Marketing Plan for Next Plc: Analysis of Marketing Mix, BCG Matrix, Ansoff Growth Strategy Matrix, and Customer Driven Strategy

This report provides a marketing plan for Next Plc, a UK based multinational clothing company. It includes an analysis of the marketing mix, BCG matrix, Ansoff growth strategy matrix, and customer driven strategy. The report discusses the objectives of the marketing plan, the seven P's of marketing mix, BCG matrix analysis, Ansoff growth strategy matrix, and customer driven strategy. It also covers segmentation, targeting, and positioning, identifying niche and creating customer personas, customer feedback, and investing in marketing research and analysis.

Assessment 2 Individual
report
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Executive Summary: In reference to marketing, it plays a very important role when it comes to
promotion of services or products and it is very important for the organisations to prepare a well
effective marketing plan for the purpose to address these issues in a effective manner.
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Table of Contents
Introduction.....................................................................................................................................3
Objectives of marketing plan...........................................................................................................3
Marketing Mix.................................................................................................................................3
Marketing analysis BCG ................................................................................................................5
Ansoff growth strategy matrix ......................................................................................................6
Customer Driven Strategy .............................................................................................................7
Conclusion and Recommendations...............................................................................................10
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Introduction
Marketing refers to the activity of promoting goods and services in order to induce
customer base and increase brand awareness of a company. The purpose of this report is to
prepare a marketing plan in order to address the issues discussed in the assessment 1 which
comprises of the right strategies, problems related to marketing techniques and much more. In
addition to that, it comprises of the various other marketing issues or problems faced by the
organisation in reference to the marketing. This report is in relation with next plc, which is a UK
based multinational clothing company having its headquarters in Enderby, England. This report
discuss the marketing mix and BCG Matrix as well as Ansoff growth matrix to suggest a
customer driven strategy in order to gain competitive advantage and overcome shortcomings of
the organisation.
Objectives of marketing plan
The smart objectives of the marketing plan is discussed below:
In reference to the marketing plan of the company, it comprises of the major objectives :
 To Formulating constructive techniques.
 To increase profitability margins
 To foster expansion and growth
Specific: The major objective of this plan is to increase customer engagement in the
commodities of the company through increasing brand awareness.
Measurable: The objective of this plan is to increase profitability margins by 20%.
Attainable: Through devising this marketing plan, the company would be able to foster its
growth and expansion.
Realistic: The objectives of the marketing plan are achievable and feasible through right and
constructive techniques.
Time: 6 months
Marketing Mix
Marketing mix refers to the major components which directly affect the decision making
and growth of an organisation in the market. In context to organisation, the company can use and
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apply effective techniques to its marketing mix for the purpose to effectively carry pout
operations in a effective and efficient manner possible.
The seven P's of marketing mix are discussed below in context to Next Plc:
Product: It refers to the value that an enterprise provides to their customers through producing
commodities. The organisation owns a wide range of product portfolio which is designed
according to different target groups in the market (Deepak and Jeyakumar, 2019). The company
is specialised in clothing, footwear, home and kitchen appliances of various brands. The
enterprise is widely known for delivering customers with high quality of goods and services.
The product quality and diversified range helps in inducing customer base through offering them
multiple alternatives delivering high value.
Price: Next Plc is a renowned brand and it focus upon adopting a hybrid strategy in order to
charge consumers for the value that is being delivered. The company is indulged in use of
premium pricing for its product range where it promotes a favourable quality perception among
customers. The strategy of premium pricing helps the company in maintaining a brand reputation
known for its quality and unique value that it provides to its customer base (Mothersbaugh and
et.al., 2020). The pricing strategy of the company is implied upon mainly high and medium
income level groups where it charge them according to the quality of their produce.
Place: This component is highly crucial and decisions regarding place directly impact upon the
percentage of sales through determining the accessibility and reach of customers to an
organisation's commodities. The company's major transactions and operations are conducted in
its stores where it displays their product portfolio and maintains direct interaction with
consumers. The company also owns an online marketplace and its performs selling operations
through interacting consumers on online platforms.
Promotion: It refers to the activities involved in increasing brand awareness of a company
through promoting their goods and services by media such as social media and conventional
modes like advertisements, commercials, etc. The organisation make effective use of digital
marketing and it maintains interaction with customers through social media channels such as
Instagram, Twitter and Facebook etc. The company has its own official website where it displays
relevant information regarding the company in order to increase brand awareness. Next plc is
sustaining in the market from a long time and thus it also promote the brand through investing in
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advertising through conventional methods of marketing (Kotler and et.al., 2019). The television
advertisements of the company are emotionally appealing and are effective in attracting
customers towards the brand.
Marketing analysis BCG
The Boston consulting group is a business planning tool which helps an organisation in
evaluating the position of company's product and services in the market for effective decision
making. In context to the Next Plc, the BCG growth matrix of the company helps in
implementation of business level strategies. In reference to the organization, the company’s
current products involves excellent quality clothing and beautifully designed homeware products
that are safe, well made and functional and offers outstanding value and reasonable value for the
purpose to meet the needs of the expectations of the consumer.
