Detailed Marketing Plan for Hollister's South Africa Expansion (2019)

This report presents a marketing plan for Hollister, focusing on its expansion into the South African market. The plan outlines the company's vision and mission, along with specific objectives. It includes a SWOT analysis to assess strengths, weaknesses, opportunities, and threats. The core of the plan revolves around the marketing mix (product, price, place, and promotion) and how Hollister intends to utilize each element. The report details the product offerings, penetration pricing strategy, two-level distribution, and internet-based promotion. Furthermore, the report delves into STP (Segmentation, Targeting, and Positioning), highlighting the demographic segmentation based on age (14-18 years), the concentrated marketing approach, and price positioning strategy. A budget breakdown is provided, along with details on monitoring and control mechanisms, including customer feedback via surveys. The report concludes that a well-managed marketing plan, especially with the 4Ps and STP strategies, is crucial for achieving business goals, maximizing profits, and meeting customer needs. References to relevant books and journals are included.

Marketing Plan

Table of Contents
INTRODUCTION...........................................................................................................................1
Marketing plan of Hollister.........................................................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Marketing is a business function and a broad process that includes research, product
design and development, promotion and customer services ((Baier, 1983)). Hollister is an
American lifestyle clothing company. It is looking to diversity internationally and wants to open
up new stores in a new country. Marketing plan is a part of an overall business plan. It contains
a list of actions and strategies for promoting and development the products and services.
Marketing plan of Hollister
Marketing plan of Hollister- Marketing mix is most foundational element of marketing
it is called four PS of marketing. It defines as product, place, price and promotion.
Vision of marketing plan
 To increase the profitability of firm.
 To enhance consumer experience.
Mission of marketing plan
 To achieve sales target as most as possible.
 To provide the best quality which helps to gain trust among consumers
Objective of Hollister for marking mix
 To expand the business in South Africa till the end of year 2019.
 To make a goodwill in organisation.
SWOT
Strength Weakness
It has a very theatrical and unique style. It is quite expensive for the young market.
Opportunity Threat
To expand in to new countries, creates new
clothing themes.
Other cheaper brands in same country.
Marketing strategy- Marketing strategy is a long-term and forward looking approach to
planning for achieving the determined goal. An effective marketing strategy combines the 4 PS
of the marketing mix (Cohen, 2005). Hollister designs the strategy with marketing mix to meet
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the company's marketing objectives as it wants to expand their business in South Africa, by
providing good services and products with value it can be succeed. The marketing mix can be
divided into four group of variables which is commonly known as product, price, promotion and
place.
The four PS of marketing are as follows:
Product- The product is known as the goods and the services which is offered by a
company to its customers. A product is an item that is built or produced to satisfy the needs of a
certain group of people. Hollister clothing store produce the casual wear products and different
type of products like jeans, shirts, jackets, body care, pyjamas, swimwear, shoes, hats, air
fresheners, candles, sunglasses, pins, belts and scarves. It is important for organisation to ensure
to have the right type of products that is in demand.
Price- The price of the product is basically the amount that a customer pays for to enjoy
it. It is very important component in the marketing plan. There are many types of pricing
strategies which organisations use while determining the price (Ferrell and Luck, 1979).
Hollister uses the penetration pricing strategy because it wants to enter in South Africa
and wants to attract more customers of South Africa and gaining market share. It is a theoretical
method that is used to lower the prices of the goods and services in order to high demand in the
future. It is appropriate for the firm because it targets consumers, age of 14-18. It becomes easy
for consumers to pay low amount of the products.
Place- It defines the activity that make the products available to consumers like
distribution methods by which consumers get their products. There are many distribution
channels which includes direct distribution, indirect distribution one level and two level. It is a
chain of business through which a good passes until it reaches the end customers (Fine, 2017).
Hollister use two level method of distribution. It selects the location where customers can
easily reach and collect the products. It hires the mediators who can provide their goods to
customers.
Promotion- The activities that show the features and benefits of products and services
and influence customers to purchase the products. It boosts brand recognition and sales.
There are many types of marketing which organisation use like online marketing, E-mail
marketing, seasonal marketing, mass marketing etc. Company mainly use internet method for
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promotion of its goods. It helps them to expand their business in South Africa (Hair And et.al.,
2008).
STP(Segmentation, targetting and positioning)
Segmentation-Market segmentation is the process of dividing a market of potential
customers into segments or group which is based on different characteristics.
Demographic segmentation- Hollister segment their product market on the basis of
demographic which includes age (14-18 years). On the basis of age it can identify the taste of
defined age group. It helps them to make marketing easier and satisfy the needs of a particular
section. It allows marketer to target specific audiences in a cost effective manner. It helps
organisation to classify a group of people who have similar needs based on demographic.
Targetting- The segments, company wants to serve are called the target market. The
process of selecting the target market from the different segments are called market targetting
(Manoff, 1985).
Hollister uses concentrated marketing approach of targetting because it wants to focus on
a specific consumer segment. It helps company in identify customers needs and wants because it
focuses on demographic segment and can better satisfy their needs.
Positioning- The process of creating an image or make them believe of a product in the
mind of the customers is called as positioning.
Organisation uses price positioning strategy. It optimally prices a product according to
the quality of the product to keep the product higher in the targeted customers mind. It helps
organisation to convince customers to buy a product.
Budget
Office supply £100
Expenses on advertisement £50
office rent £150
Distribution channel £60
Research cost £40
Other expenses £50
Total budget in marketing plan £450
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Monitoring and controlling- Some marketing activities require monitoring before
determining if they are worthwhile or not. Control involves measurement, evaluation and
monitoring. Efficient monitoring of a marketing ensures manager that their investment is not
wasted (Hollensen, 2010). There are many approaches to control like market share analysis,
budgets, quality control, cash flow statement etc.
Firm uses customer feedback for controlling and monitoring through survey and online
polls. By hosting online polls on the internet it asks specific questions about its marketing plan.
Customer feedbacks tells about the product and the services if they are effective or not.
CONCLUSION
From the above study it has been concluded that marketing plan plays an important role
in any organisation for developing business and in making a goodwill in market. The proper
management of 4 PS of marketing plan help organisation to achieve their goals. Segmentation
according to age group, targetting special group of segment and price positioning also help firm
to maximize profits and fulfil the customers needs.
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REFERENCES
Books and journals
Baier, M., 1983. Elements of direct marketing. New York: McGraw-Hill.
Cohen, W.A., 2005. The marketing plan. John Wiley & Sons.
Ferrell, O.C. and Luck, D.J., 1979. Marketing strategy and plans. Systematic Marketing
Management. Englewood Cliffs, New York.
Fine, S.H., 2017. Introduction to social marketing. In Marketing the Public Sector (pp. 1-12).
Routledge.
Hair, J.F. And et.al., 2008. Essentials of marketing research. New York, NY:
McGraw-Hill/Higher Education.
Hollensen, S., 2010. Marketing management: A relationship approach. Pearson Education.
Manoff, R.K., 1985. Social marketing: new imperative for public health.
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