INTRODUCTION TO MARKETING STRATEGIES
Marketing planning is refers to a comprehensive layout that demonstrates the overall marketing efforts of the company. It could involve various methods for effective planning process. This process is very essential for promoting firm in the marketplace (Blythe and Megicks, 2010). In the following report, Britvic is taken as the company to explain the marketing planning. It is one of the leading soft drink companies in Europe that operates in Great Britain, Ireland and France. Various market audit techniques will be shown in the report along with understanding and evaluating the market barriers. A market plan has been developed with relevance to the concerning firm.
TASK 1 – COMPILING A MARKET AUDIT
1.1 Changing perspective in marketing planning
The method used by Britvic was traditional that includes the basic four P's which are Product, Price, Place and Promotion. With this policy, it has successfully became the largest still supplier and second largest carbonate drink supplier (Doole and Lowe, 2012). But in the recent context, they have to face several kind of difficulties with respect to change in the environmental conditions. The changing perspectives in the marketing planning includes:
Product development – The company possess good image while development of their soft drinks. As the data referred, Britvic has observed immense growth with their existing product development strategy. Hence they should remain consistent with the same policy (Gilligan, and Wilson, 2009).
Pricing – According to the current market conditions with financial meltdown, Britvic has to lower down their price scale of soft drinks. It is because people are observing lower level of income and spending.
Distribution – The distribution channel of Brtivic is quite large and they seem to appear into the international market of United States. Hence they could have to increase their level of distribution by increasing number of franchisees of the concerned firm (Goi, 2009).
Branding – Britvic already have positive brand image that can be proved fruitful in future conditions also. In changing market planning scenario, they may use their existing brand image to improvise their market position (What Are the Different Perspectives in Marketing Planning? 2015).
1.2 Organization's capability for planning its future marketing activity
In current context, Britvic is undergoing an extremely delightful market conditions where they have total control over commercial environment (Kotler, 2011). Analyzing the facts and figures in the recent times, the concerning company has secured the largest market portion of branded still soft drinks and second largest supplier of carbonated soft drinks. It is also seen that Britvic is an industry leader in Ireland and France. Some of the positive factors in favor of future marketing activity may involves:
- Strong brand positioning in British market that will help them in promoting their products in United States. The existing reputation supplies positive image in the mind of people residing Abroad (Logman, 2011).
- Existing product range of Britvic will help them to emerge in the global market. They are holding a large portfolio of soft drinks which local people of GB have accepted. Hence such diversified range could also be predicted as acceptable in the Foreign market.
- Facts of company for being the largest supplier of soft drinks could enable them to gain competency in future marketing activity in US. It eventually describes the strong marketing strategy of Britvic in successfully protecting the huge market share of soft drinks (Morgan, 2012).
1.3 Examining techniques for Organizational auditing
Organizational audit plays significant role in identifying the market conditions of GB while making policy to enter into the competitive commercial environment by Britvic. It includes various methods to determine the market conditions. They are:
PEST analysis – The following analysis is conducted to determine the political, economical, social and legal factors. These factors are observed by considering the external environment of the marketplace (Morgan, Vorhies and Mason, 2009).
SWOT analysis – They defines the internal factors of organization. It describes strength, weakness, opportunity and threats that are related with the concerning firm. Under the following approach, strength and weakness shows the internal factors while opportunity and threats may comes under the external factors of market (Parrott, Roomi and Holliman, 2010).
Porter's five forces – These forces emphasized over external factors only. It includes threat of new entrants, bargaining power of supplier, bargaining power of buyer, threat of substitute product and competitive rivalry of the concerning firm with the other companies in similar industry (Sadjadi, Yazdian and Shahanaghi, 2012).
Out of the above techniques described for organizational audit, PEST and Porter's five forces focuses majorly over external analysis only while SWOT analysis partially defines both the internal as well as external conditions of the relevant firm.
1.4 Organizational audit and external factors that affects marketing planning
The audit conducted with respect to Britvic shows certain results. Such factors could eventually helps company while entering into the foreign market of United States (Aljukhadar and Senecal, 2011). These techniques may include:
PEST analysis – The following analysis is conducted to examine the external condition of market. With respect to Britvic, the concerning analysis includes:
- Political – The political factors includes the legal environment of Britvic where they have to face the lawful considerations. It is essential to commence business in any country (Warnaby, 2009).
- Economical – From the findings extracted out of the following research, Britvic is providing products by considering the current economy of country. They target all class of people.
- Social – The social factor includes the product which are acceptable by people in society. They consider the hygiene factors before launching any soft drink in the market (Wymer, 2011).
- Technological – These factors involved various methods and techniques to reduce cost of production by adopting technical measures (Chen and Lai, 2010).
Porter's five forces – This approach focuses on the external factors of marketing planning on the larger aspect of business. It is measured in terms of degree that includes:
- Threat of new entrants – Britvic have very low threat of new entrants as they are the leading supplier of soft drinks in the market (Frank, 2011).
