Marketing planning process PDF

MARKETING PROCESS PLANNING
BUSINESS REPORT
RIVER ISLAND
STUDENT ID:
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EXECUTIVE SUMMARY
This report evaluated every aspect of marketing strategy, including microeconomics and
macroeconomics aspect of River Island. The organisation has in place already a marketing strategy
which was described in this report, a PESTLE ,SWOT and McKenzie 7P’s analysis was done and
from here we can see that River Island needs improvement in terms of celebrity endorsement, the
company will need to put in place a Marketing Plan involving social media.
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TABLE OF CONTENT
Introduction……………………………………………………………………………………………..4
Company’s profile……………………………………………………………………………………....4
Key elements of the Marketing Function in River Island………………………………………………4
Interrelationship between Marketing and other organisational units……………………………….…..4
Marketing Functions in the wider organisational environment…………………………………..…….5
Microenvironment…………………………………………………………………………..……..5
Macroenvironment……………………………………………………………………………..….5
The application of the Marketing Mix to the marketing planning process………………………….....6
The competitive advantage of River Island against Mark &Spencer…………………………….…7
Strategic Marketing Plan…………………………………………………………………….………..7
SWOT Analysis………………………………………………………………………………….…10
PESTLE Analysis………………………………………………………………………………..…11
SMART Objectives……………………………………………………………………………..…12
STP Strategy……………………………………………………………………………………….12
Tactics……………………………………………………………………………………………..12
Implementation Strategy…………………………………………………………………….……..13
Evaluation and Control………………………………………………………………………….…13
River Island Integrated Marketing Communication Plan………………………………..……….….13
Situation Analysis………………………………………………………………………….………13
Segmentation Strategy………………………………………………………………………….…13
Launch strategy objectives……………………………………………………………………..…13
Strategy and channels…………………………………………………………………………..…13
Tactics………………………………………………………………………………………….....14
Budgeting………………………………………………………………………………………....14
Conclusion…………………………………………………………………………………………..15
References …………………………………………………………………………………………..16
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Introduction
This report will analyse Marketing concepts for River Island and the company is affected by
several factors from marketing mix, will analyse the strategic marketing plan though tools
like SWOOT, PESTLE ,SMART and STP. The report will evaluate the integrated marketing
mix and beneficial can be for the company .
Company’s profile
In the last fifteen years, commercial companies have grown their use of technology, and a
significant percentage of them do not consider the service internet sales over physical
acquisitions (Yu, Ramanathan, and Nath, 2014). The total of consumers in online retail stores
is speedily growing, and many individuals who buy goods and items from online stores do so
using their own digital tools. Only 35% of people in the UK consider that online clothes
shopping for retail items such as garment, fashion, foods, digital tools, and electrical device is
faster and more accessible than physical shopping (Filimonau and Gherbin, 2017).
River Island is the UK's leading fashion brand, offering a wide range of beautiful apparel at
reasonable costs with good quality. River Island stylish clothing for men and women aged 16
to 30. With 250 stores and a large choice of accessories including denim, dresses, knitwear,
jackets, and jewellery, there's something for everyone.
The business also provides online shopping to "get the most out of it" for its customers. The
clothesline's basic concept is intelligent, and clients sense a link between clever and informal.
