Strategic Marketing Planning

This assignment discusses strategic marketing planning with a focus on Lidl, a German global discount grocery retail store. It covers environmental analysis, marketing objectives, strategies, targeting and positioning, and the 7P's of marketing. Explore the importance of strategic marketing planning in achieving business goals.

Strategic Marketing
Planning

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
1. Environmental analysis of the company.................................................................................4
2. Marketing objective of the organisation.................................................................................8
3. Marketing strategy selection...................................................................................................8
4. Marketing targeting and positioning.......................................................................................9
5. Assessment of the 7P’s............................................................................................................9
6. Implementation, control and evaluation................................................................................11
TASK 2..........................................................................................................................................12
Critical evaluation of the corporate strategy and marketing strategy for the organisation.......12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategic marketing planning refers to the process and activity of setting the goals or
objectives and formulates the strategies to accomplish them. It can also be an action of providing
a clear map to the administration of the company so that it can work according to attain them.
With the help of it the firm can also find out the information about the consumer’s needs and
their taste and preferences so that the firm can make plan of action to fulfil them in an
appropriate manner (Baker and Hart, 2016). This assignment is based on Lidl which is a German
global discount grocery retail store and operating its business in various nations of Europe and
US with the help of its 10000 stores. This organisation was established in 1930 by Josef
Schwarz. The company target lower income group people and manufactured products according
to them and offering its products less prices in comparison to other by using discount pricing.
The assignment will discuss about the environmental analysis by using theories, models and
concept. Further, will explain about marketing objectives of the organisation, marketing
strategies which are used by the company to promote its products and aware the consumer with
its commodities. The organisational structure, marketing, targeting & positioning and marketing
mix of the company will also described. In addition to it, critical evaluation will also describe the
effectiveness of corporate strategy and marketing strategy for the company.
TASK 1
1. Environmental analysis of the company
Environmental analysis
It refers to a strategic tool and techniques which is used by the management of the
company to find out the factors which affect the corporation internally and externally. A firm
operate its business in an environment so external and internal environment both influence the
business functions of the company in different term positively as well as negatively (Baker and
Saren, 2016). In Lidl, the administration of the company can use PESTEL analysis to monitor the
impact of external environment and SWOT analysis to determine the effect of internal factor on
the organisation.
PESTEL analysis of Lidl

It is a structure and technique which is used by the management of the organisation to
monitor the external environment components that influence the business of the firm in different
manner. The PESTEL analysis of Lidl is explained as beneath:
Political- This component consist different elements like trade restrictions, taxation policy,
labour law, government policy, political stability, foreign trade policy and others. Lidl is
operating its business in different nations of US and Europe so due to trade restrictions the
national authorise of these countries make change in trading laws or make them more strict than
before so it negatively affect the business operations and activities of the respective company
(Banerjee, 2017). A low minimum wage can offer high level profitability which increase the
chances of survival the business of Lidl.
Source: PESTEL analysis,(2018).
Economic- This factor include inflation, deflation, currency rate, interest rate, exchange rate,
economic growth etc. which affect the business and economic situation of the organisation. In
European Union, Brexit highly influence the economic growth of Lidl by taking inflation and the
value of currency was lower of the nation so trading of products and services was costly
(Camilleri, 2018). Due to which the expenses of the company are increased and the firm
negatively affected in term of economic condition. In some nation, the cost of employment is
Illustration: PESTEL analysis

