Maintaining Ethical Standards in Marketing: A Case Study of Superdrug Stores PLC

The article discusses the ethical challenges faced by organizations in various departments, including marketing, finance, production, and operations. In the context of marketing, the article highlights several areas where unethical practices can occur, such as market research, market audience, and advertising and promotion. It emphasizes the importance of ethical practices to gain customer trust and create long-term relationships with them. The article provides examples of unethical practices, such as using social media to obtain personal information without consent, and proposes norms for organizations to follow, including safety, honesty, transparency, pricing, and respecting customer privacy.

Marketing planning
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Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
1.1....................................................................................................................................................3
1.2....................................................................................................................................................4
1.3....................................................................................................................................................5
1.4....................................................................................................................................................5
Task 2....................................................................................................................................................7
2.1....................................................................................................................................................7
2.2....................................................................................................................................................7
TASK 3.................................................................................................................................................8
3.1....................................................................................................................................................8
3.2....................................................................................................................................................8
3.3....................................................................................................................................................8
3.4....................................................................................................................................................9
3.5....................................................................................................................................................9
Task 4..................................................................................................................................................10
4.2 ................................................................................................................................................10
4.3 .................................................................................................................................................11
References..........................................................................................................................................12
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INTRODUCTION
Marketing is an activity of exchanging goods and services between buyers and sellers. It is a
process under which seller sells product and services to buyers and their value is determined in
terms of money. Organisation main intension behind marketing is render effective customer
satisfaction along with earn profitability. In order to conduct marketing activity, every business
organisation adopt some kind of marketing strategy and develop a systematic marketing planning.
Marketing planning can set according to the corporation objective and marketing executive
implement that in order to attain company's target within a specific time period. Marketing planning
is a process of analysing one or more potentially interesting marketplaces in order to determine how
business can optimally compete in them. In other it can be said that marketing planning process
typically results in a marketing strategy that can be used to enhance sales for the business producing
it. In this project report included an organisational auditing and analysis of external factors that
affect marketing planning with respect of Superbug Stores PLC. This company is dealing with
various health care product and beauty products. It have 900 stores across the UK and Ireland.
TASK 1
1.1
As per the case scenario, Superdrug stores PLC is a health and beauty retailer in the UK and
is the second largest in the country behind boots. This company is dealing with various health care
product and beauty products. It have 900 stores across the UK and Ireland. It stores of sell make up,
skincare, fragrance, health and well-being, mother and baby care, hair care and men's care products,
as well as toiletries and electrical items.
In order to develop marketing plan, organisation requires to make use of different perspective.
These perspectives are as follows- Market analysis- It is the first and most essential techniques in the marketing planning. In
this stage, Superdrug PLC requires to conduct an effective market analysis. Organisation
needs to make analysis before developing strategy (Bahadir, Bharadwaj and Srivastava,
2015). Cited venture should focus on conduct the internal and external research about the
market. In this stage, company identifies the current environmental factors as well as
competitors available in the market. Further it determine the actual customer demand related
to the product and services. For this purpose, cited venture can use the PESTEL, SWOT and
porter five force model. With assistance of this tool, cited venture understand the
environment and competition of business. In addition to this it can develop an appropriate
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strategy to compete I the competitive environment. Developing marketing strategy- After conduct the market internal and external analysis,
Superdrug PLC can develop an effective marketing strategy in order to survive its business
cooperation in the competitive market and attain the company predetermined objective.
Cited venture have objective to become the world best retail outlet and earn the maximum
profitability (Barrett and Weinstein, 2015). In this stage, organisation develop an
appropriate marketing strategy according to its objective. Formation of marketing mix- Marketing mix is very essential stage in the marketing
planning because through this company can set its marketing mix such as product, price,
place, promotion for different market. This will assist in delivering an desired product and
service to desired customers (Chen and et.al., 2015). Cited venture can able to fulfil the
customers requirement and develop an effective brand image in the market by user of t his
marketing mix tool.
 Identification of target market- It is very essential stage in the marketing planning under
which corporation can identify market for conducting marketing activities. In this stage,
organisation selects a particular market or segment in order to deliver its product and
services. Superdrug PLC identifies target market on the basis of geographical,
demographical, psychological and behavioural segmentation basis
1.2
As per the given case scenario, Superdrug stores Plc is a health and beauty retailer in the
UK market. It is trading in the 900 stores across the UK and Ireland. Its stores sell make-up,
skincare, fragrance, health and well-being , mother and baby care products. Cited company also
offers beauty and toiletry products under its own brand and online health services in the area of
men's health, women's health, sexual health, heart and lungs, travel heath and other. The major
objective of this firm is to develop effective relationship with customers to deliver them an
excellent quality product and services. Further it aim is to become famous retail company in the
world and earn the maximum profitability and market share (Homburg, Jozić and Kuehnl, 2015).
