F&F Macro Environment by PESTEL:
A sober man is scared of a weak enemy too (Baines, 2008, cited Sirius, c, 100 BC). There are two types of external environments 1) those factors and forces that don’t have immediate impact on the performance of an organization, however they do in long-term 2) Those factors and forces that have impacts on the performances and influence the organisations currently or in the near future. This detects and suggests the levels of risks are high and can’t be controlled. PESTEL is the framework to identify and analyse these elements (Baines, Fill and Kelly, 2008).
- Political Factors:
During coronavirus lockdown, F&F placed a huge promotion of 50% off on all clothing, and according Tesco’s employee who asked on F&F Tweeter, is it the right time to operate and attract footfall? (Drewett, 2020, cited Donovan, 2020). UK government announced stay home and save lives, but the F&Fs’ marketing team made their biggest mistake by ignoring the government message and the new law due to Covide-19 pandemic.
- Economical and Competitors Factors:
(Yotova, 2019) reported, ASDA’s George clothing is the strongest competitor in supermarket clothing. 85.11% of the consumers buy their clothes from ASDA’s George clothing which makes it one of the top supermarket clothing brands (see figure 4). Tesco’s F&F clothing is on the second place by 81.62% in 2019. Figure 7 illustrates the main keys that motive the costumers to choose and buy George clothing.
Figure 6
Figure 7
However, the only key that is competing with F&F clothing is the convenient shopping which the marketing team is avoiding and ignoring. Convenient shopping is one of the most valuable promotional tool to attract and persuade both users and new users.
- Social-Cultural Factors:
These factors are lifestyles, values, culture, prejudice and beliefs of people and differs in different regions. Probably, Tesco Christmas advert in 2017 which faced social media backlash has negatively affected some of the customers. F&F clothing need to consider the culture, lifestyles, values, beliefs and prejudice of people in those countries that F&F cloths are available. Communicating with customers in their local spoken language among respecting their beliefs and prejudices are the must that F&F marketing management need to consider effectively.
- Technological Factors:
Technology is one of the sources of threats and opportunities and its very dynamic. Tesco Plc is using EPOS system for its all products and services however the question is, why Tesco is not using its’ data system as promotional tool such as, direct marketing for F&F clothing? Also, not providing online shopping (beside NeXTs’ online shopping website) for F&F clothing shows Tesco is not making the most use of technology advances. In addition, F&F marketing team easily can identify and target Tesco’s male consumers by direct marketing via its’ data systems. So, what is stopping them?
- Environmental Factors:
Pricing for F&F clothing is low to average which makes it affordable for low to middle income target group. Also, Covid-19 has caused inflation globally and led some countries to have government subsidies in place like in UK but government subsidiaries aren’t available in other countries that F&F Clothing is available like Slovakia, Czech Republic, Hungary, Poland and Slovakia which has great impacts on the citizens financially. However, due to F&Fs’ prices are low to average; customers still can afford them.
Please continue to the next blog.
MBA Blogger 