Marketing Strategy and Application: Arnold Clark Analysis and Plan

This report provides a comprehensive analysis of Arnold Clark's marketing strategy. It begins with an introduction and an overview of the company, positioning it within the UK automotive market. A detailed situational analysis is conducted using the PESTLE framework, examining political, economic, social, technological, legal, and environmental factors impacting the business. The report then delves into the marketing mix, comparing Arnold Clark's strategies with a key competitor, Pendragon Plc, across product, price, place, promotion, people, process, and physical evidence. Specific strategies and activities for each element of the marketing mix are analyzed, including the company's competitive pricing, location, and promotional efforts. The report concludes with a marketing plan, outlining goals and objectives and recommending adjustments to the marketing mix to enhance Arnold Clark's competitive advantage. The analysis highlights the importance of adapting to changing customer needs, technological advancements, and environmental concerns within the automotive industry.

Marketing strategy and application
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Contents
Introduction......................................................................................................................................3
Overview of company..................................................................................................................3
Situation Analysis............................................................................................................................4
PESTLE Analysis........................................................................................................................4
Marketing mix.................................................................................................................................7
Product strategy...........................................................................................................................7
Price strategy...............................................................................................................................7
Place strategy...............................................................................................................................8
Promotion strategy.......................................................................................................................8
People strategy.............................................................................................................................9
Process strategy...........................................................................................................................9
Physical strategy........................................................................................................................10
Marketing plan...............................................................................................................................10
Marketing gaols and objectives.................................................................................................10
Marketing mix recommended....................................................................................................11
Product strategy.....................................................................................................................12
Price strategy.........................................................................................................................12
Place strategy.........................................................................................................................12
Promotion strategy.................................................................................................................13

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People strategy.......................................................................................................................13
Process strategy.....................................................................................................................13
Physical evidence...................................................................................................................14
Conclusion.....................................................................................................................................15
References......................................................................................................................................16

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Introduction
In the competitive environment, every company is required to make a plan that contributes in
achieving the goals as well as objectives. The company form the marketing plan through which
they can attain the goals as well as objectives. This paper is the continuation of the assessment
one in which the new marketing manager for Arnold Clark has been appointed to conduct the
research related to competition present in the market. The purpose of briefing paper is to form a
briefing paper of the situational analysis for the Arnold Clark that can provide the support to the
goals and objectives of company while forming the marketing plan. This briefing will consist of
comparative research applicable to 7P’s of the competitor along with company so that company
can form effective goals and objectives. Considering, goals and objectives of company marketing
plan for Arnold Clark has been prepared with the help of 7ps elements. The activities and
strategy for each of the elements has been suggested to the company so that they can easily meet
the objectives that supports them to compete with competitors available in market.
Overview of company
Arnold Clark automobiles are considered as one of the leading automobiles dealer in Scotland a
considered as fourth largest in United Kingdom market. The business formed in year 1954 by Sir
Arnold Clark with this they have 200 dealerships across UK market. Arnold Clark Company has
150 service centres, 40 accident repair centers and 13 parts centres (Arnold Clark, 2019). The
business is award-winning car dealer providing outstanding value with the excellent customer
service. In UK market, company is dealing with diverse competitors that include Pendragon plc,
Lookers plc, Jardine Motors Group plc, Dixon Motors plc, and many others.

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Situation Analysis
Situational analysis is refers to as the gathering of approaches that supervisors use to evaluate an
businesses internal as well as the external environment with the motive to evaluate the
organisational capabilities, customers as well as the business environment (Wilson and Gilligan,
2012). Arnold Clark situational analysis is done with the assistance of the PESTLE analysis.
PESTLE Analysis
PESTLE analysis is a tool that is majorly used to evaluate as well as to observer macro-
environmental aspects that might lead to profound influence performance of company
(Rothaermel, 2015). Arnold Clark is PESTLE analysis is discussed below: -
Political factors: - Political factors comprise fluctuations in rules and guidelines that can
influence the working of business. It is vital for business to be aware about changes that are
taking in rules as well as regulations. Arnold Clark adheres to each instruction that is provided
by the government that helps them to perform the business activities smoothly. The company
ensures that they maintain the decided the fuel efficiency for car that remain high emphasized,
emission of vehicle, safety as well as the standard issues that are required to be considered as
major factor (Dawson, 2014) . However, this has been witnessed that company has risk in the
market, as there is possibility that policies related to government might change.
Economic factors: - The most considered factor that can influence the entire automobile
industry of UK. GDP of UK is registered as 2825.21 billion US dollars in year 2018 that
represents 4.56% of total biosphere economy. The GDP of 2018 is higher than 2017 that means
that there is rise in the purchasing power of the clients current in market (Trading economics,
2019). This improvement in purchasing power of clients helps them to spend high amount on the

