Marketing Plan for Lidl: Sugar Free Bakery Products
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Added on  2023/06/12
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This report outlines the marketing plan for Lidl's sugar free bakery products, including a marketing mix analysis, BCG matrix analysis, marketing strategy development, and customer-driven strategy. The report also includes recommendations for the future.
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Principle of Marketing individual report
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Executive summary: The aim of the report was to conduct the Marco and micro environmental analysis on Lidl so that best strategies might be developed in the future by the firm through closely analysing various factors. Moreover, the study had identified the various issues along with providing certain recommendations for the future.
TABLE OF CONTENTS .........................................................................................................................................................1 INTRODUCTION...........................................................................................................................3 MAIN BODY...................................................................................................................................3 Marketing mix.............................................................................................................................3 Marketing analysis BCG.............................................................................................................5 Marketing developing strategies.................................................................................................6 Customer driven strategy............................................................................................................8 CONCLUSION................................................................................................................................9 REFERENCES..............................................................................................................................10
INTRODUCTION The marketing is being referred to as promotion of goods and services within the market so that company becomes successful. In this highly competitive market, it is very important for the companies that they effectively market the goods and services such that the sales of company increase. The current report is based on Lidl which is a German discount retail chain founded in the year 1932 and is having almost 11000 stores across Europe and US. The current study will outline the marketing plan for the company in accordance to the issues being faced by the company. With the previous assessment it was identified that Lidl is facing different issues and because of this the performance is negatively being affected. The different issues faced by Lidl involves risk within the supply chain, changes with demand of consumer, policies and procedure, high competition and many other different issues (Taylor, 2020). but it is necessary for Lidl to reduce these issues and try to work on solving these issues. hence, for this company is coming up with the marketing plan for launching thesugar free bakery products. This idea for the marketing plan is being selected because there is the issue of changing demand of consumer and in accordance to latest trend there is high focus on health consciousness. Hence, for this reason the product sugar free bakery products will be marketed. Objectives of marketing plan ď‚·To effectively launch the new product sugar free bakery items by May 2022. ď‚·To increase the sales of Sugar free bakery products by 17 % by June 2022. ď‚·To increase the investment by 12 % in marketing of sugar free bakery products. MAIN BODY Marketing mix The marketing mix is being referred to as the different actions which are used by the company in order to promote the working of the new product. Moreover, through using this mix in right and correct manner the firm would be able to understand the product or services that might be offered to the customer(Fedoryshyna and et.al., 2021). Also, this mix would help the firm to use the strengths and avoid unnecessary cost for the business. Thus, the company is able to face the future risk in more positive manner so that better results might be achieved in the end. Furthermore, each element in the marketing mix is very crucial as described as follows:
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Product:It describes the product that might be sold by the firm during the specific period of time. Also, at time of developing the product the company thinks about its life cycle and plans for various challenges that might arise during stages of it(Akbar, French and Lawson, 2020). Also, when the product once reached the final stage than again the company need to build the demand for the same. Price:This is the stage where price that need to be paid by customer need to be determined so that the people are aware about new product of the company Place:This is element where the place of the distribution need to be identified in form of physical store or online method so that people are able to purchase the new product that is developed by the firm in most convenient method Promotion:Under this element the firm decides about the way through which the new product would be sold in the market. Also, there are various ways through which this might be made possible such as through advertising on print and social media, use of the various marketing agents, whole sellers and much more(Laconia and Murphy, 2019). Furthermore, through using this technique more brand awareness might be created and more people might be attracted for the business. ElementDescription ProductThe Lidl product for the marketing plan is the sugar free bakery products because currently these are very trending and is also being liked by the consumer currently. Furthermore, such typeofproductsareverypopulartobe consumed by large number of people. PriceThe pricing is being defined as the amount of money charged by company for the services beingprovided.Inthepresentcaseof marketing of sugar free bakery by theLidl, the use of penetration pricing will be undertaken. This is because of the reason that it focuses on setting the prices at low and then increasing it slightly(Dong, 2021).
