MARKETING MANAGEMENT: APPLYING THE CONCEPT OF THEME*. VOL. 2. Claudio Vignali PhD by Publication The University of Glamorgan VOL.1. RATIONALE & BRIDGING WORK VOL.2. PUBLISHED ARTICLES AND CASES PhD 2002 MARKETING MANAGEMENT: APPLYING THE CONCEPT OF THE MIX. VOL. 2. Claudio Vignali PhD by Publication A thesis submitted to the University of Glamorgan in partial fulfilment of the requirements for the award of Doctor of Philosophy. Declaration No portion of the work referred to in this thesis has been submitted in support of an application for another award. Dec 2002 (1 INTRODUCTION Vol. II is the compilation of published works for the PhD by publication by C. Vignali "Marketing Management: Applying the concept of the Marketing Mix". Section A includes eleven published articles and cases studies presented at registration. Section B includes two published articles that were a requirement for the completion of the examination process. SECTION A CONTENTS Page no. 1. "Branding and the Marketing Mix Examined in a Benetton Franchise", 1 -32 The Journal of Textile Institute Vol.89, Iss.2, pgs. 149-169, ISBN: 0400- 5000, C. Vignali (1999) 2. "Benetton's Brand Position Explored and Developed through Nicosia's 33-52 Consumer Behaviour Model", The Journal of Textile Institute Vol.90, Iss.2, pgs. 48-60, ISBN: 0400-5000, C. Vignali (1999) 3. "The Marketing Mix Redefined and Mapped: Introducing the MIXMAP 53-65 Model", Management Decision Vol.32, Iss.8, M.C.B., U.K., pgs. 11-17, ISBN: 0025-1747, C. Vignali & B. Davies (1994) 4. "The Possibility of Boddingtons - 'the cream of Manchester's' Entry 66-89 Into the Dutch Market", Management Decision Vol.34, Iss.8, M.C.B., U.K., pgs. 64-72, OSBN: 0025-1747, G. Cuomo & C. Vignali (1996) 5. "Dancall Telecom A/S in the UK Mobile Telephone Market", 90-120 Management Decision Vol.34, Iss.8, M.C.B., U.K., pgs. 6-17, ISBN: 0025-1747, R. Bennett & C. Vignali (1996) 6. "The MIXMAP Model for International Sport Sponsorship", European 121-135 Business Review Vol.97, Iss.4, M.C.B., U.K., pgs. 187-194, ISBN: 0955-534X, C. Vignali (1997) 7. "Introductory Cases". British Food Journal Vol.100. Iss.2, M.C.B., U.K., 136-158 pgs. 49-58, ISBN: 0007-070X, L. Dana & C. Vignali (1999) 8. "An Entry Strategy Report for Dairy Crest in Germany: A Theoretical 159-181 Application of Matrix Marketing", British Food Journal Vol.101, Iss.5/6, M.C.B., U.K., pgs. 384-393, ISBN: 0007-070X, C. Vignali, D. Vrontis & M. Vignali (2000) 9. "Bass PLC", International Marketing Review Vol.16, Iss.4/5. M.C.B., 182-209 U.K., pgs. 276-391, ISBN: 0265-1335, D. Vrontis & C. Vignali (1999) 10. "Intel-nationalisation to Russia: A Case Study", International 210-226 Entrepreneurship - An Anthology, N.T.U. Development Centre, Singapore 639798, pgs. 97-111, ISBN: 981-04-16423, D. Vrontis & C. Vignali (1999) 11. "The MIXMAP Model For Haagen Dazs Ice Cream", Management Case 227-264 Quarterly, pgs. 8-25, ISBN: 1354-5906, D. Vrontis & C. Vignali (2000) "Branding and the Marketing Mix Examined in a Benetton Franchise", The Journal of Textile Institute, Vol.89, Iss.2, pgs. 149-169 ISBN: 0400-5000 C.Vignali BRANDING AND THE MARKETING MIX EXAMINED IN A BENETTON FRANCHISE ABSTRACT The Retail Marketing Mix elements highlighted by McGoldrick (1990): Merchandise Service Price Quality Fashion Branding Store Atmospheres Location These are the key areas for investigation and various research techniques have been used to highlight their operational position within the franchisee's offer to the consumer, especially within a Benetton franchise. INTRODUCTION The need to establish the existence of the Benetton Brand vis a vis non-branded products sold within the confines of a Benetton retail outlet is paramount for Benetton and an essential factor which further extends the essence of consumers perceptions. The fortuitous position of being able to examine all retail sales within such a franchise added value to the exercise. The company was C.S.V Trading Ltd., 8 Fleet Walk, Burnley, Lancashire, an exclusive Benetton franchise situated in a retail precinct, with an exclusive agreement for a geographic area comprising 300,000 people. Burnley is also the central town of the Colne Valley, which is disconnected by distance and topography from the surrounding areas, whilst surrounding hills ensure a fairly self- sufficient insular position. RESEARCH BACKGROUND Background to Consumer Sales Research within the Benetton Franchise Product sales for an 18 month period were reviewed to assess the performance of branded and non-branded merchandise. One 6 month period within the 18 months was examined in depth and analysed. Each individual band of sales tags was sorted numerically in ascending order by code. (The total number of vouchers was over 15,000). A specific 6 month period was analysed in depth. The period examined in depth was between May and August 1992. It was necessary to divide each individual