Strategic Marketing Management for IFG: Competitive Advantage Report

This report provides a comprehensive analysis of strategic marketing management for Internet Fusion Group (IFG), an e-commerce retailer specializing in outdoor and action sports equipment. The report begins with an introduction to IFG and its acquisition of Surfdome, setting the stage for an examination of the company's internal and external environments. A situational analysis is conducted, including PESTLE analysis to assess political, economic, social, technological, legal, and environmental factors impacting the business. Market analysis, utilizing Porter's Five Forces, evaluates the competitive landscape, including threats from new entrants, substitutes, and competitors. A customer analysis explores demographics, geography, behavior, and psychographics of IFG's target customers. The internal analysis examines the company's structure and departments, highlighting its sustainable business practices. The report identifies critical issues, such as intense competition, and proposes SMART objectives and marketing strategies to enhance IFG's competitive advantage in the UK retail market.

Running head: STRATEGIC MARKETING MANAGEMENT FOR IFG
STRATEGIC MARKETING MANAGEMNT FOR IFG
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Introduction
The global retail industry has been subjected to exponential growth in the recent years
due to the increase of the scope of electronically conducted business activities and operations.
The growth of e-commerce has facilitated the organizations in the global retail industry to
strategize effective means of reaching out to their potential customers or targeted customer
segments (Dennis et al. 2009). Marketing strategies have therefore emerged to become
important determinants for the success of business operations and activities, leading the
organizations towards an enhancement of their productivity and profitability (Graham 2008).
Internet Fusion Group or IFG is recognized as one of the major global e-commerce retailers who
specialize in the selling of outdoor sectors and action sports. The company has recently acquired the
company Surfdome Shop Limited thereby, providing the company with a new opportunity to expand
and diversify their business operations into the selling of surfing, skating and snow equipment
(Internetfusion.co.uk 2020). The essay will further focus on the strategies that may be adopted by
the organization for the purpose of establishing and maintain a competitive advantage in the retail
market of the United Kingdom. Such strategies will be proposed to the company on the basis of the
evaluation of the internal and external environment in which the organization operates. The evaluation
of the internal and external environment of the organization will thus help in the strategizing of an
efficient marketing plan that can be implemented in order to increase the scope of their business
operations.
Discussion
Situational Analysis
The concept of situational analysis entails the evaluation of the internal and external
forces that act upon a business organization and directly or indirectly affects its business
activities (Proctor 2014). The conduction of situational analysis upon a business organization
helps in the evaluation of the opportunities, threats, customers and business environment of

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the organization, thereby laying the foundation for strategy formation and implementation
(Burns, Bush and Sinha 2014).
PESTLE Analysis
The framework of PESTLE analysis helps in the determination of the political,
economic, social, technological, legal and environmental factors that work upon a business
organization and directly influence its operations and activities (Pan, Chen and Zhan 2019).
The PESTLE analysis of the company Internet Fusion Group provides the following results
about its external environment:
 Political factors – The political factors that affect the functioning of The Internet
Fusion Group include the taxation and fiscal policies of the United Kingdom as well
as all the countries in which the products of the organization are made available to the
customers. Furthermore, the other political factors include the various regulations of
the government regarding distribution of products, tariff, selling licenses, import and
export duties(Zinovievaet al., 2016).
 Economic factors – The economic factors that affect the business of the company
include the consumption levels, per capita income, gross domestic product, wholesale
and consumer price indices present in the United Kingdom(Castaño, Méndez &
Galindo, 2015). These factors directly influence the consumption patterns of the target
customers, thereby affecting the net sales of the e-retail company.
 Social factors – The social factors that affect the operations of the company include
the tastes and preferences of the target customers along with the local culture
prevalent in the United Kingdom(Shtal et al., 2018). In this regard, it can be
mentioned that the consumers in the United Kingdom have an identifiable preference
for high quality goods at low prices.