PlaceThe place refers to as the way through which product and services will be provided to the consumer.Hence,incaseofsugarfree product by Lidl the use of both online and offline modes will be undertaken for covering large number of consumers. PromotionWith respect to the promotion of the new product, Lidl will be focusing on the use of combination of social media marketing and the traditional methods like sales promotion, print media advertising and others. Marketing analysis BCG To conduct marketing analysis for Lidl firm it would be used through applying theBCG matrixthat helps in knowing which products are bestselling in the market and which are not so accordingly the strategies might be developed for the future. Moreover, for the Lidl firm these are applied as follows:
Stars:There are products that have the high growth and high share business thus allowing the firm to have the good position in the market. Also, in the Lidl firm the bestselling products are the iced coffee, nuts selection etc.that falls into this category and thus have the power to create more demand in the market. Also, the company manufactures more units of these products and maintain the daily stock as these are the products that helps in generating more revenues for the firm(Wang, 2020). Furthermore, through using these products the company might be able to attract more number of the customers for the business and maintain the brand loyalty for longer time frame Cash cows:These consist of the products that have low growth but high share business that means the growth in new markets of these products might be limited by major revenues are generated by these products to the company.For example, in Lidl UK frozen spicy bean burgers, bares readymade pasta sauces are some of the examples of the product that falls into this category. Thus, company does require minimum level of investment top hold the market share of such products in the target market. Also, they help the company to have enough amount of revenues that might be used in carrying out other useful activities within the firm Question marks:These consist of products that have the low share business in high growth market. Also, they require lots of funds to hold the market share of the company. Furthermore, these products operate in the market where there are lot of growth opportunities that are available but due to having low share in the business these are difficult to be sold in the market unlike other goods(Baha’is and Volchok, 2021). For instance: Frozen fish fingers, frozen pizzas, deluxe sticky toffee pudding etc. are some of the products that consist major part of this category and cost the funds of the company. Dogs:It is category that defines the products that have low growth and low share business. Also, these products might generate enough cash to maintain themselves but these might not be proved as large sources of cash. Furthermore, the company need to understand that these products are neither generating the revenue for the business or not making any sense of developing the competitive advantage of the firm (How to use the BCG Matrix model., 2022). Hence it is better that company identifies such products well in advance so that unnecessary wastage of the resources might be stooped and the firm is able to achieve the desired short and long term goals within the desired time-frame. For example: Fruit malt loaf, Newgate baked beans, crown field muesli etc. are some of the examples of products in the Lidl firm that should
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be considered to be stooped by the firm so that it might be invest in other best resources. Marketing developing strategies To increase the market, share of the Lidl in the best possible manner this might be linked through applying the ansoff matrix that istool that is used to analyse and plan various strategies for the growth for the future purposes. Moreover, this matrix consists of the four strategies form which any firm might choose and are described as follows: Market penetration:This is strategy that focuses on increasing the sales of already existing product of the company in the existing market. Also, this strategy is effective for those firms that wants to decrease the price of its products to attract new customers in market. Furthermore, this strategy might be adopted successfully through the increasing the promotion and distribution efforts of the company so that more people are aware of the brand and its products that are available in the market. Also, this strategy might also be brought into the practice through acquiring the competitor in the same marketplace that would allow the firm to sell the products in the most effective manner. Product development:Under this strategy the firm introduce new products in existing market and this is done through properly conducting the market research so that best of the
