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Executive Summary. As per this report is covering the major information related to strategic marketing plan which is involves different tactics activities along with tools and techniques to helps for scrutinize better outcomes as well as it also enhance high preference marketing share and evaluating plan to seeking positive implication. To approaching further external and internal environment for strength and weakness along with outside market opportunity and challenges which enhance better effective to attaining marketing related competitive advantages. The finding and fact evidence are generated on the basis of plan and measuring of detail study about target market as well as involving targeted customer which enables to procuring more supplier and buyers, more efficient manpower to hire and brand positing in international market that provides more outcomes which it leads towards for productive outcomes in better way.
Table of Contents INTRODUCTION...........................................................................................................................1 Task 1 of 1 – Presentation...............................................................................................................1 Task 2 of 2 – Marketing Plan..........................................................................................................1 A section in which you perform a PESTLE analysis and review Porter’s 5 forces relevant to your organisation........................................................................................................................2 A section with a SWOT analysis and a stakeholder analysis of your organisation....................4 A section in which you should develop SMART strategic objectives for the organisation.......6 A section concerning the market segment...................................................................................7 Asectionconcerningthemarketingmix.Thissectionshould analyse the significance of the marketing mix for the organisation............................................8 CONCLUSION................................................................................................................................9 REFERENCES..............................................................................................................................10
INTRODUCTION In the changing environment needs and wants of customers are changing day by day where it is important for organization to introduce the new products and services that can help to reach the target audience and maintain the higher profitability. If all organization are using effective strategies and marketing plan then it develop their business effectively. Marketing is the important activity which mainly uses to provide the information regarding product and services that are going to launch by company in market(Alves and et.al., 2019). The aim of organization is attracts the wider range of customers by understanding their needs and providing kind of products and services so that customers feel happy and share their positive experience. This report is based on case study of Amazon Go supermarket that is situated in UK, providing different types of products and services to customers that can help to increase the performance and profitability effectively. This is cashier-less supermarket which uses technology to allow customers to pick up items and walk with them. This report is divided in two parts that will help to understand how organization is attaining the higher profitability. The first part covers purpose of strategic marketing, planning process, three marketing concept, significance of branding using Amazon and concept of Brand Pyramid. The second part is about marketing plan by covering PESTLE, Porter's 5 forces, SWOT, and SMART objectives that can help to increase sales and performance. As a representative of Amazon it has determined that marketing plans formulated by marketing manager after evaluating needs and wants of their customers that can help to support the business and increase the performance in competitive environment. Task 1 of 1 – Presentation Purpose of Strategic Marketing The Strategic Marketing plan is the systematic process in which it developing, processing and manufacturing through implementing by facts and finding for better involvement evidence to optimise positive outcomes which enablesto attain more competitive advantages or edge. On the basis of Example: Small business which is planning to offer Amazon.Go for productive business plan in which many marketing practise involve which support to generate more outcomes as well as direct process to shows for indicate about certain objective to attain more objectivetoaccomplishforsettingbenchmarkincompetitivemarketplace.Meanwhile, Amazon.Go need to propound their rectify mission, vision , objective which helps to clarity that 1
