F&F External environment:
F&F External environment: Due to the PESTEL analyse the environment has a little or no control over external environment. The external environment are two types, 1) the micro-components of the external environment and 2) the macro-components of the external environment “PESTEL”. The micro-components of external environment includes external factors and forces that are directly involved and related to the business (Dibb et al, 2012). These factors and forces are suppliers, marketing intermediators, public, partners, consumers/customers, and competitors. In this report you will appreciate the PESTEL analysis model within F&F marketing actions.
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 organizations. 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.
However, the only key that is competing with F&F clothing is the convenient shopping which the F&F marketing team is avoiding and ignoring. Convenient shopping is one of the most valuable promotional tools to attract and persuade both users and new/future 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 an extra promotional tool? Such as, direct marketing for F&F clothing which is very cost effective. 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 to create a new target market within the F&F and focus on male clothing and production. 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. Thus, the statement explains F&F marketing team is ignoring and avoiding the pricing opportunity. But in Project Management system avoiding opportunities and risks is one of the strategies of risk management.
Therefore, F&F risk management is surviving on avoiding all current, near future and far future Risks and Opportunities. Thus the F&F annual revenues illustrate the results due to the lack of excellent management and leadership within F&F business and marketing environment.
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