product might be launched in the market(Adefulu and et.al., 2020). Furthermore, this type of strategy is most successful in times when the firm wants to cover the large market share in the host country and develops the competitive advantage against some of the top competitors. Also, this might be done throughacquiring one of the competitor’s product and merging resource to createthenewoneso thatmoreefficientlythedemandsofthemarketmightbemet. Furthermore, it can be done through forming the strategic partnerships so thataccess to various partner distribution channels or brand might be gained. Market development:This is type of strategy that allows the firm to enter new market with its old existing products. Also, here the company expands to the new geographic regions, increase the customer segments and much more. Furthermore, this strategy is successful when the company is having best of technology at the existing workplace that might be used in the new market. Furthermore, it might also be used when company need to cater completely new market segment in newer market or wants to enter into the new area of the domestic market. Diversification:It is strategy where the firm enters new market with new product and hence it is most riskier strategy as product development is required(Palma tier and Sridhar, 2020.). Also, the using this type of strategy the firm might be able to earn higher revenues if large number of people like the product and increase the sales of the business. Thus from the above matrix that is suggested to be opted by the Lidl is the product development strategythat would allow them to conquer new markets and increase the revenue of the business through brining about the change in the list of the products. However, the company should appoint the right researchers to make this strategy a success. Customer driven strategy To make chosen strategy success it is very important that proper segmentation, targeting and positioning is done so that Lidl firm is able to achieve certain goals and objectives in the right and timely manner. Also, these strategies would be successful when the company need to expand its operations on large scale and generate more revenues for the business. Furthermore, the best of all these combination is being described as below in detail: Market segmentation:Under this stage company need to segment the market that might be done on various basis such as demographics, psychographics, lifestyle, belief and values etc. and thus accordingly the company would be able to cover the large market area with new sugar free bakery products. Also, here company would segment the market through focusing on the
health conscious people that are concern with the growing number of diseases that are caused with adopting bad lifestyle(Chaya, 2019). Furthermore, Lidl firm would sell the products in all parts of UK and would increase sales of the business through its online website in various parts of the world. Also, Lidl company would focus on selling premium quality bakery products that would build aim in brand loyalty and trust among the public. Targeting:It is the method where company identifies the target market through taking into considerations various criteria such as age group, gender differences, income group and much more (The segmentation, targeting, positioning (STP) marketing model. 2022). Also, for the current business project the company would target middle to higher income class groups who are ready to pay little higher prices for various goods and services. Furthermore, sugar free bakery products would be mostly for age group of 15-35 that are mostly interested in consuming variety of bakery goods for various festive occasions. Also, the targeting would be done through undertaking complete market analysis where the preference of the people under this age group would be identified closely so that accordingly the products might be sold in the target market. Also, the profits would be anticipated closely so that correct estimation might be developed. Positioning:This is the method where the new product would be positioned in the market through using various strategies(Jaworski and Lurie, 2019). Thus, for current product, positioning in the market would be done through using extensive marketing strategies that would allow the firm to know about various people that are interested in buying the goods of the company. Furthermore, the positioning would be done through designing best packaging of products that would allow the customers to know about that is sugar free products through using the appropriate label outside the package. Differentiation:It would be labelled as premium quality brand that would assure people that the product quality is good and is made of the best substances. Also, it would be differentiated from other competitors through the brand presentation in the market so that more people are attracted towards the products and are happy to consume more quantities of it. Furthermore, it would be done through using attractive colours, packaging sizes and use of the popular market influencer that would promote in best of manner Recommendations: ď‚·Thus, it is recommended to the Lidl that even though this marketing plan might be followed by the firm to introduce the new product line but in-spite of it should focus on
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conducting careful market analysis and set bet monitoring tools so that maximum benefit from the new marketing plan might be achieved. CONCLUSION From the above report it can be concluded that Lidl had successfully expanded its operations into various regions. Also, report had presented the marketing mix through clearly specifying the product, promotion, place mix etc. that is used by the company over the years. Also, the study had highlighted marketing analysis of the Lidl through using the BCG matrix where the clear classification of the product category is being found out so that successful strategies might be developed in the future.Moreover, to identify the best strategy for the business for the Lidl firm Ansoff matrix had been applied in detail under this report. Lastly, for launching the new sugar free bakery product line in the market the company had identified the segmentation, targeting, positioning and differentiation that would be used by the firm to generate maximum revenues.