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things that can offer comfort to them. In the UK, it is expected that GDP rates are going to
improve which leads to the opportunity for Arnold Clark and its competitors because there is
opportunity that people will purchase more products.
Social factors: - The business environment remains dynamic because the change in needs and
demands of the clients has been witnessed in UK market for automobile industry. People majorly
prefer car for travelling, not even at the long distance but also for office that leads to increase in
demand for used as well as new cars. Along with this, these customers look for the car that can
offer better mileage, good speed, after sale services, features, design and many others (Ho,
2014). Arnold Clark Company and its other competitors are meeting emerging wants of clients in
market. However, this has been found that some people who do not prefer such sort of vehicles
because they believe that this can populate their environment due to emission of CO2 and noise.
The emission leads to the disease problems and road accidents that might leads to danger of life.
This aspect leads to threat for firm who are performing the business in this industry because the
demand for the product will decline.
Technological factors: - The up-gradation or changes in technology are considered as one of the
major factor that can affect operations of firm. In UK market, car manufactures are starting to
begin with the Alternative Energy Vehicles that are majorly using electricity only, fuel cell,
hydrogen, hybrid, and many others (Bagozzi, Rosa, Celly and Coronel, 2018). Apart from this
expensiveness’, it will be resolution to efficiency of energy as well as reducing the pollution but
at the time we were not accessed to form a purely cars. Moreover, this has been found that there
are different technologies that are available in the market and are used by the companies so that
they can provide the technology upgraded products to their competitors in the market (Hollensen,
2015). The up-gradation in technology might affect working of Arnold Clark because they have

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to adapt the same to encounter growing needs of customers. These needs get affected because
companies are not able to provide the products with the updated technology.
Legal factors: - The legal factors that can influence working of company include different
regulations and legal obligations. In UK, the firm should comply with all laws as well as
regulations with its operations that include gas emission laws, safety and standard issues. Thus,
this Arnold Clark and its competitors need to accomplish its entire legal obligations. The legal
responsibilities are maintained by company effectively, through that they can ensure that their
firm processes are running smooth in the market that helps them to remain out of any kind of
conflict that can occur.
Environmental factors: - The environment of the country is considered as one of vital
component that is required to maintain by the company. The issues related to the environment
might occur due to the working of the business. Environmental population is considered as one
of the challenging issue in the automobile industry due to which the car manufactures should pay
attention on these issues. Considering the rise in these sorts of issues, the company take the
required steps through which they can manage the environment include transforming their
technology into alternative energy vehicle as well as to reduce the emissions. Arnold Clark is
effectively managing the environmental factors.
Marketing mix
Marketing mix is mixture of entire factor that can be controlled by organisation to influence the
consumer to purchase its products (Frynas and Mellahi, 2015). Arnold Clark marketing mix is
discussed with the one of the major competitors that is Pendragon Plc.

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Product strategy
Arnold Clark Company offers the new and used car search with the constant update to
accomplish the wants of clients. This offers customers a variety of options so that they can find
the best suitable product of different brands. Moreover, the company offer the genuine customer
details and deal for the used car that is observing to sell their product. The quality of product
adds importance to the products and makes the customer believe to purchase the product from
Arnold Clark (Grant, 2016). On the other hand, Pendragon Plc, competitor of company product
strategy says that they deals in five broad categories and each of these offers the diverse product
lines. The company provides diverse variety and permits for the best suits. The products of the
company ate perceived to be higher quality comparing it with the competitors. Along with this,
Pendragon Plc sells the products that are well known with the outdated design that is also applied
majorly for use of clients.
Price strategy
The pricing strategy that is applied by Arnold Clark Company in the market is competitive
pricing strategy in which firm compare prices with competitors and then set the price for the
products. In addition to this, the company ensures that they offer different attractive prices by
offering discount that helps the customer to get a great deal and lead to customer satisfaction. on
the other hand, talking about Pendragon plc, they have similar competitive based pricing strategy
(Kotler, 2015). However, they keeps the high prices of the products after comparing it with the
competitors prices because they offer improved and advance features and high price makes.
Along with this, the company has break for the prices charged by them that include separate
prices for the accessories as well as for the products. This strategy of the company is affecting
and makes them leading company in market as they effectively use their profit earned by them.