Stars
 One of the major star unit of the company is its financial services strategic unit as the
market in which it operates shows high commercial potential (Rust, 2020). This sector
generates a great portion of earnings for the organisation.
 The number 1 brand SBU is another major sector marked under the category of star as
this product is of high commercial potential generating major portion of sales for the
company.
 Another star of Next Plc is its number 2 brand SBU having a total 20% market share in
this category.
Cash cows
 The company generates a significant amount of revenue through its supplier management
service strategic business unit. This unit has been existing in the operations of the
company over decades. The company is facing declination in the overall market growth
as other competitors manage their suppliers on their own rather than outsourcing it
(Kamps and Schetter, 2018). The company is recommended to stop further investing in
this business and it should only focus upon this SBU as long as it is yielding profits.
 The number 3 brand SBU is a cash cow according to the BCG matrix in relation with
Next Plc. This innovative product owns market by share of 25%, however this category is
declining soon due to lack of investment in research and development.
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 The international food SBU is a cash cow as it maintains a 30% market share within this
category, however inclination of people are showing less preferences towards
international food. Due to change in trends, the growth rate of this market is declining
and thus it is recommended for the organisation to keep to increase investment in this
unit. However if it turns into category of dog and no longer remains profitable, the
company must stop investing in this SBU.
Question marks
 The SBU which is a question mark in the BCG matrix application of the company is local
foods strategic business unit. The trends of customers are inclining towards consumption
of local foods and this sector is indicating high market rate of growth (Reyes, 2020).
However the company maintains a low market share in this unit and is recommended to
make investment to drive innovation in this sector.
 Another segment in the category of question mark is confectionery strategic business unit
as customer trends are preferable in this sector. The company's share in this market is low
due to ineffective distribution of next plc in this segment.
Dogs
 The artificially flavoured products SBU is classified under the category of dogs as the
emerging trends of consumers towards growing health consciousness indicates failure of
this unit. The organisation is recommended to stop investing in this product further.
 Another Strategic business unit under the category of dogs is the synthetic fibre products
as this unit is incurring losses to the company on a continual basis (Strycharz and et.al.,
2019). The market of these products is collapsing and thus the company is recommended
to stop investing in this unit for the purpose of minimising any major further losses.
Ansoff growth strategy matrix
In reference to the organisation, the company’s approach is to carry out the cost base and
operations of the consumer in a much more manner for the objective to minimize the negative
effects of the falling retail. The Ansoff model is a growth strategy matrix consisting of majorly
four growth strategies which allow an organisation to devise strategies in order to foster growth
and expansion. It is used in identifying most convenient and suitable actions that an organisation
is required to taken through analysing implications and risks associated with each growth
strategy.
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Market penetration: This growth strategy suggests that an organisation is able to foster growth
and development through penetrating the existing markets by dealing in the current product
portfolio. Through adopting this strategy, an organisation is aimed at increasing its profitability
margins by enhancing customer base and sales (Ferrell, Hartline and Hochstein, 2021). This
strategy implies that an enterprise must seek for expansion while not investing in new products
and markets. The growth strategy of market penetration is the least risky as it requires minimal
investment to implement tactics for penetrating the existing markets. Market penetration could
be attained by reducing prices to grab attention of customers. It could achieved by increasing
promotion and distribution efforts through social media marketing or by developing constructive
network with suppliers. Market penetration could be attained by acquiring a competitor within
the same market place.
Market development: The strategy of market development is associated with the development
of new markets while dealing in existing product range. The main aim of this strategy is to
increase profits and enhance brand image of the company through creating new commercial
markets which can generate maximum potential value (Kotler, Pfoertsch and Sponholz, 2021).
The risks associated with this strategy is high as investments has to be made in new markets and
it requires a lot of research or else it won't generate favourable outcomes.
Product development: This strategy is incorporated with the development of new product range
or varieties while operating in the same markets. The main aim of this strategy is to attract new
customers or induce existing customers through introducing new innovatory commodities. This
growth strategy is risky as it requires high amount of funds in order to introduce new products. It
requires research and constructive mechanisms in order to produce goods generating high
commercial value.
Diversification: This growth strategy is associated with introduction of new markets as well as
launching new products to expand the magnitude of customers as well as operations of an
organisation. The main aim of this growth strategy is to attract more consumers through creating
new products and selling them into new markets as well (Hanlon, 2021). This is the most risky
option explained in the Ansoff growth matrix as it requires huge level of investment in markets
as well as products and it involves huge costs incurred upon research and development.
After evaluating the four growth strategies of Ansoff model, it is recommended for Next
Plc to adopt the strategy of product development and expand their product portfolio for driving
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growth and development. This strategy will be helpful for its growth as customers trust the
quality of the brand and it is highly renowned in the market which would make it easy for
enterprise to attract new or existing customers.
Segmentation, Targeting and Positioning
In reference to STP, it is basically considered to be a acronym for the Segmentation, Targeting
and Positioning which is a three step model that helps in examining the services or products and
also the ways to communicate their benefits to the specific customer segments.