low so the individuals are ready to work at less pay. This positively affect the company in term
of its finance because it will not pay more in comparison to others.
Social- This component is known as social culture element and consist various variables
such as culture, beliefs, needs, demands, values, taste and preferences of the customers. The
management of Lidl offer quality products by using discount pricing so that the people can easily
purchase its products and services, this positively affect the business of organisation in term of
profitability and increasing customer base (Channon and Jalland, 2016). But the company
concentrate on a particular market like low income group so it can not be able to fulfil the needs
of its all target audiences which negatively affect the firm.
Technology- It is an essential factor which influence the business of an organisation in
several manner like production of products and services, new ways of supplying finished goods
and services and new ways to making communication with target market. In Lidl, the
administration of the company promote its products by using promotional tools like radio,
newspaper, magazines billboards, leaflets and campaigns etc.. But by using new technical ways
and channels like social media, internet web advertisement band others can positively affect the
company by creating awareness about the products and services of the company at global level.
Environmental- It is another factor of external environment which create impact upon
the business of the organisation in different manner. It consist several component like pollution
targets, carbon footprints, environmental laws, insufficiency of raw material etc. The
management of Lidl properly follow the legislations and policies of the national authorities
regarding environment during the time of operating its business in different nations of Europe
and US. This positively affect the business of the company in favourable manner. If the
management of the respective company will not make proper control on the wastage then it
negatively affect the company in term of increasing cost of expenditure and environment also in
term of pollution.
Legal- It indicates to those legal policies and framework which are formulated by the
national authorities of the different countries so that organisation can operate their business
effectively when they are running their business transnational (Chernev, 2018). This factor
consist several components like consumer protection act, data protection law, equality act, anti
discrimination act and others. The management of the company properly follow the consumer
protection act and offer them better quality product by using effective packaging so that the

issues related to any kind of fraud cannot be arise. This favourably affect the company. If the
company will not follow discrimination and equality act or make discrimination in the
organisation on the basis of pay, gender, age and others then it can negatively affect the company
in term of affecting its brand image.
SWOT analysis of Lidl
It is a vital strategic planning tool which can be used by the administrator of Lidl (Cross,
Belich and Rudelius, 2015). It can be an effective technique which can be crucial for analysing
the strengths, weaknesses, opportunities and threats of the company.
Strengths Weaknesses
 The main reason for the success and
growth of the company is that the
management of the respective company
offer its products as discount prices.
The store sells most important products
at prices that are much lower in
comparison to its competitors.
 Another strength of the company is
customer satisfaction. By
manufacturing better quality product
and provided them lower prices the
organisation is able to fulfil consumer’s
needs and retain existing consumers till
long term.
 Lidl is acknowledged for its biased and
predatory pricing and they have strained
to suppliers to cut down prices. The
firm has also been undercutting
competition by its unethical pricing
strategy.
 The another weakness of this company
is that it has limited presence of the
retail chain in other nations like outside
Europe.
Opportunities Threats
 The organisation can get various
options of growth like by making new
segmentation in its business to most
retailers across the world.
 By making expansion in the business of
the company or expanding in across the
world apart from US and Europe.
 There are number of retail grocery
organisations like Aldi, ASDA, Tesco,
Sainsbury’s and others create high level
of competition for Lidl (Kim, Shin and
Min, 2016).
 The management of the company make
focus on the low income groups and

manufacture products and services
according to them which create the
image of the company of low quality
player.
2. Marketing objective of the organisation
Mission
The mission of the company is to transport exceptional customer relationship and assure
the market foremost quality and standards by continually innovating and optimising effective
procedure driven by technology and people (Kotler and et. al., 2017).
Vision
The vision statement of the organisation is to enhance the lives of the consumers by
offering better quality products at a market important value, whilst assuring that target audience
Marketing objectives of Lidl
 Eliminate Lidl's preceding assailable and standing image.
 Assist Kardis frozen pastry goods in the consumers shopping preferences.
 Include Lidl as their major grocery retail shop.
 To maximise the gross sales of the organisation by 5% within next 3 years by producing
products for income group customers.
 To maximise the profitability of the company within 2 years by 3% through expanding
the business in different countries of the world.
Organisation structure of Lidl
It describes how activities like task assignment, management and regulation are absorbed
regarding the attainment of organisational aims and objectives. Organisational structure
influences organisational activity and offers the foundation on which standard operating
process and routines rest. It also can also be a process of managing the organisational
activities by designing a framework and offering the responsibilities to the individual to
direct and administrate the organization in effective way (Lidstone and MacLennan, 2017).
In Lidl, the management of the company has configured the artefact for the administration as
the boss and worker cognition. The administration thinks that the employees are just like

