MS4LC41O - Marketing Plan: Lidl's Sugar-Free Bakery Product Launch

This report presents a comprehensive marketing plan for Lidl, focusing on the launch of sugar-free bakery products. It includes a detailed analysis of the current market environment using tools such as the marketing mix (product, price, place, promotion) and the BCG matrix to identify key product categories (stars, cash cows, question marks, and dogs). The report further explores marketing development strategies using the Ansoff matrix, recommending a product development approach to increase market share. It emphasizes the importance of customer-driven strategies through effective segmentation, targeting, and positioning to ensure the successful launch and market penetration of Lidl's new sugar-free bakery line, ultimately aiming to increase sales and revenue.

Principle of Marketing
individual report

Executive summary:
The aim of the report was to conduct the Marco and micro environmental analysis on
Lidl so that best strategies might be developed in the future by the firm through closely analysing
various factors. Moreover, the study had identified the various issues along with providing
certain recommendations for the future.

TABLE OF CONTENTS
.........................................................................................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Marketing mix.............................................................................................................................3
Marketing analysis BCG.............................................................................................................5
Marketing developing strategies.................................................................................................6
Customer driven strategy............................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The marketing is being referred to as promotion of goods and services within the market
so that company becomes successful. In this highly competitive market, it is very important for
the companies that they effectively market the goods and services such that the sales of company
increase. The current report is based on Lidl which is a German discount retail chain founded in
the year 1932 and is having almost 11000 stores across Europe and US. The current study will
outline the marketing plan for the company in accordance to the issues being faced by the
company.
With the previous assessment it was identified that Lidl is facing different issues and
because of this the performance is negatively being affected. The different issues faced by Lidl
involves risk within the supply chain, changes with demand of consumer, policies and procedure,
high competition and many other different issues (Taylor, 2020). but it is necessary for Lidl to
reduce these issues and try to work on solving these issues. hence, for this company is coming up
with the marketing plan for launching the sugar free bakery products. This idea for the
marketing plan is being selected because there is the issue of changing demand of consumer and
in accordance to latest trend there is high focus on health consciousness. Hence, for this reason
the product sugar free bakery products will be marketed.
Objectives of marketing plan
 To effectively launch the new product sugar free bakery items by May 2022.
 To increase the sales of Sugar free bakery products by 17 % by June 2022.
 To increase the investment by 12 % in marketing of sugar free bakery products.
MAIN BODY
Marketing mix
The marketing mix is being referred to as the different actions which are used by the
company in order to promote the working of the new product. Moreover, through using this mix
in right and correct manner the firm would be able to understand the product or services that
might be offered to the customer (Fedoryshyna and et.al., 2021). Also, this mix would help the
firm to use the strengths and avoid unnecessary cost for the business. Thus, the company is able
to face the future risk in more positive manner so that better results might be achieved in the end.
Furthermore, each element in the marketing mix is very crucial as described as follows:

Product: It describes the product that might be sold by the firm during the specific
period of time. Also, at time of developing the product the company thinks about its life cycle
and plans for various challenges that might arise during stages of it (Akbar, French and Lawson,
2020). Also, when the product once reached the final stage than again the company need to build
the demand for the same.
Price: This is the stage where price that need to be paid by customer need to be
determined so that the people are aware about new product of the company
Place: This is element where the place of the distribution need to be identified in form of
physical store or online method so that people are able to purchase the new product that is
developed by the firm in most convenient method
Promotion: Under this element the firm decides about the way through which the new
product would be sold in the market. Also, there are various ways through which this might be
made possible such as through advertising on print and social media, use of the various
marketing agents, whole sellers and much more (Laconia and Murphy, 2019). Furthermore,
through using this technique more brand awareness might be created and more people might be
attracted for the business.
Element Description
Product The Lidl product for the marketing plan is the
sugar free bakery products because currently
these are very trending and is also being liked
by the consumer currently. Furthermore, such
type of products are very popular to be
consumed by large number of people.
Price The pricing is being defined as the amount of
money charged by company for the services
being provided. In the present case of
marketing of sugar free bakery by the Lidl, the
use of penetration pricing will be undertaken.
This is because of the reason that it focuses on
setting the prices at low and then increasing it
slightly (Dong, 2021).

