Marketing Plan for Iceland Food Ltd: Principles of Marketing

This report presents a comprehensive marketing plan tailored for Iceland Food Ltd, a prominent player in the UK food retail industry. The plan begins with an executive summary and table of contents, followed by an introduction to Iceland, outlining its history, current situation, and the purpose of the marketing plan, which is to increase market share. The main body of the report delves into Iceland's organizational overview, current market position, and the importance of a strategic marketing approach. It then applies the STP model (Segmentation, Targeting, Positioning) and the 7 Ps of the marketing mix (Product, Price, Place, Promotion, People, Process, Physical Evidence) to formulate effective strategies. The report concludes with a summary of key findings and recommendations, supported by relevant references, providing a detailed roadmap for Iceland Food Ltd to achieve its marketing objectives and enhance its competitive advantage.

Principles of Marketing

Executive Summary
An effective marketing plan plays great role for a company or business for gaining large market
share in its respective industry or sector. There are a productive marketing plan has been
included in this report which can support to Iceland Food ltd. to increase its market share in the
UK’s food retail industry.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Introduction of Organisation........................................................................................................4
Purpose of Marketing Plan..........................................................................................................4
Organisation’s Current Situation.................................................................................................5
Importance of Marketing Plan.....................................................................................................5
STP Model...................................................................................................................................6
7 Ps of Marketing Mix.................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing is one of the major functions of an organisation. Currently each business or
company is trying to make its marketing function more and more effective to gain productive
results in the market. There are various strategies and tactics available in the market which can
support to any for attracting lots of new customers towards own brand. In this dynamic and
modern world, top-level management within each company or business should develop some
productive marketing strategies, because currently this is the only was a company for promoting
its products and services at the large scale in various market segments. This report includes a
productive marketing plan for Iceland Food Ltd. Iceland is a popular British food retail company,
headquartered in Wales, United Kingdom.
MAIN BODY
Introduction of Organisation
Iceland food ltd. is one of the leading food retail companies within the United Kingdom.
Deeside, Wales, UK is the headquarter of this company. The company was founded in 1970 (50
years ago) by Sir Malcolm Walker. Currently he is the executive chairman and Tersem Dhaliwal
is the chief executive officer (CEO) of at the Iceland food ltd (Lehmann and Winer, 2019). This
company mainly offers prepared meals, frozen foods and vegetables in various market segment
of its home country the United Kingdom. Iceland food ltd. offers non-frozen items also to
different customers within market, like; daily, dry goods and meat etc. Currently it has succeeded
in highly expanding its business operations across the UK, because nowadays Iceland has stores
and supermarkets in approx. 950 locations in all over the country. It has workforce of 23000+
employees who day or night put their huge efforts in the company’s daily operation for achieving
its decided goals in decided time period. With the support of its effective workforce, this
company is able to run its business organisation on progressive path.
Purpose of Marketing Plan
The actual purpose of this marketing plan is to gay large share within the UK’s food retail
industry. Of course, this company is already has succeeded in gaining large market share within
its respective industry, but Iceland food ltd still want to gain more market share for leading its

home country’s food retail industry. Currently its major competitors also have taken different
steps towards making an effective marketing plan which can provide them productive results.
That’s why top-level management of Iceland food also should take some steps towards making
or developing its marketing plan for gaining huge competitive advantage in the food retail
industry (Chitty, D'Alessandro and Gray, 2019). By implanting this marketing plan in own
business operations, company will be able to achieve extra-ordinary results in various market
segments of the United Kingdom. Basically this in the actual purpose of existing market plan for
Iceland food ltd.
Organisation’s Current Situation
Currently Iceland has the large customer base within the UK’s food retail industry. It has
succeeded in gaining large customer base just because its quality products. There are people
within the UK are really like to buy food products from Iceland’s stores or supermarket. Day by
day many new people are starting to buy different products and services from this company.
With the support of large customer base, Iceland food ltd has generated £157million net income
in the last year 2019. On the other side, existing marketing team of the company is too active in
its job role. Team always tries to innovate such strategies which can boost its marketing
functions. That’s why marketing function of the company are too effective in the current time.
There are HRM team at Iceland believes in using modern ways or methods in its daily operations
to make its human resource management techniques more productive. For example; HR manager
of company has implement such software programmes in its different offices which can fully
support in managing all HRM practices in proper manner (Chang, Wang and Arnett, 2018).
During hiring processes, human resource management of company mostly gives high priority to
only those employees which has extra-ordinary talent and skills. In this situation, this is the main
reason that, currently Iceland has very talented and effective workforce. Existing employees or
people within Iceland food ltd are very satisfied with their upper management, because
company’s management properly adheres employment law within its business environment.
Top-level management of company believes in maintain effective relations within it’s all
stakeholders. That’s why Iceland always faces very less challenges and problems within its daily
operations. Currently existing management is running its company in very effective manner.

