Marketing Plan for Boden: Environmental and Target Market Analysis

This report provides a detailed marketing plan for Boden, a British clothing retailer. It begins with an introduction to the company and the objectives of the marketing plan. Task 1 focuses on environmental appraisal, including SWOT, Porter's Five Forces, and PESTLE analyses to evaluate the internal and external environments. Task 2 identifies two target markets appropriate for Boden through segmentation, targeting, and positioning strategies, along with customer profiles and budget plans. Task 3 differentiates the marketing mix for the two targeted markets, including product life cycle analysis and a comparative analysis of the marketing mix. The report concludes with a summary of findings and recommendations for Boden's marketing strategies, aiming to enhance the company's growth and development. The report includes tables and illustrations to support the analysis.

Marketing Plan

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Background Information........................................................................................................1
Environmental appraisal analysis...........................................................................................1
Conclusion..............................................................................................................................8
REFERENCES................................................................................................................................9
TASK 2 .........................................................................................................................................11
Identification of two target markets appropriate for the company.......................................11
Conclusion............................................................................................................................22
REFERENCES..............................................................................................................................23
TASK 3..........................................................................................................................................25
Differentiate Marketing Mix for two targeted market..........................................................25
Conclusion............................................................................................................................31
REFERENCES..............................................................................................................................32
CONCLUSION..............................................................................................................................33

Index of Tables
Table 1: Comparative analysis of Boden and Debenhams 2017.....................................................7
Table 2: Business canvas model......................................................................................................7
Table 3: Target markets and customer profile...............................................................................14
Table 4: 3 years budget for marketing of coats, blazer and jackets...............................................20
Table 5: 3 years budget for marketing of sports shoes..................................................................22
Table 6: Comparative analysis of differentiated marketing mix...................................................32
Illustration Index
Illustration 1: PESTLE Analysis .....................................................................................................4
Illustration 2: Segmentation, Targeting & Positioning .................................................................11
Illustration 3: Young Adults Positioning.......................................................................................14
Illustration 4: Older Male Adults Positioning ...............................................................................17
Illustration 5: Positioning ..............................................................................................................18
Illustration 6: Perceptual Mapping.................................................................................................19
Illustration 7: 3 year budget plan for coats, blazer and jackets......................................................21
Illustration 8: 3 year budget plan for sports shoes........................................................................22
Illustration 9: Marketing Mix 4Ps .................................................................................................26
Illustration 10: Product Life Cycle for coats, blazers and jackets.................................................27
Illustration 11: Product Life Cycle of Sports shoes.......................................................................30

INTRODUCTION
A marketing plan may be part of an overall business plan. Proper marketing strategy is
the foundation of a well-written marketing plan. While a marketing plan contains a list of
actions, without a sound strategic foundation, it is of little use to a business (Havlícek,
Thalassinos and Berezkinova, 2013). In accordance with this context, this assignment will help
in formulating effective marketing plan for Boden, a British clothing retailer. The organisation
has reported a 9% increase in sales to £308.3 million in lifestyle products of both men and
women wear. In order to accomplish set goals and desired targets, management aims to recreate
a marketing plan that aid in efficient growth and development of the organisation.
Further, environmental appraisal will be made in this report in order to analyse both the
internal and external environment of Boden with the help of value chain model and PESTLE
analysis. Moreover, segmentation, targeting and positioning will be made in this assignment in
order to identify two new target markets of the organisation. Further, differentiated marketing
mix strategy will be applied in this report to so that marketing plan of organisation can be
formulate effectively and efficiently.
TASK 1
Background Information
Boden is a British clothing organisation who specialises in selling clothing products through
either online or by catalogue. It was developed by Johnnie Boden in 1991 by launching
menswear products and introduced womenswear in 1992. Kate Barton who then became the
chief designer introduced Childrenswear range Mini Boden in 1996. The website developed in
1999. The company begins its expansion in 2002 by selling their products and services online in
America.