For attaining its purpose company requires to regular feedback option for customers so as it can
collect the various suggestion and improvement requirement. Company have strong capabilities
because it have 900 stores across the UK and Ireland. Cited venture have more than 14000 quality
and skilled employees which are giving their best efforts to attain company objective. Superdrug is
currently the UK's fastest growing health and beauty retailer more than doubling its profit in
2015.As per the survey it has been founded that company's products are satisfactory for customers
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and they have fully satisfied and enjoying its services. Company have pharmacies with consultation
rooms in over 220 stores and a further 19 contain nurse clinics.
Stregth- Superdrug have more than 900 stores across the UK it is major strength of the company.
Furthermore, company have 14000 quality and skill employees which enhance the productivity.
Weakness- Superdrug have major weakness is its high level of competition. further, regular
changing technology also generate the problem for cited venture.
According to the above strength and weakness, it can be said that superdrug company can develop
an effective marketing planning because it have sufficient fund as well as skilled employees.
1.3
In order to survive in the competitive market, every business organisation are requires to
conduct an effective external as well as internal analysis so as it can get the knowledge about it.
There are various techniques through which company can conduct organisational audit. Company
can adopt PESTEL model and SWOT model in order to conduct marketing audit. By use of
PESTEL, company can analyse the influence of environmental components on the business
activities and function. On the other hand, SWOT analysis is assist to the corporation in order to
measure the internal and external strength, weakness, opportunity and threats. These model enables
to determine where a company stands and according necessary actions so that they will be able to
change their products and services as per the requirements of customers. SWOT and PESTEL is a
most effective technique of marketing audit through which cited venture can effectively conduct
market audit. In the market auditing, various factors like political, social , economical, political and
environmental which helps company in identifying the market condition. With assistance of these
component, firm can easily estimates its competency to survive in the market.
1.4
Superdrug stores needs to conduct the internal and external analysis of business in order to
understand the influence of various macro and micro components. Following are some components
(external factors) which affect marketing planning of the cited venture- Political factor- In this factor includes the government regulation, code of conduct, rules,
tax policies etc. Cited venture have to consider this component at the time of business
operations (Jaramillo and Spector, 2015). Tax policies and regulations can affect the
company production and marketing services. Economical factor- The rapidly increasing global food crisis has increased food prices all
over the world, which will result in rising purchasing costs for Super drug PLC. In the
economic factor includes the economic currency's of countries, pricing policies, interest rate,
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inflation and recession. Cited venture have to consider this factor at the time of operation in
the country. According to the pricing policies and economic condition, the prices will be set
of product and services. Social and cultural factor- This is an important factor by which company's operation
affected. Under this includes customer changing attitude, trend of fashion, their values,
beliefs, cultural and social aspects (Kubacki and et.al., 2015). Cited venture have to conduct
effective market analysis so as it can identify customers needs and wants related to its
product. Technological factor- This is the major factor through which company's operation will
influence. Technology is changed continuously and its is related to the various department of
corporation such as marketing, finance, operation, production etc. According to the changing
technology, company have to change its business operation. In order to deliver effective and
quality product, company have to adopt effective tools and equipment of technology. Environment factor- In this factor include natural resources such as water, air, raw material,
sunlight etc. These natural resources assist in the production and manufacture of product and
services.
Micro environmental factors Consumers- With the changing demand and requirement of customer, company have to
develop its product and services. Superdrug PLC required to maintain effective and healthy
relationship with customers because company profitability are largely affected by the
numbers of customers. (Kumar, 2016.) Employees- Human resources play a very important role in order develop effective brand
image in the market. Company have to maintain and manage its employee in order to
produce effective and quality product and services. Sales and marketing activity is largely
depends upon the employees' performance.
 Suppliers- These are the people who are responsible for delivery raw materials and semi
finished goods to company. Corporation should maintain effective relationship , with them
by make their payment on time and make effective and large order.
As per the above discussion it has been ascertained that company have largely affected by the
macro and micro factors. In order to analyse the internal capability of company. SWOT model can
use-
Strength
It major strength of its high quality goods and
Opportunities
Superdrug's can enter the market of emerging
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services.
It have 900 stores across the UK and Ireland
(Pitta, 2012).