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enhance better working regulation for attaining aspect to presume the planning through better way of approach task. By finding out the target market and customer which helps to produce systematic procedure that can filling up their more competitive advantages which having major positive outcomes. As per the main objective customer satisfaction. There many operation are regulating through on the basis of guidance which employees used to follow in proper maner to attain more goals. 2. Diagram about the marketing planning process 3. Critical review of at least three marketing concepts/models/theories and how they relate to the marketing planning process The description of marketing is effective planning of manufacturing, promoting, distribution about product ad level main objective is to creating positive competitive advantages, yby designing strategic aims to attain by procedure that follows under the guidelines it makes effectively helps to procure techniques or tools that operate better outcomes which enhanced for expectation. For example the goals and objective is mainly gathered as well as to highlight issues and challenges which get to face by company team. The Marketing team of Amazon.Go is plans to create their innovativemarketing concept which mainly support to accomplish various kind of supportive actions and more opportunity related new market and new product concept which allows with an two objective to fulfilling customer expectation as well asto branding awareness. For example: the marketing practises towards achieving better competitive advantage there are three major factors to customer get satisfied in effectivemanner.Toconsidermarketingapproachinordertosatisfywherethe organisational objective where the organisation like Amazon.Go anticipate the needs and wants where the consumer to better satisfy the more customer efficient manner to mapping competitors. There are three main feature which use in marketing concept to better creating marketing design effectively Need: This is one of essential for people where they are link with people to living in stable healthy and safer life. It mainly need to remain fulfil or as unfulfilled where it clear for adverse to optimising dysfunctional death. Needs can be the highlight about the objective which is enhance better physical as well as food and 2
shelterthat surrounding within better family alongwith all over social, self esteem and actualisation that procure more effectiveness. Wants:To making indicate which is really havingindividual people wishes or desire to acquire some related with product and service. As Wants is not for essential but it counts on better survival on long term that enhance from culture. DemandsThis is the last stage of customer decision making impact when needs and wants fulfilled but it generates more used to it and customer is having ability to spent all the expense to just undertakes it effective ness. Some of major three marketing concept: Production concept:As per Amazon.Go company perspective the process of production is to better major aspect by including authentic raw material which is helps to dominate the market effectively. This is based on approach where company tend to implies by increasing supply through decreasing the cost to more retain customer in long term aspect. Eventually, the production is having concept that reflecting business lower costs or mass production for more demand or fulfilling customer expectation. The Selling Concept:According to this it defines about both betterconcept that helps to focuses on production but also promote for selling in actual sales about product. The manly determines selling concept which making every possible regarding through quality of product which fulfil the deal to better accomplish product need to customer. The marketing concept:For promotion and advertising in different platform to enhance more customer interaction which helps for places customer by making them awareness about product and service to accomplish needs and wans. For example Amazon.Go marketing process that applicable towards needs and wants where deliver ore value and performance tracking more competitors. 4. Significance of Brading for Amazon.Go. Branding is wide concept which is more prefer by understanding in perspective of Amazon.Go to examine how branding is effective along. This is enhance to create more competition for attaining for better classifies in provides alternatives for right economic choice. The significance about branding that involves in Amazon.Go practise: 3
Branding helps to increase the business value for better generating through future business. As well as having strong that enhance to awareness about product and service in better aspects. On the basis and good value to generates in customer for better referrals through better assume to provide agentries. Once it better regulates examine to provide well established for major production Task 2 of 2 – Marketing Plan Marketing plan is defined as essential document of any organisation which uses to introduce the products and services in competitive market and develop the business effectively. If organization is having good marketing plan and strategies then it complete the decided goals in certain time and attain the higher profitability(Araujo-Lima and et.al, 2016). The aim of Amazon Go UK is to arise the bar of customer experience by using internet and new technology thatempowerbusinessproductivity.Therefore,managementofchosenorganizationhave formulated the marketing plan that are as explained: A section in which you perform a PESTLE analysis and review Porter’s 5 forces relevant to your organisation. PESTLE analysis -This defined as important framework that uses by Amazon Go to analyse the external environment while running the marketing plan and developing the business. The pestle analysis in context to retail industry is defined below: Political factor -This factor depicts government regulation and laws which are important to follow while running a business. This involves tax rate, political stability, fiscal policy etc. that are connected with trade. After Brexit, the government of UK became stable who formulated different policies in relation to trade that provide the opportunity to Amazon Go for running a business effectively(D'Agostino, 2018). Economical factor -Various aspects are related to economy such as inflation, interest, changing in currency etc. After Brexit, inflation rate of UK have been decreased that became an opportunity for Amazon Go to run their business and increase the performance in changing environment. This has increased the spending power of customers and maintaining good performance. 4