Place The place refers to as the way through which
product and services will be provided to the
consumer. Hence, in case of sugar free
product by Lidl the use of both online and
offline modes will be undertaken for covering
large number of consumers.
Promotion With respect to the promotion of the new
product, Lidl will be focusing on the use of
combination of social media marketing and
the traditional methods like sales promotion,
print media advertising and others.
Marketing analysis BCG
To conduct marketing analysis for Lidl firm it would be used through applying the BCG
matrix that helps in knowing which products are bestselling in the market and which are not so
accordingly the strategies might be developed for the future. Moreover, for the Lidl firm these
are applied as follows:

Stars: There are products that have the high growth and high share business thus
allowing the firm to have the good position in the market. Also, in the Lidl firm the bestselling
products are the iced coffee, nuts selection etc. that falls into this category and thus have the
power to create more demand in the market. Also, the company manufactures more units of these
products and maintain the daily stock as these are the products that helps in generating more
revenues for the firm (Wang, 2020). Furthermore, through using these products the company
might be able to attract more number of the customers for the business and maintain the brand
loyalty for longer time frame
Cash cows: These consist of the products that have low growth but high share business
that means the growth in new markets of these products might be limited by major revenues are
generated by these products to the company. For example, in Lidl UK frozen spicy bean
burgers, bares readymade pasta sauces are some of the examples of the product that falls into this
category. Thus, company does require minimum level of investment top hold the market share of
such products in the target market. Also, they help the company to have enough amount of
revenues that might be used in carrying out other useful activities within the firm
Question marks: These consist of products that have the low share business in high
growth market. Also, they require lots of funds to hold the market share of the company.
Furthermore, these products operate in the market where there are lot of growth opportunities
that are available but due to having low share in the business these are difficult to be sold in the
market unlike other goods (Baha’is and Volchok, 2021). For instance: Frozen fish fingers, frozen
pizzas, deluxe sticky toffee pudding etc. are some of the products that consist major part of this
category and cost the funds of the company.
Dogs: It is category that defines the products that have low growth and low share
business. Also, these products might generate enough cash to maintain themselves but these
might not be proved as large sources of cash. Furthermore, the company need to understand that
these products are neither generating the revenue for the business or not making any sense of
developing the competitive advantage of the firm (How to use the BCG Matrix model., 2022).
Hence it is better that company identifies such products well in advance so that unnecessary
wastage of the resources might be stooped and the firm is able to achieve the desired short and
long term goals within the desired time-frame. For example: Fruit malt loaf, Newgate baked
beans, crown field muesli etc. are some of the examples of products in the Lidl firm that should

be considered to be stooped by the firm so that it might be invest in other best resources.
Marketing developing strategies
To increase the market, share of the Lidl in the best possible manner this might be linked
through applying the ansoff matrix that is tool that is used to analyse and plan various strategies
for the growth for the future purposes. Moreover, this matrix consists of the four strategies form
which any firm might choose and are described as follows:
Market penetration: This is strategy that focuses on increasing the sales of already
existing product of the company in the existing market. Also, this strategy is effective for those
firms that wants to decrease the price of its products to attract new customers in market.
Furthermore, this strategy might be adopted successfully through the increasing the promotion
and distribution efforts of the company so that more people are aware of the brand and its
products that are available in the market. Also, this strategy might also be brought into the
practice through acquiring the competitor in the same marketplace that would allow the firm to
sell the products in the most effective manner.
Product development: Under this strategy the firm introduce new products in existing
market and this is done through properly conducting the market research so that best of the

