Marketing Planning

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Table of Contents Introduction ............................................................................................................................................ 3

Marketing Audits..................................................................................................................................... 5

Changing perspectives in marketing planning .................................................................................... 5

Functions: ........................................................................................................................................ 5

Environment: .................................................................................................................................. 5

Organisation’s capability for planning its future marketing activity .................................................. 7

Techniques for organisational auditing and for analysing external factors that affect Marketing

planning .............................................................................................................................................. 7

Organisational auditing and analysis of external factors that affect marketing planning in the given

situation .............................................................................................................................................. 7

Main barriers to marketing planning ...................................................................................................... 8

Objective /strategy confusion: ............................................................................................................ 8

Isolation of marketing function: ......................................................................................................... 8

Organisational barriers: ...................................................................................................................... 8

Customer expectation:........................................................................................................................ 8

Clayton’s overcome barriers to marketing planning .............................................................................. 9

Marketing plan for a product or service ............................................................................................... 10

Marketing plan for the supermarket ................................................................................................ 10

Techniques for new product development ...................................................................................... 10

The strategic planning process ......................................................................................................... 11

Recommendations for pricing policy, distribution and communication mix for the supermarket .. 11

Factors affecting the effective implementation of the marketing plan ........................................... 12

Ethical issues in marketing .................................................................................................................... 13

Ethical issues influence marketing planning ..................................................................................... 13

Supermarkets respond to ethical issues ........................................................................................... 13

Consumer ethics and the effect it has on marketing planning. ........................................................ 14

References ............................................................................................................................................ 15

Introduction

The marketing planning is very essential for the profitable supermarket to be successful in the

local and global market. A marketing plan involves the outline of the organization’s complete

marketing efforts that asses the profitable supermarket’s growth at a large scale. There are

few steps of the marketing plan as marketing mix and the marketing controlling. The most

important points that need to analyse strongly are strategy and tactics in the marketing plan.

Strategic planning for the profitable supermarket is needed for complete one year plan that

helps in identifying the existing problems and their solutions.

As being an owner (Andrew Clayton) of a profitable supermarket, called Clayton’s, in a town

with a population of 40,000 in Yorkshire which a family urn business over the span of 90

years need to ensure the effective marketing strategy for opening a new mega – supermarket

away from the current existing store. The current profits of the company are right now

£750,000 per annum which is considered significant as based on the current market plan and

the response from the customers. (Case Study Given, 2012) The existing customers in

Yorkshire area are loyal to the supermarket but are very price sensitive and because of that

the supermarket faces the elastic demand time to time. Based on the marketing situations for

the current business and also as per the demand by the customers the supermarket plans to

open its new mega-supermarket just after 1 KM from the existing supermarket. Another firm

Tesco situated in the same region because of its low price and strong bargaining power not

the marketing powers have strong customer database. The important aspects of this marketing

plan are to ensure the successful implementation through fight and competing in the existing

market in that region even though it is tough to compete.

Based on the advice of the family friend, I, Andrew Clayton as an owner of the supermarket

decide to hire a marketing consultant and ask to him to develop a strong marketing plan and

give him unfettered access to the supermarket and also opportunities to the new market so

that the newly marketing consultant can help in taking the right decisions towards the

opening of the new mega supermarket based on the appropriate strategy which will help

future strategy too (Brewster, C & Harris, H, 2004). For the most effective plan for the

supermarket there is need of having the formalized report emphasizing the strategies and

control over the market. While planning a best marketing approach there is need of planning

the corporate mission too for the supermarket including the sales oriented approach, and

customer satisfaction. For example, IBM does also its same thing for the marketing activities

based on the customer service philosophy. IBM does marketing plan based on financial data,

product data, sales and distribution data, advertising, sales promotion, merchandising data,

market data and miscellany. The supermarket plan by the marketing consultant here also

analyse the every aspect for the marketing plan. This report aims to the in-depth analysis of

the marketing plan for the newly mega supermarket.

Marketing Audits

Marketing reviews and audits are necessary to understand the current marketing scenario

existing in the global and local market. It is a fundamental part of the marketing planning

process and mainly conducted at the beginning of the marketing planning process. There is

need to analysis the internal and external marketing environment. There are few things as

discussed below for the marketing plan process.

Changing perspectives in marketing planning

Changing thinking and perspectives for the current market and requirement by the customers

and their future mindset are necessary to analyse. It can be examined based on the external

and internal assessment. Situation analysis for the supermarket is a very vital part of the

marketing planning process because it discusses about the firm strategies, customers,

marketing effectiveness, SWOT analysis, PORTER’s five forces model (Hague, P. N, 2002).

