Formulation of Marketing Plan

The assignment explores the key concepts of marketing plan formulation, including the use of Porter's Five Forces Analysis, Marketing Mix, and Key Performance Indicators (KPIs). It emphasizes the importance of analyzing external factors to understand market position and competitiveness. The assignment also highlights the significance of setting KPIs as tools to measure performance effectively.

Marketing Plan

Executive Summery
Marketing plan is a document that defines how a business plans to help people to buy its
products and services. This assignment is related to Virgin media group which is founded in
2006 and this company produces various products such as digital television, broadband internet,
fixed line telephone and mobile telephony. This marketing plan required marketing analysis for
which PESTEL analysis is defined, for competitor analysis, porters five force model is explained
and for company analysis SWOT analysis id effectively described. STP strategy is defined to
monitor the existing customers and competitors at marketplace. Smart objectives are also
deigned to increase the profitability and in strategy term Ansoff matrix is used to gain
competitive advantages. In tactics, 7Ps of marketing are described to putting the strategy into
action.

Table of Contents
Executive Summery.........................................................................................................................2
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................3
STAGE 1.....................................................................................................................................3
STAGE 2.....................................................................................................................................5
STAGE 3.....................................................................................................................................6
STAGE 4.....................................................................................................................................6
STAGE 5.....................................................................................................................................7
STAGE 6.....................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................8
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INTRODUCTION
Marketing refers to activities which are undertaken by an organisation to promote its
goods and services in market. This term include advertising, selling and delivering of goods and
services to customers and businesses (Dey and et. al., 2012). Marketing plan is a comprehensive
document which outlines the advertising and marketing efforts of company. It defines business
activities which involved in accomplishing specific marketing objectives within a set time frame.
This assignment is related to Virgin media group which is founded by entrepreneurs Sir Richard
Branson and Nik Powell in 2006. This firm provides its customers with, internet, television as
well as fixed-line telephone services.. This assignment discusses about the marketing plan of
Virgin Media which includes situational analysis, objectives, strategy, tactics, action as well as
control.
MAIN BODY
STAGE 1
Situational analysis
This analysis refers to the collection of methods and techniques that are used by the
managers to understand and analyse the internal and external environment of a company to
understand the capabilities, business environment and customer of the firm.
Market analysis-
PESTEL analysis- To analyse the external business environment, the management
department of the company can use this tool to analyse the market. Political- This factor include several government policies like taxation policies and
others. Currently, the UK business environment is suffering from Brexit, which have
several threats on the company. For instance, due to unstable political conditions in the
UK, investment in broadband is likely to decline due to its outcome. This is a major
threat for the firm. However, the policies after Brexit still protects free roaming for
Virgin Media in EU countries despite the event which is an opportunity for the company. Economical- It is related to the inflation and deflation, interest rate, foreign exchange rate
and other economical activities. Due to Brexit, value of pound sterling has severely
dropped which is a threat to the firm in gaining wider customer market. Moreover, stock
prices have also decreased which further enhances threat for Virgin Media. However, due
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to unemployment, various opportunities to acquire skilled individuals at fair wages have
increased for the firm which is beneficial for Virgin Media. Social- This factor is basically included the taste & preferences of customers, values,
beliefs, culture an others (FIDM, 2014). Due to its diverse services, Virgin Media
provides customers with effective services to satisfy their communication needs. This is
an opportunity of the company to enhance customer loyalty. However, customers are
shifting on to cheaper alternatives and services provided by other companies like BT
which is a potential threat for the company. Technological- It is related to the various technologies such as sales, business and
promotional technologies. Virgin has always used updated software and its enhanced
technical knowledge to provide its consumers to enhanced products. This company
always provides updated internet services and technologies in it as wireless technology.
In addition, advancements like Artificial Intelligence and Automation technology is vital
opportunity for the company. (Garrigos-Simon, Lapiedra Alcami and Barbera Ribera,
2012). Environmental- This factor refers to different environmental laws and other activities that
are related to environment. There are various acts like Environmental Protection Act and
various pollution mitigation guidelines which are crucial for Virgin Media to follow.
using recycling processes to manage the wastages and inventory of the firm and
adherence to guidelines could be effective opportunity for the firm.
 Legal- it is related to laws and legislations that are framed by the government such as
employment act, equality law, discrimination act etc. For Virgin Media, following of
various legislations like IT Legislation, Equality Act, Fair Wages Act, etc. could help the
firm gather government support and ethical frameworks which could be an opportunity
for it to enhance its customer base. Competitor analysis- Porter's five forces analysis- It is a tool which is used by the management
department of the company to analyse the competition of a business in a specific industry
and sector. The Porter's five forces analysis of Virgin Media Group is as following: Threats of new entrants- Entering Telecommunication industry is not much easy because
it is primarily determined by the high cost of the fixed assets. Moreover, Brexit has
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imposed various restriction for entry of new firms due to rigid legal policies. Thus, there
is a low risk of new entrants for Virgin Media. Bargaining power of buyer- In telecommunication sector, customers have lower
switching cost which makes them switch to a cheaper and better service with utmost ease.