device and no regard for them. So Lidl above then 8000 branches cannot get the great social
class position.
3. Marketing strategy selection
Marketing strategy
It refers to a plan of action which are used by the company for the marketing of the products
and services so that target audiences of the organisation familiar with the products and
services of the company which are manufactured by the company and offer to them. It can
be a strategy of which is the encompassing plan developed specific for accomplishing the
merchandising verifiable of the administration (McDonald, 2015). The administration of
Lidl use radio, newspaper, billboards, leaflets, magazines, TV and others which are effective
for creating awareness about the merchandise and services which are manufactured by the
organisation. The management of the respective company can also use social media, mass
media, web advertisement online media, mobile application etc. to familiar the potential
clients with it products and services. These application and technologies can be essential for
the company because now these people use internet at high level. So they can effectively
aware with the organisations goods and services.
4. Marketing targeting and positioning
The marketing, targeting and aligning refers to the process of identifying the market position
of the company and its products at market place and which people and individual will target by
the company to sell its merchandise and services. To monitor the market targeting and
orientating of Lidl, the management of the organization can used STP analysis which as follows:
Segmentation- Lidl has divided the market using the psycho-graphic segmentation plan of
action. It target the consumers who are price excitable normally have a modest budget while
purchasing but they select to purchase inferior attribute merchandise. They also do sales
promotions and new products offerings to get attention of their target audiences.
Targeting- This plan of action utilised by the company to capture the market. The respective
company target lower income group people because they are price sensitive. For this the
company use low pricing and discount pricing strategies to attract it target audiences.
Positioning- This strategy used by the company to get information about its products and
the position of the company in the market (Moutinho and Vargas-Sanchez, 2018). The
company used low pricing strategy as possible is a true EDLP. So the company has good

position in the international market and the strategy has very much impact on the growth of
the firm
5. Assessment of the 7P’s
Marketing mix
It mention to the set of activity, plan of action that an organisation uses to encourage its
trade name or merchandise at marketplace. It can be mention as a merchandising instrument that
consist number of components in order to strengthen and solidify a product’s brand and assist in
selling the product or service (Paulovčáková, 2016). The marketing mix of 7 P’s of Lidl is
mentioned as beneath:
Product- It refers the process of converting raw material in to finish goods that have
some value and customer is ready to for that. In Lidl, the management of the company offer
vegetable, fruits like animate thing tomatoes, carrots, baby corn and red paper etc., frozen items
like fish, meat, desserts, eggs, chilled items, bakery product, pet goods like chews, treats, dry
food and wet nutrient items, baby merchandises, health products, beauty products, household,
cleansing products and flower market like seasonal plants and flowers etc.
Price- It refers to the cost and value which is set by the management of the company for
the finished good or products and services which are offered by the company to its target
audiences. In Lidl, the administration of the company target lower income group people so they
offer product at low costs. The organisation also adopt competitive and penetration pricing
policies so that the firm can also offer different several incentives and discount offers to its
customers on special days or a period of time.
Place- It refers to that area and spare where products and services are available to the
customers and in the reach in them so that they can easily purchase them. In Lidl, the
management of the company offer its products with the help of its 10000 stores in different US
and European nations.
Promotion- It indicates to the procedure and activity of creating awareness about the
products and services of the company so that company can create awareness and familiar the
consumers with their products and services. For this organisations use different channels and
tools of marketing like newspaper, radio, TV, billboards, leaflets, social media and others
(Ratten, 2016). In Lidl, the administration of the company used radio, newspaper, magazines

billboards, leaflets and campaigns etc. to familiar its potential clients with products and services
of the organisation.
People- It refers to the people who make their contribution in running the business
operations and activities of the firm. These individual can be employees and customers who
make their participation in effective running of the business (Rowley, 2016). In Lidi number of
employees makes their contribution n operating the business of the company globally by running
different business process. The consumer makes their contribution by purchasing the products of
the company.
Process- It refers to the process of manufacturing goods, packaging process of them and
distribution of them. It can consist polices, procedure, mechanisation, employees prudence,
consumer engagement, client spatial relation and stream of actions. Primary procedure of Lidl is
to buy and trade as many goods as potential on a low cost basis. Target audiences are not very
concerned in any of the procedures or activities of the respective company and would have little
powerfulness over their business concern operations. For the distribution process of the goods
and products of the company, the management of the company use offline mode and offer its
products to its customer through stores.
Physical evidence- It refer to the physical presence of the organisation, products and
outside of commodities, packaging etc. It can consist, environment, furnishings, colour, layout,
facilitating goods and tangible clues. Lidl often exhibit their brand colours, yellow and blue
throughout their stores or surrounding areas. It helps customers to know there is a Lidl nearby.
6. Implementation, control and evaluation
Implementation is a process which is used by the management of the company to assure the
accomplishment of the impersonals accepted by the organisation. A particular role in these
procedures maneuver a function of conducting and leading persons. It consists preparing
inclusive list of actions to be performed, individual for this activities and resources needed. In
Lidl, the administration of the company can use different designed strategies and plan of actions
to accomplish and attain the set objectives regarding business growth and success. Controlling
indicates to make control on the plans and strategies which are developed by the administration
to accomplish the set aims and objectives. So that cannot be affecting the other factor of the
business in favourable and unfavourable manner. The main purpose of marketing activities of the
organisation to record and report deviations to management so that administration of the

