7MK002 Marketing Management: 3-Year Marketing Plan for Boden in UK

This marketing management report provides a comprehensive analysis of Boden's 3-year marketing plan in the United Kingdom. It begins with an executive summary and company overview, highlighting Boden's presence in the UK, USA, Germany, Australia and France, with a focus on targeting new markets and product lines like muscle fit clothing and active wear. The report includes an environmental appraisal analysis encompassing organizational, micro, and macro environments, along with a SWOT analysis. It delves into market segmentation, targeting strategies, and positioning, specifically targeting men with big muscles and sporty individuals in the UK. The report outlines marketing objectives, the marketing mix (product, price, place, promotion), and a detailed marketing budget. Furthermore, it features a market forecast demonstrating year-on-year sales growth and concludes with control measures and a conclusion. The report analyzes the social and technological developments impacting Boden's business and explores the impact of political and economic factors like Brexit on their strategies.

Running head: MARKETING MANAGEMENT
Marketing Management
Name of the Student:
Name of the University:
Author’s Note:

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1. Executive Summary
Marketing management is the application, review and tracking process of the marketing
resources and activities of an organization. The study has analyzed 3 year marketing plan for
Boden in United Kingdom. Boden is the most popular clothing company in United Kingdom
offerings luxurious cloths to the customers. The organization is going to target new market for
developing its business. Moreover, the organization is going to offer muscle fit cloths for with
big muscles and active wear for both men and women. The study has discussed the environment
appraisal analysis through organizational environment, micro environment, macro environment
and SWOT of the organization. The social development and technological development will be
helpful for the organization in developing its business further. The study has analyzed the
segmentation, targeting and positioning of the organization. The organization will target the men
with big muscles and sporty men and women of UK for offering its Boden Fit and Boden Sports
product. However, the organization will set premium pricing for adding premium quality and
unique design to the cloths. The market forecast of the organization has demonstrated growth of
sales on year on year basis.

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Table of Contents
1. Executive Summary.....................................................................................................................1
2. Company Overview.....................................................................................................................5
3. Environmental Appraisal Analysis..............................................................................................6
3.1 Organisational Environment..................................................................................................6
3.1.1 Products..........................................................................................................................6
3.1.2 Marketing........................................................................................................................6
3.1.3 Finance............................................................................................................................7
3.1.4 Location..........................................................................................................................8
3.2 Micro/Market Environment...................................................................................................9
3.2.1 Customers.......................................................................................................................9
3.2.2 Competition....................................................................................................................9
3.2.3 Suppliers.........................................................................................................................9
3.2.4 Channels.......................................................................................................................10
3.3 Macro Environment (PESTLE)...........................................................................................10
3.3.1 Political.........................................................................................................................10
3.3.2 Economic......................................................................................................................11
3.3.3 Social............................................................................................................................12
3.3.4 Technological...............................................................................................................12
3.3.5 Legal.............................................................................................................................13

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3.3.6 Environmental...............................................................................................................13
3.4 SWOT Analysis...................................................................................................................13
4. Marketing Strategy....................................................................................................................15
4.1 Assumptions........................................................................................................................15
4.2 Market Segmentation...........................................................................................................16
4.2.1 Geographic Segmentation.............................................................................................16
4.2.2 Demographic Segmentation..........................................................................................16
4.2.3 Psychographic Segmentation........................................................................................17
4.2.4 Behavioural Segmentation............................................................................................17
4.3 Target Market......................................................................................................................18
4.3.1 Target Market 1............................................................................................................18
4.3.2 Target Market 2............................................................................................................21
5. Marketing Objectives.................................................................................................................24
6. Marketing Mix...........................................................................................................................25
6.1 Product.................................................................................................................................25
6.2 Price.....................................................................................................................................25
6.3 Place.....................................................................................................................................26
6.4 Promotion............................................................................................................................27
7. Marketing Budget......................................................................................................................28
8. Market Forecast.........................................................................................................................30

