Principles And Practices Of Marketing

This presentation explores the principles and practices of marketing, focusing on the SOSTAC model. It covers situational analysis, objectives, strategies, tactics, actions, and control. Suitable for marketing students.

Principles And Practices
Of Marketing

Table of content
 Introduction
 SOSTAC model
 Situational analysis
 Objective
 Strategy
 Tactics
 Action
 Control
 Conclusion
 References

Introduction
Marketing refer to the set of activities conducted by an organisation in order to
effectively communicate with its targeted customers and maintain brand within
marketplace. The current report is based on Next Plc which is a fashion retailer,
headquartered in UK and now seeking for the expansion to another country for
organisational growth. For determine the viability of potential market SOSTAC
model will be used.

SOSTAC model
The Next Plc is a British multinational retailer deals in clothing, footwear and home
products which maintain approx. 500 stores in UK and 200 around in Europe, Middle
East and Asia and online platform to offer its product worldwide. It is performing
well in current market by offering high quality of products appreciated by customers.
On this success criteria the managers of company are planning to expand the business
by setting up its physical store in Germany. For this the management is using
SOSTAC model that support in performing feasibility study of this market.

Situational analysis
• Political: This country follows a democratic republic system that will allow Next
Plc to gain rapid growth and success by entering in Germany and making use of
supportive governmental policies.
• Economic: The economy of country stands at 4th position worldwide while
maintaining a GDP of 4.2 USD trillion which support Next Plc in achieving
significant growth with support of economic stability of country.

Continue……
• Social: The population of Germany is ranked at 19th position which is approx.
82,416,629, which proves to be beneficial for the Next Plc as it will get larger
customer base and at the same time also get pool of talent to hire for the
company.
• Technological: the record of country in term of innovation and technology is
relatively higher as it provide chance to business to come up with new
technology.

Objective:
“To increase the sale of company by 25% at the end of year after entering into
Germany.

Strategy
For the growth of company it is decided that Next Plc will
use Market expansion strategy, as the people in
Germany are already aware about the offerings of
company nad its customer at online platform. But the
import of product remains expensive to customers so by
developing stores in Germany with similar products it
become easier to get market acceptance and growth.

Tactics
For successful entering into Germany and performing well over the sales as well as profitability of
business, Next Plc formulate its tactics based on three elements,
• Product: - The main focus of Next plc while starting operating at Germany is to be put on its product.
For this Next Plc has decided to adopt Glocal approach in order to offer its products to get maximum
acceptance.
• Price: - In order to get acceptance in market by dealing with competition and other factors, Next Plc
has decided to use adaptation tactic in market.
• Place:- The products of Next plc will be offered through Brick and Mortar stores, where Next plc will
use standardisation tactic and stores will be designed in same manner as in rest of the world.

Action
After analysing the viability of new market i.e. Germany and opportunities present
for business expansion the plan put into action. In this the Next Plc establish its
brick and mortar stores within Germany at some of the prime location. These stores
will be designed using standardisation layout as in other country as it a noticeable
mark of company. After this several marketing practices will be performed,
products are arranged as per the glocal concept where international designs and
local cultural demanded product will be displayed.

Control
For the success of organisation, control plan is crucial as it ensures that in case the proposed
strategies or plan doesn’t work, a back up plan can be executed in order to remove the
gaps or shortcomings. For this the Next Plc will perform regular evaluation of
performance to determine whether it is moving as per the expected standard and in case it
is getting fail in attracting customers then it will use a back up plan where the customised
product will eb provided, in this the customers can add on their choices or mix up two
designs into one and that product will be designed and delivered to their home.

Conclusion
From the performed investigation and analysis about the new market and its
feasibility it has been identified that Germany is a perfect place for expansion
for Next Plc a fashion brand of UK. This is so because in Germany the political,
economic and technological factors are favourable to company which support it
in spreading its existence in market much quickly and effectively while
providing high quality products or services as per customers demand.

References
The World's Top 10 Largest Economies. 2019. [Online]. Available Through: <https://www.focus-
economics.com/blog/the-largest-economies-in-the-world>.
WHAT ABOUT GERMANY?. 2019. Available
Through:<https://www.hofstede-insights.com/country/germany/>.
About Next. 2020. Available through:<https://www.nextplc.co.uk/>.

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