Marketing Plan Analysis and Development

This assignment focuses on understanding the key components of an effective marketing plan. It requires students to analyze various marketing planning frameworks and models, explore real-world examples (such as a new app for the British Dental Conference), and apply their knowledge to develop their own marketing plan. The assignment emphasizes critical thinking, strategic planning, and practical application of marketing concepts.

MK ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P 1 Key roles and responsibilities of the marketing function....................................................1
P2 Roles and responsibilities of marketing in IKEA..................................................................3
TASK 2............................................................................................................................................6
P3 Difference in marketing mix of IKEA and Tesco.................................................................6
TASK 3............................................................................................................................................9
P 4 Production and evaluation of a basic marketing plan for IKEA...........................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing is an activity which helps to improve product image insight of consumers so
that they buy maximum number of goods. It is a process of directing, creating, delivering,
communication and exchange offerings which have value for clients, consumers, society and
partners of individual or business organisation (Abushadi and et. al., 2015). In today competitive
environment, every firm tries to justify why consumers should buy its product or goods in
comparison to other competitors. As IKEA is one of leading companies, it needs to maintain its
goodwill in market. So it fulfils all essential techniques and responsibilities which helps in
achieving its organisational goals of profit maximisation and revenue generating in long term. In
the followings report different functions of marketing and their roles will be discussed. Place,
product, price, promotion, people, physical evidence and process are main parts of marketing
mix which is used by business company to promote and improve its existing product
performance in future. So that it can gain maximum customer satisfaction and capture a lion
market share in furniture retail industry of United Kingdom. An effective marketing plan can be
prepared by enterprise to estimate current demand of its product an potential customers as well
as t can make customised goods for target market.
TASK 1
P 1 Key roles and responsibilities of the marketing function
Marketing functions are set of activities which help business
organisation to achieve its objectives and goals of profit maximisation and
revenue generating. These all aspects are discussed among employees in
marketing department of IKEA. So that they can increase productivity of
existing product or goods of firm. Some of major functions of marketing are
distribution, financing, market research, product/service management,
promotion, selling, packaging, quality control, product and after sales
services (Berkowitz, 2016). These can be explained as following.
 Distribution-This is the most crucial function of marketing as it can
grow to hinder the progress of business organisation like IKEA. If
distribution is effective and there are accessible store at city side then
maximum number of customers can come there. To make it available
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in easy way, string suppliers are required and get material fast
delivery of product. On other hand, if outlets are so far from target
customers then sales might be less and minimise outcome in term of
profit and revenue. Other thing to be considered is effective
transportation especially perishable and delicate goods. So even if
product is great in quality, distribution channel should be effective
and easy to attract public.
 Promotion-To increase sales of product or goods, good promotional
activities are essential so that they can be presented in an attractive
form to cover maximum public in retail market. IKEA uses different
advertisements methods to promote like word of mouth, digital
marketing and television. If promotions method is not used in a right
way then target customer will not be attracted towards goods. So the
company modifies its advertisement campaign through loyalty point,
club cards to increase its marketing. Its message should be conveyed
in right way to connect public and achieve its goals of image building
and market share (Blythe, 2012).
 Selling- This function is like base of every company as without any
selling of product, IKEA will not survive in long term in retail market
of United Kingdom. If firm wants to meet current needs and wants of
customers then it has to use easy and quick selling. This function
helps in gaining revenue and funds for future process related to
marketing of firm. So the mentioned business organisation has to sell
right product to right people to gain maximum customer satisfaction.
 Financing-Funds are monitory support to company which play a vital
role in achieving short term and long term goals. There are various
ways in which company receives finance like bank loan, fund from
shareholders, sales and savings. This function helps in every activity
whether it is manufacturing of furniture goods or their advertisement.
For example, if IKEA wants to promote its new product in market, it
has to pay some money to advertisement agency to represent their
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item in front of public so that maximum customer scan be attracted to
buy it.
