Marketing Mix of Poundland (4Ps of Poundland)

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Marketing Mix of Poundland (4Ps of Poundland)

This is a detailed analysis of the marketing mix of Poundland (4Ps of Poundland). Poundland is a chain of discount stores which sells most of its items for £1. It is a great place to find bargains on a wide range of items.

 

Product strategies of Poundland

Poundland sells a range of more than 3,000 items (Poundland, 2022). All these items fall under several categories i.e. Food & Drink, Health & Beauty, Home & Pet, Entertainment & DIY, Stationary & Crafts, Services, and Pep & Co Clothing & Home.

 

Each of the above categories have sub-categories as well. For instance, Food & Drink includes chocolate, cakes & biscuits, breakfast and cereal, tins, cans and packets, sweets and snacks, crisps & snacks, tea, coffee & hot drinks, gravy, oil, & sauces, soft drinks, jams, spreads, & pickles, and home baking. Likewise, Services include mobile top-up and International mobile top-up. This demonstrates that Poundland offers a huge number of products. However, it is evident that some categories contain more items than the others.

 

Poundland responds to market demands with new products and categories. For example, it introduced Pep & Co in 2018 to sell discounted home accessories and fashion items for men, women, kids, and babies.

 

Pricing strategies of Poundland

Pricing is a key component of this marketing mix of Poundland (4Ps of Poundland). Poundland promises an amazing value on the items customers purchase. Its pricing strategy of focusing on ‘£1’ is crystal clear from its corporate name. This strategy has been very effective to draw a huge number of customers from different walks of life.

 

However, according to a report by BBC (2021), Poundland moved away from pricing everything at £1 several years back and now sells some items between 50p and £10 to take on competitors such as B&M and Wilko. In fact, approximately 10% of its products are no longer priced at £1.

 

Place/Distribution channels of Poundland

Poundland has over 800 stores in the UK and over 60 stores in the Republic of Ireland (Poundland, 2022). Its products can be purchased directly from the stores which are mostly situated in shopping centers and busy areas. Customers can also purchase products via its website and get them delivered to their homes. This gives them the opportunity to shop at a convenient time. However, it should be mentioned that Poundland had suffered from global supply chain chaos though it promised to keep the prices same (Davey, 2021).

 

Promotion strategies of Poundland

Promotion is the last component of this marketing mix of Poundland (4Ps of Poundland). Poundland offers discounts and promotions whereby customers can purchase products at lower prices, even though its products are generally considered affordable. It announced launching its first national TV advertising campaign in 2021 to spread the message about its transformation and new ranges.

 

Poundland also communicates with its customers via social media such as Facebook, YouTube, and Twitter. However, it is worth mentioning that the Advertising Standards Authority (ASA) in the UK banned one of its Christmas ads on social media in the past as it was considered offensive.

 

Hope you like this marketing mix of Poundland (4Ps of Poundland). You may also like SWOT analysis of Poundland (Dealz SWOT). If you have liked it, please share it with others to support our work. Other relevant articles for you are:

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Porter’s five forces analysis of the UK supermarket industry

 

Last update: 23 March 2022

References

BBC (2021) Poundland says tenth of products are not a pound, https://www.bbc.co.uk/news/business-57601580 (accessed 23 March 2022)

Davey, J. (2021) Poundland owner says prices will stay the same despite supply chain chaos, available at: https://www.businesslive.co.za/bd/companies/2021-10-14-poundland-owner-says-prices-will-stay-the-same-despite-supply-chain-chaos/ (accessed 20 March 2022)

Poundland (2022) About us, available at: https://www.poundland.co.uk/about-us/ (accessed 22 March 2022)

Author: Fahim Shah

Fahim Shah has been working in the UK as a visiting lecturer in Business and Tourism for the last 10 years. After completing a Bachelor’s degree in Business and Marketing, he went on to gain an MBA from the University of Bradford, the UK. He is a Fellow of Advance HE (FHEA) and a full member of the Association of Business Executives (ABE).