product might be launched in the market (Adefulu and et.al., 2020). Furthermore, this type of
strategy is most successful in times when the firm wants to cover the large market share in the
host country and develops the competitive advantage against some of the top competitors. Also,
this might be done through acquiring one of the competitor’s product and merging resource to
create the new one so that more efficiently the demands of the market might be met.
Furthermore, it can be done through forming the strategic partnerships so that access to various
partner distribution channels or brand might be gained.
Market development: This is type of strategy that allows the firm to enter new market
with its old existing products. Also, here the company expands to the new geographic regions,
increase the customer segments and much more. Furthermore, this strategy is successful when
the company is having best of technology at the existing workplace that might be used in the new
market. Furthermore, it might also be used when company need to cater completely new market
segment in newer market or wants to enter into the new area of the domestic market.
Diversification: It is strategy where the firm enters new market with new product and
hence it is most riskier strategy as product development is required (Palma tier and Sridhar,
2020.). Also, the using this type of strategy the firm might be able to earn higher revenues if
large number of people like the product and increase the sales of the business.
Thus from the above matrix that is suggested to be opted by the Lidl is the product
development strategy that would allow them to conquer new markets and increase the revenue
of the business through brining about the change in the list of the products. However, the
company should appoint the right researchers to make this strategy a success.
Customer driven strategy
To make chosen strategy success it is very important that proper segmentation, targeting
and positioning is done so that Lidl firm is able to achieve certain goals and objectives in the
right and timely manner. Also, these strategies would be successful when the company need to
expand its operations on large scale and generate more revenues for the business. Furthermore,
the best of all these combination is being described as below in detail:
Market segmentation: Under this stage company need to segment the market that might
be done on various basis such as demographics, psychographics, lifestyle, belief and values etc.
and thus accordingly the company would be able to cover the large market area with new sugar
free bakery products. Also, here company would segment the market through focusing on the

health conscious people that are concern with the growing number of diseases that are caused
with adopting bad lifestyle (Chaya, 2019). Furthermore, Lidl firm would sell the products in all
parts of UK and would increase sales of the business through its online website in various parts
of the world. Also, Lidl company would focus on selling premium quality bakery products that
would build aim in brand loyalty and trust among the public.
Targeting: It is the method where company identifies the target market through taking
into considerations various criteria such as age group, gender differences, income group and
much more (The segmentation, targeting, positioning (STP) marketing model. 2022). Also, for
the current business project the company would target middle to higher income class groups who
are ready to pay little higher prices for various goods and services. Furthermore, sugar free
bakery products would be mostly for age group of 15-35 that are mostly interested in consuming
variety of bakery goods for various festive occasions. Also, the targeting would be done through
undertaking complete market analysis where the preference of the people under this age group
would be identified closely so that accordingly the products might be sold in the target market.
Also, the profits would be anticipated closely so that correct estimation might be developed.
Positioning: This is the method where the new product would be positioned in the
market through using various strategies (Jaworski and Lurie, 2019). Thus, for current product,
positioning in the market would be done through using extensive marketing strategies that would
allow the firm to know about various people that are interested in buying the goods of the
company. Furthermore, the positioning would be done through designing best packaging of
products that would allow the customers to know about that is sugar free products through using
the appropriate label outside the package.
Differentiation: It would be labelled as premium quality brand that would assure people
that the product quality is good and is made of the best substances. Also, it would be
differentiated from other competitors through the brand presentation in the market so that more
people are attracted towards the products and are happy to consume more quantities of it.
Furthermore, it would be done through using attractive colours, packaging sizes and use of the
popular market influencer that would promote in best of manner
Recommendations:
 Thus, it is recommended to the Lidl that even though this marketing plan might be
followed by the firm to introduce the new product line but in-spite of it should focus on

conducting careful market analysis and set bet monitoring tools so that maximum benefit
from the new marketing plan might be achieved.
CONCLUSION
From the above report it can be concluded that Lidl had successfully expanded its
operations into various regions. Also, report had presented the marketing mix through clearly
specifying the product, promotion, place mix etc. that is used by the company over the years.
Also, the study had highlighted marketing analysis of the Lidl through using the BCG matrix
where the clear classification of the product category is being found out so that successful
strategies might be developed in the future. Moreover, to identify the best strategy for the
business for the Lidl firm Ansoff matrix had been applied in detail under this report. Lastly, for
launching the new sugar free bakery product line in the market the company had identified the
segmentation, targeting, positioning and differentiation that would be used by the firm to
generate maximum revenues.

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<https://www.smartinsights.com/marketing-planning/marketing-models/use-bcg-matrix/>
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