International Marketing Report: Harvey Nichols
Mar 13,23Question:
Case information: Harvey Nichols
Harvey Nichols to open in Qatar
Source: Mintel 09-12-2014
The premium department store will open an 80,000 sq ft store in Doha in 2017.
The Harvey Nichols store will be opened in partnership with Qatari business group, Saleh Al Hamad Al Mana, in the Doha Festival City shopping area. This will be Harvey Nichols’ eighth international store.
Stacey Cartwright, group chief executive of Harvey Nichols, said: ‘Doha is an exciting market for Harvey Nichols due to the significant growth we are seeing in the country. Research tells us that our brand translates well in Qatar as well as with the Qatari customers when they shop in our home market.’
Since Harvey Nichols first opened in Knightsbridge in 1831, it has led the way in sourcing the most desirable and cutting-edge designer brands. Recognised as the UK’s premier luxury fashion retailer, Harvey Nichols is internationally renowned for its expertly edited fashion and beauty merchandise, premium food and wine offer and award-winning restaurants.
Harvey Nichols has seven stores within the UK and Ireland, consisting of four large-format stores in London, Edinburgh, Leeds and Manchester, and three small-format stores in Birmingham, Bristol and Dublin. The new beauty concept store, Beauty Bazaar, Harvey Nichols, opened in Liverpool in November 2012.
All UK stores have luxury Foodmarkets and Restaurants, Cafés or Brasseries. Harvey Nichols also owns and operates OXO Tower Restaurant, Bar and Brasserie on the South Bank in London.
In addition to this, there are seven large-format stores overseas: two in Turkey (Istanbul and Ankara), one in Riyadh, one in Dubai, two in Hong Kong and one in Kuwait. Harvey Nichols Baku, Azerbaijan, will open in summer 2014. Its eighth international store will open in Doha, Qatar in 2017.
Harvey Nichols stores offer the ultimate fashion experience. Seen as ‘the place to be’, Harvey Nichols is the club that doesn’t require a membership. Exclusive, niche and established labels sit alongside accessible everyday collections, offering customers the must-have edit for all their wardrobe needs – from everyday to extraordinary.
Answer:
Introduction
Table of Contents
Introduction. 3
Overview of Case. 3
Situational Analysis. 3
Macro Environment Analysis. 3
PEST Analysis. 3
Micro Environment Analysis. 4
SWOT Analysis. 5
Conclusion. 7
Introduction
The aim of this report is to observe the business activities of Harvey Nichols company which is a luxury and fashion retail chain in the global market. This report is going to analyse the marketing plan along with the strategies of the company and also proposes marketing strategies for the company to target its global market.
Overview of Case
Stores of Harvey Nichols offer a unique experience to customers (Harvey Nichols Group Limited, 2022). This company has decided to open a new store in Qatar in 2017. This store was a premium departmental store (AFP-Relaxnews, 2022). This company treats its customers with the help of quality luxury brands. Regarding this assignment, this section of the report presents an industry analysis to explore the opportunities and challenges to the organization.
Situational Analysis
This analysis is conducted with the help of Macro and micro environmental analyses that are presented below:
Macro Environment Analysis
PEST Analysis
This analysis is conducted with the help of PEST analysis that is presented below:
Political: Qatar is an emirate that is a nation without democracy. This country claims to be building a government but does not yet allow political meetings or national decisions. This ensures the business certainty so that the firm may work efficiently without interference from political parties. Harvey Nichole often reduces its desirability (Rahman, 2021). It expands the market. The economies of scale policy of the company benefit bigger markets.
Economic: Qatar’s economy is growing which includes interference of government along with the private sector. It is the most economically free nation in 2015. The labour and trade freedoms have improved. The nation has the highest living standards. To become a financial and logistic powerhouse, Qatar’s government has opted to embrace open-market regulations (Rahman, 2021).
Social: Most Qataris dislike premium brands. They like premium brands. Qatari customers have complex wants. They want to show off their affluence by collecting premium labels (Rahman, 2021). Luxury goods demand is increasing in the country that helped the companies to increase their market share.
Technological: The enhanced technology element enables Harvey Nichols to achieve higher economies of scale in the manufacturing process. The way consumers use smartphones and tablets and love to purchase online will help the company to reduce the cost of infrastructure and increase overhead savings (Rahman, 2021).
Micro Environment Analysis
Following is the microenvironment analysis for the company that is presented below:
Company: This Company operates a top premium clothes shop. The organization’s mission is to deliver the greatest fashion, home, beauty and cuisine experience. For this company, teamwork, Commitment, recognition, professionalism, and honesty are essential principles.
Customers: Brand aficionados are the target demographic. They prey on both sexes. This brand caters to clients with high social positions and discretionary wealth.
