Nebia Marketing Strategy Analysis

The report presents a detailed analysis of Nebia's marketing structure, highlighting the company's advantages and disadvantages in selling showers in the UK. It also discusses the importance of implementing a control system to evaluate selling strategies and improve performance based on industry standards.

MARKETING PLAN
STRUCTURE

TABLE OF CONTENTS
1. EXECUTIVE SUMMARY.........................................................................................................1
2. SITUATION ANALYSIS...........................................................................................................1
Market summary.....................................................................................................................1
Macro Environment Analysis.................................................................................................1
Micro Environment Analysis.................................................................................................2
SWOT Analysis......................................................................................................................3
3. MARKETING STRATEGY........................................................................................................3
3.1 Objectives.........................................................................................................................3
3.2 STP model........................................................................................................................4
3.3 Strategies..........................................................................................................................5
3.4 Marketing Mix..................................................................................................................6
4. ACTION PROGRAMS...............................................................................................................7
5. FINANCIALS..............................................................................................................................8
5.1 Projected Profit and Loss Account...................................................................................8
5.2 Break-even analysis..........................................................................................................8
6. CONTROLS................................................................................................................................9
REFERENCES..............................................................................................................................10
APPENDICES...............................................................................................................................11

1. EXECUTIVE SUMMARY
This summary is written to analyse market structure of shower market for Nebia and its
structure and forms of marketing plan. Purpose of the summary is to describe study on shower
market in United-Kingdom and associated results in respect to opportunities in marketplace for
Nebia. Micro and macro factors evaluation for Nebia, a shower manufacturer in United-States,
opened a branch in United-Kingdom as an expansion in other nation. After situational analysis
marketing strategy objectives are set to be achieved in first year with help of STP model.
Segmentation, targeting and positioning of products is performed to formulate appropriate
marketing strategies. Moreover, Marketing mix is analysed to formulate pricing strategy for
Nebia. Action program is articulated for the company to manage its marketing structure and
strategies. Further, in the summary projected profit and loss account and break-even analysis is
made to identify financial performance of company in UK. At last control strategy would be
formulated to identify overall marketing structure after conducting situational analysis and
formulation of marketing strategies.
2. SITUATION ANALYSIS
Situational analysis is conducted by managers to evaluate internal and external environment to
understand marketplace. It is performed by several methods like SWOT, 5 C's analysis, pest
analysis or porters-five-forces-model etc.
Market summary
Shower market in United-Kingdom is growing, and forecasts says that it is set to rise by
ten percent by 2020. After 2012 the market of showering products has seen a notable rise, due to
improvement in economy consumer spending level increased. It was found that each household
has at least one shower installed (Westwood, 2016.). Penetration level increased by 89 percent
from 1990 to 2014, which is equivalent to 23.8 million homes in UK.
Rise in usage of shower products has lead to increased purchasing of shower accessories
by almost thirteen percent. Thus, marketers have introduced products that can be easily installed
for the purpose of profit-making.
Macro Environment Analysis
PEST Analysis Political Factors: United-Kingdom runs under influence of parliamentary system. It has
plenty of opportunities for those whom are operating in economy of UK. They affect
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Nebia in both positive or negative ways. Positive effects are proactive government and it
is politically stable, thus Nebia has advantages of upcoming future events. Negative
effect is there is some hidden corruption in the market place, and as per Brexit it is
uncertain whether to stay in EU or not. Economic Factors: When compared to other nations' economy of UK is more stable than
them. Due to its high GDP and diverse economy Nebia has benefit of high turnover.
Positive effects are Free market economy, diversified economy and rise ion foreign direct
investment. Negatively economy is recovering slow after recession from 2008/2009. Social Factors: It is no doubt about various social in UK, as there are people from
different origins (Nykiel, 2016.). They have very high social standards leading to better
circumstances for Nebia. Positive effects: Free public services from government like
National health care services. High standard of living results in over spending of money
and thus people buy more shower products. Negatively people are migrating resulting in
lesser social interest.
 Technological Factors: It is important for Nebia to be technologically upgraded, it
requires innovative products and requires expert employees for effectively designing
them. Positive effects are its high quality products offered to customers and internal
competition after increase in usage of showering products. Negatively UK has slower
development in technology as compared to United-States.