It has an extremely experienced leadership team.
companies through joint venture or partnership
to explore these new market
Become number one retail oulet in the world.
Weakness
Rising food prices over the world have impacted
on Superdrug plc's selling at higher prices.
Stiff competition within every segment of the
retail sector.
Threats
Increasing globalisation, present a challenges as
well as an opportunity to Superburg.
Changing technology as well as choices of
customers is major threat for company.
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TASK 2
2.1
There are many barriers which are occurred in the work place when manager creates the
marketing plan about the products and services. These obstacle creates the various issues and
declining the overall productivity of the firm that are described as below:
Main barriers - This is the main barrier of the marketing plan which includes the economic,
political, social and technological etc. In this way, if changes in all these factor which creates
various issues in marketing plan wherein manager not able to develop the plan. It affects
performance of the company because employees are not able to develop the good plan related to the
products and services (Pulendran and et.al., 2015). As per this, company declines the market share
and decreases the overall productivity as well.
Lack of skilled employees- In this barrier, without knowledge and skills are lead to unrealistic plan
and ideas. Manager of the Superdrug Stores appoints the unskilled employees at the work place and
they do not have the knowledge related to the plan and products which creates many problems. It
affects the activities of the business and firm is not able to make the effective market planing.
Lack of systematic approach – Some times manager fail in adopting the strategy and methods
related to the marketing planning. Lack of systematic approach creates the bad marketing plan
under which it affects the business operations.
2.2
In order to reduces the obstacle which are occurred in the work place related to the
marketing plan. There are various key points which helps to removing the barrier of marketing
planning that are explained below:
Skilled and knowledge- Manager of the Superdrug Stores can appoints the skilled and
knowledgable employees. In this way, skilled employees gives the innovative ideas and share the
knowledge in decision making process which helps manager to takes the effective decision related
to the marketing plan (Sadjadi, Yazdian and Shahanaghi, 2012).
Systematic process- Executive identify the key issues accordingly they develops the systematic
process. Company adopts the right strategy which help to make the effective marketing planing and
taking the right decision.
Communication- Management of the organization is required to communicate with the all the
employees which helps to resolve the issues related to the marketing plan. They gives suggestion,
relevant information and innovative ideas which helps manager to take the effective decision and
reduces the barriers to marketing plan. It affects performance of the organization and increases the
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overall productivity.
TASK 3
3.1
As per the demand of customer and changing their taste and preferences of the health care
product and services, Superburg Plc is planning to introduce a new health services into the market.
The major reason behind increasing the awareness of customers about heath care services and
product. They wants some better and distinguish treatment so as they can recover their health care
disability (Shimp and Andrews, 2013). Company is going to launching a new Spa therapy through
which it will give the best solution to customer in order to reduce their stress and tension. In this
therapy it includes body massage,facial, Acu-healing, scrups etc. This types of Spa is mixture of
health and beauty services through which customer can gain the advantage of reduce the health
issue as well as increase beauty. For launch this heath and beauty service in the market, company
have to develop a marketing plan-
 Product- Company will introduce the unique Spa therapy which provide heath services as
well as beauty service to customers. In this includes body massage, facial, Acu-healing,
scrup etc. This will be the best solution for customer to increase their beauty as well as
reduce tension and stress.
 Price- Company will set low prices of this Spa therapy so every income group can consume
this new services. Company will use the market penetration pricing strategy under which it
provide its product in the lower prices in order to acquire large market share.
 Place- The distribution of this health and beauty services will provide by company to its
various outlets on various geographical location.
 Promotion- It will promote its health and beauty services by use of Online as well offline
channels. It also use TV, magazines, billboard.
SMART objectives
Company have major objective is to increase the profitability by 10% every year. Company
provides the various kinds of product such as body massage, facial, Acu-healing, scrup etc.
Company will set low prices of this Spa therapy so every income group can consume this new
services. In the end of the 2017 company have to enter the new product in the market and gain
maximum market share.
3.2
Marketing planning is very essential in the strategic planning process because is a portion of
strategic planning procedure of all enterprise. Without it, the prosperity and living of the company's
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cannot think. It is crucial to align marketing planning with strategic planning activity. Both are
necessary elements of Superdrug PLC and it is ascertained that measurement of business purpose
and their roles are directly related with strategic decisions. Marketing planning assist in achieving
the objectives of business enbterprise as per the determined plans. These activities evolve on the
basis of effective and appropriate strategic.