Environmental appraisal analysis
Internal Environmental Analysis
The environmental appraisal will be analysed with the help of SWOT analysis, Porter Five Force
model, Value chain model and PESTLE analysis which is provided below:
SWOT Analysis
Strengths
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 The strength of Boden is the management able to provide effective quality of apparels to
their target customers. This helps in increasing the brand value and customer satisfaction
adequately (Baines, Fill and Page, 2013).
 The management believes in using advance technology and information systems. They
spent large sum of money to upgrade their website and robust their existing technologies.
Weakness
 Despite of having high technologies and systems, the management has employed
more than required employees in the organisation. This adds cost to the management
and thus, Boden unable to earn adequate amount of profits.
 The marketing strategies used by the management of Boden are not precise. They
focus on limited areas and use less tools for promotion of its goods and services.
 The management having issues regarding lack of skilled and competent workforce
(Shank and Lyberger, 2014).
Opportunities
 The organisation has opportunity to identify new business areas where they can
increase their productivity and profitability.
 By customising the products and services of the organisations, the management can
increase its market share and growth.
Threats
 The rapid increase in technological development increases the cost to the
organisations. Heavy investment requires initiating high technology thus,
declining the revenue of Boden.
 Increase in competition is another threat the troubles the management of Boden.
Strength
 The organisation provides effective
quality of apparels for both men and
women.
 It uses high level of technology and
high recognition of products. This aid
in growth and development of the
Opportunities
 The organisation has opportunity to
identify new business areas where they can
increase their productivity and profitability
 Customisation of Products and services.
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company
Weakness
 It has manual working through which
cost has been increased.
 Its have weak promotional program.
 Lack of skilled workforce in the
organisation.
Threats
 Technological developments
 High level of competition in industry.
Porter Five Force Model
The Porter Five Force model will aid in identifying the competitive forces that impacts on
growth and development of Boden. The details of the model with respect to the organisation is
provided below: Competition in the industry (High): From the analysis, it was identified that there are
several competitors which are surrounded by the organisation. The retail industries in
United Kingdom are blooming day by day (Kotler and et.al., 2016). With the rise in
globalisation and policies of government, new organisations are establishing their
business in the country. The current competitors of Boden are Tesco, Aldi, Debenhams
and Marks and Spencer. These competitors are impacting and influencing the growth and
development of the organisation. The threat of competition in the industry is high for the
Boden due to rigid policies and more foreign direct investment in United Kingdom since
last decade (Sakas, Vlachos and Nasiopoulos, 2014). Potential of New Entrants Into an Industry (High): Since the inception of new
globalisation and liberalisation policies in the country, the new entrants and organisations
are establishing their stores and offices in United Kingdom. This impact on the growth
and development of Boden. The threat of potential of new entrants into an industry is
high as new organisations are emerging that specialises in the retail sector. Further, due to
increase in online activities, majority of the organisation embarked online services (Mintz
and Currim, 2013). Power of Suppliers (Low): This force addresses how easily suppliers can drive up the
price of goods and services. Boden procures raw materials from various suppliers. Thus,
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the company has no threat of supplier power. The threat of supplier power is low for
Boden. The management has been partnered with various suppliers thus, they have no or
little threat of supplier power. Power of Customer (High): This specifically deals with the ability customers have to
drive prices down (Hollensen, 2015). Boden has threat to customers due to increase in
substitution and new retail markets. Thus, management needs to formulate strategies to
prevent this threat. The threat of consumer power is high due to increase in competition
and substitutes.
 Threat of substitution (Moderate): Competitor substitutions that can be used in place of
a company's products or services pose a threat (Baines, Fill and Page, 2013). There are
various substitution available in current market economy of the country. Thus, Boden
faces the threat of substitution.
External Environment Analysis
You need to add for details and add more references.
