RESULT FROM MARKET ORIENTATION ASSESSMENT

60 80 indicate moderate market orientation

Areas that should be improved: Competitior orientation
- John Lewis did not do any benchmarking with any competitors.
From the passage there is a point of view that can be drown which is
although John Lewis does not benchmark their product and not pay
attention to competitor orientation, but John Lewis has flaws. It not was
clear enough information about the flaws gives, but from that flaws, John
Lewis is pay slightly competition, as the influence and motivation to
employees, helps the chain to deliver strong costumer service, and
-

costumer attracted by price offered.

John Lewis only did financial preparation and there was no explanation
about action that will be done on the long term orientation for facing the
uncertainty.

SUGGESTION
The most important thing is to have a long-term business strategy. The model

on its own isn't sufficient.

Got to have a real clear view about where you compete. For example compete
on products and service and that fits business model. The key thing for every

business is to decide what you really stand for.

Played a key role in these results. There are fundamental changes taking place
in retail, especially in customer attitudes towards value, convenience and

personalization.
John Lewis must implemented a series of strategies that will help the business

to continue its growth, build its brand, and lead the way in online retailing.
Communications approach to target peoples hearts as well as their heads to

attract a higher share of wallet and new customers through the door.
Ability to compete against and outperform conventional companies will be the
most important illustration of the effectiveness of our approach to business

Do bench marking with competitors. Bench marking is very useful for

company because:
- Mempersingkat waktu dalam yang dibutuhkan dalam melakukan
perubahan

Membantu dalam mewujudkan tujuan dan perhitungan yang efektif

Memberikan semangat baru dalam mencapai keberhasilan, pemikiran yang

baru, dan inovasi

Menciptakan pemahaman yang lebih baik terhadap pesaing dan dinamika

industrinya
Memastikan praktik terbaik dalam industri telah digunakan dalam proses
kerjanya

LONG-TERM STRATEGY

Realise market potential

-

Aim to attract new customers, and retain and deepen the relationships with

those we already have

Do this through better understanding and quickly responding to their
changing needs, whether that means more competitive pricing, flexible
shopping opportunities, or peace of mind about our product sourcing.
Enhancing sustainability programme will support market position.

Grow efficiently
- Growth increases business complexity and impacts costs
- Focussing on efficiency is becoming more important and to achieve a
balanced and profitable growth, whilst delivering enough profit to
distribute to business Partners, need to carefully prioritise our investments
and further instil cost control discipline.

COMPANY PROFILE
John Lewis is a chain of upscale department stores operating throughout Great
Britain. The chain is owned by the John Lewis Partnership. The first John Lewis
store was opened in 1864 in Oxford Street, London. The chain is known for its
policy of "Never Knowingly Undersold" which has been in use since 1925.
The flagship store on Oxford Street began as a drapery shop, opened by John
Lewis in 1864. In 1905 Lewis acquired a second store, Peter Jones in Sloane
Square, London. His son, John Spedan Lewis, founded the John Lewis

Partnership in 1920 after thinking up the idea during his days in charge of Peter
Jones. John Spedan Lewis also thought up the idea of the Gazette, the
partnership's in-house magazine, first published in 1918.
In 1933 the partnership purchased its first store outside London ~ the long
established Jessops in Nottingham. Jessops only rebranded itself as John Lewis on
27 October 2002. In 1940 the partnership bought Selfridge Provincial Stores. This
group of fifteen suburban and provincial department stores included: Cole
Brothers, Sheffield; George Henry Lee, Liverpool; Robert Sayle, Cambridge; and
Trewins, Watford; all of which continue to trade today but which are now rebranded as John Lewis as well as Caley's, Windsor, which has since closed. In
1953 the famous Reading Department Store Heelas became part of the John Lewis
group and remained named as such under the Heelas name until 2001 when it
adopted the John Lewis name. Also in 1953 the partnership bought Herbert
Parkinson, a textile manufacturer, a business which still makes duvets, pillows and
furnishings for John Lewis.
The first John Lewis store constructed as part of a shopping centre was Jessops in
Nottingham which has been a feature of Victoria Centre since it opened in 1972.
The announcement of an anchor tenant such as John Lewis contributes to the
certainty of developers' proposals, and so attracts other retailers to the area. Before
the relaxation of UK Sunday trading laws in 1994, John Lewis stores closed on
Mondays to allow staff a full two day "weekend".
The John Lewis Partnership were the first department store group in the UK to
adopt central buying, launching the 'Jonell(e)' name for own brand merchandise in
1937. That brand name has gradually been replaced with the 'John Lewis' name
since 2001. Additional own brands include Collection by John Lewis as well as
John Lewis & Co. and Collection Weekend by John Lewis. A selection of
Waitrose own brand products, such as cleaning materials and party stationery, are
also available from John Lewis.