Micro Environment Analysis
5 C's analysis is conducted to scan both internal or external environment to make marketing
decisions. Company, customers, competitors, collaborators and climate are evaluated in this
analysis. Company: Nebia has high reputation in shower market due its premium brand image in
eyes of developers/plumbers. Customers: They are having low brand awareness, generally follows recommendations
from plumbers. Competitors: In UK almost everyone has a shower installed at their home. The main
competition for Nebia is Aqaulisa, Triton or Mira. Triton has the highest market share, it
covers almost 30 percent of marketplace.
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 Collaborators: Distributors, suppliers and alliances are collaborators for Nebia (Yu,
Ramanathan, and Nath, 2017). Logistics is necessary for delivering goods to consumers
as Nebia cannot rely upon stores for selling their products.
 Climate: Its is the macro factors and their effects, political, economic, social or
technological factors influencing the business operations.
SWOT Analysis Strengths: Well known brand in United-Kingdom, high quality showers, its premium
brand and great services offered to its customers. Weaknesses: Services standards are falling and few of its product range is not improved
or as per customers' demand. Opportunities: Nebia is having higher prospect of increase in its turnover as 40 percent of
household are not having shower installed. Expansion or global market is an opportunity
for the company.
 Threats: Customers are of perception that they are overpriced and competitors are
catching up. Traditional shower market or existing products are threats to Nebia.
3. MARKETING STRATEGY
3.1 Objectives
Nebia is currently focusing on three main Objectives:
1. Environmentally Conscious: Nebia is producing showers that conserves seventy percent
of water as compared to traditional showers. Wastage of water is an obvious harm tom
natural environment it has to be kept in mind while designing showers that it is not
harming the surroundings. Utilization of electricity i.e. producing products with low
energy wastage by managing to preserve them (Leonidou, Christodoulides and Thwaites,
2016.). Moreover, company has focused upon disposing of harmful waste products
carefully that are generated in process of production.
2. Looking for relaxation and peace: Consumers are looking for relaxation in their
bathroom, thus Nebia has designed such products. Rain showers are preferred more by
consumers than a plain old shower. These showers give a feeling of showering in wild
making it more luxurious by swap installed with it.
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3. Building dream home for its consumers: Nebia produces a product which is not a
necessity, it is a pleasure giving product. People are willing for luxury in their home, thus
a shower which gives a pleasure is more superior experience for them.
4. Convincing plumbers about Nebia: Most of the consumers buy products as per advice
made by plumbers, thus it is important for company to convince them about quality of
products offered.
3.2 STP model
STP model is used by any organisation to analyse its offerings to customers and their
benefits to consumers or specific target groups. STP stands for: Segmentation, Targeting and
positioning. It is the marketing strategy that has various benefits attached to it for Nebia,
company can segment market in groups by identifying who are the best consumers of the
company.
Applying the model in marketing strategy.
Segmentation: Step one is to segment the shower market, as it is not possible to cover all parts
of consumer market. Divide consumers with common traits and needs, it helps the organisation
to reach cost-effective needs of their potential customers (Velásquez and Meunier, 2017). Thus,
Nebia can gain competitive advantage over market. There are various approaches for
segmentation i.e. target markets. To gather data company can use primary sources like
interviews, surveys or customer data.
 Demographic: Segmenting by using personal attributes of public like age, gender. Marital
status, ethnicity, occupation or income levels etc.
 Geographic: Divide market place according to nation, state, city or neighbourhood
 Psycho-graphic: Lifestyle of people their values or risk aversion are the factor based on
which market can be segmented.
 Behavioural: It includes aspects regarding what consumers are expecting from
manufacturer, their loyalty towards company or benefits they are searching in product.
However, Nebia is producing a special shower saving seventy percent of water, which can help
them to attract segments on psycho-graphic basis i.e. lifestyle of UK public. Most of the people
are nowadays environment conscious, such type of product would help company to gain a
market position.
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Targeting: “Target the best customers” of company is next step after segmentation. Deciding
who are most attractive consumers for Nebia, which is main idea for targeting. At first, find who
are most profitable to company and who are contributing most to bottom line. After determining
the various target customer groups, analyse potential and size of growth of consumer group.
