Pestle Analysis for Business Expansion

The assignment provides a detailed pestle analysis for Beauty Giant, a UK-based company, to expand its business or launch a new product in the market. It covers political, economic, environmental, technological, and legal factors that can affect the business. The study concludes that marketing is essential for business success and that developing effective marketing plans can help reduce the influence of external factors.

Marketing and its application

Table of Contents
INTRODUCTION.................................................................................................................................5
LO 1......................................................................................................................................................5
P1 Explaining roles and responsibilities of the marketing function...................................................5
P2 Explaining the roles and responsibilities in context to the wider organisation..............................6
LO 2......................................................................................................................................................8
P3 Comparing ways in which different organisations can apply marketing mix for the planning
process for achieving business objectives..........................................................................................8
LO 3......................................................................................................................................................9
P4 Producing and evaluating basic marketing plan for the organisation............................................9
CONCLUSION...................................................................................................................................11
REFERENCES....................................................................................................................................12

INTRODUCTION
Marketing can be defined as a process of with the help of which a company can enhance its
power to attract the maximum number of customers towards it and enhance its profitability
and marketability as well (Pike, 2015). Beauty Giant is a business organisation that provides
cosmetic products to its customers. Recently it has 50 branches in all over the UK. The
company has decided to launch its new product with a name Forever Young. The present
study shows key roles and responsibilities of the marketing functions along with the relating it
with the wider organisations. It also shows a breif comparison of various organisations that
applies marketing mix for planning the marketing process for achieving is objectives.
Moreover, it also includes development and evaluation of the marketing plan for the
company.
LO 1
P1 Explaining roles and responsibilities of the marketing function
Marketing is an essential part of a business organisation as it makes the ability of company for
achieving its business objective and goals of reaching a certain level of sales and earning a huge
amount of profit as well. A company needs to invest a huge amount of capital for the
marketing activities. It helps in development of the most effective strategies in order to
enhance the demand of its product in the market.
As the Beauty Giant wants launch their new product in th market called Forever yung,
it would need to adopt the most effective marketing technique so that it become able to attract
the maximum amount of customers towards its new products and the maximum demand of
the product could be created ( Malhotra, 2015). As the marketing activity plays an essential
role in enhancing the role in creation of demand, the Beuty Giant has to develop marketing
strategies with the help of which it could develop unique marketing styles and techniques so
as to enhance the effectiveness and efficiency of the business in marketing activity of the
organisation.
The major elements of the marketing functions are as under:
 Pricing: It is the key element of marketing strategy as launching any product in the
market with the consumer friendly price can enhance the ability of product in
attracting customers towards it. Further, setting the higher amount of price of product
can enhance the profitability of the business, although, it can reduce the attractiveness
of product. In order to this, for the purpose of enhancing demand of product in market
along with generating maximum amount of profit from it, the Beauty Giant has to set
the price of product in such a way so that it could effectively catch the eyes of
customers along with providing maximum amount of profit to the company as well.
 Market analysis: Market analysis refers to a proper study of various market
situations that can result in variation of the product’s demand. Before setting

marketing strategies of the product, the Beauty Gaint should create an in depth study
of the demand and volume of products available for fulfilment of the demand
( Zgarrick, and et.al 2016).
 Market segmentation: It refers to categorisation of different markets. The
categorisation can be either on the basis of people, culture, location or needs and
demands of the customers. Appropriate segmentation of market can result in reaching
to a huge amount of customers with the new product and enhancing the profitability
of the company as well.
 Distribution: Distribution refers to making availability of the product in each market
as per the volume of need and demand of the produc ( Lane, P., 2016). Development
og effective distribution is also an essential element of the marketing strategy for
Beuty Giant, the products that are easily available for the customers are most
preferable by them as well.
 Services after sales: The marketing function does not limit till the sale of the product
in the market. Rather, products over which the customers get better and effective after
sale services also seems to be attractive for them. In order to this, the Beaty Giant also
needs to develop effective strategies for the customers so that it could enhance is
ability to attract the customers towards its new product namely forever young.
In addition, major role and responsibility of the Beuty Giant for marketing of forever
young can be analysed as under:
 For efficient performance and development of marketing strategies, majorly
manager of the company are liable. Marketing managers of Beauty Giant needs to
analyse the overall market condition, demand and needs of the customers
( Muralidharan, K. and Raval, N., 2017). This analysis will help the company in
launching the new product in the most effective way so that it could have power to
attract the maximum amount of customers.
 Further, analysis of the risk can also be termed as one of the most effective
strategy of business. Being an industry of beauty products, the Beauty Giant may
suffer a huge amount of competition in the market. In this regard analysis of the
risk can help the company in developing effective sstrategies by analysing the
competitor’s plans and policies of marketing.
P2 Explaining the roles and responsibilities in context to the wider organisation
Marketing is an activity which is essential to be performed by each of the business
organisation in order to develop profitability and gaining attraction of the customers.
Effectiveness of the marketing is based on the quality of strategies and plans for performing
marketing functions developed by the managers of the business organisation. For the purpose
of performing these activities effectively, they needs to make in depth research of the market
and its various conditions ( Pike, 2016). It can help them in enhancing the effectiveness of
various plans and policies developed by them.
Development of promotional strategy for launching forever young is also one of the
major part of marketing function. Development of effective policies and plans for promoting