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Place strategy
The location for the Arnold Clark company remains always near to the home which becomes
easy accessible for the customers and allows them to avail services in easy manner. This is
evident with the rise in the service centers of company that provide the easy accessibility as they
can visit easily (Kumar, Rahman, Kazmi and Goyal, 2012). On other side, its competitor
Pendragon Plc has effective two marketing channels in which they directly sell their products
through online website and either through wholesalers. The company has 500 retailers across the
country which makes the quite stronger than the other company because the changes of making
high sales improves.
Promotion strategy
The promotion is refers to as creating awareness about product in market that is done by the
company with the help of the online advertisement. The advertisement of the product is done
with assistance of social media (Hollensen, 2015). Moreover, the company offers the publicity
discount that leads to the reduction in the actual sale price of the products. This method of
promoting the products grabs the attention of customers. The customers of company are always
well taken of-senior citizen as well as large family that are valued by company. Similar to this,
Pendragon Company has its multiple media channels through which they can promote its
products in the market. Social media platforms are used by business that includes You Tube,
Facebook, and Twitter (Luca and Suggs, 2010). They also have different sort of trade exhibitions
as well as events through which the promotion can be done.

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People strategy
The people strategy of the Arnold Clark shows that they have skilled as well as experienced
employees who can provide the proper guidance for the customer queries. Moreover, the
personnel of company are so supportive, which enhances the experience of the customers. Thus,
this leads to rise in the quality service of the company with effective raw materials (Armstrong,
Adam, Denize and Kotler, 2014). Similar to this, rivals of company believe that they have
personnel who are trained with selling skills as well as reflect how their preference is valuable.
The coordination among the team is good which reduce the issues not only with the customers
but also with the suppliers for obtaining the raw material.
Process strategy
The process of the company include easily for the new as well as for the used car. The major
process of include the details for the new car which include all its features, prices and available
branches for which the enquiry can be quoted by the company (Chernev, 2018). Moreover, the
detail related to the finance options is also available which makes it simpler for the company to
perform the process. Similarly, this applies to the used car in which the deal can be done with the
finance option. The owner details will be available to customers who are willing to purchase it.
On the other hand, Pendragon makes the products available at the retail outlets that can notify the
fact that inventory level are low. Along with this, the major process of the company includes the
methods through which they can understand the opportunities to attain requirements of
customers.

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Physical strategy
The physical evidence of company is clear with its available website from where the customers
can get the details (Lovelock and Patterson, 2015). Along with this, Arnold clark has 150 service
centres, 40 accident repair centers and 13 parts centres which shows that they have existence. On
the other hand, Pendragon Company has dealership due to which they have the stores where the
customers can visit which shows their physical presence. In addition, they have their own
website that guides the clients exist in market.
Marketing plan
The marketing plan of business is prepared which include the required goals and objectives that
are formed considering the competitors of business who are achieving the success in market
(Chitty, D'Alessandro and Gray, 2019) .
Marketing gaols and objectives
Considering the overall findings this shows that the company need to focus on their goals and
objectives that can lead to the success. Arnold Clark competitor’s analysis made the company to
form the new gaols that leads to the success. These are given below -
Goal- Goal of company is to attain high profit
 The objective of company is to get 10% rise in the sales of company in next one year by
diversifying the product category for the wide range of targeted customers present in the
market.
 High profit can be attained by company when they will be able to improve the customer
experience.

