Marketing Essentials: Forever-young

MARKETING ESSENTIALS

CONTENTS
INTRODUCTION...................................................................................................................................1
TASK – 1 (ESSAY) (LO1)......................................................................................................................1
TASK – 2 (REPORT) (LO2 & LO 3)......................................................................................................3
PESTEL for external environmental analysis......................................................................................4
Competitor analysis by adopting Porter’s five force...........................................................................6
Forever Young’s marketing objectives................................................................................................8
Marketing strategies.............................................................................................................................8
Segmentation, Targeting and Positioning............................................................................................9
Market control......................................................................................................................................9
CONCLUSION........................................................................................................................................9
REFERENCES......................................................................................................................................10

INTRODUCTION
Marketing is indispensable part of business considering the dynamism and
competitiveness of the current business scenario. It is vital in almost every firm irrespective
of their size, nature and scope of business. marketing significantly comprise numerous
aspects such as understanding the market place, development of relations, satisfying the
demands of the patrons, creating strategies, providing products and services with best quality
and many more. For the purpose of accelerating marketing performance, the core principles
of marketing are required to be re-examined in this modern era (Brooks and Simkin, 2012).
Concerning this, the main aim of the current report is to perform thorough analysis of
marketing. The first section of the research study is research essay which will reflect the main
role of marketing in the current business corporations and will also analyse the inter-
relationship of marketing with other important functions of the company. Moreover, the
second section of the study will be based on case study of beauty giant which is involved in
the business of selling cosmetics. The firm is launching a new anti-ageing product called
“Forever-young”. Thus, the main aim here is to develop a marketing plan for this new
product and to apply the marketing mix with a view to attain the desired objectives.
TASK – 1 (ESSAY) (LO1)
Marketing is nothing but an organized and efficient procedure that renders a
supportive hands to the firm in distributing their products and services to the final consumers
as per American Marketing Association (AMA). It pay attention primarily on distribution
activities of merchandise. As the time passes, marketing principles, definitions, conditions
and trends in the market keeps on changing and re-defined by AMA. In the present scenario,
customers are regarded as a king and thus, time is favouring patrons indispensably. When the
topic is concerned with the retail business, the significance of customers rises leaps and
bounds. At this instant, even the marketers have apprehended that merely selling merchandise
is not the call of the time. Instead, they are in great need to provide added benefits to the
users so that they are contended and become loyal toward the business (John and Slater,
2000). Thus, it can be said that the success of the modern firms is heavily relied on processes,
tactics and strategies being developed by them. Further, the main focus of the corporation
todays should be to provide high quality products and services to the customer that too
possess some innovative as well as stylish features and are at the same time easily accessible.
Thus, the marketing function is defined as the major role being carried out by the companies
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to know and source conceivable product for the market and accordingly such strategies
should be used upholds the products in the concerned marketplace.
Speaking in relation with the roles and accountabilities of the modern marketers, their
role is not just limited to selling the products and services, in fact it is far more beyond that. It
now includes vision of digital transformation taking place all across the business which
supports the marketers to shape end to end experience of the clients. In addition to this, it also
takes into consideration the responsibility of touch points of each and every brand.
Supporting the above discussion, the founder of the Marketing Week known as “Ashely
Friedlein” has created a new archetype related to marketing which is being recognized as the
modern marketing model or M3. In this marketing model, ten elements are being included
which are again segregated into 4 main levels such as planning, execution, strategy and
evaluation. Other than this, it also amalgamates key principles with skills necessary for
maximizing the opportunities obtainable in the new digital domain (Thompson, 2018). The
landscape is evolving continuously and so is the roles, responsibilities and skills of the
marketer. The major role of marketing in the contemporary business corporations is described
underneath. The very first is determining the possible new markets. In the present era, the
main job of the marketer is to determine new as well as potential market for their
merchandise. This can be achieved only by maintaining and developing good relations with
the existing market. With this, market reach of the business can be increased. The second role
is to introduce innovative merchandise. The marketer’s main tasks is to magnetize the new as
well as old customers. In other words, they need to perform research and determine the desire
and wants of the target market. Accordingly then the products and services should be
developed so that maximum amount of satisfaction can be achieved. The next role of the
marketer is to evaluate the product. Today’s ear is being characterised by digitization and
dynamism and in such as scene the demands of the customers keeps on changing. It is thus
quite important for the companies to update with these trends and change features of the
products that satisfies the current needs of the customers. The last and final responsibility of
marketer is to conduct marketing planning. For marketers, it is being regarded as one of the
most vital step. He is required to develop action plan with a view to have better and efficient
performance of all the marketing activities including sales forecasting, distribution and
promotion (Brooksbank, 2013).