the product can lead in attracting the customers towards company’s new product at large
scale. Further, with the help of attractive promotion scheme and techmique, the marketing
manager can even create the demand of forever young product even in those locations in
which these products are not required by the customers.
Moreover, the employees of Beauty Giant also plays a vital role in the marketing
strategies. The company can employ workers in the company that would perform research of
market for the company. Further, for promotion purpose, it can also employ new employees.
It can help the company in developing more effective strategies for the business.
In context to financial activities, it is a major task to analyse the financial requirement in
the marketing and promotional activities and also developing strength of the business in
making sufficient availability of the finance in the market ( Hair and et.al2015). Without
having sufficient amount of financial resources, a business can not perform any activity in the
smooth and effevtive way. Therefore, maintenance of sufficiency of funds is also a part of
marketing essentials.
Moreover, as the marketing makes the company to perform a range of business
operations, the Beauty Giant may need to appoint and recruite more employees for the
business so that each of thr acivity could be performed in an effective way. Various activities
like research, analyss of risk, development of plans, analysis of the market, delivering
products t the customers, aking feedback from them, providing after sales services to the
customers, etc. Needs a range of workers to be involved by the company. In this regard, it can
also be said that recruiters ie. Human resource managers as well as employees of the
company are also important for the company for performing various marketing activities in
an effective way.
The core interrelation between marketing and various functional units if the Beautty
Giant company can be analysed as under:
 Marketing and human resource management: effective development and
implementation of marketing strategies needs a range of business operations and
activities to be performed by the company. For this purpose thee Beauty Giant would
need a range of employees in the business. In this regard, marketing and human
resource management interrelates with each other.
 Marketing and finance: Both marketing and finance are one of the major activities
of a business organisation. Fund that would be required by the Beauty Gaint in the
marketing of its new product forever young would be make available for the company
by its financial department only ( Baker and Saren, eds., 2016). In this regard, these
activities also interrelates with each other as finance is a major requirement of making
sufficient amount of funds available for the business.
 Marketing and customer services department: As marketing does not extent till the
selling of products to the customers, but it also includes providing effective services
to the customers even after selling the product. In this regard, after selling the product
to the customers, in order to maintenance of effectiveness in the marketing function of
the Beauty giant, it needs to interrelate the marketing activities with the customer

service activity ( Baker and Saren, eds., 2016). Marketing department provide proper
and complete information f the customers who purchased the forever young product
of the company. With the help of this information, they will keep in touch with the
customers by the way of numerous technical ways by taking feedbacks about the
products from them, it will help the company in maintaining the customers with the
business for long period of time.
LO 2
P3 Comparing ways in which different organisations can apply marketing mix for the
planning process for achieving business objectives
Marketing mix
Marketing mix can be defined as a tool with the help of which a business organisation can
develop their objectives and plans for achieving their goals and objectives of relating to the
marketing context. Further, it can be termed as a process of providing appropriate amount of
product at right place at right time at the right price as well.
Business objectives:
The term business objective refers to the set goals and objectives that a company
wants to achieve in its near future. Each of the business activity performed by a company are
based on the business objective of it. Development od effective business activities leads in
providing growth opportunities to the company. In this order, managers of the Beauty Giant
must set up effective business objectives rearding launching and promoting its new product
i.e. forever young so that the company could perform all its activities so as to achieve them in
effective manner. Business objectives basically provides a path through which a firm can
achieve its goals ( Stern and Porr, 2017). Grabbing a specific amount of market share,
generation of a specific amount of profit within a specific time, etc. Can be termed as the
business objectives with the help of which the Beauty Giant would be able to achieve its set
business goals.
Importance of business objective in launching new product forever young
 With the help business objectives, company can achieve its long term goals behind
launching the new product.
 It helps the managers in setting the future needs that would be needed for effectiuve
functioning of the business activities.
 Development of appropriate amount of business objectives can also lead in enhancing
the financial capacity of the Beauty Giant.
Marketing mix of Beauty Giant for launching the new product
 Product: Being a business of beauty and cosmetic industry, the Beauty Giant has
decided to launch a new product with the name forever young. As per the matket