 Packaging- This is also one of important function of marketing of
IKEA in which presentation of its product. In this, colour, material of
wrapper, shape and logos are included (Desai, 2013). Company can
conduct a small scale research to estimate most effective prototype
which will get maximum positive feedback in long term. If packaging
is attractive and hygienic, more public will be attracted to consumer
the product. On other hand, if packaging of furniture is not
presentable, customer will not be wanting to purchase item.
 Pricing-This function of marketing is a game changer as can increase
or decrease sales of product and consequently market share of
company in retail market of United Kingdom. For example, if other
firms set their price for single wooden chair at 200 euros then IKEA
also must fix its price near this with good material so that target
market can be captured in future (Dibb and Simkin, 2013). On other hand,
of price id too low or high then it might harm product image and
growth of company. So to make maximum profit, then mentioned
business organisation must set a reasonable price to its all product or
goods.
 Product/service management-This functions of marketing includes
observing needs and wants of customers so that company can provide
customised items as per their desire and gain customer satisfaction
out of it. So it helps in managing products in an effective way to
accomplish goals of capturing huge market share. This may lead to
company product up to date and fresh to meet current demand of
clients.
 After sales services-These functions of marketing are executed after
the final sales is done by company and profit is delivered to
customers. As IKEA provides man exclusive items to public, it must
take feedback from customers about the productivity of product and if
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there is any negative response received then firm must take
appropriate actions ro rectify its mistake or error. For example,
guiding customers to clean furniture and time to time service in case
of damage. These all activities in this function will help in making
clients happy and retained in long term.
 Research-This is the most essential function of marketing of IKEA as
it helps in estimating current scenario of market and modify its
business strategy as per trend. Market research contributes in
forecasting quality of product which will be appreciated by most of
customers. It also helps in analysing firm position in retail, market
and its competitors. Firm can conduct two types of research like
qualitative and quantitative in which personal interview,
questionnaire, online survey and feedback form. If research shows
that existing product is performing well then company can make plans
to expand its variety in future (Essentials, 2015). Thus these all functions
of marketing play an important part and help in achieving goals and
objectives.
P2 Roles and responsibilities of marketing in IKEA
In competitive environment, marketing strategies play a vital role because it is helpful in
getting success in the market. If IKEA wants to attain its specified objectives and goals then it
should make this tactics because it supports an organisation to identify the demand and supply of
its target market. If company will serve to its consumers according to their requirement then it
will convert them into loyal consumers by which it will attain competitive advantages over its
rivals. In IKEA, there are various functions which have to performed by marketing department
and managers for getting their vision and mission statement. Marketing functions are interrelated
with other organisational task which are given below-
 Financing of services- Every company wants to invest in that project which will provide
better return. Financing is very important aspect because with out having it, IKEA can
not complete its project effectively and efficiently. In marketing, funds play crucial role
because if company will have proper amount for investing then it will be able to attract
large number of customers towards its company (Goedertier and et. al., 2010). For getting
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attention from users, IKEA invests proper financial resources in marketing activities by
which it creates positive brand image in the market. The flow of finances is fixed on the
basis of priority and importance of the task.
 Human resource- It has close link with marketing department because this section of
company hires best skilled man power who will be able to carry out business operation or
marketing activities in effective and efficient manner. It can recruit the individuals from
internal as well as external source. After selection of person, this department provides
training to them, so that they can do their job according to the standards.
 Research and development- This zone of company also plays an important role because
it collects information about its consumers and competitors' policy which aids the
marketing department to design products according to the requirements of buyers
According to the research, firm can remove its all weaknesses and can utilize its full
strength which supports in getting success in the market (Jones and Rowley, 2011). It
identifies the needs or wants of consumers which assists the company is serving to them
according to their requirements and also helps in satisfying their requirement.
