesman represents the product in an effective manner to the customer and enhances the satisfaction of the customers for purchasing product.

In this manner, the HR manager of Next plc hires the skilled salespersons and enhances the existing sales executive’s skills by providing the training and development program (Next Careers, 2018). On the other hand, the personal selling also helpful for elevating selling of brand-new products because the with the help of personal selling, the skilled sales executive publicized the product to the customer and enhances the demand of new product (McClaren, 2013).  For this purpose, the Next plc launches the new product in store under the selling of expert sales executive.    

Evaluation of Promotional Mix Strategies

In the Next’s store, the sales advisor and customer service representative create the customer’s general shopping experience to a wonderful experience (Next Careers, 2018). These types of customer services are helpful for retaining the loyal customer for a long time. Apart from this, for online selling, the Next provide the mobile app and website for selling the product with improved communication with the customer (Hobbs, 2016).

In the promotion of products, the celebrity endorsement is more helpful for enhancing the awareness of public for the product and forcing them to buy the product. This is because the celebrity has a large amount of follower which tries to follow the lifestyle of the celebrity such as dressing, hairstyle and makeup (Spry, Pappu and Bettina Cornwell, 2011). In this manner, the Next also uses the celebrity endorsement for promoting the product. In this regard, Joan Smalls, one of the top models for advertising promotes the Next’ product at the homepage of the website. Hereby, the Next appoint Arizona Muse as brand ambassador from 2011 to 2013. It reveals that the Next uses each type of promotion activity (Marriott, 2014).       

Public relation

The public relation (PR) is a communication process used by an organization to build a healthy and beneficial relationship with the target audience and enhance the brand understanding (Daymon and Holloway, 2010). The main purpose of building PR is creating a positive brand reputation in the stakeholders of the organization. In this regard, for creating public relation the organization use Word of Mouth (WOM) marketing by consisting social media and other communication channels to interact with the public (Gu, Park and Konana, 2012).

In this way, the liable employees of company upload the video related to the company on YouTube and gain the response of public from the publicity of the company. This type of promotional activity has more influence on the customers in comparison to advertisement because the customers have a great belief in the friends and family’s suggestion rather than conventional advertising (Sweeney, Soutar and Mazzarol, 2012). In this manner, the Next plc also focuses on the PR by enhancing the relationship with the public by conducting the several social activities and uploads the video on social media.

Direct marketing  

 Through direct marketing, the company establishes direct contacting with the target customer group instead of an indirect medium between the customer and company and determines the best result of marketing (Yeshin, 2012). For this purpose, the company uses several of connecting medium such as direct mail, SMS, telemarketing, social media and exhibition in trade shows. This type of promotion activity also helpful for maintaining the marketing budget because of the absences of intermediates (Verhoef, Kannan and Inman, 2015).

Theoretical Models Applied to Next Plc’s Promotional Mix

Apart from this, direct marketing creates an easy way for the customization of promotion activity and bring the valued relationship with the target customer (Yeshin, 2012). Owing to this, direct marketing has many advantages for the product promoting company. In this manner, the Next plc sends mail to the customers for the new product launch and any discounting scheme offer in the store which creates a new business opportunity for Next to offer product according to the market demand.

In the present era, it is important for an organization to create different promotional strategies for promoting the product with minimum investment and greater outcome of promotional activities (Allender and Richards, 2012). In this regard, the several promotion models are mentioned below which is used by Next Plc.     

  The AIDA model helps the management of an organization for achieving promotional objectives by effective thinking and putting feeling in the promotional activity (Wijaya, 2015). This model divides the promotional activity into four components including attention, interest, desire and action. Every buyer goes through each component of AIDA mode as it begins with their desire to focus on a particular to its final purchase decision (Rawal, 2013). In this manner, the Next Plc gains the public attention through its lucrative advertisement in the magazines and store display (Zhang, 2015). For example, the Oxford Street store of

Next plc is updated on the basis of new arrivals and accordingly which gain the attraction of buyers (Bere, 2018). However, the model itself indicates that attention leads to interest through which buyers want to know more about the specific product or service. This interest is generated through offering more and more information related to new arrivals, discount and any special event which may be organized by the brand. For example, Next plc announces about its new arrivals on the online application before the apparels actually arrive at the online or physical store.