This enhances the bargaining power of buyers. Bargaining power of supplier- There are less suppliers in telecommunication industry and
just a handful of suppliers operate in the market (Jarach, 2017). Due to presence of
several competitors in the telecommunication sector, suppliers tend to demand higher
prices for the services to provide better deals. So there is a high risk of this force for
Virgin Media because the supplier may refuse to work with the organisation if their
demands are not fulfilled by the company. This enhances their bargaining power. Threats of substitutes- There are several other ways through which people could
communicate with each other such as social media, home telephones, etc.(Kotler and et.
al., 2017). However, with rise in smart phones, this threat becomes significantly low for
Virgin Media as all the functions could be accomplished by the services provided by the
firm.
 Rivalry among existing competitors- Cause of the presence of significant market players
like Sky and BT, there is intense competition at the marketplace in telecommunication
industry. Sky network provide premium television content and retain its customers,
whereas, BT has a superior high speed internet network. Thus, it enhances the threat of
existing rivalry for Virgin Media.
Company analysis-
SWOT Analysis- It is a strategic tool which is used by the company to analyse its internal
environment. The SWOT analysis of Virgin media group is as following:
Strengths Weaknesses
 This company use cable infrastructure
which brings various advantages to
owners because the expense of
establishing cable infrastructure to
customers offers a natural barrier to
entry towards its competitors.
 In Virgin media group, the business of
the company negatively impacted
profitability cause of high operating
cost.
 High attrition rate in work force in
comparison to other companies is the
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 It also provide several services like
internet, cable TV and internet
connectivity etc.
weakness of the organisation (Lamb
and Crompton, 2017).
Opportunities Threats
 By making innovation in its existing
services, the company can gain various
opportunities.
 Rise in technologies like Smart
Televisions and Smartphones provide
opportunity to Virgin Media to develop
more effective services in the future.
 There are various competitors in the
market such as BT group, O2 mobile
and others which provide similar
services to that of Virgin Media and
thus, are quite a threat for the company.
 Unfavourable government policies
generate threats for the business of the
firm.
STP(Segmentation, targeting and Positioning)- It is a business strategy which is used by the
company to study and application of marketing. The STP of Virgin media group is as following:
Segmentation- The segmentation of Virgin media group is based on different sources of
broadcasting. The segmentation for Virgin media is on the basis of Geographical, Demographical
and Behavioural segments (Lidstone and MacLennan, 2017).
Targeting- In this process, the company target fixed line, television users, internet users
and others for its services. For Virgin Media, the company targets general individuals from
Urban Areas of the UK, whose income level is more than £2,000 per month, aged 16-60 and who
tend to use telecommunication services for communication.
Positioning- The organisation is positioned as a popular high quality media and
broadcasting company due to its quality services. It is positioning itself in both online and offline
markets and provide a range of personalised services to its customers in the UK.
STAGE 2
Smart objectives-
 To enhance its customer base by at least 12% within the next 3 years by provision of
personalised services to customers at reasonable rates.
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 To increase 10% profitability of business within 2 years by reducing the its operating
cost.
STAGE 3
Strategy-
Ansoff Matrix- This matrix is developed by Igor Ansoff. The competitive analysis of
Virgin media group is as following: Market penetration- This strategy is used when an organisation tries to capture market
share by launching its an existing product and service. For Virgin Media, the company
uses this strategy to increase market share from other competitors like BT by launching
modified versions of its existing services, like that of its recently launched broadband
services. Product development- It can be applied by the firm when it attempts to launch a new
product in an existing market. Virgin Media is planning to launch 100 Mbps broadband
services as a new offering in its established market. Market development- This strategy can be used by a company launch a existing product
in a new market (Macarthy, 2018). In context of Virgin Media, the organisation has
relaunched its existing networks and operational services like B2C arm in order to
capture higher market share than firms like BT.
 Diversification- It is the strategy in which a company launches new products in new
markets where it had no market presence (Robinson, 2012). Virgin Media is planning to
formulate new plans for new type of telecommunication products to be offered to its
customers outside the UK market.
STAGE 4
Implementation or Tactics
Marketing mix- It is a tactical tools which is used by marketers to implement their
strategies. The marketing mix of Virgin media group is as following:
Product- It is a process to convert raw material in to finished goods. Virgin Media is a
leading service provider of broadcasting and telecom company which adopts the diversified
product strategies by providing a range of products such as mobiles, SIM cards, TV, music
bundles, movie bundles, etc.