 Customer service- IKEA should provide better quality of services to its target market so
that they will remain in the company for long period of time. For knowing about its
facilities, it should take feedback from its consumers so that it can know about the
limitation of this offers. And after knowing about negative perception, organization
should try to remove it so that people will purchase more merchandise from this company
and will not switch to any other brand.
 Information and communication technology- It also play a vital role in an organisation
because with the support of this, company can improve its performance. For example- It
enhances communication channel by which company can easily communicate with their
consumers as well as with their employees (Kennedy and Parsons, 2014). IKEA uses
various types of media for communicating such as social media [Facebook, Instagram
etc.], video conferencing, e-mailing etc. This department also helps in running online
business smoothly and effectively because it introduces various techniques by which
consumers can purchase goods or services easily and these transactions can be recorded
easily with the help of internet.
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 Sales- It is closely linked with marketing department because this section creates
awareness about the existence of goods or services which generates more sales and
revenue of the company.
 Production- Marketing units identifies the demand or needs of people on that basis
production activities is carried out. Marketing unit has responsibility to create demand
and to package the products in an attractive manner so that people will be attracted for
purchasing it.
 Administration- This unit is closely related to marketing function. It includes top
management who is liable to take decision for the entire organization. It makes strategy
for the company so that it can get success in the market. If top authority changes any
tactic then it will affect the marketing department because now this unit also has to
change their planning according to the environment.
 Network of distribution- Distribution channel is helpful in moving of goods or services
from manufacturer to end users. It should be selected on the basis of consumers or
prevailing market situation. IKEA should select that channel which will help in satisfying
the need of customers.
 Pricing- Marketing department plays an important role in setting price of goods or
services. Pricing is very important weapon for a company because with the support of
this, organisation will be able to achieve competitive advantages over its rivals. IKEA
should set cost of their services according to the end users so that they can easily afford
its products. If firm will not do so then it may loose its consumers.
TASK 2
P3 Difference in marketing mix of IKEA and Tesco
As these are two main companies in retail market of United kingdom,they sue their own
unique tactics to compete and gain maximum competitive advantage in long term (Lamb, C.W.,
Hair and McDaniel, 2011). IKEA is a furniture firm, on other hand, Tesco is non manufacturing
retail enterprise of United Kingdom. They both have different feature like product, place, price,
promotion, people, process and physical evidence as followings.
Marketing mix IKEA Tesco
Product This firm has huge variety of This company provides all
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product like bathroom storage,
desks, mirror, chairs, clothes
storage, sofa, armchair,
kitchen cabinets, small storage,
tables, beds, mattresses and
rugs. The company keeps
changing its product features
according to consumer
demands so that it can increase
sales in long term. It all
designs of furniture items is
fresh and differentiated fro
other brands in industry.
product related to grocery and
households in United
Kingdom. For example, food,
clothing, electronics, financial
services and other categories.
It keeps local and international
demand to provide customised
goods to consumers as
different types of cuisines. So
the firm offers a huge range of
products to cover maximum
part of market.
Place IKEA uses many distribution
channels to connect maximum
customers among which
franchising to distribute its
product in many place like
middle east, Europe and Asia
pacific. It has 300 stores in 38
nations in retail market. It
tries to expand its business and
make its product available for
consumers. Its supply chain
management is effective which
helps in getting better and easy
availability of goods to public.
It has headquarter in England
and outlets all over the world
competing in different
countries. Mainly two types of
distribution channels are used
as online and offline. As
people are using online
methods at maximum, so it is
expanding its business through
this channel. Offline places of
this company are Tesco extra,
Tesco metro, Tesco
supermarket and many other.
Price As IKEA is a well established
brand in United Kingdom, it
does not cut its price but tries
It maintains low price with
average quantity of goods so
that normal class of society
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to improve quality of product
so that customer can be
satisfied and sees it worth the
money. Some of its product
are available on lower price in
comparison to other brands
like Tesco.
can buy its product or services.