company can takes decisions based on the information (Sahaf, 2019). To implement and control
the market plan in the business, the management of the company should setting the values of
indicant which are the dependent of measurement and mensuration and ascertain the endurance
extent from conceived belief. Before using and implanting the designed plans and straggles, the
company should evaluate them that are effective and efficient for the organisation and able to
help in accomplishing the business objectives by offering desires growth and success in the
business in term of maximising customer base, profit margins ration, production level and
capturing a large market.
TASK 2
Critical evaluation of the corporate strategy and marketing strategy for the organisation
Corporate strategy
It indicates to those plan of action which are formulate and developed by the management of
the organisation to embrace a company's corporal activity and activities with the aim to
accomplish the objectives while attaining competitive benefits from the market. It can estate
a intelligibly characterized, long term vision the organisations arrangement, endeavor to
make over firm value and actuate the worker to apply the effective actions to accomplish
target incidences satisfaction (Smith, 2017). There are several corporate strategies which are
used by Lidl to gain rivals benefits from the market. The administration of the company uses
PESTEL analysis so that it can get information about the external environmental factors
which affect the business of the company and create negative impact upon the business.
By having information about them the firm formulate business plans so that it can ovecome
the unfavourable impact. With the help of SWOT analysis the firm can get information
about the strengths, weakness, opportunities and threats of the company. So with the help of
effectiveness of corporate strategy the administration of Lidl aware with its areas of
improvement growth, maximization of the profits, reduce cost, enhancement in the
productivity etc. These kind of strategies are effective to access the latest social and
economic data and analysis (Vellas, 2016). If the management of the company does not
properly follow corporate strategies then they generate issues for the company in getting
competitive advantages form the markets.
Marketing Strategy

It refer to those plan of actions which are used by the company to create awareness and
provide information about the products and services local and global level so that people are
familiar with the brand and its production. In Lidl, the management of the company use
various marketing strategy to communicate the individual with the products and services of
the firm. The administration of the organization use TV, Radio, billboards, leaflets,
magazines, social media and others for the promotion of the goods and services of the
company. The brand use lower pricing strategy and discount pricing strategy because it
target lower income group people which also help in getting attention of the customers. It
also help in increasing the customer base and sakes of the firm because when company get
attention large customer base then they can also convert in the actual customer of the firm
and when they purpose the goods to take the befits of the products and services which are
manufactured by the firm (West, Ford and Ibrahim, 2015). Then it maximised the
profitability, enhance the productivity and increase sales of the organisation. But if the
company will not adopt effective promotional tool then the marketing strategy can
negatively impact the business of the company because the management of Lidl will not
offer information about its new products and services to customers and the ratio of sales,
profit margins and productivity will not maximised. So it effective for the company that the
firm should use good promotional tool for the marketing of the company and create
awareness about its commodities and services which are produced by the production
function for its growth and development.
CONCLUSION
From the preceding defined information it can be summarised that strategic marketing
planning is an effective tool and technique which help in establishing goals and aims for the
business of the company and designing plan of action to accomplish them in set time period.
Environmental analysis refers to internal and external environment for which the firm can
use PESTEL and SWOT analysis to monitor the impact of internal and external
environmental factor on the business of the company. Different marketing strategies are
explained which are utilised by the administration to familiar the employees with the
organisation’s goods and services. STP analysis is also defined to monitor the segmentation,
targeting and positioning the products and services of the firm. Marketing mix is also
defined to provide the information regarding products, pricing, promotional tools, place and

other of the organisation. Critical evaluation is also defining the corporate strategy and
marketing strategy for the company.
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