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Price- It refers to the cost which is consumed by the products and services. It can be the
price of the goods and services that can be offered by a company. In Virgin group, the company
offers its services at low prices and adopts a penetration pricing policy so that it can gain
competitive advantages and increase the profitability of the organisation.
Place- Virgin Media has both online as well as offline presence as people could buy its
services online through its website. In some cases, the firm personally delivers its products and
services at the required address. It also take help from its retailers and distributors to sell its
product worldwide.
Promotion- Management department of Virgin Media uses various promotional channels
and tools such as TV, social media and internet to deliver the information about the services and
products which are provided by this firm.
People- This factor refers to customers and employees. In Virgin Media, the employees
are the workforce of the firm who help the organisation to manufacture products and services
(Strauss, Frost and Sinha, 2014). Virgin media has casual work culture and there are skilled and
knowledgable candidates who design products and services according to the customers needs.
Process- It is the combination of task, activities and actions etc. that allow people to use
services successfully. In case of Virgin media, its process of generating products and services
and their delivery is managed and audited effectively (Dey and et. al., 2012). The company uses
latest technology for the process of developing products and services.
Physical evidence- It refers to any evidences that can be tangible and intangible related to
products, services and process etc. In Virgin Media, the company designs its offerings according
to the customers needs and demands. The broadband provides customers with great speed with
less disruption and the TV and other entertainment services are of HD quality that are offered by
the company.
STAGE 5
Action- To effectively accomplish the above process, Virgin Media is undertaking effective
market analysis to determine which product strategy could help the company gain competitive
edge. In addition to this, its pricing strategy is implemented by current events in the country like
Brexit which has brought the economy down and the firm, through its pricing is planning to
enhance standard of living of people. Moreover, the company provides its services both online as
well as offline markets to capture a wide market share. Its marketing research also helps the
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company in determining its promotional strategies. In addition to this, the firm discusses each of
its strategies with its employees and other stakeholders to ensure a smooth and effective working
environment. For process, the firm uses online and offline channels to distribute its products to
its customers. Moreover, the design of its products like SIM cards and its services are based on
real-time technologies which provide benefit to its customers.
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STAGE 6
Control- It is the last stage in which the organisation monitors and measures the marketing plan.
For this, the management department of the company can use Key Performance Indicators for its
performance. It refers to indicators which measure value that monitors effectiveness of an
organisation in achieving its business objectives.
 For measuring its customer base, the KPI adopted by the company would be total number
of customers associated with the company after 3 years(FIDM, 2014).
 The company can set sales figures as a KPI to measure its profitability.
CONCLUSION
From the above information it can be concluded that marketing plan is an effective tool
which help in analysing the internal and external business environment of the company. With the
help of various tools & techniques and strategies or tactics, the organisation can monitor its
position and its competitors so that it can gain competitive advantages at marketplace and
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increase the sales, market shares and profitability etc. It effectively discussed formulation of
marketing plan and how external factors could be used to analyse the market. Further, Porter's
Five Forces Analysis effectively determines industrial attractiveness and Marketing Mix helps in
determining existing strategies of the company. Lastly, it is imperative to set KPI as tools to
measure performances effectively.
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REFERENCES
Books & Journals
Dey, K. and et. al., 2012. Social network marketing plan monitoring method and system. U.S.
Patent 8,332,256.
FIDM, D. R., 2014. SOSTAC: The guide to the perfect digital marketing plan. Journal of Direct,
Data and Digital Marketing Practice. 16(2). pp.146-147.
Garrigos-Simon, F. J., Lapiedra Alcami, R. and Barbera Ribera, T., 2012. Social networks and
Web 3.0: their impact on the management and marketing of organizations. Management
Decision. 50(10). pp.1880-1890.
Jarach, D., 2017. Airport marketing: Strategies to cope with the new millennium environment.
Routledge.
Kotler, P. and et. al., 2017. Marketing for hospitality and tourism.
Lamb, C. W. and Crompton, J. L., 2017. Analyzing marketing performance. In Marketing the
Public Sector (pp. 173-184). Routledge.
Lidstone, J. and MacLennan, J., 2017. Marketing planning for the pharmaceutical industry.
Routledge.
Macarthy, A., 2018. 500 Social Media Marketing Tips: Essential Advice, Hints and Strategy for
Business Facebook, Twitter, Pinterest, Google+, YouTube, Instagram, LinkedIn, and
More!. CreateSpace Independent Publishing Platform.
Robinson, C. K., 2012. Peter Drucker on marketing: application and implications for libraries.
The Bottom Line. 25(1). pp.4-12.
Strauss, J., Frost, R. and Sinha, N., 2014. E-marketing. Upper Saddle River, NJ: Pearson.
Thackeray, R., Neiger, B. L. and Keller, H., 2012. Integrating social media and social marketing:
a four-step process. Health promotion practice. 13(2). pp.165-168.
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