External environment is consisted of outside environment which is surrounded by the
organisation (Cress, 2015). External environment influences the functionality and production
activity of Boden. In order to analyse external analysis, PESTLE model will be used. The model
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Illustration 1: PESTLE Analysis
(Source: PESTLE Analysis, 2017)

is helps in analysing political, economic, social, technological, legal and environmental factors
that impacts on the performance of Boden and which are described below: Political Environment: These factors determine the extent to which a government may
influence the economy or a certain industry (Kotler and et.al., 2016). Boden is an
emerging retail market enterprise, incorporated in United Kingdom. The government of
the country aims to reduce the corporation tax from 30% to 28% that assist Boden to
increase their profits in the future. Moreover, due to increase in trends of retail markets in
the country, government plans to increase foreign direct investment strategy in the
country. This will increase the competition in the country and Boden has to face
tremendous competition (Czinkota and Ronkainen, 2013). Further, there are various
policies which are yet to be implemented by the government. These policies directly and
indirectly impact on the productivity and profitability of Boden. Economic Environment: These factors are determinants of an economy’s performance
that directly impacts a company and have resonating long term effects (Kozlenkova,
Samaha and Palmatier, 2014). The whole UK economic is facing recession and very
sensitive to changes in interest rates. Due to rigid policies and low purchasing power of
consumers Boden faced downwards in their sales and profits. Further, due to increase in
competition, ample amount of substitution available for consumers to purchase. This
negatively influences the sales and profits of the organisation. The management spending
lots of money in order to promote their products and also innovating various incentive
and discount schemes that leads to loss of the organisation. Thus, economic environment
influences the productivity and profitability of Boden in multiple way. Social Environment: Social environment consists of social factors such consumer taste
and preferences and societal needs and expectations. Consumers needs are dynamic in
nature. Due to increase in globalisation, consumers now demand for branded and high
quality of products and services (Hunt, 2014). The management of Boden, working
diligently in order to meet the needs and expectations of consumers. It is very important
for the organisation to fulfil the desires of customer in order to sustain in competitive
economy of United Kingdom. It will not only aid in eliminating competitive pressure, but
also provide benchmark for future success.
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 Technological Environment: Internet shopping is the main trend for the retailing industry
which directly influence the sales approach. Majority of customers purchased goods from
Boden through its website and mobile application (Killian and McManus, 2015). Thus, it
is very essential for the information and technological department of Boden to frequently
update their websites and applications so that consumer can purchase goods and services
effectively and efficiently. In today's world, continuous modification and innovation in
the field of technology leads to improvement in quality of goods and services
(Peck and et.al., 2013). Management of organisation has effectively invested in
innovative technologies that aid in reducing the cost and increase the profitability of
organisation. Legal Environment: These factors have both external and internal sides. There are certain
laws that affect the business environment in a certain country while there are certain
policies that companies maintain for themselves (Cress, 2015). Governmental policies
and laws directly and indirectly impacts on the performance of Boden. Acts and
legislation such as Data Protection Act and Consumer health and safety act of United
Kingdom, influences the management in multiple ways. It is mandatory for organisation
to conduct their business activities on the basis of laws and regulation amended by the
parliament of United Kingdom. Boden provides various schemes to customers to
facilitate with these policies and regulation. Thus, it implies that legislation environment
impacts on business activities of the company (Armstrong and et.al., 2015). Further, there
are many cases in which organisation fails to comply with laws and which leads to
penalties and punishment. Thus, it is very essential for Boden to work according to law
for prosperous growth and effective development.
 Environmental Factors: With increased pressure on companies to address environmental
issues and to adopt ways of operations which what would benefit society. Boden is
determined to reduce the carbon emission generated in the environment by 50% (Di Vita
and et.al., 2013). By utilising non-conventional source of energies such as solar energy in
their organisation, management will able to accomplish their desired target. Further,
Boden aims to reduce the wastage by innovating methods and tactics which aid in
accomplishing their aim (Mintz and Currim, 2013). With the help of effective inventory
control and management, organisation will reduce the amount of waste in efficient way.