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9. Controls......................................................................................................................................33
10. Conclusion...............................................................................................................................35
References......................................................................................................................................36

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2. Company Overview
Boden is a popular British clothing retail selling primarily by mail order, catalogue and
online medium. The company was founded in the year 1991 as mail order business. It is mainly
based on United Kingdom. However, the organization also operates in USA, Germany,
Australian and France. The value of the company has been estimated at £300 million
(Boden.co.uk 2018). Boden offers uniquely designed patterned, bright and casual clothing to the
customers. The collection of the company is made up for men, women and children. Out of
United Kingdom, Boden has grabbed largest market in USA. Moreover, USA sales percentage of
Boden has been increased by 54% and the organization has grabbed 88% share in USA market.
On the other hand, in UK market, Boden has grabbed almost 62.40% market share (Ashley
Armstrong 2018).
Figure 1: Marker Share of Boden in UK
(Source: Jorge Moreno and Carrasco 2016)

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3. Environmental Appraisal Analysis
3.1 Organisational Environment
3.1.1 Products
Boden designs uniquely designed bright and patterned cloths as well as casual basics. The
organization is mainly popular for offering summary cotton shirts and flowery dresses. The
collection of the organization is made up for men, women and children. Moreover, the
organization initially launched menswear and then introduced womenswear in 1992. The range
of Mini Boden was actually introduced for children in 1996. Furthermore, the organization
launched baby range and teen range “Johnnie B” in the year 2007 and 2010 accordingly. In the
year 2011, during summer season, Boden launched maternity range as well as petite range for
Boden womensawear (Boden.co.uk 2018). Later, the organization introduced limited edition
online sections including Mini Boden “Party Dress” range and accessories and dresses for
weddings.
3.1.2 Marketing
Boden always uses fictional customer characters for arousing interests and curiosity
among different customers. The organizational mainly uses mail order and catalogue marketing
strategies for offering its products to the customers. Moreover, it has become capable of
increasing its revenue through revolutionized the email in marketing context. The organization
has both online and offline medium to offer its products to the customers. The website of the
organization has been designed is such a manner that it gives some personalized feelings to the
customers (Carmignani and Zammori 2015). The organization keeps record of all previously
viewed items and offers custom-made discount codes for repeated customer purchase. The next

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feature of Boden is digital catalogue, which is to be added in its online store. It is a more
editorial approach for premiering new seasonal items. One of the most attracting marketing
strategies of Boden is its delivery commitment within 1-3 days (Das 2015).
Figure 2: Traffic Sources of Boden
(Source: Das 2015)
3.1.3 Finance
The fashion retail Boden has recorded an uptick sales and profit in UK fashion retain
industry. The recorded sales and profit of the organization are actually driven by strong sales of
womenswear and increasing customer volume. Moreover, the financial report of Boden has
demonstrated rising historical recorded sales revenue within 2006 to 2016. From 2012 to 2016,
the sales revenue of the organization has increased through £265 in 2012, £283 in 2013-2015 and
£308 in 2016 (Hellier 2015).

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Sales Revenue
240
250
260
270
280
290
300
310
320
2012 Linear (2012) 2013-2015 2016
Figure 3: Sales Revenue of Boden
(Source: Huq, Chowdhury and Klassen 2016)
Boden has demonstrated itself as being positioned at “premium and mass market” and
reported a rising pre-tax profit by 9.6% to £26.2m in 2016 (Singh 2017). Furthermore, two third
of revenues of the organization have been generated in U.S market.
3.1.4 Location
Boden is mostly based on United Kingdom, but it also operates in several other overseas
markets. The organization has distributed control system both in United Kingdom and United
State. The fashion retail is also planning to open some more numbers of stores and outlets in UK
and U.S markets. Apart from that, the organization also operates in Germany, Australia, France
and Austria. Furthermore, more than 50 countries buy the brand through the websites of these
countries (Hellier 2015). However, the organization will choose UK market for targeting its new
customer sections.