analysis of company’s managers, the product can be more demanded by the
customers.
 Price: The price of product is needed to be set by Beauty Giant in such a way so that
the customers get easily ready to pay the price for the product and the company also
coulf earn sufficient amount of profit from the sale. It is the major part of marketing
mix tool, as setting too much lower price would result in lowering the amount of
profit for the company. On the other hand, setting too much higher amount of profit
may result in distracting the customers from the forever young product o th company
that may result in suffering loss by it.
 Place: Place refers to the market or the locations at which the company wants to sale
its product. For this purpose, the Beauty Giant first need to analyse various market
segmentations. This would help it in analysing the actual need of the product in a
specific market or place. In this order, Beauty Giant, can set the specific places at
which selling the forever young would be more profitable for the company.
 Promotion: It refers to promoting the product every where and spreading awareness
about the product in all over the target market. Promotion activity also includes
providing appropriate information of the product to the target and potential customers
so that the need could be created in the market.
In this order, the company cause these marketing mix tools, the Beauty Giant can enhance the
productivity of its marketing activity and enhance the marketability and profitability of the
company as well.
LO 3
P4 Producing and evaluating basic marketing plan for the organisation
Marketing plan:
It refers to a plan which provides a proper path to a business organisation for
performing its business activities in such a way so that it could grab a maximum share and
earn maximum profit as well.
Marketing plan for Beauty Giant for launching its new product can be analysed as
under:
SWOT Analysis
This analysis helps inn analysing various strengths, weaknesses, opportunities and
threats of the business. SWOT analysis of the Beauty Giant can be analysed as under:
Strengths:
Being a business relating to the cosmetic and beauty product industry, the major
strength of the business is that these products are one of the basic need of each individual
( Marketing, 2018)... In this regard grabbing maximum amoun to f market share and
profitability from the market is not a typical task of the company. Further, as the company
has made in depth study of the market for developing its market plan, the plan developedby it

can also be consider as its strength , as with the help of it the beauty Giant would be ale to
gain a huge amount of profit.
Weaknesses:
As the beauty industry is a profitable market industry, the beauty giant needs to face a
huge amount of competition in the market. Due to which it needs to invest a huge capital in
the competitive analysis. It can be seen as the major weakness of the company.
Opportunities:
With the help of developing the most effective marketing strategies and plans, the
Beauty Giant would be able to attract a huge amount of market share from the company.
Further, by implementing the marketing mix planning tools, the company would be able to
sale a large amount of forever young product in the market and generate a huge amount of
profit from it as well.
Threats:
As the Beauty industry contains a huge amount of profit, Beauty Giant also needs to
face large competition in the market. It can be termed as a major threat of the business.
Further, change in preference and test of the company, that can affect the sales of its beauty
product forever young, can also be termed as a major threat of the company.
PESTLE Analysis
Pestle analysis shows influence external factors over the business organisation. Pestle
analysis can help the company in developing more effective plans and policies of the business
so that influence of these factors could be reduced and business could be run in a smooth
manner.
Pestle analysis of Beauty Giant for expansion purpose can be analysed as under:
Political factors:
Political factors includes effect of change in rules andregulation applicable over the
business due to change in political parties of the company. Beauty Giant being a UK based
company does not have much influence of this factors due to effective political system of
UK.
Economical factors:
Economical factor includes inflation rate of the country, saving habits of population,
spending capacity of the population, etc. This factor have direct effect over the sales of the
company. In this reard, this factor have a great influence over the business of Beauty Giant.
Environmental factors

Environmental factors refers to cultural changes in the environment, this factor have a great
influence over the choice of customers. Although, being a cosmetic industry, the Beauty
Giant does not have great influence of environmental factor.
Technological factors
In todays time, the technology have effected each of the business industry. In this regard,
Beauty Giant also have a great influence of this factor. The company needs to develop its
various plans and strategies like promotion, marketing, etc. While taking into consideration
the latest technology of the market. It can effect the attraction of customers’
Legal factors
Legal factors refers tto compliance of rules and legislations. This factor also have a major
influence over the business of Beauty Giant as each of its business activities are needed to be
performed as per the legal system of the country.
In thia regard, it can be analysed that there are various strengths, weaknesses, opportunities
and threats of the Beauty Giant. Further,, there are various external factors that can affect the
launching ofnew product in the market. Although, all these factors’ influence can be removed
by developing effective marketing plan for the new product.
CONCLUSION
From the analysis of the above study, it can be concluded that the marketing is a most
essential part of each of the business organisation. It can help the business in gaining success
and enhance its profitability and marketability. The company needs to develop effective
marketing plan for the expansion of business or for launching any new product in the market.
Further the study has also concluded that the while developing marketing plan, all the
influencing factors are needed to be taken into consideration.

REFERENCES
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Handbook of Human Resources Management, pp.23-52.
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Pike, S. D., 2016. Destination marketing organizations–research opportunities in an era of
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Association for Tourism Policy (IATOUR).
Hair Jr and et.al2015. Essentials of business research methods. Routledge.
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Stern, P. N. and Porr, C.J., 2017. Essentials of accessible grounded theory. Routledge.
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Online
Marketing . 2018. [ONLINE] Available through <https://www.cyberclick.es/marketing>