Marketing Strategy Report: Beauty Bay, HND Business Essentials

This report provides a detailed analysis of Beauty Bay's marketing strategy. It begins with an executive summary and introduction, followed by a situational analysis including SWOT and PEST analyses. The report then delves into Beauty Bay's marketing objectives, the role of marketing within the company, and how marketing relates to the 4Ps. It explores organizational and economic growth related to marketing, competitive strategies, and customer relationships. The interrelationship of marketing with other functional units, key areas of marketing, and the elements of the marketing mix (7Ps) are thoroughly examined. The report includes comparisons with competitors like Boots, a SOSTAC marketing plan, and concludes with key findings and references. The report also provides information about the finance and IT departments, how they relate to the marketing department, and the key roles they play.

MARKETING STRATEGY 1
Marketing strategy
Institution
Student name
Date
Executive summary

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Production mechanism, economic status of the organization, competition, location, and
population of the potential customers are the main determinants of business performance at a
given trade period. These factors may favor or be antagonistic to the organization; the best
mechanism to handle this situation is to install a robust marketing strategy. This article is a report
on marketing to the management of an organization launching a new product in the market.
Table of Contents

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Marketing strategy......................................................................................................................................1
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................5
Situational analysis......................................................................................................................................5
SWOT...........................................................................................................................................................5
Strength...................................................................................................................................................5
Opportunity.............................................................................................................................................6
Weakness................................................................................................................................................6
Threat......................................................................................................................................................6
PEST analysis...............................................................................................................................................6
Political....................................................................................................................................................6
Economic.................................................................................................................................................7
Social.......................................................................................................................................................7
Technology..............................................................................................................................................7
Objectives....................................................................................................................................................7
Role of marketing in Beauty Bay..................................................................................................................7
Marketing................................................................................................................................................7
Diagrammatic representation of how marketing is related to the 4Ps................................................8
Organization growth................................................................................................................................9
Economic growth.....................................................................................................................................9
Facing competition................................................................................................................................10
Customer relationship...........................................................................................................................10
Interrelationship of marketing and other functional units........................................................................10
Key areas of marketing..........................................................................................................................11
Management or production..................................................................................................................11
Finance..................................................................................................................................................12
Information technology department.....................................................................................................12
Elements of the marketing mix (7Ps).........................................................................................................13
Price...........................................................................................................................................................14
Profit margin strategy............................................................................................................................14
Market penetration strategy.................................................................................................................14

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Premium pricing strategy......................................................................................................................15
Promotion.................................................................................................................................................15
Advertisement strategy.........................................................................................................................15
Open air strategy...................................................................................................................................15
Placement..................................................................................................................................................16
Intensive distribution.............................................................................................................................16
Strategic positioning..............................................................................................................................16
Showrooms............................................................................................................................................16
Product......................................................................................................................................................17
Practical application strategy.................................................................................................................17
Product branding strategy.....................................................................................................................17
Audience definition strategy.................................................................................................................18
People........................................................................................................................................................18
Process......................................................................................................................................................19
Comparison of Beauty Bay and Boots marketing strategy.........................................................................19
Physical evidence.......................................................................................................................................21
SOSTAC marketing plan.............................................................................................................................21
Situation................................................................................................................................................21
Objectives..............................................................................................................................................21
Strategy.................................................................................................................................................21
Tactics....................................................................................................................................................22
Actions...................................................................................................................................................22
Control...................................................................................................................................................22
Control.......................................................................................................................................................22
Conclusion.................................................................................................................................................23
Reference..................................................................................................................................................23

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Introduction
Beauty Bay was set up in 1999 in Manchester. It was established as an e-commerce
business; hence most of its products are sold online. Beauty Bay don’t produce its own products,
it, however, sales detergents, perfumes, lotions, and other skin care products of the renown
brands in the United Kingdom. After several years of operation, Beauty Bay established several
stores across the state aiming to combat the tough competition it experienced from other similar
firms using both the online and store outlet of the beauty products. Over the years it established
itself in the market, developed loyalty to the customer and became customer’s choice of the most
states community members (Kiseleva, 2017).
Situational analysis
SWOT
Strength
The stability of Beauty Bay in the market accounts on the substantial financing from the
management and shareholders. This smoothed the operations of the organization and excluded it
from the problems associated with lack of enough funds to run the activities of the organization.
The management is also stable, and the personnel’s employed and deployed various duties have
a competent level of skills in their respective responsibilities. Further, the use of online selling
mode saved the organization the cost related to the establishment of physical stores at the initial
phase of the organization establishment.

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Opportunity
Research has it that; about 80% of the United Kingdom community members use the
internet on a daily basis. This provided an ideal environment for the business and eased the rate
at which Beauty Bay created contact with potential customers (Åberg, Fälting, & Forssell, 2016).
The product dealt with by Beauty Bay has a variety of uses and are commonly used on a daily
basis by people without the exclusion of gender, age, race, and social class. Despite all these
advantages that have helped in building of the name of Beauty Bay in the state, the need for a
robust and well-managed marketing strategy can’t be underestimated.
Weakness
Beauty Bay doesn’t produce products of its own, it therefore rely on the products
produced by renowned existing firms. The organization hence lacks the power of direct change
of the characteristics of the product to suit the market demand. The only power the organization
has is changes in the price of the product.
Threat
Competitors are numerous in beauty industry. The producing firms sell their products to
various retailers and also have their own outlets hence high completion. Lack of electric of
electric power and internet outage also affects the online selling platform and lower the number
of sales made.