It uses economies of scale to
keep balance between cost and
quality of items. It adopts
pricing policy as “every little
counts” to make its all product
possible for maximum people
of society.
Promotion IKEA uses many promotional
activities and plans to
maximise sales in long term.
For example, it has conducted
a campaign which was related
to kitchen called “Be happy
inside”.Its own logo is huge in
itself to improve product
promotion. There are other
methods like online
advertisements, television and
billboards.
Its main advantage promotion
is its low price. It gives offer
time to time like buy one get
one free and half price so that
maximum customers can buy
grocery items at easy price. It
concentrates on easy
accessibility of place and
stores. It payments process are
easy to retain customers in
long term. It provides free
delivery of goods through
online stores of Tesco. It offers
club cards services to provide
discounts.
People It gives importance to people
related to company like
customers, employees and
other supplier as they play
vital role in gaining objectives
of profit maximisation. It
focuses on customer
Tesco focuses on providing
best assistance to its customers
at stores so that they can feel
connected and valued by
company. It has excellent sales
assistants who helps in
building a better image of firm
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satisfaction through providing
best quality products. On other
hand, it tries to maintain a
healthy atmosphere at
workplace for its workers so
that they can put their fullest
efforts in activities and tasks.
in sight of customers. It adopts
some major programmes like
collogues privilege card and
save as your earn to attract
maximum number of
customers and gain
competitive advantage through
these techniques.
Physical evidence Its most of profit are
recyclable which encourages
people to buy its product at
stores. It has very large size
stores as it items require
maximum space for consumers
with huge car parking attached
to make it comfortable for
public.
All stress of company are
attractive and clean but not
over elaborated like other
competitors firm in retail
market. There are different
categories of products which
helps customers to choose
items at outlets. It online store
or website is simple which is
also a strong point for
company to attract people.
Process It concentrates on low price
commitment while following
process of production to
delivery of item to consumer.
The company makes its own
wooden furniture and other
elements. So it makes sure that
no material is wasted to avoid
high cost of product. There is
simple process as client goes
to store, collect item and safe
Tesco tries to keep its all
customers satisfied and happy
in future. So it makes fast
billing services and availability
of goods at outlets to avoid any
delay in delivery or sales. It
maintain competencies of its
workers in term of skills and
productivity so that maximum
outcome can be gained from
minimum inputs in process.
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delivery is provided by firm. For example, it starts with
good suppliers who provide
best quality product at lower
price so that it can offer
reasonable rates to its
customers at stores or outlets.
Thus IKEA and Tesco use their different strategies related to their unique product, place,
people, price, promotion and physical evidence to attract maximum number of clients in long
term and make them satisfied (Malhotra, Birks and Wills, 2013). Different advertisement
methods pay a major role in improving brand image in sight of public to compete more
efficiently. It will help in achieving organisational objectives like increased profit margin and
maximum market share in retail sector of United Kingdom. Through an effective marketing
planning and techniques, they can provide customised goods to target group and retain them in
long term.
TASK 3
P 4 Production and evaluation of a basic marketing plan for IKEA
As there is cut throat competition in retail industry of United Kingdom, every business
organisation has to make modifications in its process an activities so that it can meet current or
latest requirements of customers (Mihart, 2012). Although IKEA is a well established brand in
market, it should improve its productivity and standard to increase sales and customer
satisfaction in future. There are some steps which must be followed by company to achieve its
objectives and goals within times frame.
 Setting the goals-This is firs step of marketing plan which includes short and long term
objectives which are main reason of existence of business organisation. So IKEA will
have to identify its goals which are profit maximisation and more market share in retail
industry of United Kingdom as well as internal market. These objective should be
communicated with all employees involved in process so that they can work according to
these motives and hep in achieving them in time with accuracy. There are some features
which must be in objectives of IKEA to make it SMART. For example, it should be
measurable to achieve easily and relevant to business of company. Another quality must
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be time bound which helps in achieving objective fast without any delay. Target should
be specific and achievable to get easily by firm.