Articulating about the inter-relationship of marketing function with other
supplementary functions of the business corporations, it is quite worth to be noted that no
function whether it is Human resource, finance, research and development, production and
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especially marketing can be performed effectively in isolation. In an organization varied
function takes place simultaneously such as finance, logistics, operations, human resource,
marketing, research and development so as to achieve better performance targets. For
instance, the human resource function of the firm is responsible for recruiting, selecting,
training, developing, motivating and retaining the human capital of the business. In addition,
all the related legal aspects are also beheld by this department (Eugene, Fornell and Rust,
2007). Thus, the marketing manager need to work closely with the HR function so that the
required marketing assistant can be recruited by them. It is the HR department who will make
arrangement for interview of the concerned personnel and the best is selected by taking into
consideration varied selection criterion.
Similarly, it is also necessary for the other functions such as logistics, operations and
production to work closely with the marketing function of the firm. Throwing light towards
the operations, it primarily includes tasks such as manufacturing, packaging, warehousing as
well as distribution. It is the duty of the marketers to sell those stocked products and services
in the market within a stipulated period of time. But sometimes situations may arise wherein
the marketers are continuously making efforts to augment the sale of the products however
the supply of the related product is not increased. Consequently, there is a need of proper
coordination and collaboration between the two function so as to have better working.
Stretching the current discussion, the research and development function is also driven by the
concept of marketing. For delivery of novel products and services, market research and
gaining insights about the customers is pivotal (Hausman, Montgomery and Roth, 2002).
Therefore, it can be concluded that the marketer’s role is quite valuable, as it helps in
delivering, exchanging and moving the merchandise to the final consumers. It is rather
complex but the real requirement of the present times. Marketing offers employment
opportunities to millions and trillions. Additionally, the functions of the business corporations
are also co-related that in turn supports the companies in attaining their desired goals and
objectives. The main emphasis of every business in the present era is to offer quality products
that allures the customers and offer maximum value of the amount being paid by them for the
products.
TASK – 2 (REPORT) (LO2 & LO 3)
In the current part of the report, strategic marketing plan of Beauty Giant who has
decided to launch a new product known as “Forever Young” will be prepared by the
Marketing Manager of the company. The product will be targeted in more than thirty
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markets. As a manager utilization of seven Ps of marketing will also be performed so as to
attain the desired marketing goals.
Executive summary
The main aim of the present study is to plan, design and develop a strategic marketing
plan for the launch of the new product range of Beauty Giant known as “Forever Young”.
This is for the first time the company is targeting such a huge market i.e. 30 target markets. It
is a cosmetic selling organization having around 50 branches all over United Kingdom.
Further, the beauty giant is being into vending of toiletries of men and women from different
popular brands. As of now, the firm has not produced anything of its own as they are trading
the products being manufactured by different renowned brands. However, to extend their
reach, the firm has taken a decision to introduce a new anti-ageing product in the markets of
United Kingdom. In this regards, detailed environmental analysis will be carried out. Further,
various marketing strategy along with marketing mix of the new product will be developed so
as to attain the desired marketing objectives of the firm.
PESTEL for external environmental analysis
Political
 It is vital for the cosmetic industry in UK to follow the cosmetic
regulations 1223/2009. This regulation includes laws related to
free movement, animal testing, constraints of certain ingredients
and substance and many more. All these regulations are essential
for the companies to adhere (Jobber, 2010).