The STP analysis implies that product of the company should be customer driven which
analyse needs and expectations of customers and deliver them with value specifically designed
according to them. In context to Next Plc, the STP in marketing usually stands for the
segmentation, targeting and positioning. All these three basic steps helps in dictating the
marketers to identify the right type of customers and also providing them data or information and
serving the right messaging.
Segmentation: In context to the market, the organisation divide the strategy into few segments.
With the help of segmentation, it helps in maintaining sustainability in the organisation. In
reference to the company, the organisation divides the audience on the basis of education,
gender, age and much more.
Target: In context to the organisation, the company is running in a well manner but the
organisation need to maintain some market oriented for the purpose maintain the sustainability in
the company.
Positioning: With the help of the organisation, it helps in positioning their business structure and
products in the proper manner. In context to the organisation, it basically deals with the
homeware and the clothing, thus the company need to concentrate on the customer’s choice.
Identifying niche and creating customer personas: Customer driven strategy is mainly targets
a specific segment of market in order to customise product value accordingly. In context to Next
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Plc, the target market of the enterprise is highly brand conscious and quality focused buyers who
are willing to spend in order to purchase high quality of commodities. The target market of the
company is majorly medium and high income level groups as it use premium pricing and charge
customers for value that it delivers to customers (Deges, 2018). The company must design its
product according to specifications of its target market which implies high customisation and
innovative features for the purpose of enhancing customer satisfaction and retention. One
effective way to stick specifically to customer needs is to develop buyer persona.
Customer feedback: In order to induce customer base of the company, focusing upon
requirements of customer is must. The customer driven strategy for the company must consider
the reviews and feedbacks of customers on the products of company. For product development
the company must consider the specifications and comments of their target market and it is
highly crucial for the company to address and resolve issues of their buyers. The customer driven
strategy implies modifications and relevant changes according to preferences of consumers.
Investing in customer services: To induce customer base through effective marketing, a
customer driven strategy invests hugely in delivering customers with high quality of services
while complying with their demanded standards. The company must focus upon needs and goals
of their consumers and how their satisfaction could be enhanced by delivering them with most
convenient and suitable services. Responding quickly to their queries regarding product size,
shape, colour, utility is one way to improve customer services. Moreover the company must
provide them with return and exchange policies suited best to their convenience.
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Knowing existing customers: While customer persona is a way to determine attributes and
interests of potential target market, knowing about existing customers helps in gaining insights
on how well a product would be able to induce satisfaction among buyers. The company can
interact with its customers through monitoring their activities on social and digital media
associated with the organisation. Through gaining insights by advanced features provided by
digital platforms, the enterprise can effectively analyse the requirements of potential buyers as
well.
Word of mouth: A customer driven strategy focus highly on customers and enureses their
retention and engagement through driving their satisfaction by interacting with the enterprise.
Maintaining good behaviour and developing strong interpersonal bonds is very effective in
inducing customer base and promoting marketing of the brand (Kumar and et.al., 2018). A
customer driven strategy ensures that customers are treated well by sales person and are
promoted to refer the brand through increasing awareness among their acquaintances. Customers
must be promoted to share their experiences and good reviews for attracting more consumers to
the brand.
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Conclusion
From the above report, it has been concluded that Next Plc can consolidate its positioning
in the market by boosting its marketing efforts and through constructing an effective marketing
plan. The company is recommended to adopt the customer driven strategy in order to promote its
brand and induce customer base through complying with their specifications and demands.
Recommendations
The marketing mix of the company is evaluated which help the company in devising
strategies and in decision-making through understanding the brand better. The company is
recommended to stop making further investments in the strategic business unit which are no
longer generating any profits and revenues.
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References
Deepak, R.K.A. and Jeyakumar, S., 2019. Marketing management. Educreation Publishing.
Mothersbaugh, D.L. and et.al., 2020. Consumer behavior: Building marketing strategy. New
York, NY, USA: McGraw-Hill Education.
Kotler, P. and et.al., 2019. Marketing Management: 4th European Edition. Pearson UK.
Rust, R.T., 2020. Outside-in marketing: Why, when and how?. Industrial Marketing
Management, 89, pp.102-104.
Kamps, I. and Schetter, D., 2018. Performance marketing. Springer Fachmedien Wiesbaden.
Reyes, M. ed., 2020. Consumer behavior and marketing. BoD–Books on Demand.
Strycharz, J. and et.al., 2019. Contrasting perspectives–practitioner’s viewpoint on personalised
marketing communication. European Journal of Marketing.
Ferrell, O.C., Hartline, M. and Hochstein, B.W., 2021. Marketing strategy. Cengage Learning.
Kotler, P., Pfoertsch, W. and Sponholz, U., 2021. H2H Marketing: The Genesis of Human-to-
Human Marketing. Cham: Springer.
Hanlon, A., 2021. Digital marketing: strategic planning & integration. Sage.
Deges, F., 2018. Quick guide influencer marketing. Springer Fachmedien Wiesbaden.
Kumar, V. and et.al., 2018. Marketing research. John Wiley & Sons.
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