Key elements of the Marketing Function in River Island
Marketing is the method by which companies offer benefit for their consumers in trade for
long-term relationships. In trade for their profit, marketing expands, attaches, and encourages
consumers, and it generates constructive consumer relations. When it comes to assessing
River Island's marketing expertise, they have several particularly obvious designs that
increase their reputation and productivity. Every single market has numerous consumers who
talk about their demands with several corporations in direct to be contacted professionally. To
go through consumer wishes, it is essential that the corporation appreciates its own
requirements. (Verhage and Visser,2018,)
River Island is one of the UK's most famous fashion product merchants, offering a wide
selection of charming but priced clothing to people in the 18-30 age category. While the
central River Island name is conducted by the preponderance of supply, the corporation has
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created a few other brands, including Holloway Rd men's clothing and the Chelsea Girl line
for youthful women, which was re-established in 2011. River Island Mini is a children's
clothing collection. In 2013, singer Rihanna, a long-time fan of River Island's fashion,
cooperated with the store for a year to manufacture her own distinctive line. In 2018, the
chain up debuted its first home style collection. (Adbrands, 2021)
The group corporation maintains over 260 shops in United Kingdom and Ireland, as well as
in the Netherlands and Sweden, and supplies the brand name in a few other countries. In
2010, an entire e-business strategy was launched in the United Kingdom, and it now
distributes to over 120 countries international, primarily in the European region but also in
the United States. The business also delivers on third-group internet sites like as Very and
ASOS. River Island Holdings Limited profits reached in 2016 at almost £971 million, but
have remained under difficulty since then, declining for three years in a row to £880 million
in 2019. Over 85% of profits was gained in the United Kingdom. (Adbrands, 2021)
Interrelationship between Marketing and other organisational units
Several administrative departments work strongly with the marketing branch or group. The
marketing group will solicit response and economic suggestions on the product beneath
assessment from numerous divisions. Since marketing encourages consumer confidence and
fidelity, it is significant to determine consumer-corporation relations. It gives the customers
confidence to challenge a new product on the market, in difference to situations wherever
goods are urged not involving any marketing. Marketing sectors have an influence on the
actions of other divisions. (McDonald,2013)
Marketing divisions create efficient marketing approaches in demand to serve consumers, as
a mediocre marketing approach can cause uncertainty among other functional departments,
causing in inadequate customer service. This is because marketing companies must give
sufficient funding to the company's other departments. To project and execute a marketing
plan, economic, human resources, deals, and production services must all work in
partnership. (McDonald,2013)
Marketing Functions in the wider organisational environment
Microenvironment
Since the marketplace can be accomplished by an effective marketing method, River Island
demands to choose its tactic meticulously in purchase to comply with the requests of its
consumers. By primary outcome, development, accomplishment, and control methodologies,
each association can create and employ its own suggestions and approaches at the centre of
the marketing procedures. Market exploration is the first step in the marketing development,
which is observed by choosing the target market, constructing the commercial marketing mix,
and managing marketing interests and targets. (Verhage and Visser, 2018)
Macroenvironment
River Island has taken plenty of significant awards from its competitor in latest years. Top
Shop has been at the top for years, but it is gradually losing its "design trophy," getting
dropped its three-year supremacy as "best store on the high street" to competitor River Island.
River Island also grabbed first position in the Company Magazine's "best bags" and "best
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place to spend GBP50" classifications. More than six thousand entities voted for the
champions using the "company.co.uk" website's polling structure. (River Island, 2021)
River Island is projected to maintain its 1.5 percent share of the UK womenswear market in
2019, even though contestants such as ASOS and Primark continue to surpass the business,
causing in only one-third of River Island's woman consumers being frequent consumers. Will
Kernan, the new CEO, be required to focus on designing a convincing proposal to attract
more frequent acquisitions and power shopper fidelity, or the company will lose ground to
midmarket competitor Topshop. (River Island, 2021)
The application of the Marketing Mix to the marketing planning process
Individuals desire to connect through several social platforms because of digital conversion
and technological innovations. Twitter, Instagram, and Facebook are among them. Most
individuals use these channels, and companies use them to sell their goods (Griffiths, 2016).
River Island has founded a strong internet existence to improve their market standing.
One of the most fashionable marketing trends is content marketing. Consumers are involved
with the essential services and goods that are provided to them by these businesses. It also
permits for track contact among customers and businesses. River Island will be able to
recognise purchaser needs and provide them with exceptional services because of this.
Likewise, it has a substantial effect on individuals' attitudes since the company uses efficient
marketing techniques to convince them to use their public services. River Island utilizes
relevant substance in their marketing efforts in demand to appeal to a larger quantity of
consumers (Groucutt and Hopkins, 2015).