 Beauty Giant is required to source most of their raw-materials
needed for the production of new anti-ageing product from
Brazil. The political condition of Brazil is not stable and thus, the
functioning of the firm will be highly affected.
Economical
 The economic factors include the rates of interest, level of
income, rate of unemployment, growth rate and inflation. These
factors influences the purchasing power of people.
 In UK, the unemployment rate is quite high in 2009 and thus, the
purchasing power of people was distressed.
 The rate of interest is also very low, which will impact the
operation of Beauty giant (Blythe, 2009)
 Further, the rate of VAT is also increased which will influence
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the profits of the firm
Social
 People in United Kingdom are now conscious about the fair trade
practices, animal testing as well as utilization of natural products.
 Even the statistics shows that the male population is also
depicting interest in regards with the way they look and thus, are
ready to pay high amount to improve their appearance.
 Finally, the elderly population in UK is increasing and this target
group is also ready to spend high amount towards superior
products with high class quality that claims anti-ageing.
Technological
 The E-commerce market of United Kingdom is quite large and
almost thirteen percent of the sales of cosmetic industry is carried
out via online means (Barton and Anderson, 2011). Thus, it will
be an added advantage to Beauty Giant as they can sell and
promote their new product “Forever Young”.
 Higher use of internet and online services has significantly
transformed the cosmetic and beauty industry in United Kingdom
Environmental
 In UK, most of the companies related to cosmetic sector are
making effort to adopt green practices and go green
 Concerning this, most of the packaging is being done through
recyclable products with a view to have less stress on
environment
 Ingredient known as Microbeads was banned soon after its
swiped the headlines, as it is made of plastic and will definitely
unpleasant for the environment (Li, Chen and Chu, 2010).
Legal
 The Federal Food, Drug and Cosmetic Act (FD&C Act) and the
Fair Packaging and Labelling Act (FPLA), these are the two
important laws that needs to be followed by the companies
related to beauty and cosmetic industry of UK.
 Further, the ingredients utilized in the production of a particular
product is not according to the code than it will be not be allowed
to launch or introduce in the market by the regulatory bodies.
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Competitor analysis by adopting Porter’s five force
Threats from new
entrants
 The threat from new entry in the cosmetic and beauty
industry of UK is quite low.
 There is huge cost of entry, numerous need of resources,
different manufacturing processes and few funding
options. Further, the level of competition is quite high and
thus, threat of new entry is low (Drummond and Ensor,
2005).
 Most of the beauty giants such as Avon, Mac, Revlon and
Clinique have large share in the market.
Bargaining power of
buyers
 There is high bargaining power of buyers, as there is high
amount of competition in the cosmetic industry and
numerous options are available to people from varied
producers.
 The products related to cosmetic and beauty industry have
high number of substitutes and thus, the customers can
force the producers to reduce the prices of their products
by buying products from their rivalries (Capon and
Hulbert, 2001).
 Buyers possess great challenge to the manufacturers all
across the globe in this industry
Bargaining power of
suppliers
 The bargaining power of suppliers in the cosmetic and
beauty industry of UK is relatively low.
 There are large number of players in the same market and
the supply of varied products is also very high.
 Different producers are manufacturing diverse cosmetic
products and thus, customers have wide choices to choose
from (Heskett, 2016). This influences the prices in the
market in contrast with the suppliers.
 Talking about the competitive rivalry, it is quite high in
this industry.
 Wide range of products are being offered by companies
such as Avon, Mac, Revlon and Clinique and they are
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Competitive rivalry giving competition to each other significantly.
 The amount of Spas in UK is limited and they have their
own products. Concerning this, the demand is lesser than
they supply in the market.
 High exit barriers (Baines, Fill and Page, 2011)
Threats from substitute
products
 The competition level in the cosmetic and beauty industry
of UK very high and therefore, threat from the substitute
goods is also very high.
 Producers selling products at higher prices that too with
low quality are more likely to have less footfalls in
comparison with the firm selling goods at reasonable
prices with high quality (Helm and Gritsch, 2014).
 It is important for the firms to keep innovating their
products and their features to cope up with the challenges
and issue driven by the substitute products.
