Next Marketing Strategy Case Study Example | Topics and Well Written Essays - 5000 words

Next Marketing Strategy - Case Study ExampleThe connection designs, manufactures and sells clothes under the brand name Next and targets people between the age group of 20 to 40. Since its expansion drive in 1999, the gild had to close galvanic pile its international outlets that were managed by it directly, and has since then concentrated on franchising options for the overseas markets. It operates in well over 20 different countries. Since 1999, the companys primary activities have been progressing along both major sections namely retail clothing and compose sales. The retail section of the company contributes to around two thirds of the companys income. It was around 821 million in 1999. Moreover, the company has excessively adopted the policy of closing down smaller stores and has been in favor of opening superstores. Under its Next catalog banner, the company offers the service of enabling customers to order products using a catalog, after which the purchased products are delivered to the customers home. In fact, this method of shopping (under the near brand) has become ingrained in the minds of the common Briton.One of the primary differences between other companies and next happens to be the fact that the latter focuses on the middle class customers. It designs and markets affordable clothes that are contemporary unlike other retail houses such as marks & Spencer that produces fashionable garments under various brand names. Likewise, the company has also adopted the policy of designing its clothes under its watchful eye, but in an attempt to cut down costs, it has been getting the goods produced in countries such as china, where the cost of production is comparatively much cheaper. The production operations are handled by the companys house in Hong Kong. The company has also started offering financial services under the next brand credit financing. In spite of these branches, retail and catalog sales continue to be the two main contributors to th e companys revenues. The current trend and pattern of expansion of the company suggests a pattern similar to the one that mark & Spencer had been following a little while earlier (except the approach of in-country production followed by M&S, which proved costly). Many industry experts predict that he company today stands at a crossroad, where speculating where the company would be faced in the near future would be extremely hard to figure out. The company direct holds just a little over half of the stores it used to own way back during the 80s and most have been closed down as a result of next finding itself unable to manage such a large chain. Moreover, during that period of the 80s and the 90s, the company was not ale to register any significant pinch in sales as a result of these expansions. The stagnant UK market since the last decade has forced the company to turn towards overseas markets, which is regarded by some(prenominal) as a moderate policy. The shutting down of smal l shops, paving the way for bigger stores has helped it manage its operations in a better manner, which is unequivocal from the fact that the companys revenues started to climb since the move was taken. The most notable points about the company and its operating environment are as listed below1. End of international expansion in 1999 as a