3.3
In order to develop new product that is Spa Therapy, company can use the following techniques Idea generation- In this stage, new idea of Spa therapy has been generated into the mind of
marketing executive. In this includes brainstorming, Delphi and focus group. Feature development- After generate new idea in the mind of marketing executive, in next
stage, marketing executive of company thing about the new and creative feature of product
or services.
 Product development- In this stage finally product and services has been developed.
Configuration allows survey respondents to build their ideal product by selecting from the
list of available feature.
 Innovation- Through innovation company can develop new and innovati\ve product,.IN this
process, individual get the new creative idea in the mind then he/she try to implement in the
real
3.4
In order to implement this marketing plan in the market, company can use the penetration
pricing strategy. It is an effective pricing strategy through which it sets a low prices at initial level is
to increase sales and market share. Once the company capture appropriate market share then after
some time it can increase price of health and beauty services.
On the other hand company can use the direct channel a of distribution. It can sales its
services by physical store as well as home services. Company can hire a service executive who
responsible to provide this health and beauty treatment at customer home. Further company can
organise a programs at various supermarket and showrooms where it can render its services to
customers.
As per the communication mix, company can use the online channels of communication as well as
traditional methods of communication. Super drug PLC should use advertising, public relations,
sales promotion, digital and integrated marketing methods, personal selling etc methods of
marketing communication mix.
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3.5
There are various factors which can affect the implementation of this marketing plan- Demographic- In this includes customers taste, choice, preferences, culture, income level,
size of family. Along with this company have to take care about the population and their
demand in the market (6 Factors that Affect Your Marketing Plan. 2016).
 Market share- It is important for firm determine the percentage of current transactions in
market that is handled by organization. Along with this, it is also required to know those
component that may change this percentage either in positive or negative.
TASK 4
4.1
Ethical issues is a significant problem arising in every organisation. Its a situation where
individual or organisation has to choose between two alternatives right and wrong. Ethical problem
exist in almost all departments like finance, production, operation and marketing. If we talk about
marketing, in each and every phase department faces ethical danger.
If we search for areas of unethical practices are followed in marketing areas, discussion will never
end but it can be explained on basis of some marketing concepts.
Market Research - market research is done to identify response from the market . It includes study
of population based on demographic factor such as age, size, income level, gender, location etc.
This helps in predicting sale or demand of product, competitors, trend in market. Example of
unethical practice is popularly use of internet and social networking sites (Bahadir, Bharadwaj and
Srivastava, 2015). Its easier for company to contact and get personal information. This practices
are unethical.
Market Audience - selective marketing is used as unethical practice that is, grouping into various
segments to discourage demand. Examples of unethical market includes attitude toward gay, ethnic
minority, vulnerable audiences.
Advertising and Promotion – advertising is done to boost sale by spreading product information to
target market about benefits of product. A negative advertising policy is an unethical practice done
example a advertisement showing disadvantages of other product rather than showing advantages of
showing his own product.
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4.2
Every organisation tries to gain market share and it can be done by gaining trust of customer
through providing right product and services on time. In keeping mind the name of organisation
Superdrug stores PLC,a health and beauty retailer in UK., organisation can respond to ethical issues
by keeping few norms clear to every individual working in organisation. Few of characteristics are
briefly explained below :-
Safety: if product is hazardous to health then clear warning and advisories should be mentioned on
label. Example using product on elbow before any other part and check if any allergy persist.
Honesty: A product should satisfy the needs it promises in advertising. So that customers respect
honesty of organisation.
Transparency: No such practices to be followed that manipulates or hides facts from customers.
Company should be open stake holders about all happenings (Shimp and Andrews, 2013).
Pricing: price is fixed on basis of gathered data on target market as to know at what price they are
ready to buy that product. And secondly on demand and supply forces. No unethical practice
considered like fake shortage, bad mouthing the competition etc.
Respecting customer Privacy: personal information of customer should be accessed after taking
permission from them. As obtaining information without permission can break their trust and leads
to loss of customer.
4.3
An ethical practices helps organisation in creating long term relationship with customers. Its
important for organisation to gain customer trust and that can be obtained only when customer is
satisfied with result as well as contents of product.
Fair Advertising- No misleading advertisement to gain market share and fake selling. This can also
bring legal attention to organisation (Shimp and Andrews, 2013). .
Fair Pricing- A fair price of product is charged on basis of demand-supply forces and market
research.
Sustainable practices- Company is adopting sustainable practices in business that can be found on
label behind the product.
Respecting customer privacy- there is no access on private information of customers that can
break trust and harm goodwill of the company.
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REFERENCES
Books and journals
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