The Next plc also use unconventional advertising for publicizing the great discount on the product by showing the awareness of family pet for new discounting in TV promotion. This keen interest of potential buyers generates their strong desire to go for the promoted products or services which in turn influence them to finally take the purchase decision. In this context, the Next plc gives timely information about new discounting by email or SMS to the target customers and enhances their wants for the product. Along with this, it shares the success of the high demanding product to the customer for turning their thinking for the product from like it to want it. This desire forces the customer for making the final decision for purchasing. Therefore, by using the AIDA model the Next plc enhances the public awareness for new arrivals and encourages them for buying.  

Conclusion

Above/below the line

The above and below line model divides the promotion activity into the two segments which are above the line and below the line. Under Above the line, the promotion includes social networking, magazines, print media, TV and radio to promote the brand in conventional media (Mayer, 2011). For instance, the Next plc targets a large mass of audience by advertising the product in the fashion magazines. By using this type of advertising, the Next plc enhances the reputation in the market by enhancing the organization’s responsibility in the advertising. In this regard, the Next plc offers the variety of products for the different needs of consumers. This is helpful for building the brand image because the consumer communicates for the availability of a product at the store and gives benefits to the brand.  

Below the line, advertising includes the specific penetration of advertising activity which offers easy control over the advertisement activity (Mayer, 2011). In this manner, the Next plc uses outdoor advertising for the promotion of the products. By using this type of promotional activity Next plc promote the product at the public place and reaches a particular group of the consumer (Whitelocks, 2011)

Apart from this, the company also sends tailor-made email and SMS which are created according to the need of a specific group of customers. Owing to this, the Next plc ensures the attentiveness of targeted public for the brand and enhances the connectivity with the target audience. However, outdoor advertising reveals a limited message to the target audience in a very short time (Iveson, 2012). Therefore, proper use of above / below the line advertising in the promotion of products, the Next plc elevates the connectivity with a large mass of public as well as target consumer. This is also helpful Next plc to maintaining the public relation because of the connectivity with target audiences.

Push and pull promotional strategies

The push and pull strategies are the combination of two different strategies wherein the push strategy promotes the product in the lower level of the institution in marketing and pull strategies promote the product directly to the end users of products (Daine, Winnington and Head, 2011). The push strategy based on the sale of the products and most of them are used when the business is newly established and develop the market whereas the pull strategy is marketing oriented and a great use for building the extra demand of the existing product .

References

(Chiou, Wu and Chuang, 2010). For example, the Next plc offer discounts to their distributors for promoting the sale of the product and encourages personal selling by rewarding the sales executive for beyond the target sells (Next plc, 2015). By offering discounts, the Next plc sells a high volume of product. However, the discounting for distributors reduces the profit of the company because the fixed amount is given to the distributors.

 The customer demand is important for the elevating the sale of the product (Li, Sun and Montgomery, 2011). In this regard, the pull strategy is helpful for enhancing the consumers’ demand by establishing direct contact with customers (Alexander, Rhodes and Myers, 2011). For example, the Next plc uses many TV promotions for elevating the public attention for Next’s products and services. However, the TV Ad does not focus on the target customers; thus, the only TV promotion cannot be successful for the success of any retail business (Danaher and Rossiter, 2011).

Owing to this, the Next plc uses the PR to establish better connectivity with the potential buyers for enhancing the market demand. Apart from this, by using pull promotional strategy, the Next plc delivers the product to the customer in minimum time. Nonetheless, this strategy does not help when the supply chain is not integrated which occurs the problem in supply chain and negatively affect the transportation of the product.

Conclusion

 On the basis of the above report, it has been concluded that the promotion of the product is most important for an organization for increasing the demand for the product in the market. The Next plc uses the effective promotional mix for promoting the product in the public. The active participation of Next plc in promotion enhances the selling of products. Apart from this, on the basis of promotional mix analysis of Next plc, it can be concluded that the store design also plays a major role in the attraction of the public for a store visit. On the other hand, the Next plc enhances the investment in the online promotion as well as the offline promotion of the unique products.

Similarly, the motivation of salesperson is also important for elevating the sale and creating a healthy relationship with the customers. However, the PR is the main focus of Next plc for enhancing the brand image in the public. Even, the regular contacts with the potential customers through email or messaging are helpful for an organization to retain the loyal customers. At the same time, on the basis of the strategic analysis, it can also conclude that, by using different promotional strategies the Next plc enhances the customers’ desire for purchasing the product. Therefore, the management practices for promoting the organization’s products play a significant role in the changing of buyer’s behavior towards the product.  

Appendices

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