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Table 1: Comparative analysis of Boden and Debenhams 2017
Type Boden Debenhams Plc
Sector Retail Clothing Retail Clothing
Profits £245 million £2,341.7 million
Employees 2000 (approx) 28000 (approx)
Customers 1451452 1.1 million
As Debenhams Plc is large scale organisations and a strong competitor of Boden, its sales and
revenue figures are more as compared to Boden.
After analyzing the internal and external environment of Boden the business canvas model of
Boden formulated below. Business Model Canvas is a simple graphical template describing nine
essential components: Customer segments, value propositions, channels, customer relationships
(such as self-service or personal assistance), revenue streams, resources, activities, partnerships,
and costs.
Table 2: Business canvas model
Key Partners
Suppliers
Raw Material
providers
Dealers
Logistics
Key Activities
Producing and
manufacturing
apparels for all
segments of
customers
Value
Propositions
Online shopping
facilities to the
customers
(Finch, 2016).
Customer
Relationships
24 hour services
are provided to
the customer.
Same day
delivery facility.
Customer
Segments
Young Adults of
age between 18
to 40 years upper
class.
Older males of
age 50 and above
category upper
class and
medium class
Key Resources
Physical
resources
Human
Channels
Digital
marketing.
Television
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Resource
Information and
technological
resource
commercials.
Newspaper
promotions
Cost Structure
Raw Materials Cost: £5000
Salaries to Employees: £200000
Online Charges: £25000
Revenue Streams
From sponsoring in several events.
Endorsing.
Conclusion
From the above task, it can be understood that environmental analysis is very important
in order to create a marketing plan. The internal environment was scanned with the help of value
chain model and it was identified that the internal position of Boden is effective. The external
environment was analysed with the help of PESTLE model. It was identified that political and
social environment broadly influenced the performance of the organisation.
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REFERENCES
Books and Journals
Armstrong, G. and et.al., 2015. Marketing: an introduction. Pearson Education.
Babin, B.J. and Zikmund, W.G., 2015. Exploring marketing research. Cengage Learning.
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Chaffey, D., Smith, P.R. and Smith, P.R., 2013. eMarketing eXcellence: Planning and
optimizing your digital marketing. Routledge.
Cress, C.J., 2015. Handbook of geriatric care management. Jones & Bartlett Publishers.
Czinkota, M.R. and Ronkainen, I.A., 2013. International marketing. Cengage Learning.
Di Vita, G. and et.al., 2013. The Role of Innovation and Organization in Small Size Wineries:
The Case of Malvasia delle Lipari PDO Wine1. Calitatea. 14(137). p.107.
Eagleman, A.N., 2013. Acceptance, motivations, and usage of social media as a marketing
communications tool amongst employees of sport national governing bodies. Sport
Management Review. 16(4). pp.488-497.
Finch, B., 2016. How to write a business plan. Kogan Page Publishers.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Hunt, S.D., 2014. Marketing theory: foundations, controversy, strategy, and resource-advantage
theory. Routledge.
Killian, G. and McManus, K., 2015. A marketing communications approach for the digital era:
Managerial guidelines for social media integration. Business Horizons. 58(5). pp.539-549.
Kotler, P. and et.al., 2016. Marketing management. Pearson Education Ltd..
Kozlenkova, I.V., Samaha, S.A. and Palmatier, R.W., 2014. Resource-based theory in
marketing. Journal of the Academy of Marketing Science. 42(1). pp.1-21.
Miller, E.J. and Rice, A.K. eds., 2013. Systems of organization: The control of task and sentient
boundaries. Routledge.
Mintz, O. and Currim, I.S., 2013. What drives managerial use of marketing and financial metrics
and does metric use affect performance of marketing-mix activities?. Journal of
Marketing. 77(2). pp.17-40
Peck, H., Christopher, M., Clark, M. and Payne, A., 2013. Relationship marketing. Taylor &
Francis.
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