Here the marketing consultant has applied the FEPSOS approach where functions,

environment, productivity, systems, organization and strategy.

Functions: Claytons operates in Yorkshire and runs the supermarket of non-alcoholic, non

carbonated beverages and packaged whisky bottles. The company is very profitable and

operates in the diverse areas of supermarket. It also operates a grocery home shopping

products and services to the niche market in the Yorkshire area (Kogan Page, Hall, J, 2008).

Consumer goods and beverages are the main products of the supermarket. The supermarket

also operates in other areas of home grocery products and services in the Yorkshire area. The

nearby area of the supermarket is also very competitive because of the other existing TESCO

market.

Environment: Clayton’s supermarket operates in very competitive market because of the

existing new TESCO market there and also due to the bargaining of the customers. The micro

and macro environment both the favourable to the existing market of Clayton’s supermarket

as the customers are very loyal to existing products and services.

Micro environment

The micro environment include the number of important factors that directly or indirectly

play the vital role in the Clayton’s operations and activities that determine the viability of the

Clayton’s for long run. The micro environment is described as following:

Customers: The customers of the firm are very loyal in Yorkshire. The existing market for

Clayton’s supermarket is very effective and only operates for 40,000 customers.

Suppliers: The supplier of the products for the firm involves the local customers and branded

customers as well. The Clayton’s supermarket generally produces more amounts of the

products in his own manufacturing unit.

Employees: There are not more than 100 employees in the Clayton’s supermarket in

Yorkshire.

Competitors: All the existing retail organizations in Yorkshire are the competitors of the

Clayton’s supermarket specifically TESCO retail products. It is very difficult to compete with

TELSCO retail markets.

Media: Being a supermarket in Yorkshire, this leads to the online channels to promote the

products and services. It allows the Clayton’s supermarket to go for digital and online

marketing strategies too to reach its customers.

Macro environment

The macro environment also affects the business market and includes various factors which

affects direct and indirectly to Clayton’s supermarket in Yorkshire.

Political and legal factors: In UK there is dominance of Conservative and Unionist Party. The

liberal party leads the government in United Kingdom. The legal foundations in the

Yorkshire are very strong and that reflects the potency of UK.

Social and Cultural Factors: The Yorkshire area is very cultured and followed by the residents.

There are number of ethnic groups in Yorkshire which is very beneficial for the Clayton’s

supermarket and its strategies (Kotler, et al 2008). The human in the Yorkshire area are very

keen to the culture and literature and also there is no official language in Yorkshire.

Economic Factors: The Yorkshire is very economical strong that enables the Clayton’s

supermarket to take advantages for the various business opportunities but it must take care of

the potential risks. The only associated business issues with Clayton’s supermarket are

expansion and competitive environment that need to be handle well by the Clayton’s

supermarket for better growth and future environment (Lancaster et al, 2005). The

Yorkshire’s economic environment is very favourable and helpful for the Clayton’s

supermarket’s operations and activities.

Technological Factors: The information technology environment (MacDonald, M, 1999) is

very strong in the Clayton’s supermarket because of the strong technological advancement in

Yorkshire area. Government of UK has also developed the technological strategies because

of it the trend in United Kingdom like E-Governance program which makes the supermarket

stronger.

Organisation’s capability for planning its future marketing activity

Clayton’s supermarket’s capability is very strong to plan the marketing process because the

customers those are in number of 40000 in Yorkshire area and the profit of the Clayton’s

supermarket is around £750,000 per annum and also the all customers are very loyal to the

supermarket’s products and services.

Techniques for organisational auditing and for analysing external factors

that affect Marketing planning

Based on the situation analysis or marketing audit above the PESTLE, PORTER’s five force

model are needed to analyze that will affect the marketing planning as discussed above.

Organisational auditing and analysis of external factors that affect

marketing planning in the given situation

As analyse earlier that the macro-environment social, culture, political and legal factors are

the direct and indirect factors which completely affect the marketing planning for the given

situation of Clayton’s supermarket.

Main barriers to marketing planning

There are many barriers in the marketing planning that include different factors that restrict to

the new entrants in the market and also in the beginning of the new business in the new

competitive area. For example, there is need for the firm of large investments to establish the

new market for the customer loyalties. The other things are customer and supplier holding in

the market. There are more other barriers as discussed below:

Objective /strategy confusion: Clayton’s supermarket’s marketing consultant found

that the strategy planning is also a problem there because of the different aspects based on the

customers, economic environment, and the products and services. The exact strategy of

developing the new plan is very difficult because of the based on one culture. The Clayton’s

supermarket’s objective is to establish the new business in the other area 1 KM from the

existing area and there is the competitiveness of the TESCO Business. This creates confusion

for developing the marketing planning process to come up with the best plans that may lead

to the strong strategies for the Clayton’s supermarket.