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3.2 Micro/Market Environment
3.2.1 Customers
Boden has positioned itself for upmarket, where it offers high quality products to the
customers, who are quite rich. The organization has matured customer set, where the business
processes are continually improved to meet the customized demands of the customers. Majority
of the sales revenues of the organization come from sales of womenswear. Moreover, the women
aged from 30-39 with high household income are the prime target customers of the organization.
Hence, the organization is now set to target the male customers with new types of clothing. The
customers of Boden are mainly the individuals, who seek quality lifestyles. It has been estimated
in 2018 that the organization has more than 1.8 million active online customers (Akalin, Turhan
and Sahin 2016).
3.2.2 Competition
A major volume of Boden’s sales comes from online selling like mail order. The
organization also faces less barriers of entry in such types of selling. However, Boden is facing
tough competitive pressure from the USA brands like Joules, Brora and Land’s End.
Furthermore, in UK market, the organization face tough competition from the fashion retail like
Aquascutum, Ann Summers and many more (Chang et al. 2015). Moreover, the competitors are
creating high level of price war among each other, which is creating huge competitive pressure
for Borden.
3.2.3 Suppliers
Boden has scope of global sourcing from more than 60 countries. It uses only responsible
and ethical suppliers to have safe and fair working condition for the employees under Ethical

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Trading Initiative (ETI) (Erdil 2015). On the other hand, the independent auditors of the
organization conduct ethical audit on suppliers for helping them in adhering with strict code of
conduct. Strong supplier relationship management helps the organization to manage healthy
relationship with the unique suppliers. Furthermore, Boden holds workshops for the suppliers for
discussing their challenges, issues and best practices for helping them in reducing risks and
creating new values.
3.2.4 Channels
Boden uses both online and offline medium for offering products to the customers.
However, the organization sells mainly on e-commerce and some retail shops in UK for
capturing different types of customers. Furthermore, the organization uses recognized customer
intimacy for differentiating themselves in competition. Such channels will also help the
organization to keep constant contact with the new target customers. However, it does not use
CRM system for managing customers. In order to assess the new, lapsing and dormant product
categories, the organization uses its own buying history database. The organization is sending
emails to 90 identified grouping referrals for their 15 different creative templates for increasing
customer referrals (Mitchell and Chaudhury 2014).
3.3 Macro Environment (PESTLE)
3.3.1 Political
The current political instability of United Kingdom is likely to hamper its economic
growth. The economic growth of UK held up quite better than expected in the 2nd quarter of
2016. However, the growth is expected to slow in the 1st quarter of 2018. Hence, the return on
investment of Boden may get hampered in such instable political condition. On the other hand,

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BBC News (2018) opined that the impact of Brexit has caused loss of 1.3% UK GDP and
reduced the per capita income of the people. However, the well defined Government policies to
protect the citizen rights have somewhat protected the life leading status of the people. Hence,
Boden can still get some hope of profit through adequate sales. Furthermore, the unemployment
benefits provided by UK government to the employed people can enhance their purchasing
power. Hence, such people are willing to purchase required luxurious cloths even in their
employed condition.
3.3.2 Economic
The economic condition of United Kingdom is expected to slow in the 1st half of 2018.
Furthermore, the uncertainty surrounding Brexit has reduced the high street spending and
investment. In such weak economic condition, Boden is expecting low profit margin in UK
market for their further business development. However, weak economic has resulted in high
rate of unemployment in UK. In such job market having high unemployment, Boden can easily
hire talented employees with even low salary packages. Hence, it can ultimately reduce the cost
of operation of the organization by contributing in profit level.
Figure 4: Forecast of GDP of UK
(Source: Inman 2018)
Figure 5: Unemployment rate in UK
(Source: Partington 2018)