 Market research-This is second stage of marketing plan for IKEA in which company
conducts a research to identify its potential customers and focus their particular needs and
desires related to furniture products. There are many methods to gain information about
current trends like personal interview, questionnaire, observation and survey which are
included in primary research category (Nguyen and Simkin, 2012). But as for the
mentioned firm, secondary research methods will be useful in which it can use
government statistical statement, magazines and competitors economical statement to
evaluate about demand of profit in retail market. After completing research, a report will
be prepared in which crucial data is recorded for further proceeding.
 Analysis of current situation-This is third stage of marketing plan process in which
current position of IKEA in retail market will be analysed. It is most important step to
follow as whole new plan is dependent how company is doing. One of most useful
methods is SWOT analysis in which strength , weakness, opportunities and threats of
company are evaluated. Strength of IKEA is that it constantly uses innovative methods to
maintain lower cost of product and great supply chain integration all over the world.
Weakness of firm is that providing high standard product lowers sales by middle class
people of society. Opportunity of it is that online sales of its product is growing fast and it
is expanding its business in developing countries. Threat for IKEA is high level
competition in retail market.
 Creating marketing strategy-After gaining information about where company stands,
some marketing strategies like business to consumer, word of mouth, relationship
marketing strategy, paid advertisement, interactive marketing, internet marketing and
business to business. As IKEA is a famous brand it should use internet marketing strategy
through push or pull methods due to fast spreading online stores across world
(Papasolomou and Melanthiou, 2012). In this marketing strategy firm can use various
digital techniques to promote its product and connect to maximum number of customers.
Push techniques include instant messaging and pull methods contain customer initiative.
A set of aspects are prepared by marketing manager which is responsible for whole
marketing plan for company.
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 Allocation of budget and implementation-After making the most suitable marketing
strategy for IKEA, budget for small activities ans tasks is allocated to control cost of plan
and further process of modified product or goods of company. Budget is made separately
for manufacturing of furniture, supply of raw material and delivery process at stores. For
example, expenses on market research and cost which will be occurred in future must be
clearly analysed in advance. As per calculation, market research will cost approximate
3500 euros for this marketing plan of IKEA. When all budget is allotted to each activity,
final implementation of plan is done. As per this process, company uses new
modifications in existing Poäng chair related to its material and shape so that it can meet
maximum customer demand in retail sector of United Kingdom. Some changes can slow
process of company, so employees should provide training sessions to compete with new
techniques.
 Controlling and monitoring-This is final stage of marketing plan of IKEA in which
marketing manger check all changes after implementation in firm. He will see if there is
positive or negative outcome. A regular monitoring is conducted to evaluate outcome
which has been received. For example, company will analyse if there is any increase in
sales of its new modified product or not (Purvis, 2016). If there is any deviation between
real gained and desired results then appropriate actions are taken. To control negative
impact of implemented marketing plan, proper record is maintained. If new plan is
beneficial, it will be continued, but if there is any loss, implemented plan will be
terminated. Thus there are many crucial aspect which must be considered in effective
marketing plan of IKEA.
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CONCLUSION
From above report it can be concluded that marketing is an inseparable part of IKEA as it
helps in achieving its targets of increasing sales of its profit or services and gain a leading potion
n market of United Kingdom. Marketing mix also plays a vital role as covers all major aspects
like price of goods, place of distribution of it, methods of promotion, employees of company,
atmosphere of store and process of manufacturing. They all contribute in marketing planning so
that it can make an efficient business strategy and consequently gain maximum competitive
advantage in comparison to other firms in furniture retail market of country. To deal with current
scenario of co,petition, firm should adopt such a marketing plan in which it can conducts market
research, setting it objectives, implementation of plan and monitoring results. If there is any
deviation in real gained and desired outcomes then appropriate actions are taken.
REFERENCES
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