Isolation of marketing function: Clayton’s supermarket mainly operates in the

Yorkshire area and the market is not that much isolated there but still because of the not

proper channel and distribution centres to the area it is quite competitive and tough to make

the marketing functions better and strong. Social and philosophical behaviours in the

different region also create issue. The advancement in the technology helps but need to

develop it perfectly.

Organisational barriers: The new change is not so early are adopted in the market if the

establishment is done in another cultural market where there is already a new culture present.

Competitor strategy and activity: This is the main barrier for Clayton’s supermarket to come

up with the best plans. TESCO is the main barrier as competitor (Miller, K, 2005) because of

its bargaining power in the existing market there. It is very typical to ensure the perfect

competiveness with the TESCO retail business. Not only this there might be some more

small retail chains which also have some part of the loyal customers towards them.

Customer expectation: The main barrier of the marketing and planning for the Clayton’s

supermarket is to know the exact requirement of the customers because every customer has

the specific demand and it is not possible to understand it easily until the products are served

to them in their own region based on the culture and environment. Thus, it can be said that

there are many other small-small barriers which need to analyse and accordingly have to

prepare the pan for the best marketing strategies.

Clayton’s overcome barriers to marketing planning

For the existing barriers in the market of retail business there is need to completely analyse

the cultural and market situation and the customer demand. First of all for the customer

demand, it is strongly recommend that there is need to open a small store first and then

promote the products to the customers and know what they really want or in other case it is

important to have the surveys from the customers to know their view and then open a small

retail as demonstration in the specific area (Nicholls, A & Opal, 2001). The marketing

functions are also need to make strong and reliable so the easy for the customers to buy the

product can be handled. Organizational barriers need to be reducing and the price must be

lower than the standard price because for the larger volume the profit will be higher even if

the price is less. Customer expectations are also necessary to know what the need of the

customers is and what will be the cost of that so that the reduction cost can be decreased.

Marketing plan for a product or service

Marketing plan for the supermarket

Effective planning is very essential aspects of any marketing because it ensures that an

profitable supermarket realises its marketing goals for present and future. If there is no

marketing planning or proper marketing activity the marketing scenario of the organization

may lead it to the inappropriate and waste resources and opportunities. There are different

ways of planning and marketing for the organization for its products and services in the local

and global market (Peter, J. P & Donnelly, J. H, 2002). Marketing planning includes auditing,

internal and external factors that influences the audiences or targeted customers, the brand

and image of the profitable supermarket in the marketplace.

The main benefits of the marketing planning for the profitable supermarket are to understand

the marketing barriers and how these barriers can be avoided in the real market to overcome

the barriers. Ethical issues are also important for the marketing plan because these ethical

issues define its products and services to the local and global customers and employees of the

organization that are perceived by them. The marketing ethical issues affect the overall ethos

and also lead the ultimate success of the profitable supermarket. The appropriate marketing

planning will also help to investigate and examine the profitable supermarket’ capability and

reach to its customers and how the profitable supermarket gets affected by the ethical issues.

Marketing plans also ensure the current market situations in the real market and gives the real

insight of the organization.

Techniques for new product development

The strategy for the marketing planning is necessary and it should be based on the technical

product development. The business objectives should be such that it meets the corporate

objectives. The operation relations between the customers and suppliers must be clear and

should be standard so that it should not create any issue. Marketing defines the corporate

boundaries so it must be followed by the corporate objectives. As there is a gap in the lower

price market so all products price should be low. Therefore it is necessary to have the best

marketing plan that follows the future strategic planning process of Clayton’s.

The strategic alternatives for new product development: The marketing planning process

should be based on SWOT analysis.

Strength: The Clayton’s supermarket has old history of strong customer support and quality

of the deliver products and services. Also the target area of the Clayton’s is very clear and up

to the business requirement. It will help in creating a strong brand among the customers.

Weakness: The Clayton’s business is not a global business and also not has millions of

customer base (Peters, T & Waterman, R, 1980). The earn profit for the last 90 years is not

reached at the significant level. Also the firm don’t have reach to other business area except

than Yorkshire area.

Opportunities: As because in the other area the bargaining power, there is a chance to

minimize the standards price of the products and services in competitiveness to the market.

There are also no more retail firm like that so it is easy to setup a business there.

