Strategic Marketing: Adaptation, CBBE Model, IMC, and Success Measurement

This report discusses the concepts of strategic marketing through various sections such as adaptation and standardization, CBBE model, integrated marketing communication, and measurement of success. The case study of Iceland Foods Ltd is used to illustrate these concepts.

STRATEGIC
MANAGEMENT

EXECUTIVE SUMMARY
This report will discuss on the concepts of strategic marketing through various
sections. In first section, the study will highlight adaptation and standardization with the help
of marketing mis if selected business. In next section, the report will outline brand equity
with the help of suing customer-based brand equity (CBBE) model. In the next stage, the
project will outline Integrated Marketing communication, its importance and types of
marketing communication through which a brand can share their message and promote higher
number of audience/ target market. Lastly, the project will have some measurement strategies
through which a business scan maximizes their profitability and success.

Table of Contents
EXECUTIVE SUMMARY......................................................................................................2
INTRODUCTION....................................................................................................................4
TASK.........................................................................................................................................4
Adaptation and standardisation of marketing mix.................................................................4
CBBE model..........................................................................................................................5
Integrated communication mix and methods.........................................................................7
Measurement of success.........................................................................................................8
CONCLUSION.........................................................................................................................9
REFERENCES.......................................................................................................................10

INTRODUCTION
Strategic marketing is the use of marketing strategies which is used to achieve
organizational objective by creating and maintaining a sustainable competitive advantage.
Marketing management is the approach of formulating and implementing the plan through
which business growth and objectives can be accomplished. The process of strategic
marketing can be classified under four phases, which are- planning phase, analysis phase,
development phase and implementation phase (What is strategic management, 2021). Iceland
Foods Ltd is the British supermarket chain which was founded by Sir Malcolm Walker in the
year 1970. The company have around 900 stores throughout UK and 40 franchise stores
across Europe (Iceland Foods, 2021). The company offers variety of products, such as-
frozen foods, meals and vegetables. Iceland Foods Ltd shares around 2.2% of UK food
market. This report will discuss the concepts of strategic marketing management through
which organization can generate higher revenues. The report will outline the marketing mix
of business and will define CBBE model which will be helpful in managing strong brand
image in the industry. The project will discuss the integrated communication mix and
methods which will be helpful in evaluating effectiveness of marketing communication
strategies. Lastly, the report will discuss strategies which can be helpful in ensuring
marketing success in order to enhance future performance.
TASK
Adaptation and standardisation of marketing mix
Adaptation is an approach of outlining the differentiation which exists among
products and services which are offered by the company. Standardization is the approach of
implementing marketing mix through which products are promoted to sell products (Amason
and Ward, 2020). In case of Iceland Foods Ltd, the supermarket chain implements adaptation
and standardization which helps in meeting the needs of market, planning the business
activities with the aim of effectively meeting consumer demands through which competitive
business strategy can be strengthened.
In case of Iceland Foods, a detailed description of marketing mix has been discussed
below:
Price- Iceland brand pricing is standardised to ensure that they offer the same quality
for less money as the large supermarkets, or better quality for less money.

Place- As the company is operating in many countries with greater number of stores,
this helps the brand in ensuring their products are easily accessible to their consumers. Such
easy accessibility is helpful in meeting consumer demands.
Product- As Iceland Foods offers variety of product range and is specialized in
frozen food, popular category of food products is- frozen foods, everyday essentials, fresh
fruit and vegetables, breakfast essentials and desserts.
Promotion- Iceland Foods uses both traditional and modern marketing and promotion
tactics in their promotional efforts (Gallus, J. and Frey, 2016). The campaign includes
television, radio, print, door-to-door, online, and experiential interaction.
CBBE model
This model was developed by Kevin Lane Keller which is known as Keller Brand
Equity model which is the model of strategic brand management. This framework focuses on
building strong brand image and supports in shaping consumer opinions for the products and
services offered by the brand. The model is based on 4 stages which are- identity, meaning,
response and relationships (Keller’s brand equity model, 2019). The objective of this
framework is to increase the brand equity of an organization. In case of Iceland Foods Ltd,
the supermarket will implement the brand equity pyramid which will be helpful in building
the brand equity by understanding customers and through building a connection between
brand and customer.
In context of Iceland Foods Ltd, a detailed description of stages of Customer Based
Brand Equity (CBBE) model have been given below:

Source: Keller brand equity model, 2021
Level:1- Brand identity
This is the first stage of the framework which focuses on defining who the brand is.
The aim of this stage is to create brand awareness. This stage is brand identity stage which
defines how the customers think about the brand and defines how the brand is different from
other brands. This is a crucial stage of the framework as this supports in creating strong base.
In case of Iceland Foods Ltd, the supermarket focuses on the first stage of brand equity model
where they focus understanding customer awareness of the brand. (Keller brand equity, 2018)
In this stage, the supermarket company promotes their products and services with the help of
campaigns and advertisements. In order to increase brand awareness, the company will target
their customers to increase their brand presence and this will be done by advertising and
communicating with customers. Therefore, through advertising campaigns operated through
online and offline mediums, the supermarket company will define their products range and
will highlight what the brand is all about.
Level:2- Brand Meaning
This is the second stage of the framework where after getting awareness of the brand,
consumers are more interested to know more about the brand. In this stage, consumer wants
to gather more insight and awareness for the brand through which they can understand the
operations and the foundations of the brand. this stage is further classified under two stages,
which are- brand performance and brand imagery. According to customers, the performance
of a brand plays a crucial role for customers and this can be helpful in building and
maintaining trust among consumers. In context of Iceland Foods, the factors which are
analysed by consumers in order to evaluate brand performance are- product features,
reliability, customer services, styles, design and pricing of products (What is customer-based
brand equity, 2021). Brand imagery defines the image of brand among customers. In case of
building strong image, Iceland focuses on targeted marketing and word of mouth which helps
them in strengthening the image among customers.
Level:3- Brand Response
This is the third stage of brand equity model which defines feelings of customers for
the brand. This phase is used to define the response of customers towards the brand which

can be outlined with the help of their experience through the brand. The experience of
customer from the brand can be positive as well as negative. Therefore, the opinion and
experience of customers for the brand can be a judgement (negative) or feeling (positive). In
case of Iceland Foods, the supermarket company focus on their holistic marketing through
which they focus on building positive image and ensure effective customer satisfaction
through offering them post sale services (Hubbard, Rice and Galvin, 2015). This stage
defines quality, credibility, consideration and superiority of the other brands according to
customers.
Level:4- Brand Resonance
This is the last stage of brand equity model which help the company in understanding
customers intention and their interest for the brand. This is the last and crucial stage which
can be further classified into four stages, which are- attitudinal attachment, behavioural
loyalty, sense of community and active engagement. In case of Iceland Foods, at this stage
consumers will have strong connect with the brand due to their exceptional quality of product
and services which will be helpful in strengthening loyal customer base.
Integrated communication mix and methods
Integrated marketing communication (IMC) is concepts which defines the concepts
where company integrated and coordinated its communications channels which helps in
delivering clear and consistent message. IMC is the integration of marketing tools and
resources within an organization through which creates an impact in the consumer minds and
supports in maximum profits at minimum cost (Integrated Marketing Communication, 2021).
In context of Iceland Foods, IMC is essential function for business, as this helps in promoting
the brand which will be helpful in increasing awareness of products and services which will
also support in increasing their sales, maximizing high profits and revenues of the
organization.
Importance of Integrated marketing communication for new product launch
Integrated marketing communication is the strategy which is followed by business
through which they can create a long-term effect which will be helpful in boosting returns
and position of the company within the industry (Importance of IMC, 2019). In context of
Iceland Foods, IMC is important as this supports the company in successful launching
products. In context of Iceland Foods, the importance of IMC for new product launch is
outlined below:

 Supports in building brand recognition and trust- An IMC strategy is helpful in
supports in consistent delivery of products. This helps in ensuring that the brand
message is shared to all consumers through which strong brand recognition and trust
can be formed. In case of supermarket company, the IMC strategy is helpful in
sharing message and promoting the new product range through which the company
can attract customers and gain their trust which will be helpful in expanding customer
base.
 Allows in reaching larger audience- By making more use of commination channel,
this helps the organization in increasing the number of reaches of brand for their
customers (Methods of marketing communication, 2019). In case of the supermarket,
the company can make use of right channels which will be helpful in targeting the
right audience with right message by making use of attractive promotional and
communication techniques. Such communication strategies are helpful in ensuring
successful launch of new product and services.
Marketing communication methods
Marketing communication is the use of marketing channels and roots through which a
business can focus on communicating their message to desired target market. The three
marketing communication methods which can be more effective for reaching the target
customers are listed below:
 Advertising- In case of Iceland Foods, the marketing communication approach is
used for paid promotions of goods and services through various marketing channels.
The mediums for communication for advertising are- TV commercials, radio,
magazine, flyers, hoarding, billboards and many others.
 Sales promotion- In context of Iceland Foods, this medium of marketing
communication involves sales and promotional offers where the supermarket will
offer discounts on larger quantities. the supermarket will also offer samples and
coupons to attract customers in order to reach greater number of customers.
 Interactive marketing- In context of Iceland Foods, interactive marketing or online
marketing is the approach of marketing communication through which the brand can
create awareness, promote sales and build brand reputation (Methods of marketing
communication, 2019). Such practices are helpful in engaging, leading and converting

audience through which an organization can promote a new products or services
which will support in meeting organizational objective.
Measurement of success
Some of the approaches which can be followed by Iceland Foods for measuring
business success and growth is explained below:
 Annual Recurring Revenues (ARR)- This metric can be helpful in evaluating
money which comes in every year for the life of subscription. Therefore, it is the
approach of calculating the value of yearly revenues which have been generated from
subscriptions. This can be calculated by:
Total Contract Value/ Contract Duration [years/months]
 Gross Profit Margin Ratio- Gross profit is the evaluation of gross profit as a
percentage of net sales. This is the profit which have been lest after the cost of goods
is deducted from net sales (Ways to measure profitability and business growth, 2021).
With the help of Gross profit margin, an organizational financial health can be
evaluated. In order to calculate Gross profit margin, the following formula is
followed:
Gross Profit Margin: (Net sales-COGS)/Net Sales
CONCLUSION
From the above report, it can be concluded that strategic marketing is helpful in
maximizing the business presence or visibility, increasing business reach through which
business can create competitive position within the industry and maximize business
profitability. It can be understood that marketing strategies are helpful in promoting and
adverting the products and service which are offered by an organization to consumer at larger
geographical are through which a business can strengthen their brand image and consumer
base. CBBE model is the approach of customer-based brand equity which helps in
understanding customers and implementing strategies for creating positive brand equity.
Integrated marketing communication is helpful in formulating and evaluating communication
strategies which can be helpful in sharing the promotional message of business through
which they can attract greater number of customers and ensure higher business profitability.

REFERENCES
Books and journals
Amason, A. C. and Ward, A., 2020. Strategic management: From theory to practice.
Routledge.
Gallus, J. and Frey, B. S., 2016. Awards: A strategic management perspective. Strategic
Management Journal. 37(8). pp.1699-1714.
Hubbard, G., Rice, J. and Galvin, P., 2015. Strategic management: thinking, analysis, action.
Pearson Australia.
Online
What is strategic management, 2021 [Online]. Available through
<https://blog.hubspot.com/marketing/strategic-marketing-process>
Iceland Foods, 2021 [Online]. Available through <https://about.iceland.co.uk/our-story/>
Keller’s brand equity model, 2019 [Online]. Available through
<https://www.marketing91.com/kellers-brand-equity-model/>
Keller brand equity, 2018 [Online]. Available through
<https://www.mindtools.com/pages/article/keller-brand-equity-model.htm>
What is customer-based brand equity, 2021 [Online]. Available through
<https://www.qualtrics.com/experience-management/brand/customer-based-brand-
equity/>
Integrated Marketing Communication, 2021 [Online]. Available through
<https://www.feedough.com/integrated-marketing-communication-meaning-tools-
examples/>
Importance of IMC, 2019 [Online]. Available through
<https://online.sbu.edu/news/2019/10/18/why-integrated-marketing-communications-
important>
Methods of marketing communication, 2019 [Online]. Available through
<https://bizfluent.com/how-7424569-different-methods-marketing-
communication.html>
Ways to measure profitability and business growth, 2021 [Online]. Available through
<https://quickbooks.intuit.com/global/resources/expenses/measure-your-business-
profitability/>
Image source
Keller brand equity model, 2021 [Online]. Available through
<https://www.thebrandingjournal.com/2021/02/brand-equity/keller-brand-equity-
model/>