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 Training to the employees should be provided which will lead to rise in their productivity
that leads to rise in profit of company.
Goal- Goal of company is to generate awareness among customers
 The objective of the business is to promote products in market by using personalization
and automation techniques.
 The objective of company is to listen to audience with the use of integrated social media.
 Physical evidence appearance can be improved
Marketing mix recommended
Considering the above goals and objectives that has been prepared after analysis, in order to meet
these gaols it is vital to conduct marketing mix analysis that helps the company to attain the
goals (Chitty, D'Alessandro and Gray, 2019). Arnold Clark marketing mix strategies that they
should follow are discussed below as this will help them to meet goals.
(Source: Kerin and Hartley, 2015)

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Product strategy
It is recommended to company to improve its product strategy in which they should add wide
range of variety for the customers. The company should also present the different types of
accessories that can be purchased by the customers for their car. This includes music system, car
cover, seat covers, and many others (Kerr and Patti, 2015). It is suggested to the company to
consider the diverse wants of customers available in market. In addition, they should ensure that
they provide the effective after sale service in which they contact the customer during the
customer journey for resolving their issues. This strategy of the company not only generates high
profit, as maximum number of customer will purchase products.
Price strategy
The price of the product is considered as one of the major element due to which company should
rethink for the price kept by them for the product. Arnold Clark should apply the price skimming
strategy in which they set relatively high price for the product at the first time and can decline
later on with the time. This can be said that they can offer the product at high price during peak
season and low price at lean season (Luca and Suggs, 2010). Moreover, while setting the prices
for the used car they should evaluate the price not only with the register number but also with
maintenance and features that are equipped with the product.
Place strategy
Arnold Clark Company should increase the number of service centers as well as location at the
different prime areas from where the customer can directly purchase the products. Moreover, at
the location Arnold employees should be welcoming which enhance the experience of the
customers. At the place, proper resolution should be offered to the customers without any
loopholes (Armstrong, Kotler, Harker, and Brennan, 2018).

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Promotion strategy
It is suggested to Arnold Clark to make use of personalization and automation techniques that
helps them to attract most of the customers towards the company. In addition, the tool of
integrated social media should be used by the company that comprise of banner advertisement,
Search Engine Optimization, and creating its blog (Luca and Suggs, 2010). These different tools
will gain the attention of consumers in market. This strategy of the firm not only generates high
profit but also leads to awareness in the market.
People strategy
The personnel of the company need to be effective enough at their work because they are the one
who regularly deals with the customers. The employees of the company should get training for
managing operations also for soft skills that contribute effectively in improving their
communication with the customers who will visit the place (Khan, Khan and Khan, 2011). The
company should work to motivate the employees that can be done with the help of incentives,
bonus, and rewards on meeting the targets. The hiring of the employees should be done after
checking their professional skills and that they fit to the organisation culture or not.
Process strategy
It is recommended to firm to bring improvement in process to handle the different process to
enhance the efficiency with the timely deliver to clients. The cost savings will lead to the lower
prices for its products that should be done by the company so that they can get high profit
(Baker, 2014). In addition, Arnold Clark should search for companies with whom they can
collaborate with them which will lead to rise in profit.

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Physical evidence
The company should make their website user-friendly and permit the customer to view the
products in the high quality pictures that has been taken from difference viewpoints. It is
suggested to the company to collect the feedback from the customers who visit the store, as this
will help them to bring the changes (Chernev, 2018). In addition to this, the company should
offer the shopper-friendly environment with the improved ambience that can contribute
effectively in encouraging its customers to buy its goods.

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Conclusion
In the end, it can be said that Arnold Clark deals with different competitors in UK market. The
evaluation of market environment is essential for the company that is done with support of
PESTLE analysis. It shows that company has opportunity in the market in terms of social needs,
political support, growth in buying power of country and many others. Moreover, Arnold
company marketing strategy has been reviewed with the help of marketing mix strategy. The
analysis of strategy also includes leading competitors Pendragon plc has been done which shows
the areas in which the company is lacking so that they can improve the same in order to meet
their desire gaols. This analysis helps Arnold Clark in setting goals and objectives of the
company. These goals and objectives can be attained by the company with support of effective
marketing mix approaches that will lead to the improvement in the process of the company also
contribute in achieving the objectives.

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