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Social factor -This factor is related to society such as lifestyle, population growth, age distribution, cultural trend etc. COVID -19 is big pandemic which has occurred in whole world has created the threat for Amazon Go to reduce their sales and productivity as customers become health consciousness who have stopped to buy the products. Technological factor -The relation of factor with new technology and innovation which can help to operate the business continuously. Amazon Go have used the new technology and become cashier less super market where it introduced various products and services which helped to increased the productivity and profitability in changing environment. Moreover, by using new technology it keeps track of all items in virtual cart, online shopping and one day delivery which become an opportunity to complete the marketing plan and develop their business effectively(Dolata, 2017). Legal factor -This factor is related to laws and regulation that are important to follow while operating a business. Amzon Go is larger size supermarket in retail industry that is following employment and business trade rules which are formulated by government that can help to increase the sales and performance in changing environment and attain the higher profitability. Environmental factor -It considers pollution and green house gas emission, promoting business ethics, changing in climate and weather, and geographical location that affected the business. Amazon Go is following all environmental regulation such as gas emission and changing climate in which it provides products by reducing wastages that helps to increase the business performance and profitability(DONICI and et.al., 2012). From the above it can be concluded that PESTLE analysis uses by Amazon Go for the purpose of evaluating which factor might be affected the business and how these can be opportunity for organization by following all regulations and trade laws. Porter's five force –This can be defined as framework which attempts to evaluate the competitionlevelin anindustry and marketby developingthe businessand facingthe competition. The selected organisation is using the porter's analysis for the purpose analysing the competitive in retailing sector that are as defined; Competitive rivalry –Having other organisation similar to running business increases the competition level for business where management is require to formulate strategies such as reducing cost and effective marketing strategies which supports to run it continuously. In retail 5
sector there are many organisation ASDA, Tesco, Sainsbury and Morrison all are competitor of Amazon Go company affected the business of existing organisation(Dou and et.al., 2018). Buying power of suppliers –Suppliers are good performer for organisation as they helps business by providing the raw material and products in bulk at very less prices. In context to Selected organisation the threat of supplier's power is low as having larger number of suppliers in UK may be strength for retailer organisation to buy products from low cost manufacturer that can help to save cost and increase the profitability. Buying power of buyers –This is defined as power of customers as how easy they can buy products by reducing prices. In UK, there is high population and less number of retailers that are selling the products as per their wants. This can be opportunity and low threat for Amazon Go to sale their products at fixed prices which can help to manage the good organisational performance(Engie and Sarnelle, 2014). Threat of substitutes –People are living their life by using daily uses products which are important to use, are providing by organisation. If companies are selling their products at high prices then customers goes towards other products which may be substitution that fill the needs of original products. In context to Amazon Go, there is less threat of substitution which can affected the business positively and help to take the competitive advantages. Threat of new entrants –This can be consider as other threat which can reduce the organisational performance due to coming a new organisation in similar sector. There is a moderate threat of new entrants in context to Amazon Go because government regulation, trade tariffs and trade barriers is not easy to facer which may affected the business negatively and reduces organisational productivity. The above discussed porter's five forces has explained that Amazon Go is getting various opportunities as having higher population and range of suppliers who provides products at fixed prices along with better quality that can help to increase the sales and profitability in changing environment and develop their business effectively. A section with a SWOT analysis and a stakeholder analysis of your organisation SWOT Analysis:- Is useful tool to help you develop your business strategies. SWOT stands for Strength, Weakness, Opportunities and Threats. Strength and Weaknesses are internal to your company – things you have control over and can change. Opportunities and threats are 6