Many stores acquired by the Partnership retained their original names for several
years, including Tyrell and Green in Southampton until 2000, Bonds in Norwich
until 2001, Trewins in Watford until 2001, Jessops in Nottingham (its first store
outside London) until 2002, and Bainbridge's in Newcastle until 2002. All have
now been rebranded John Lewis, with the exception of Peter Jones in south west
London and Knight & Lee in Southsea.
Investment has been made across the group over recent years. This has included
the renovation of Peter Jones at a cost of 107 million, completed in 2004. [8] The
original Oxford Street shop is still the flagship and largest branch in the
partnership. A complete refurbishment of the building was completed in late 2007
at a cost of 60 million. This introduced the new 'Place To Eat' restaurant and a
brasserie and bistro in the store. A 'John Lewis Food Hall from Waitrose' opened
in the shop's basement in October 2007. A second Food Hall opened at the John
Lewis Bluewater store on 6 August 2009.
Building on The Brand Philosophy of Never Knowingly Undersold
This has been the retailers abiding ethos since introduced by founder John
Spedan Lewis in 1925. While he had always meant it to be the very bedrock of the
companys culture, it had, over the years, become just a price promise. As the
recession continued it was felt that the time was right to return to the broader
meaning of Never knowingly undersold and put it back at the heart of the brand
and encompass quality and service as well as price. At its core Never Knowingly
Undersold means offering great quality products at fair prices, supported by
excellent service.
MARKET ORIENTATION
Market orientation as the organizational culture, that most effectively and
efficiently creates the necessary behaviors for creation of superior value for
buyers and, thus, continuous superior performance for the business (Narver and
Slater, 1990).

1. Customer Orientation
A customer-oriented organization places customer satisfaction at the core of
each of its business decisions. Customer orientation is defined as an approach
to sales and customer-relations in which staff focus on helping customers to
meet their long-term needs and wants. Here, management and employees align
their individual and team objectives around satisfying and retaining customers.
The John Lewis name aims to be a guarantee of the quality, value and style of
a product and also as something that differentiates our assortment from the
competition John Lewis has long been synonymous with excellent customer
service and satisfaction. Since it first opened its doors in 1864, satisfaction has
been the key tenet of the retailer's strategy, introducing a slogan in 1926
reflecting this "Never knowingly undersold".
Indeed, satisfaction is part of the very fibre of the organisation. Become
beneficiaries of a trust that shares profit and are involved in key management
decisions through democratic bodies. ensures that employee satisfaction and
customer satisfaction are inextricably linked at John Lewis. John Lewis is
under no doubt that this has an important role on the quality of service that
customers receive.
2. Competitor orientation
Narver, and Slater in 1990 competitor orientation is means continuing
understand the capabilities and potential and current strategies of major
competitors that the customers needs provides organization goals and the use
of knowledge (knowledge of competitors recognize in order to create superior
customer value). When a business have tend

to competitor orientation,

constant re-evaluate of the strengths and weaknesses of their competitors. This

performance evaluation could include manufacturing productivity, pricing,
delivery time, customer satisfaction, innovation, and employee retention and
market share.
John Lewis must implemented a series of strategies that will help the business
to continue its growth, build its brand, and lead the way in online retailing.
John lewis has flaws, but with its flaws does not make John Lewis inferior to

competitors. John Lewis make a lack as a motivation to survive and become

the market leader.
John Lewis continued to outperform the general market, consistently beating
competitors. This achievement is a result of customers appreciating an
innovative product offer, quality merchandise at every price point, ease of
shopping through the multi-channel operation and the excellent customer
service for which we are renowned.
3. Long-term Perspective
The organization must realize that achieving competitive advantage through
the workforce takes time to accomplish, and thus a long-term perspective is
needed. Always had a long-term outlook, and our business is stronger today
because of it. In John Lewis, 'Never Knowingly Undersold' meant we met our
promise to offer the best value both on the high street and online compared to
'bricks and mortar' competitors.

4. Inter-functional Coordination

Inter-functional coordination is coordinate all functions of the organization

and operation of customer and market information in order to create value for
the customer.
John Lewis committed to attracting, retaining and deepening relationships
with customers. John Lewis want to build their confidence in their reputation
for quality, price and service. John Lewis offering superior value to consumer.
At John Lewis value is about more than price, it's also shown in the quality of
our products and our expert, highly professional service. There are millions of
potential customers without access to one of John Lewis's shops, so are
exploring ways to make products available to more of them. Products that
carry the John Lewis brand are tested against those of the competition and our
regular monitoring of prices on the high street means we offer highly
competitive prices on everything their sell.
5. Organizational Culture

Organizational culture is the behavior of humans within an organization and

the meaning that people attach to those behaviors. Culture includes the
organization's

vision,

values,

norms,

systems,

symbols,

language,

assumptions, beliefs, and habits.

The organisational structure and organisational culture at John Lewis
Partnership, based around employee ownership, is distinctive and highly
successful. Some fantastic insights into culture here as well as the
motivational impact of employee ownership. Concept of trust is so important
in business success.
John Lewis Company has a limited work specialised jobs being assigned to
the employees and different activities are subjected and designed by the
management. The John Lewis is departmentalised according to the products
and functions based structures. They are also done according to the
commercial activities.
The Competitive Advantage of John Lewis:

There is appreciation for the staffs by giving bonus based on their

achievement.
It has cooperative working system
100% of stocks John Lewis was owned by the staffs through trustrepresentative
John Lewis applies transparant bonus system/renumbers
Through the trust-representative, so staff forum system is established so that
the authority can be balanced
All the staff of John Lewis are loyal dan respect each other
happiness throughout the employees is not only a quote, yet it can be
applied in the real organization of John Lewis
John Lewis uses Information and Technology for its management, so that the
customers can access easily
Its quote Never Knowingly Undersold, the promise for the customers that
whatever things sold, will always be the lowest price around the retailer. In
other words, John Lewis sells product with low price but with good quality.

MARKETING MANAGEMENT
MARKET ORIENTATION

Consumer Trust Sees John Lewis Set Retail Pace

Oleh:
1. Hartika Regita Pojoh

(912014015)

2. Nunung Kusuma W

(912014018)

3. Linea Dorothea

(912014037)

FAKULTAS EKONOMIKA DAN BISNIS

MAGISTER MANAJEMEN
UNIVERSITAS KRISTEN SATYA WACANA
SALATIGA
2014