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 Technological factors – The technological factors that influence the operations of the
company include the availability of skilled labor, telecommunication and distribution
systems along with industrial competency (Laudon and Traver 2016). In this regard, it
can be said that the United Kingdom has the availability of skilled labor and resource
efficient technology that can help in successful conduction of business activities and
functions.
 Legal factors – The legal factors that influence the operations of the company include
the regulations present in the United Kingdom regarding the quality standards of the
products and services being offered to the customers, employment laws, health and
safety laws and consumer laws (Shatskaya,Samarina and Nekhorosheva 2016). These
laws are essential for the organization as it helps in the determination of whether the
products sold are of the expected quality standards.
 Environmental factors–The environmental factors that influence the operations of
the company include the regulations prevalent in the United Kingdom regarding
energy consumption, awareness of the consumers regarding environmentally
responsible behavior and corporate social responsibility activities, waste disposal
systems and resource efficiency of production processes(Kurnia,
Choudrie,Mahbubur&Alzougool, 2015). In the regard, it can be mentioned that
resource efficiency in business operations will directly influence cost efficiency of the
company and help them to cater to the requirements of the targeted customers.
Market Analysis
The market analysis of a business organization provides an evaluation of the various
external forces that operate and influence the activities and function of the organization
(Wilson and Gilligan 2012). There are several frameworks that help in the market analysis of
business organizations. The model of Porter’s Five Forces provides an analysis of the several

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competitive forces operative on the organization, thereby posing to be either an opportunity
or a threat for the company (Dobbs 2014). The analysis of Porter’s Five Forces on The
Internet Fusion Group provides the following results:
 Threat of new entrants – The Company faces a high threat from new entrants as the
e-retail industry is recognized to be one of the most profitable and growing industries
thereby proving to be prospective sector for investments for new business ventures.
 Threat of substitutes – The Company faces high threat of substitutes from the
globally recognized active wear and sports accessories brands like Nike, ADIDAS,
PUMA, Reebok and the like. These brands enjoy a positive brand identity in the
market thereby acquiring significant brand loyalty from sports enthusiasts and
customers all over the world (Mahdi et al. 2015).
 Bargaining power of the consumers – The brand faces high threat from the
bargaining power of the customers due to the presence of a large number of
competitors in the market who also engage in the selling of sports wear and
accessories. These competitors include not only the global sportswear brands but also
several other e-retail and e-commerce organizations who engage in the selling of a
variety of products including sportswear and accessories.
 Bargaining power of the suppliers – The Company faces a low threat from the
bargaining power of the suppliers because of the presence of a large number of sellers
and suppliers of the products that are offered to the targeted customers by the
organization (Haucap et al. 2013).
 Competitive rivalry–The Company faces high threat of competitive rivalry from
other major e-retail brands operating in the United Kingdom including eBay UK, John
Lewis and Partners, Argos and Amazon. These brands do not specialize in sports

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goods and accessories but engage in the selling of a wide range of products that
includes active wear and other sports accessories.
Competitor Analysis
The e-retail industry is highly competitive owing to the presence of globally
recognized brands that provide high quality products and services to their customers at low
prices (Hu and Xie 2014). The primary strategy for obtaining a competitive advantage that is
adopted by the organizations operating in this industry is that of competitive pricing (Lu and
Liu 2013). In this regard, it can be identified that Internet Fusion Group faces high threats of
competition from major e-retail brands operating in the United Kingdom including eBay UK,
John Lewis and Partners, Argos and Amazon (Ecommercenews.eu 2020). These brands
engage in the selling of a variety of products to their customers including lifestyle, fashion,
home and electronic appliances as well as sportswear and accessories. The Surfdome brand
under Internet Fusion Group specializes in the selling of sportswear and
accessories(Internetfusion.co.uk 2020). However, the factor that provides a competitive
advantage to the organization is high quality of customer services and sustainability of
production processes and distribution. Internet Fusion Group conducts their business
activities in a sustainable manner with the purpose of integrating their organizational
activities and targets with a concern for the environment (Internetfusion.co.uk 2020). The
mission of the company is to provide the customers with hassle free and simple services in a
sustainable manner, with the help of business activities and practices that aim at safeguarding
the environment(Internetfusion.co.uk 2020). The sustainability of business activities provides
the organization with an impetus of creating a positive brand image and identity in the market
thereby inducing the environmentally conscious customers to prefer the products sold by
Internet Fusion Group under the brand name Surfdome.