external-things that are going outside of your company, in the largest market. You can take advantage over opportunity and protect against threats but you cant change them. To understand SWOT Analysis better lets do SWOT Analysis of Amazon Go UK Company . As we already discussed aboveAmazon Gois a British Multinational Food retailer Company. Amazon Go Strengths:- Biggest grocery store in Britain:- Amazon Gohas captured British market in real sense in terms of revenue. Networkofsuppliers:-Wellplannednetworkofsuppliersassuppliersplaysan important role in operation of the business. Highest market share:-As a leading supper market and grocery store it hold highest market share in UK . Technology Awareness:-It has improve the use of technology throughout its operation so as to reduce cost efficiency and enhance service experience(Forsberg and et.al., 2012). Diversification globally:- Amazon Godiversified into many countries and known by everyone globally. Lunchingnewstores:-AmazonGohaslaunchedmanystorestocovermore demographics of the entire market. Amazon Go Weaknesses:- Some ofAmazon Gosubsidies are not working as well as they are unsafe to certain external factors. Consumers may not buying many items relating to having less disposable income and the retailer has not adjusted its inventory and selection, leaving it with high cost of inventory. The retailer highly depend on UK and Europe for its sale and has not spend time and resources for developing the other markets where it operates . Competitive pressure have led to price war that have spoils some of retailers profit margin whenAmazon Gohave been focus on other ways to gain profits. Amazon Go Opportunities:- Joint Ventures:- Amazon Gohas been partnering up with other brands in tracking of growth. The aim is to come up with new products and services to generate customer's. 7
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Amazon Gohas introduced mobile app for online shoppers, it should upgrade and add the feature of home delivery. As would attract more customer's towards brand that provides various opportunities. There are fewAmazon GoStores in certain countries that are not performing well. If it get partner up with local businesses and know local market then there is a chance of gaining profit. TESCO Threats:- Rising raw material cost effectsAmazon Goprofitability and causing it to expand its supplier network so as to get lower price of raw material. Comparative threats are coming from other global retailer who may be able to offer lower price, better quality and greater variety as well as has more established global supplier network to move goods faster thanAmazon Goas they are more innovative and know how to use technology effectively. Labour threats in terms of rise in wages and benefits around the world add toAmazon Go's cost basis, which further puts pressure on its pricing strategies. Stakeholder analysis Stakeholders analysis LEVEL OF INTEREST LEVEL OF INTEREST LEVEL OF POWERHIGHLOW HIGHManagement, OwnersGovernment LOWStaff membersCustomers High power, high interest –In Amazon Go, management and owners have highly power and high interest as they are responsible to formulate plan and implement them in organization which can help to increase the organizational sales and profitability effectively. High power, low interest –Government is holding high power and lower interest in Amazon Go as it formulate different policies and regulations that needs to run the business. The 8
government has no interest in organizational activities but have power to focus on trade and manage the activities in other places(Getirana and et.al., 2012). Low power, high interest –In Amazon Go, staff member are having low power and high interest as they works in organization for getting salary and other benefits which are importanttorun a businessand boostthe employeesmoralethathelpsto increasethe productivity and profitability in changing environment. Low power, low interest –Customers are those people who buys products and services from organization and maintain the effective relations. In context to Amazon Go, customers are havinglowpowerandlowinterestinorganizationalactivitiesasitdoesnothaveany involvement in business activities(Gupta and et.al., 2015). A section in which you should develop SMART strategic objectives for the organisation Themanagement of Amazon GO has formulated different SMART Objectives that are as explained: To increase the number of customers by 40% within 2022. Tobecomethelargerretailersinretailindustryandmaintaininggood performance. To capture the high market share by 60% up to 20222. To use the new technology and innovation in business organization that attracts people. To attain the higher competitive advantages in changing environment. To satisfy the customers and expand the business by opening new stores at new location. A section concerning the market segment Market segment is the continuous process of dividing a heterogeneous market in to relative term that can help to manage the business and increase organizational profitability. Amazon Go is using segmentation to divide the market in to different groups such as: Segmentation:This involves geographic, demographic, and behavioural segmentation which can help to increase business sales. The managementof Amazon Go focuses on geographic and behavioural segmentation in which they open new stores at different location and offers products according to customers demand by implementing marketing plan that helps to attain higher productivity. 9
