Poundland Strategic Marketing
Strategic marketing is the management of the processes for creating, communicating and set of goals that enable products and services to reach the customer profitably.(source)
This management activity is set in ways that enable coordinating its functions to be in line with the organizations objectives, strategies and goals. Poundland promotes their sales strategy through their slogan: "Yes, Everything 's £1!".[15] By having a set price for all of their stock, the company avoids the need to transmit pricing information to each store as well as the need to associate individual price tags with each item.[25] Although the retailer encountered apprehension from some manufacturers worried about selling their brands in a discount environment, the store offers the alternative of selling the products under their own in-house brand.[25] Running a store in which prices do not change presents challenges, particularly with inflation, as it would be difficult to change all the signs to read, for example, "everything is £1.05"; however, inflation has also meant that some products which used to have an RRP below £1 (and were thus cheaper to buy at other stores) have increased in price and can now be sold for £1 while still offering customers value.[26] One other way the company deals with inflation is to decrease the amount of an item sold at the £1 price point: e.g. if the company is selling a number of pencils as a set, this number could be reduced to account for changes in inflation.[26] Upon joining Poundland as CEO, McCarthy had plans to expand the price offering and increase the margin, envisaging a £2 section, a 50p section, a discount zone, and so forth. Upon visiting America to see how the discount stores over there did it, the overwhelming message was not to change the single price as customers understand it.[27] The retailer is able to dismiss concerns whenever the pound becomes weak, as this means shipping and freight costs also reduce, which counteract the impact
This management activity is set in ways that enable coordinating its functions to be in line with the organizations objectives, strategies and goals. Poundland promotes their sales strategy through their slogan: "Yes, Everything 's £1!".[15] By having a set price for all of their stock, the company avoids the need to transmit pricing information to each store as well as the need to associate individual price tags with each item.[25] Although the retailer encountered apprehension from some manufacturers worried about selling their brands in a discount environment, the store offers the alternative of selling the products under their own in-house brand.[25] Running a store in which prices do not change presents challenges, particularly with inflation, as it would be difficult to change all the signs to read, for example, "everything is £1.05"; however, inflation has also meant that some products which used to have an RRP below £1 (and were thus cheaper to buy at other stores) have increased in price and can now be sold for £1 while still offering customers value.[26] One other way the company deals with inflation is to decrease the amount of an item sold at the £1 price point: e.g. if the company is selling a number of pencils as a set, this number could be reduced to account for changes in inflation.[26] Upon joining Poundland as CEO, McCarthy had plans to expand the price offering and increase the margin, envisaging a £2 section, a 50p section, a discount zone, and so forth. Upon visiting America to see how the discount stores over there did it, the overwhelming message was not to change the single price as customers understand it.[27] The retailer is able to dismiss concerns whenever the pound becomes weak, as this means shipping and freight costs also reduce, which counteract the impact