Then evaluate how company is serving to market or understand the impacts of macro factors on
organisation i.e. pest analysis. After segmentation of market, target market as per different
segments evaluated and their needs from company
Positioning: Third step of this model is to position product offering to consumers, it is actually
the step that requires organisation to evaluate how it is willing to position its products in market.
Company can draw a positioning map and assess its unique selling proposition to identify how
products, service or brand is perceived in market. Next look at needs and demands of consumers
of each segment. Drive campaigns to make the product known to customers that it saves water
resources and gives more pleasure than traditional showers.
3.3 Strategies
Strategy is a plan of action designed to achieve overall objectives of an organisation.
Marketing strategies targeted to achieve higher sales and sustainable competitive advantage
including all short and long term activities related to selling.
 Understand the consumers: Before formulating marketing strategy it is important for
company to identify its potential and existing customers (Hoang, 2016). Preferences,
tastes, demands and their expectations of customers from company are to determined at
first.
 Analyse marketplace: Evaluation of market is next crucial step, the way businesses are
functioning in market is to be determined to gain competitive advantage. Assessing needs
of consumers, their willingness to buy product, and what are they offered before is
significant to be analysed to define marketing strategy.
 Analyse level of competition: Level of competition is crucial to find what channels can
be adopted to distribute products to consumers so that they are attracted to Nebia rather
than other companies.
 Define marketing mix: Marketing mix is combination of factors that are controllable by
company for influencing consumers to buy their product. It is the foundation model in
marketing also called P's
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 Determining market positioning: It is an effort put in by company for influencing
consumer preferences in relation to product or service. It helps the organisation to create
a clear image in minds of consumers regarding its product range in a positive way.
 Marketing budget: Budget preparation is next step after determining position of
company in marketplace (Schlegelmilch, 2016). It is estimation of costs that are required
to promote products or services.
 Execution plan: Once the budget is prepared organisation has to make customers aware
of their product. Educate buyers with organisational intent by promoting message behind
brand or product.
After following these steps of market strategy Nebia may follow differentiation strategy for
marketing resources saving shower. Though company has differentiated its product form that of
traditional products offered in shower market. Moreover, company can go for market penetration
i.e. it can sell existing products in specific target market.
3.4 Marketing Mix
'Nebia has premium brand with high quality showering products'
 Product: Ensuring that stores are fully showcasing attractive designs.
 Price: Retaining high retail price as the increased prices helps to create image of products
as high quality.
 Place: Open stores at specific target segment so that product are made available to almost
every segment.
 Promotion: Appoint consultants for formulating promotional strategies, as an outcome
company would be able to make best marketing strategy.
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Source: <http://www.canstockphoto.com/illustration/marketing-mix.html>)
Pricing Policy: Nebia is having number of pricing options for maximizing its sales and profit on
sales. Price is the value of goods that is received by seller after delivering products and services
to consumers (Currie, W., and et,al., 2017). Nebia can follow a high priced policy for its new
product range. High prices are always a point of attraction to customers who are price
insensitive. Increased price make customers believe that a better quality is offered to them
against that price. As there is diversified population in UK due to migrants from different
origins, most of them have high stanxdard of living and do not prefer buyimh loacl products.
4. ACTION PROGRAMS
Strategy Objective of Strategy Responsible person
Market Penetration Increase Market Share Research and Development
Department
Differentiation
Strategy
Gain Competitive Advantage Management Consultants
Marketing Strategies are designed with the aim of increasing market share and to gain
competitive advantage in shower market. Nebia has been involved in developing product that is
energy saving, along with environment consciousness. Company has launched a shower which is
successful in saving 70 percent of water as compared to traditional old showers. Management
consultants are responsible to develop marketing strategy which is differentiating their product
from other competitors. Research and development department in Nebia is involved in
developing shower which is most liked by consumers and energy saving.
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5. FINANCIALS.
5.1 Projected Profit and Loss Account
Nebia
Profit and Loss Account
for the year ended 31 march 2017
Particulars Details Amount
Sales (22000*100) 22000000
Less: Cost of Goods Sold (220000*86) 18920000
Gross Profit (c=a-b) 3080000
Add: Other operating income: rent (d) 120000
(c+d)
Less: Other operating expenses (e):
Salaries
Staff Training
Selling and Administrative Expenses (5% of net sales)
311000
150000
1100000 1681000
Net operating profit (e=c-d) 1411000
*Mark up of £14 is added up to cost of goods sold given to QPS ltd. For manufacturing shower
for Nebia in United-Kingdom. Thus selling price for company is 100 (86+14).