Targeting:This is defining as important aspects which uses by Amazon Go to target the potential customers as all ages and income group of people who wants better quality of products and services(Onyusheva and Seenalasataporn, 2018). Positioning:According to marketing plan and its better implementation Amazon Go is getting leading brand position by influencing number of customers and attain the higher performance in changing environment. Therefore, chosen organization is using marketing segmentation strategy for the purpose of delivering better quality of products and services in changing market and attain the higher profitability. The management understand the needs of their customers and provide the kind of products which helps to attain the competitive advantages effectively. This analysis also helps to improve the brand positioning as organisation is using different technology and innovation in their business(Trigg and et.al., 2017). Asectionconcerningthemarketingmix.Thissectionshould analyse the significance of the marketing mix for the organisation Marketing mix is the combination of various element which uses by organization to sale their products and services in the changing market and attain the higher profitability. In other words marketing mix is the process of putting right product at the right place, at right prices, and right time that helps to increase the sales(Showers and Bevis, 2015). In context to Amazon GO UK, management requires a lot of hard work and research for the purpose of meeting with customers needs and attaining higher performance. Therefore, marketing mix model is explained below: Product:In Amazon Go, vast range of products and services are providing such as toys to electronic gadgets, grocery, daily needed items, beauty products of different brand, clothings, auto parts, accessories, and others which fills the customer demand and developtheir business effectively. To provide the variety of products and new technology create a great opportunity for Amazon by formulating effective planning which helps to reach the targeted audience and increase sales(Ratnasingham, 2016) Price:This can be defined as important factor for any business's marketing plan as helps to determine the prices of products and services that supports to survive in market. By following the marketing plan Amazon Go is adopting competitive pricing strategy that influence the number of customers and attain the higher profitability. Moreover, Artificial intelligence, and 10
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Virtual reality technology is uses in store that helps to maintain effective cost and prices are decided accordingly. Place:To increase sales and boost profitability it is important for organization to expand their business at different places. Amazon Go can increase its sales and profitability by increasing number of stores in different city that will help to reach more customers and attain the competitive advantages as compare to Tesco and Sainsbury. Promotion:Amazon Go is using online channel, social media, newspapers, magazine, billboards and print media to influence the number of customers and increase the organizational sales effectively(Yamazaki and et.al., 2012)... Physical evidence:Amazon GO is maintaining effective structure, well interior and exterior design that is easily recognised by customers and increases the organizational sales by completing market plan. Process:The process which are using by Amazon Go are online, websites, and new technology that will help to provide the greater experience and higher profitability in changing environment(Verma and et.al., 2019). People:InAmazon,marketingmanager,salesmanager,HRM,storekeeping, maintenance, administration, finance people, employees, various people are working at different profile who performs their roles and responsibilities effectively and attain the decided goals and objectives(Rodrigue, 2020). CONCLUSION From the report it can be concluded that marketing plan is very important for all organization as it helps to attain the business goals and objectives which are decided by management. In marketing plan, PESTLE analysis states how external factors influences the business where as SWOT states strength and weakness of organization. Porter's five forces uses to get the competitive advantages by using all resource and implementing the marketing plans. Marketing mix is the effective strategywhich uses by organization to deliver the better quality of products and services that maintain higher performance. Moreover, stake holder analysis uses to know the power and interest of shareholders in relation to business and manage the all activities effectively. 11
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(Alves and et.al., 2019) (Araujo-Lima and et.al, 2016) (D'Agostino, 2018) (Dolata, 2017) (DONICI and et.al., 2012) (Dou and et.al., 2018) (Engie and Sarnelle, 2014) (Forsberg and et.al., 2012) (Getirana and et.al., 2012) (Gupta and et.al., 2015) (Onyusheva and Seenalasataporn, 2018) (Ratnasingham, 2016) (Rodrigue, 2020) (Showers and Bevis, 2015) (Trigg and et.al., 2017) (Verma and et.al., 2019) (Yamazaki and et.al., 2012) 13