Threats: The customer might not be interested at the new business as because of the lack of

customer review. The new government rules and political situations may create issue in the

new market.

The strategic planning process

These are some strategies that need to be account by the firm to enter in the new market for

higher growth and success against the competitors in the market. There is also other

necessary implementation process like providing the facility of the online order and use of

debit, credit and other most used facilities that customer prefer a lot (Peck, et al, 1999). The

use of advance technology, digital marketing and self gift cards for the customers will also

help for the firm to create its own brand in the market. Marketing mix model of product,

price, place and promotion is also necessary to follow in the existing market to compete its

customers. There are other methods of marketing planning but these discussed above are

most effective.

Recommendations for pricing policy, distribution and communication mix

for the supermarket

Objectives in differing markets: The objective in the new market must be only as per the

requirement of the customers and lower price strategies with the good customer service.

Products and services: All products and services of the firm must be as per the modern need

and also should be customizing as per the instant demand by the customers. All products and

services should be for the lower prices only.

Pricing policy: The price of the products and services to the customers should not be higher

than the standard prices. The firm also offer some discount and some kind of loyal schemes

for the customers to increase the customer value.

Distribution: The firm need to have its own transportation system because that will help in

faster delivery and lowering the cost.

Factors affecting the effective implementation of the marketing plan

The effective implementation of the marketing plan is very necessary and there are many

factors which affects the marketing plan easily. The factors that will affect the marking plan

include business strategies, geographical location, and cultural environment, pricing

strategies, customer behaviour and the competitive analysis. The marketing plan is for the

customers and to sell the products and services but all these things depends on the customer

retention and the competitive analysis in the market (Wilson, R. M. S & Gilligan, C, 2005).

The best factors that affect are the cultural environment and the geographical location.

Cultural environment is important because every cultural has different requirement based on

the geographical locations because the competitive market is different. Also the external

analysis is important to decide on what price the marketing plan should be implement. For

example, if the same retail company offers the price of a specific product then if the same

company also proposes the same price for the product then it will be very difficult to compete

in the market. Therefore, for this the company needs to either the lower the price or to make

customer royalty.

Ethical issues in marketing

There are many ethical issues which affects the marketing planning process of Clayton’s

supermarket. Ethics in marketing is defined as a collection of all the theories which allows to

conduct rightly and making the decisions and shape so that organization or people can be

benefited easily. In the marketing principles the practicing ethics applies to the standards of

the fairness, and the morals either wrong or right which help in making the decision better.

Some of them are discussed below in briefly:

Ethical issues influence marketing planning

The ethical issues affect the marketing planning a lot because today’s customers are more

aware of the social ethics and its implications on their life. Number of consumers only goes

for the products for that they have found the good reviews and quality use. The relationships

between the consumers and to the marketing activities are also important because the

motivating forces lead that. The market either can reach to the top or can down to the bottom

because of the ethical issues (Hague, P. N, 2002). The marketing people who define the new

ethic for the business or organization control all the ethics practices because it is their

decision to decide what to say or what not. So the marketing plan is influenced by their views

and thoughts. In case when the plan is prepared for promoting the products and services

through the use of the television, radio, or news papers, social media marketing then it is

important to manage that no other marketing plan should be offensive and should not create

the negative effect on the thought of the people. For example, some people find advertising

for all products promoting sexual potency to be offensive. Others may be offended when a

promotion employs stereotypical images or uses sex as an appeal (Brewster, C & Harris, H,

2004). This is fundamentally true that when the products and services are exported to the

overseas countries where the same marketing plan may carry the different meanings, it is

necessary to plan according to the overseas country not the native country marketing plan can

be applied there.

Supermarkets respond to ethical issues

Clayton’s supermarket resounds to the ethical issues by providing the cultural and social

importance to the society through its unique corporate social responsibility programs. Also it

takes care of its customer through the different engagement policies for their welfare. In a

market economy, a business may be expected to act in what it believes to be its own best

interest. The purpose of marketing is to create a competitive advantage. An organization

achieves an advantage when it does a better job than its competitors at satisfying the product

and service requirements of its target markets. Those organizations that develop a

competitive advantage are able to satisfy the needs of both customers and the organization.

Consumer ethics and the effect it has on marketing planning.

Consumer is the main backbone of the marketing plan in case of the retail business. It makes

huge impacts on the marketing plan directly and indirectly both ways. Marketing practices

depends on the consumer ethics as their thinking and ideas may differ country to country and

also it is based on the requirement of the customers. Marketing practices are deceptive if

customers believe they will get more value from a product or service than they actually

receive.

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