The application of the Marketing Mix to the marketing planning process
The marketing function can be described as the functions of a company structure that support
it in finding and obtaining potentially profitable products for the market, as well as
supporting in their promotion. Marketing research, manufactured goods strategy,
improvement procedure, promotion, sales, financing, customer support, and other purposes
are prevalent in profitable companies. The marketing functions are in control for the
company's development and incorporate various tasks of the business group.
Marketing research- marketing facilitates the company to collect more knowledge about the
consumers and the merchandise. This act permits the leadership to pay additional
consideration to the shifting market developments and subdivision, immediately affecting the
industry. Island River gathers all the knowledge about the product and patterns it to suit the
customer's preference. This activity has the benefit of satisfying the consumers consequently
flourishing in a challenging sphere of industry.
Quality monitor and risk evaluation tool- this is one of the substantial responsibilities of
marketing that helps identify the potential risk and curb the menace. Island River utilizes this
marketing role to evaluate the prospective threat that may appear if the business initiates.
With appropriate recognition of excellence constraints, the company can normalize the
quality of supplies and essential services.
Planner- this part is crucial in guaranteeing that the industry intends its strategies in great
moment to prevent the last-minute run. River Island can register checked its interests to
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ensure that it is fit for a business to begin. Planning facilitates in marketing, market
penetration, and accomplishing organizational objectives.
The role of being a marketer- this is a responsibility intended at commercializing the
product international to consumers and prospective customers. By encouraging the brand
name, River Island will be proficient to explain its manufactured goods to the consumers,
raising consciousness and sales at substantial.
Communicator- marketing improves to place out the purchasers' requirements and informs
the marketers to recognize the best approach to improve their goods. This function can
benefit River Island plate augment the brand and enhance the marketing approach that will
help increase sales.
Creating and expanding - through marketing, an industry can generate a new result and
expand its services to help the corporation prosper. River Island can develop its brand and
bring about need-tailored goods to permit easy entry and infiltration into the market.
(Anderson, Rayburn,& Sierra, 2019).
The application of the Marketing Mix to the marketing planning process
Several of River Island's functional departments rely deeply on marketing. Human resources
can be affected by marketing, which administers how personnel should be considered and
how River island's safe functioning environment is provided. First, that company's marketing
division can boost sales; however, the communication chain can also promote and improve
the brand image's effectiveness. Consequently, tactical marketing plans involve the entire
business and promote to enhanced transactions and client understanding. With the assistance
of the human resources sector, marketing ought to generate employment conditions, perform
meetings, and develop coaching and compensation plans.(Pike,2015)
The financial department is another area where marketing performs an important
responsibility since they must advertise the product and the price that consumers are prepared
to spend. Marketing can be successful with a variety of consumers to determine the most
appropriate price for the goods. Differences in the price and revenue area, as well as the
income required to put marketing strategies and approaches in order, must be counted
interested in marketing scheme. (Pike,2015)
Strategic Marketing Plan
The techniques are used by commercial companies with varying managerial cultures to
achieve their distinct corporate purposes. River Island , a profitable company, uses the 7Ps of
marketing mix in their marketing development procedure to meet their organisational
objectives. Other companies, such as Mark & Spencer in the United Kingdom, which is a
competitor to River Island, use a marketing segmentation strategy to reach their objectives.
(Jain,2013)
7 P’s RIVER ISLAND MARKS & SPENCER
Product River Island has on the market
products with the famous River
Islands touch the company
M&S is divided into three
divisions: overall merchandise,
grocery, and banking sectors.
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offer key trends from designers
which will transform in their
unique signature without
breaking them. This allows the
people to in fashion trends
without paying a lot of money.