- Bargaining power of supplier – This is high because Britvic includes a high range of portfolio and various franchisee to supply their products.
- Bargaining power of buyer – It is comparatively high with respect to changing market conditions and level of income of consumers (Freytag and Munksgaard, 2011).
- Threat of substitute product – The degree is low because of wide range of product portfolio to meet all types of choices of people.
- Competitive rivalry – It may be high while entering into the global market of US because they steeped the foot for the first time and entered into the rival market (Ivy, 2008).
TASK 2 – MAIN BARRIERS TO MARKETING PLANNING
2.1 Assessing main barriers to marketing planning
At the time of marketing planning, companies generally have to go through various problems to meet out the challenges of market (McDonald and Wilson, 2011). Britvic cannot avoid such barriers because they are core elements in the marketing planning process. Some of the major barriers may include:
Organizational culture – It defines the internal environment of Britvic which comprises of various types of employees. The opinion and perception of every individual is different which may become barrier in planning process (Nason, 2011).
Change management – While planning any change in the company, Britvic have to integrate their collective goal with individual objective of the employees. It is because employees work for personal benefits which must be fulfilled (Raghavan, 2011).
Ethical issues – They are the external barrier which Britvic have to face while promoting products. The ethical harmony of any religion or particular type of person should not be harmed.
Behavioral – This aspect totally depends upon the choice of person. Hence the lifestyle of person should not be negatively highlighted.
Resources – Optimum use of resources should be done along with quality product is one of the biggest challenge in marketing planning (Sirgy and Lee, 2008).
2.2 How Britvic may overcome barriers to marketing planning
In order to overcome various barriers of marketing planning, Britvic could adopt few measures to successfully commence business. The suggestions may include:
- Britvic could make teams of various department with the concerning members only. It makes the organizational culture more effective as conflict of people's perception will be avoided (Goi, 2009). Simultaneously, the barrier of change management will be resolved by integrating the departmental objectives with individual's goal.
- Britvic promote their soft drinks by respecting every class of citizen irrespective of their religion, creed or cast and highlights togetherness to bring harmony and overcome ethical issues.
- Company must demonstrate their quality mark to ensure proper resources for manufacturing soft drinks. This practice of marketing planning will eventually overcome the barrier of resources and behavior for Britvic (Morgan, Vorhies and Mason, 2009).
TASK 3 – FORMULATING A MARKETING PLAN FOR PRODUCT
3.1 Marketing plan for a product
The efficient marketing plan for Britvic comprises of considering various factors that could promote products in the external environment. They includes:
Segmentation – Britvic have focused on market segment and diversified its market accordingly. They have conducted demographic segmentation on the basis behavioral approach and buying potential of people (Warnaby, 2009). Under behavioral approach, firm has analyzed the lifestyle of people by conducting various surveys. While they have determined the purchasing power of people on the basis of their income.
Marketing mix – Britvic have focused on product, price, place and promotion. They made wide range of product availability to meet out all class of people. Firm have use ingredients which are harmless and up to the mark as per the legal instructions. They set up the pricing range according to the buying potential of peoples. It was neither too low nor very high and is affordable to everyone. Their placing strategy is very efficient. It considered the retailer market and started franchisee to allow local daily footfall for take-home market people (Chen and Lai, 2010). Simultaneously, they target the wholesale market by supplying to pubs and clubs. Lastly, their promotional strategy includes various campaigns and sponsorship to raise awareness of their existence in the GB market.
3.2 Importance of marketing planning in strategic planning process
Marketing planning plays a crucial role the process of strategic planning. The strategic plan includes various phases from setting up the goal of firm till its completion. There are several stages such as developing objective, methods and stages to reach objective (Ivy, 2008). Under the following report, marketing planning is essential because it raise awareness of the product in the environment. To capture a largest market share, the concerning planning is done to increase the sale of soft drinks and expand the area of business operation from Great Britain to United States.
3.3 Techniques for new product development
Product development refers to creation of new product or innovating the existing item and giving at a new form which has not been adopted by the company. It enhances the chances of business by increasing the portfolio of product range (Raghavan, 2011). The new techniques for new product development for Britvic may includes:
- Determining the needs of people and create a new soft drink which carries more improved ingredients. They may target those people who are health conscious or suffer from some diseases.
- Identifying the current market and producing such soft drink which has not been developed by any company. This eventually attracts people towards adoption of new taste (Doole and Lowe, 2012).
- By observing the segmentation results, Britvic could launch the low range soft drinks for the available product range. This will allow the low salaried people also to buy the quality product of the company (Accelerated product development, 2004).