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Customer Analysis
Customer analysis is an important aspect of conducting successful business activities
and operations as it helps in determining the most effective marketing strategies that can be
adopted by an organization in order to attract their targeted customers and cater to their
needs, requirements and demands (Hjort et al. 2013). An analysis of the customers of the
Internet Fusion Group can be made on the basis of demography, geography, behavior and
psychography of the consumers.
The brand of Surfdome operating under the organization Internet Fusion Group
specializes in the selling of sportswear and sports accessories. Therefore, from a demographic
perspective it can be said that the customers of the organization primarily include consumers
from the age group of 15to 40 belonging from the middle to high income groups.
Furthermore, from a geographical perspective, the customers of the organizations mostly
belong from in and around the United Kingdom and all the other regions where the
organizations provides its services. From a behavioral perspective the customers of the
organization include sports enthusiasts and health conscious individuals who are interested in
sports activities like skating and surfing. From a psychographic perspective, the customers of
the organization includes individuals who prefer premium quality products at reasonably low
prices, or customers who prefer the consumption of products and services that are offered to
them in a sustainable manner.
Internal Analysis
The internal analysis of the organization Internet Fusion Group shows that it has a
hierarchical structure along with the presence of various departments that overlook the
efficient functioning of business activities and operations. The various departments of the
organization include the different brands including Surfdome that operate under its purview,
the sales departments, production departments, packaging and distribution departments and

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the department for customer services who cater to the feedback and queries of the customers
through online mediums. The Company conducts its business activities in a sustainable
manner, thereby keeping into consideration the global environmental issues and engaging in
practices such as reduction of the use of plastic in their packaging and distribution processes,
waste management and resource efficient business practices(Internetfusion.co.uk 2020).
Critical Issues in the Organization
The critical issues that can be observed in the organization Internet Fusion Group is
that of the presence of high threat of competition in the external environment of its
operations. Due to the presence of major global sportswear brands in the market, the brand of
Surfdome, operating under the organization may not be able to reach its expected targets.
Furthermore, the targeted customers of the organization may have a brand loyalty and
preference towards the globally recognized brands such as Nike, ADIDAS, PUMA and
Reebok for sportswear and sports accessories. Therefore, in this regard, it may be mentioned
that the Company can obtain a competitive edge in the market by improving their marketing
strategies and expanding their business operations into other regions of the world thereby
enlarging their customer base.
Objectives and Strategies
SMART objectives
 Surfdome aims to provide high quality sport products to the target customers through online
stores and their personal website. The ultimate aim of the company will be to provide high
quality products for its customers.
 The goal of the business organization is to gain 75% customer satisfaction. These can be
measured through customer reviews and data analytics. Hence the particular objective will be

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measurable to some extent (McDonald and Wilson 2016). It is also the aim of the company to
sell more than 40% of high quality sports products to the customers.
 It is the goal and objective of the company to increase its market share by 10%, by the end of
the year taking advantage of increased rate of sports products consumption.
 It must take initiative to increase the base leads and increase website traffic by 25% by the
end of the year.
 The overall revenue of the company must increase by 20% by the end of the year.
 The company must take initiatives to build brand image and recognition among the target
customers (Jay and Sealey 2016).
 To increase the conversion rates for campaigns and other landing pages of the customers. In
other words the team must enhance organic traffic conversion rate by 25%.
 Increase the overall percentage of customers returning on the website. There must be at least
15% of visitors on the websites returning.
 It is the goal of the company to reduce bounce rate. Bounce rate implies that people leaving
the website and continue to view other pages of competitors (McDONALD, M.A.L.C.O.L.M.
2016). The company must take steps to maintain the rate below 50%.
Strategic marketing plan
Optimizing website – The marketing and sales department must consider optimizing the web
page and websites of the company. It is an essential part of sales and marketing. Key word
research must be executed to optimize the website (Parente and Strausbaugh-Hutchinson
2014).
Review products – the team and take into consideration must review the customers review.
There queries and concerns must be addressed. Negative reviews of the customers must be
tactically handled.