(Therese Granstrom, 2018)
Clothing, undergarments,
accessories, shoes, and home
goods, as well as children's toys,
books, and cosmetics, are
examples of general products. The
food industry offers prepared
foods, perishables, ethnic foods,
meats, and alcoholic and non-
alcoholic beverages. The
company offers a shop credit card,
personal loans, personal equity
plans, unit trusts, and life
insurance, among other financial
services. (2020, M&S)
Price River Island is a popular town
centre retailer in the United
Kingdom, offering a wide
choice of fashionable clothing
at moderate costs with
exceptional quality. River
Island manufactures clothing
for people between the ages of
16 and 30.
They will start with a price and
lower the price through
discounts and sales prices.
(Therese Granstrom, 2018)
The price tag of a good is the
quantity a buyer pays for it. Share
price, competitiveness, material
prices, product identity, and the
customer's alleged benefit of the
manufactured goods are all
considerations that change it.
Beginning with Michael Marks,
who sold all his products for a
penny on one side of the store,
Marks and Spencer has adopted a
profit estimating policy since its
inception. M&S has maintained
its discount pricing strategy since
focusing on middle-class
customers. M&S has managed to
keep its prices reasonable. (M&S,
2020)
Place The company has store on high-
street, shopping mall and the
sell online through their
website, ASOS and Nelly.
River Island own 350 stores
across UK, Asia , Middle East,
and Europe. (Therese
Granstrom, 2018)
A place is the location from which
a supply can be obtained. The
distribution channel is another
name for it. Any genuine
business, as well as online virtual
ones, could be included. There are
two sorts of M&S stores. The first
is a general store with a
sustenance basement, and the
second is a food store (M&S,
2020)
Promotion River Island is doing their
advertising on social media
such as Facebook, Instagram,
and Twitter. Also, they have
contracts with influencers,
bloggers for a high audience
and possible customers. Their
All a marketer's conceivable
marketplace
communications .Promotion is
divided into four parts: publicity,
public relations, personal selling,
and promotional offers. M&S has
mostly eschewed advertising in
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activity on social media is very
active for new clothes. They
had an event during London
Fashion Week in 2015.
(Therese Granstrom, 2018)
favour of word-of-mouth
promotion. Originally, branding
was only used in unusual
instances, such as when M&S was
developing a new product or retail
concept, or when brand awareness
was limited, as in the case of its
Paris flagship store (M&S, 2020)
Process The staff is very friendly, they
don’t bother you with question.
If you need help, they will
happily help you. In terms of
return policy, there is no
problem , the staff is just asking
you the reason of returning the
items and refund you the
money and ask you if they can
show you something else that
you would like. (Therese
Granstrom, 2018)
Marks & Spencer has installed
technologies that inform retailers
when inventory levels are low to
ensure that their merchandise are
always obtainable. additional
items while making orders for
new factories to replace its
availability (2020, M&S)
People The employee benefit of 50%
discount, the company has
different locations, and they
offer flexible shifts. The
organisation also provides
efficient training for all the
employees. ‘’A well-educated
staff will bring customers back
to store,’’ This is their perfect
quote. (Therese Granstrom,
2018)
The efforts of Mark's &Spences
are aided by workers who come
under the sales department. These
people have been taught not
simply persuading skills, but also
how to approach corporate
customers with consideration and
respect for their decisions. (2020,
M&S)
Physical
Evidence
The white brick is very
common for River Islands, and
it is found in all stores. Also,
the items are clearly divided
into sections. The bag is normal
now, they have a regular plastic
bag with the black logo on it.
(Therese Granstrom, 2018)
Marks & Spencer's items offer in
vividly coloured container that
stands out on local stores. These
are positioned on special
corporation racks with a certain
design and pattern. (2020, M&S)
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PESTLE
POLITICAL -The company is making all over the world,
and the complications such as a war will
deficit the manufacturing in terms of
shipping between the countries.
- River Island usually sells online and can
appear problems in terms of changing
shipping policies.
-VAT has changes in 2011 from 17.5% to
20% and caused selling problems.
-if the manufacturing happens in UK, they
will avoid complications with other
countries, but the manufacturing costs will
increase.
ECONOMICAL -Currency changes affect the company’s
selling the pound is strong in UK and the
people will avoid spending money here.