Competitors: Company has a leading competitor in the Qatar market which is known as the United Fashion Company.
Suppliers: For making the supply to the company, suppliers need to follow ethical ways to contribute to its success. The company gets raw materials and finished products from several vendors which help the company to flourish its business (Harvey Nichols Group Limited, 2022b).
SWOT Analysis
This analysis is carried out to explore opportunities and threats of the company that are explained below:
|
Strength Global experience Luxury product brand and satisfied experience of customers in regard to value for money Emphasis over good customer care |
Weaknesses No stores in emerging markets Premium products and needs designer’s personality Limited stores in limited countries |
|
Opportunities Strategic cooperation with other similar organizations in the new marketplace; Opening of new stores at new locations |
Threats Changes in the global market due to Covid-19 has changed the purchasing ability of customers; Reduction in demand for luxury items; No focus on competitors’ position |
As per the above presented
Specific Challenges to Company
The high wage salary structure in Qatar makes the firm more prominent for luxury goods. But the presence of the company in a few global countries may affect the growth aspects in the future. It is because the rising number of Covid-19 cases in the gulf countries affected the demand for luxury products in the global market. Further, the presence of almost every famous luxury brand in Qatar has also presented tough competition in the market which affects its competitive strength along with capital growth. But the emerging markets in India and China has not been addressed by the company.
Entry Strategy and Market Potential
The success of a company in the market needs an effective business strategy along with the market entry strategy that may influence the sales of products in the market (Borneck, 2016). According to the business performance of the company, the market of Qatar is the best because of the introduction of the retail plan by the company to its retail industry. Further, the differences in the culture of the company and its target market, only franchising mode of entry would be effective for the organization as this strategy does not need the make investment in the new market but it facilitates the company to give privilege to the franchisee to utilize trade names, trademarks, business models, business plans and business activities of the franchisor that directly influence the performance of the company effectively (Borneck, 2016). With the help of this strategy, Harvey Nichols would be able to win the market competition.
Marketing Mix
Product: Harvey Nichols targets its customers with the help of luxury retail products such as footwear, clothing dress and accessories, which help it to attract people towards the products and gain competitive growth.
Price: the company has used a premium pricing policy to sell its products to customers (Hanna and Dodge, 2017). this pricing method allows the company to make its image among luxury brand lovers that makes them feel above general people after consuming the products.
Place: The Company has established stores in UK and Ireland along with different EU member countries. This company has also started to sell its products to customers with the help of its websites.
Promotion: this company focuses on advertisement and promotions to make an effective image of products in customers’ minds. For example, the company uses fashion magazines and newspapers to promote its products effectively. The company also uses in-store displays for promoting the different designs of the products to shop visitors. It helps the company to make a memorable image of the company.
Target Market:
A target market is a section of the market chosen by the company to sell products and gain expected market growth (Weinstein, 2013). Harvey Nichols may target high-spending clientele. People who spend a lot of money at Harvey Nichols shop there regularly. The target market should be high social position, high discretionary money.
Demographic Segment: For the company, profession, Income, and age are effective aspects to segment the target market effectively. For the product of the company, the age group between 25-34 is effective for the company that has discretionary income.
Psychological Segment: Success of the brand in a target market could be possible for the company when it will target hobbies, attitudes, interests and lifestyles of the customers.
Conclusion
In conclusion, Harvey Nichols has built a global brand image in the luxury product segment. This company targets shopping lover customers. The idea of a global market entrance strategy such as franchising will help the company to raise cash. The assessment of the selected company effectively described the real performance of the company in the market.
References
AFP-Relaxnews. 2022. Harvey Nichols to open Qatar location. Retrieved from https://in.fashionnetwork.com/news/harvey-nichols-to-open-qatar-location,648135.html
Borneck, T. 2016. Evaluation of Franchising as a mode of entry by analyzing Subway’s expansion strategy. GRIN Verlag.
Hanna, N. and Dodge, H. 2017. Pricing: Policies and Procedures. Macmillan International Higher Education.
Harvey Nichols Group Limited 2022. Introduction. Retrieved from https://www.harveynichols.com/int/info/help/about/code-of-conduct/
Harvey Nichols Group Limited. 2022. New to Harvey Nichols. Retrieved from https://www.harveynichols.com/
Rahman, M. 2021. PESTEL analysis of Qatar (Qatar country profile). Retrieved from https://howandwhat.net/pestel-analysis-qatar/#:~:text=Qatar%20is%20one%20of%20the,13%25%20of%20the%20global%20supply.
Weinstein, A. 2013. Handbook of Market Segmentation: Strategic Targeting for Business and Technology Firms. Routledge.
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