3.4 Recommendations for pricing, distribution and communication mix
Observing the marketing plan of Britvic, certain necessary suggestions shall be adopted by the company for gaining better results. They must consider the economical condition of market on a regular basis. In the current period, financial condition of market seems to be weak and purchasing power of people has eventually reduced (Kotler, 2011). Hence Britvic should cut down their prices and reduce profit margin to increase sale. Their distribution channel is quite good in terms of wholesale as well as retail. But still they should increase their channel by providing their soft drinks to other retailing firms for sale. At last, the communication channel needs to be enhanced. Instead of sponsorship and campaigning only, they shall move towards personal selling and direct marketing to grab greater attention of people towards their soft drinks. It will help them in GB as well as in their expansion to United States (Morgan, 2012).
3.5 Factors affecting effective implementation of marketing plan
Marketing plans are proved to be useful only when they are implemented in the real nature. There are several factors that may affect the effective implementation of such marketing plan (Parrott, Roomi and Holliman, 2010). Some of the factors may includes:
Economy of the nation - The fluctuating economy of GB affects the marketing plan of Britvic to the most extent. Company has to change their policy frequently to match with the market conditions (Wymer, 2011).
Expenditure potential - The capacity to spend money is also a vital factor. It totally depends upon the income of person. Hence the purchasing power of population fluctuates which proves to be one of the key factor for implementation of marketing plan (Gilligan, and Wilson, 2009).
Legal obligations - The lawful obligations also plays a vital role in effective implementation of marketing plan by Britvic. They have to execute policies according to the legal norms (Logman, 2011).
TASK 4 – UNDERSTANDING ETHICAL ISSUES IN MARKETING
4.1 How ethical issues influence marketing planning
While promoting product in the external market, there are various issues like ethical, economical or political issues which company may have to face (Aljukhadar and Senecal, 2011). In context to the relevant report, there are several ethical issues that could influence the marketing planning of Britvic. These factors may include:
Confusion – It is the most basic issue associated with Britvic. They deal in variety of soft drink range. In the process of marketing planning, they promote all the varieties of drinks. This often creates a confusion in the mind of people regarding the product they should adopt (Frank, 2011).
Puffery practices – They are also one of the most common practice which is often proved unethical by the puffery practicing companies. The rival companies claim their product to be more efficient than Britvic. Hence it degrades the image of concerning company and influence their marketing planning in the adverse manner (McDonald and Wilson, 2011).
Consumer's preferences – Choice of people is also considered to be an ethical issue for the company which they have to consider in every aspect. People's choices keeps on changing with time. Hence Britvic have to adopt their choices and develop soft drinks accordingly to make their product acceptable by people in the market (Nason, 2011).
4.2 How Britvic respond to ethical issues
In accordance with Britvic, they have smartly faced the ethical issues while commencing marketing planning. To solve such matters, company have adopted few strategies which are as follows:
- In order to avoid confusion in marketplace regarding the product range, they have adopted separate promotion techniques for differential products. They highlights the specialty of drinks and justified their positive impacts to customers so that adverse effects of drink to people could be avoided (Sirgy and Lee, 2008).
- To avoid the impact of puffery practices, Britvic have copyrighted their drinks and adopted legal norms for providing services. Hence any other company cannot comment any negative statements against Britvic.
- Company laid special emphasis over the choice of people. They conduct regular innovations to grab people's attention and make their interest associated with Britvic. Simultaneously, they commence marketing planning by considering the current market conditions to comes out with those products which are preferred by consumers (Sadjadi, Yazdian and Shahanaghi, 2012).
4.3 Consumer ethics and its effect on marketing planning
Consumer ethics are proved to be the essential element in marketing plan because customers act as the source for earning and reason for commencement of business. Some of the examples in relation to the consumer ethics along with their impact on marketing planning may involves:
Value for money – It is considered to be the most essential element while doing any business. Value for money should be taken into account while doing marketing planning. It determines the pricing scale which is acceptable by consumers as well as profitable for the company. They should not charge prices too high from the customers. Britvic has adopted the same practice and allocate reasonable prices for their soft drinks that gives them immense success in the market (Freytag and Munksgaard, 2011).
Avoid malfunctioning practices – Britvic have adopted fair practices to provide hygienic soft drinks to their customers. They have set up their quality norms which their product should meet before going into the market. The firm disclose those quality norms under their marketing planning to prove the quality of their soft drinks into the market (Parrott, Roomi and Holliman, 2010).
Ethical values – The concerning factors include avoidance of negative comments or any activity that could violate the racial peace and harmony. Britvic promote their soft drinks in such a manner that no discrimination is observed and meet out the social challenges. They conduct marketing planning by respecting all class of people irrespective of their creed or any other social factor (The Ethics of Consumer Production and Marketing, 2015).
From the following report, it has been concluded that marketing planning plays a crucial role in business as well as its strategic planning. Understanding of marketing issues along with their solution has been derived with reference to Britvic. The organizational audit has been performed highlighting the internal as well as external factors. Lastly, the effective plan has been developed concerning Britvic to demonstrate the utility and success of the plan and some ethical issues with methods to overcome them has been taken into study of the report.
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