Due to online selling the price of shipping
abroad will increase and this fact will affect
the revenue.
-Lockdown put a lot of pressure on River
Island in 2020 and 2021 and the losses were
enormous.
-the weather impacts the company selling
especially ‘’back to school’’ campaign in
August
SOCIAL -‘’NO FACE OUT’’ is the major
disadvantage for the organisation. Lack of
models make the customers to forget about
the brand because they cannot associate the
brand with a famous face.
-Being part of London fashion Week was a
success for the company
-while other store has collaboration with
different famous designers and celebrity,
River Island only collaborates with
bloggers.
TECHNOLOGICAL River Island mainly sell online, so if will
happen a crash in each country in term of
internet, the sales will decrease
-automation of producing the clothes will
speed up the production and River Island
will have more clothes in the stores.
LEGAL If the organisation does not follow the law
and the customer rights, the client and the
workforce can use the law and can bring a
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lawsuit. There is in place a Costumer
Protection Act which help the client to win
the lawsuit if they are right. Also, the
employee is protected by law because of
Employment Act 2008.
ENVIRONMENTAL The company needs to be eco-friendly. The
customers are looking for this aspect these
days and the organisation is required to use
resources which are not polluting the nature.
Source: vdocuments.site,2021
SWOOT Analysis
Strengths
-River Islands has contract with influencers
and bloggers. Their duty is to bring new
customers and show them the clothes in
different way than the stores through their
methods .
-Most of the selling are online because the
company creates valuable picture to attract
people.
-Locations are strengths of the company.
The company owns great location on high-
street such as Oxford Circus and Marble
Arch, and shopping centres.
-River Islands is selling through their
website, ASOS and Nelly
.
Weakness
-lack of role model. They can increase their
selling if are willing to use the celebrities
for their brand
-Items in store can overwhelm the
customers sometimes. By reducing the
amount of clothes, they will allow the
customer to find what they like.
-River Island is well -known in UK but not
as much in the rest of the world. they don’t
have store in USA, and this is a loo, but
they can expend even there, and this fact
will increase the selling
Opportunities
River Islands must conder the expansion in
USA, and this fact will increase the selling
-Role model contract with celebrities will
also increase the selling
- Regularly contracts will celebrity
designers will have a huge impact on sales
profit.
- To market the store throughout the
shopping centre, e.g., mannequins or
promotional material for consumers to be
aware where the store is and what is on
offer
Threats
-H&M and Topshop are the market
competitors and this is because they are
lowering the prices
-the trends may have a negative impact
because the company keeps changing the
trends.
-River Island does not hold a specific
flagship store and the competitor and using
it
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Objective: SMART
SPECIFIC The objective is to increase customer loyalty
and revenue
MEASURABLE Research on customer satisfaction through
online and in store questionnaires
ACHIEVABLE 15% increase in sales profit
REALISTIC Using celebrities’ endorsement
TIME BOUND Next 6 months
STP for business of River Island
Costumers’ preferences create market segmentation. It can be said that market
segmentation is psychological, which includes those who desire to unwind and appear to have
a positive disposition (Muller, 2019). The following is demographic division, in which
together men and women retain trendy decorations and cosmetics to increase their presence.
This makes available the company to stay in the market for a long time.
Targeting - This term refers to the process of distinguishing a select group of people from a
large audience to target them for a new clothes product line (Pappas, 2017). River Island's
new clothes product line is aimed at both children and adults, to attract the most attention
and improve the sale
Positioning - This relates to how the company is positioned in the market. By introducing the
new clothesline to the market, the company can improve their reputation in a competitive
market. The premiere brand is well -advertised and provide people with true and accurate
information so that they can express interest in purchasing River Island new arrival.
Product Precise
- Improve checking system towards be quicker and match entrants such as ASOS and Next
- Time-turn student rebate
- Fidelity points/club cards
Tactics
Virtual world: One of the most prominent issues of future worry is the virtual world. Firms
can use enhanced experience to give customized marketing to their customers. This will have
an advantage to victory, and it is a novel technique. River Island can also use androids for
marketing functions, which will have a certain impact on their development speed.