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PEST analysis
Political
Beauty Bay adheres to the rules and regulations of the ruling body by paying taxes,
operating with a valid job license as well as selling products that are not both harmful to the
environment and human.
Economic
In the economic environment, the organization suffers the effects of inflation,
competition and variation in exchange rate.
Social
The social environment is favorable to the organization on the ground the products
provided by the organization are necessary for daily use regardless of the age, gender and race of
the potential customers.
Technology
The trend in technology affects the organization through receiving goods of improved
quality from the suppliers who endorses the technology in production.
Objectives
Beauty Bay is targeting to increase the number of sales by 20% by the year 2025. The
management is planning to realize this increase in sales by encouraging the use of internet on
online selling as opposed to store sales reliant mode.

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Role of marketing in Beauty Bay
Marketing
Marketing refers to the establishment and maintenance of relationship between the person
or the organization providing a good or the service and the target potential customers. It is often
implemented through communication through advertisement a process collectively known as
promotion. However, there are other forms or marketing apart from promotion such as, price,
placement and product. The four marketing strategies are collectively known as the four
elements of marketing mix abbreviated as 4Ps where P stands for each element. Marketing aims
at creating awareness of existence of the product, convincing and persuading the potential buyers
to buy the product.
Diagrammatic representation of how marketing is related to the 4Ps
Marketing mix PromotionPlacement
product
Price

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Tabular representation of marketing mix
Price
Market penetration
Premium pricing strategy
placement
Intensive distribution
strategic store arrangement
Product
Practical application
Branding
Defining target market
Promotion
Advertisement
Open air strategy
Producing the best product in terms of quality or any other measure of customer
friendliness of the product and selling it at the cheapest price is not an assurance of attracting the
largest number of sales as compared to the competitors in the market. The business must have a
properly managed mechanism of having the word out to reach the customers. Organizations that
invest in marketing with the same weight as they invest in production, technology, and human
resource attracts a high volume of sales regardless of whether they sell their product at higher
prices in comparison of the prices their competitors sell the same product. This suggests that
marketing plays a vital role in the market that is worth merit. The roles played by marketing
include:
Organization growth
Every business grows because of customer’s retention and their increase in number. This
ensures the volume of the products sold is high and increasing on a daily basis on account of
meeting new customers through marketing. The high volume of sales leads to high profits hence
the growth of the organization.

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Economic growth
Marketing increases the number of customers aware of the product. In most cases, the
customers are spread and for the product to reach them need to be transported. The transportation
sector requires individuals to handle the duties, therefore, creates employment to individuals
involved in transportation. The need for a good transport route leads to improvement in the
transportation system leading to better infrastructure which leads to the growth of the economy.
Marketing also leads to competition hence improvement in the quality and reduction of the
product in question. This leads to better standards of living as people save on the expenditure and
at the same time have access to quality products (Blakeman, 2018).
Facing competition
The volume of sales recorded by an organization is dependent on the number of
individuals aware of the product and the organization's existence. The organizations recording
the highest sales are therefore the most popular. To combat the competition, the organization
uses marketing as a strategy to make it's brand popular. When the customers have adequate
knowledge of the choices in the market, their buying decision is determined by other factors
awareness excluded hence facing the competition by other firms.
Customer relationship
The relationship between the customer and the organization creates an avenue for trade to
commence between the two. The relationship is gained through communication. Communicating
with a potential customer is done through newspapers, videotapes, television, and radio.
Communication through this media is an advertisement, and it’s a promotion strategy. The

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potential customers raise their concerns through the recommended media and on gaining
confidence with the product offered, trade commences contributing to the profits of the
organization (Cacciolatti, & Lee, 2016).
Interrelationship of marketing and other functional units
Beauty Bay constitutes of several departments mandated duties and responsibilities to
ease the flow of operations and activities of the organization. Each department is fitted with
experts with high skills and experience of work and functions of the department. These
departments include the finance and production or the management in case the organization does
not produce commodities of its own.
Key areas of marketing
Marketing is broad beyond the imagination and assumptions made by many that
marketing is basically selling. Marketing involves meeting the potential customers in their
respective places and convincing them of the product and the benefit accrued to the use of the
product. In case of the use of a sale person, a physical demonstration is also recommended.
Marketing involves four main areas of practice, promotion, product, price, and placement (Chiu,
Liu, & Tu, 2016).
Promotion entails the activities including open-air launching and advertisement while
placement refers to the strategic location of placing the product to attract the attention of the
customer. Product entails the quality of the product, packaging, and branding while the price
marketing strategy involves determining the price of the product in the market for sales
promotion purposes. These four aspects are referred to as the 4Ps.

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Management or production
Marketing personnel’s creates contact with the potential customer as they implement
their duty all day of work. The marketing personnel get the customers feedback on the product
and the recommendation on the product for efficiency. Marketing department communicates this
information to the management and production department. The management then makes
changes to the product, meeting the expectations of the customers hence boosting the volume of
sales made in a day. Offering the product in the standard the consumer wants it to create
confidence of the customer to the product strengthens the customer organization relationship on
the foundation of the effectiveness of the product (Doherty, Kearns, & O’Rourke, 2015).
Marketing department records the number of orders made in a day and communicates a
recommendation to the management on increasing the volume of a stock in case the orders are
high. The department has the mandate of predicting the buying behavior and communicates it to
the management for plans of the organization. For instance, if the economy changes or seasons
are likely to affect the buying habit of the customers, the marketing department communicates
this to the management with an advice lowering the volume of the supplies to avoid losses that
could emanate from perishability of the product and the warehouse or storage charges.
Finance
The funding of the entire organization is budgeted by the finance department and the
funds allocated are then determined by this department in collaboration with the management
department. The marketing department has to communicate to the finance department on the
marketing strategy they will apply in the next trading period for funding. If the marketing
department wants to use the newspaper and salesperson which are expensive media of marketing,