group of sales tags into an array to allow accurate comparison of data; the sales tags were thus sorted into numerically ascending order. To evaluate which product code to utilise in sorting the data, consultation was made with the collaborating institution to ascertain the meanings of the codes on each ticket. The response was that the large code at the top left hand side of each ticket was product specific and linked to a stock list that could be cross- referenced with a photograph of the product. It was therefore possible to visualise the various product types by analysing the sales tags. W98P0182 KNITTED TROUSERS 100% COTTON 080 The data was therefore sorted according to the product code as on the above example. To analyse large amounts of data using a manual system is both time consuming and tedious, it is also prone to human error. Manual systems are also inflexible and require careful preplanning, as data cannot be continuously manipulated without altering the overall format. The most suitable and appropriate system to use is a computerised spreadsheet as this overcomes all of these problems, it is extremely flexible and dependent upon the system used, is user-friendly. The user friendliness is particularly relevant when all users are not adept with computers. The choice of spreadsheet was relative to two separate variables. Data had to be transferred across sheets, combined and recalculations made, and necessary to produce suitable graphs, which could then be incorporated into a word processing package. The other key variable was product type. There are two distinctive types: Branded and Non-Branded. It became apparent that branded stock could be split into two distinctive areas; the Benetton name and logo could be considered a brand, the various company names and sayings related to the Benetton advertising campaigns could also be classified as a brand. Any differences in sales patterns in these areas could then be used to justify purchasing of specific names and logos, or alternately suggest whether the whole Benetton "aura" promotes the purchase. The product lines are differentiated by a code that represented Branded, Non-Branded and Other. It was possible to break down the Branded Section further, into logos and names but this was deemed unnecessary as the collaborating institution confirmed, historically that the consumer recognises them as being one and the same (Rice, 1992). A series of initial graphs were produced of the variables already mentioned i.e. sales patterns for Branded, Non-Branded and Other; these could also be cross-referenced by looking at the contribution of regular and discounted sales. It was necessary to undertake the correct mathematical codes of practice to carry out accurate analysis. This involved ensuring that graphs were of a similar type and on identical axes to allow comparisons. If these rules were not followed distorted graphs would produce inaccurate observations and assumptions. Graphical analysis provides a clear picture for analvsis rather than a set of columns of figures. Background to the Consumer Questionnaire of the Benetton Brand A quantitative questionnaire was used to investigate the Benetton consumer's perceptions of the Benetton brand. The primary research was carried out by conducting instructed interviews with approximately 220 Benetton customers in Manchester and 200 in the Burnley area. The questionnaire was divided into three sections: Consumer buyer behaviour Perceptions of the Benetton brand Socio-demographic profile After analysing 420 questionnaires, certain themes emerged which were used as a basis to structure the focus group activity. 1) What is the main thing you consider when you think about a Benetton product? 2) What factors do you consider when purchasing Benetton products? 3) What retail store do you think this product was purchased from? 4) What is the first thing that comes into your mind when you see this picture? Facilitating the focus group was difficult due to the nature of the research and the facilitator's biased personal perceptions of the Benetton brand. All questions were to be structured in an unbiased open manner, so as not to influence the reactions of the focus group members. The responses were systematically controlled so as not to restrict discussion or conversely provoke an argument, both of which would inhibit analysis. After conducting a pilot focus group, five exercises were designed incorporating strategic key issues, in order to explore and gain insight into the Benetton consumers' perceptions of the brand. The discussions were recorded on audio-visual tapes so that a full analysis of the verbal and non-verbal reactions and behaviour could be carried out. The exercises intended to maintain interest and attention by generating discussion in a semi-instructed and informal manner, whilst eliminating possible leading questions from the interviewer.