5.2 Break-even analysis
Break-even point is calculated by dividing fixed expenses by contribution per unit. It
divided company variable and fixed overheads in a statement and contribution per unit is
calculated (The Break-Even Analysis. 2017).
Break-even point
Particulars Details Amount
Sales (i) 22000000
Less: Variable costs: (ii)
Indirect expenses 50000
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Selling and Distribution Expenses 1100000 160000
Operating Profit (iii=i-ii) 20850000
Less: Fixed Costs: (iv)
Salaries 311000 311000
Contribution (v) 20539000
B.E.P.* 3132
*Fixed cost (Price-variable cost)=B.E.P.
 311000(100-0.72)=3132 units
 BEP in value = 3132*100=3132000
Break-even is point for company when sales is above its expenses i.e. company is able to recover
its costs. For Nebia Break-even is calculated and it seems that selling 220000 units by company
is enabling it to recover the expenses and generate a good margin of profit on selling. It is
observed that company has no rent expenses due to outsourcing manufacturing to some other
existing company in UK. It is an advantage for company to generate revenue from such
expansion strategy followed. Moreover, Nebia is only selling showers in UK and it has to only
spend on selling and distribution on product. Hence, indirect expenses are also saved resulting in
higher profit for company.
6. CONTROLS
To implement control system in marketing structure company can go for evaluating its
selling strategies. Nebia can opt for benchmark strategy to improve its structure and product
from competitors by improving its marketing practices. Benchmark strategy helps organisation to
evaluate its performance based on industry standards. Such that, company is able to recognise a
pricing policy that generates a good profit margin to company (Klagge, Martin and Sunley,
2017.). Moreover, it also helps in selecting an appropriate distribution channel in accordance to
channelisation used by other firms in industry. New marketing strategies can be developed which
are not currently followed by industry rivals. Market structure is also improved for company
after analyses made in marketplace. These analyses revealed the drawbacks in current marketing
strategy of company and it would be overcome in future with the help of benchmarking strategy.
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REFERENCES
Books and Journals
Westwood, J., 2016. How to write a marketing plan. Kogan Page Publishers.
Nykiel, R.A., 2016. Marketing Your Business-A Guide to Developing a Strategic Marketing
Plan.
Yu, W., Ramanathan, R. and Nath, P., 2017. Environmental pressures and performance: An
analysis of the roles of environmental innovation strategy and marketing capability.
Technological Forecasting and Social Change. 117.pp.160-169.
Leonidou, L.C., Christodoulides, P. and Thwaites, D., 2016. External Determinants and Financial
Outcomes of an Eco‐friendly Orientation in Smaller Manufacturing Firms. Journal of Small
Business Management. 54(1). pp.5-25.
Velásquez, A. and Meunier, L., 2017. COMPARATIVE MARKETING ANALYSIS OF THE
UK AND GERMANY FOR GLOBAL SUSTAIN.
Hoang, T., 2016. Market research and marketing plan to enter the United King-dom food
supplements market. Case Danapha.
Schlegelmilch, B.B., 2016. Global marketing strategy: an executive digest. Springer.
Currie, W., Seddon, J., Cooper, R. and Van Vliet, B., 2017. Innovation and the changing
structure of financial markets.
Klagge, B., Martin, R. and Sunley, P., 2017. The spatial structure of the financial system and the
funding of regional business: a comparison of Britain and Germany. Handbook on the
Geographies of Money and Finance. p.125.
Online
The Break-Even Analysis. 2017. [Online]. Available through:
<www.yourarticlelibrary.com/economics/the-break-even-analysis-explained-with-
diagrams-economics/29085/> [Accessed on 15 July 2017].
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APPENDICES
Situational Analysis:
(Source : <https://www.strategicmanagementinsight.com/tools/swot-analysis-how-to-do-
it.html>)
(Source: <http://www.imi.ie/global-strategic-context>)
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