SWOT analysis of the Beauty Giant
Strength
 The firm has large share in the market of
UK
 Reputation and good brand name
 Engaged into the business of selling
toiletries of men and women from
popular brands
Weakness
 Layman in producing any sort of
products
 The product is not so much aware as
there was little marketing activities being
conducted (Juin, 2000)
Opportunities
 The company has an opportunity to
produce eco-friendly and organic
products
 There is increment in the number of
online buyers
 Since animal testing is ban in United
Kingdom, it will be beneficial for the
Threats
 Threat of risk concerning supply of
material
 High level of competition
 Threat from the existing players and
market, as they are entering in this
market for the first time
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introduction of new anti-ageing product
of Beauty giant
Forever Young’s marketing objectives
 Increasing the sale of the product to 12% in next 6 months
 Creation of around 100 leads through websites every month
 Selling of around 5000 products in coming 2 months
 Increasing the market share by 10% in one year
Marketing strategies
Marketing mix
Product
The firm is introducing the new product in the range of anti-ageing known
as Forever Young in more than thirty markets of United Kingdom. It will
help the target people to eliminate their signs of ageing and defects. Further,
the new product is also helpful in cleaning and moderating the sebum area
of skin.
Price
The company will follow market penetration pricing strategy wherein at the
initial level prices will be low and simultaneously it will be increased
(Stevens and et.al, 2007)
Place
The product will be introduced in 30 markets of UK in numerous outlets,
online, shopping sites and website of the firm
Promotion
Social media such as Twitter, Facebook and Goole will be used. Sales
promotion like discounts, free samples, free gifts and coupons will be used
Physical
evidence
It significantly includes brochure, flyers packaging, pamphlets and many
other physical element involved in the product (Hill and Lederer, 2001).
Record and database of customer’s details and past experience are also a
part of this element
Process
The firm make use of effective processes related to production and
transportation of the product to the customers that helps in reducing the
costs and minimizes waste (Best, 2000)
People The staff members of Beauty giant will know about the target audience and
identify their needs and accordingly product will be designed
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Segmentation, Targeting and Positioning
The firm has segmented the market in to three types. The very first is the geographic
segmentation wherein, the Beauty giant has divided the product based on the region, nation as
well as area. The market of UK is being segmented by them. The next segmentation is
demographic wherein the market is divided as per age, income and gender. The company is
planning to approach upper and upper middle class group of UK (Errunza and Miller, 2000).
On the other hand, the target market of Beauty giant’s new product are the men and women
falling in the age group of 35 to 55 years. Both professional and non-professional people will
be targeted. Lastly, as the target market of the company is upper and upper middle class, the
new anti-ageing product will be regarded as a high end brand. Thus, beauty giant will
position the new product by featuring its values, beliefs and usages. Ad campaigns using
celebrities will be used to capture the target market.
Market control
Market control is very vital element in the whole strategic marketing planning. At this
stage, each and every activities are being controlled and managed through comparing the
outcomes with the pre-determined marketing objectives. Even the activities which are drafted
are also checked so that corrective actions can be taken timely (Deborah, 2000).
CONCLUSION
Therefore, from the whole discussion, it can be attributed that comprehending the
importance of clients and their relations with the firm is quite essential for sustaining longer
period of time. This can be achieved through adopting effective marketing strategies, tactics
and processes. It was found out that innovation in the product is the key to succeed for any
company.
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REFERENCES
Books and journals
Baines, P., Fill, C. and Page, K., 2011. Marketing. 2nded. London: Oxford University Press.
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marketing practitioners. International Journal of Wine Marketing, 1(2), pp.34-45.
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John, C.N. and Slater, S.F., 2000. The Effect of a Market Orientation on Business
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Online references
Thompson, S., 2018. The role of the marketer has changed, shouldn’t the marketing model?
[Online]. Available through: < https://www.marketingweek.com/2018/02/02/the-role-of-
the-marketer-has-changed-shouldnt-the-marketing-model/ >. [Accessed on 18thDecember
2018].
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