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Content marketing: In order to attain the set objectives, the business organization must focus
on content marketing. It is also considered to be an important part of e-commerce marketing.
The tactic is to include lead magnets, pictures, and demonstrations to encourage the
customers to purchase the products and take significant actions (Chaffey and Smith 2013). It
is also cost effective and writes posts effectively.
Guest post – Posts must be made which are of high quality and higher authority publication.
This will enable the business to associate with the customers and ensure engaged readerships
(Franco et al. 2014).
Social media marketing – The social media marketing is one of the most important ways to
excellently build and nurture relationship with customers. The departments (Baker 2014)
must actively hand Facebook recommendations, likes, and comments. The company must
also engage with the customers on other social media platforms like Twitter, Facebook,
interest, and Instagram along with Facebook.
Email marketing – It is the essential part of ecommerce marketing. The company must
strategically provide attractive visuals and enhance copywriting. There must be targeted
suggestions, discount offers, and other important announcements to encourage the customers
and make them interested in the products offered by the company (Kaufman and Horton
2014).
Customer Segmentation and Targeting
The process of customer segmentation is essential for the successful operation of a
business organization, as it helps in not only identifying the consumers for whom the
particular products and services will be manufactured, but also the method in which the
marketing activities will be conducted so as to cater to their interests (Rahim,Abidin and

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Khairuddin 2014). The customer segmentation of a business organization can be madebased
on demography, behavior, geography and psychography of the consumers. The targeted
customers of the organization can therefore be identified to be the following:
Demographic Segmentation Geographic Segmentation
 Consumers belonging from the age
group of 15 to 40 years
 Consumers belonging from middle
and high income groups
 Customers residing in the United
Kingdom
 Customers residing in other regions
where the services of the
organization are made available
Behavioral Segmentation Psychographic Segmentation
 Sports enthusiasts and athletes
 Active young people who may
pursue skating, surfing and snow
sports as a hobby
 Health conscious individuals who
take part in such active sports to
remain fit.
 Health conscious individuals
 Environmentally conscious
individuals who prefer the
consumption of products that are
produced and sold in a sustainable
manner
 Individuals who prefer premium
quality goods and services at
reasonably low prices
Table 1: Customer Segmentation of Internet Fusion
Group
(Source: Author)
Tactics and Control

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Tactics clearly derived from strategy
Communication – The teams in the business environment must take steps to handle customer
inquiries. The sales department of the business organization must be in alignment with the marketing
department. It is the responsibility of the sales department to address the calls and determine the sales
leads (Kingsnorth 2019). The marketing department of the business organization must provide
information gathered from campaigns. Therefore, the communication between the functional areas
must be strong.
Link building – In order to further optimize the webpage and websites, the marketing department
must consider off page SEO and focus on SEO efforts to enhance the content pages and product
description pages. Link building can be done through other reputable websites through which the
company might get traffic and boost pages in search engines.
Enhance content – To enhance content marketing, the marketing and sales team must focus on
creating valuable and unique content. Enhanced content is an effective way to get people and link to
the content. This will further increase the chances of getting linked to the customers. The marketing
and sales department must create useful content and gain more traffic on the website.
Social media Analytics – To determine effectiveness of social media presence, the company must use
Facebook audience insights. This will enable the business organization to provide useful information.
This tactics will enable the business organization to set up effective social media campaigns and reach
targeted audience (Chaffey and Ellis-Chadwick 2019). The responsible team or department of the
business organization must get perspective of buyer persona.