Artificial intelligence (AI): While AI is common in today's world, it is not widely used for
research is progressing. However, it will turn out to be stylish and widely utilised in the
future. Appropriate methodology of the River Island could be done using the McKinsey 7S
model. This technique helps the corporation keep track of and analyse numerous changes in
the internal corporate setting.
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Implementation Strategy
Strategy
The crucial policy of the River Island is to approach outstanding
customer benefit industries to consumers with an affordable price
approach in purchase to get the competitive advantage.
Structure River Island respects the hierarchical construction.
Systems Primary approaches are to offer the best customer maintenance in store
up. Digital marketing is playing a significant role.
Shared values River Island's general principles are its professional skills that support
it to accomplish one of the UK clothes industry's top ranks.
Style
River Island needs a conversion and innovative management,
concentrating primarily on what personnel get to work and their
pioneering industry concepts.
Skills Efficient technical, marketing and administration services.
Staff
They have 8400 individuals working and they suggest a good
operating society, with any motivations and advertising offers for their
workforce.
Evaluation and Control
It's never straightforward for a company to come down with the customer expectation,
particularly considering latest world issues. During these periods, the brick-and-mortar chain
store that can best promote their brand and are effective at attracting clients will be the most
successful. Even though it may appear unproductive to compete with online businesses that
regularly offer the lowest manufactured goods, 86 percent of customers are willing to spend
extra for a better understanding. (Appnova, 2019)
River Island Integrated Marketing Communication Plan
Situation Analysis
There are several things the river Island marketing can do to help promote this improved
experience, including:
- Establish a Loyalty Program
- Conduct Store-Wide Events (In a safe manner)
- Incorporate social media into the marketing activities.
- Strengthen Local Community by Creating a YouTube Channel
Segmentation Strategy and Launch strategy objectives
Internet marketing should remain an important aspect of the company overall plan. With so
many brands going digital, it's more important than ever to make the company plan stand out.
This can be accomplished in a variety of approaches, requiring:
FASHION SHOWS EXAMPLE: create awareness regarding
children in needs
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EVENT HOSTING EXAMPLE: ‘’dress for success’’ where
women are instructed how to improve their
public look
TELE-MEDIA MARKETING EXAMPLE: advertising using television ,
radio, or billboard
CELEBRITY ENDORSEMENT When a celebrity promotes River Islands
clothes his or her admirers will want to buy
from the store to express their love and
support for the celebrity.
NEWSLETTERS AND CATALOGUES The marketing department might also
consider sending out newsletters and a
catalogue to the mailing list on a regular
basis, which would include photographs of
the products as well as a description and
prices.
MOBILE APP Easy access for customer to approach the
sales
Tactics
The profitability of this corporate marketing plan is determined by the value performance of
guiding the industry's operations and processes. To keep on schedule with the
accomplishment of organizational goals, the corporation will need to hire a marketing expert
to assess performance metrics and approach. A special emphasis should be focused on how
channels of communication are increased and whether they are correlated to customer
loyalty. Brand loyalty and revenue growth must both be carefully considered.
Budgeting:
Factors 2019( £) 2020(£)
Social Media cost 7000 7800
HR department 55600 61000
Marketing strategy 598434 674776
Marketing audit 6000 6500
Celebrity endorsement cost 1500000 2000000
Total 2167034 2750076
Conclusion
From this report it concludes that marketing is defined in the business entity as simply
marketing their strong position and developing positive relationships with their clients. Each
department has different responsibilities, and the marketing department has many of them,
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such as conducting market research and learning what the customers' needs are, as well as
performing various probationary activities, etc., all of which help the company sell more
products and generate more revenue.
The research compared the marketing mix of River Island and Mark & Spencer to determine
which one is better in the market. The corporation should provide accurate information about
their manufactured goods to their customers so that they can buy them and increase the
corporation's profitability.
References
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