Importance of Marketing Plan
This marketing plan is very important to the company, because this plan will help to
Iceland food ltd. for gaining large market share within the UK’s food retail industry. Day by day
competition within the food retail industry is increasing in the United Kingdom. In this situation,
this is necessary to Iceland for implement this marketing plan its marketing operations to gain
huge profit in the market (Mouzas and Ford, 2018). Basically, this marketing plan includes
various effective marketing strategies which can support to company for attracting many of
people towards own brand. For example; STP model and 7Ps of marketing mix, these both
marketing strategies has been included in this marketing plan. There is STP model help to
Iceland food ltd for properly understanding actual demand of people within various market
segments. This model gives opportunity to company for dividing whole market into different
small market segment’s as well. On the other side, 7Ps of marketing mix can support to company
for increasing its sales ratio in the UK’s food retail industry. On the basis of these all mentioned
factors, this marketing plan is too important to the Iceland food ltd.
STP Model
STP model is basically a very productive marketing strategy which has used by many
companies or businesses in the international market. Currently most businesses are taking huge
advantages from this strategy. In this situation, marketing team of Iceland food also should
consider this strategy to properly target different customers in different market segments. There
are STP refers three stages of marketing called; segmentation, targeting and positioning, in
which these all stages of STP model has been discussed below;
Segmentation
This is the first stage within the STP model where marketing team of Iceland should
divide its whole market large market into small market segments (Palacios-Marqués and et.al.,
2019). There is market segmentation is very necessary step, because by diving large market in to
small market segment Iceland can easily know actual demand of different customer within
market. In this segmentation stage, marketing team should divide its customers also only the
basis of customers’ income status, ethnicity, religion, interest, attitude etc. By conducting these
steps, Iceland will be able to fulfil actual demand of customers within various market segments.

Targeting
Targeting is next stage in the STP model after segmentation. In this stage, marketing
team of Iceland should target people according to their income status, ethnicity, interest, attitude
in various market segments. For example; most of the people are come from high income group
in a market segment. In this situation, company should try to offer its premium range of product
in that market segment, because people who comes from high income group can easily afford
premium products and services in the market. That’s why targeting is another productive stage in
the STP model.
Positioning
Positioning is the final stage in within STP model where Iceland should boost its product
distribution channel in different market segments. On the other side, marketing team will need to
be highly active in its job role, because this is the stage where team is responsible to run different
marketing campaign in selected market segments for positively influencing people (Punjaisri and
Wilson, 2017). There are upper management should try to deliver its products and services to
customers on time in various market segments. There are marketing team need to run some
informative advertisements on different productive platforms, like; television, newspaper, radio
etc. The main objective of marketing team in this stage is to attract lots of new customers
towards own brand.
7 Ps of Marketing Mix
7Ps of marketing mix is one of the major marketing strategies which has used by many of
businesses or companies in the market. That’s why marketing team at Iceland should also
involve this effective marketing strategy in its marketing plan. Basically, there are seven
elements includes in 7Ps of marketing mix strategy which can guide to Iceland for gaining large
market share in the UK’s food retail industry. These seven elements of this strategy has been
discussed below;
Product: Top-level management of Iceland mainly believes in maintaining excellent quality of
its products and services. According to management, most customers in the market are only like
to purchase good quality and fresh food items in the market, that’s why Iceland always provide

them fresh food items (Polonsky, 2017). Basically, this is the main reason that, currently Iceland
has very large customer base within the UK’s food retail industry.
Price: Iceland food ltd. mainly uses value based pricing strategy for setting price for its different
products and services. Sometime company uses competitive pricing strategy also for providing
its various food products o customers on very favourable and customer friendly prices. A person
who come from low income group also can easily afford many food products of Iceland. There is
value based strategy give opportunity to company for selling its products on the basis of that
their market value. For example; company always sells its premium range of food products high
price.
Place: Currently the United Kingdom’s whole food retail industry is the man market place for
this company. Of course, recently top-level management of Iceland has decided to expand its
business operations internationally, but existing market place of the company is only its home
country UK. Iceland has succeeded in expanding its business operations in across the United
Kingdom. Basically, UK’s food retail industry is very big, so Iceland still has great opportunity
to earn huge profit in its existing market place (Najafi-Tavani, Sharifi and Najafi-Tavani, 2016).
The company should focus on providing quality product, because this step will contribute in it’s
all over growth.
Promotion: The marketing team of Iceland always runs many productive marketing campaigns
in various market segments for promoting its products and services at the large scale. But team
still needs to be more active in its role, because marketing teams of Iceland’s competitor are also
becoming more and more productive day by day. In this situation, if marketing team at Iceland
develop some effective marketing strategies, then Iceland can gain huge competitive advantage
in the market. Reason is, effective marketing strategies will give opportunity to Iceland for
boosting its sales ratio.
People: The management has already maintained an effective relationship those all people who
has linked with Iceland, like; employees, customers, suppliers etc. Basically, these are some
major stakeholders also of Iceland. In this situation, currently Iceland can easily gain large
market share within the UK’s retail industry, because it has an effective relationship with its
customers.

Process: Iceland food ltd has an extra-ordinary supply chain aim within the United Kingdom’s
food retail industry, so it can easily run product distribution processes. The company need to use
some modern business techniques for more improving its existing supply chain (Pooler, 2018).
Reason is, Iceland will be able to properly deliver its food products with the support of well-
improved supply chain.
Physical evidence: Top-level management should highly consider physical evidence element of
marketing mix strategy in its business environment. According to physical evidence element,
existing staff or employees within Iceland’s stores or supermarkets should give proper help to
customers when they visit in Iceland’s stores and supermarkets.
CONCLUSION
It can be concluded that Iceland food ltd should completely implement this marketing
plan in its business environment. Currently the company has great opportunity to take huge
advantages from existing marketing plan. Basically, this marketing plan has involved some
productive marketing strategies which can support to company for gaining huge market share
within the UK’s retail industry. Marketing team need to properly implementing various
marketing strategies in its daily operations to high gain competitive advantage in the market.

REFERENCES
Books & Journals
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discipline. In How to Get Published in the Best Marketing Journals. Edward Elgar
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Mouzas, S. and Ford, D., 2018. The mediating role of consent in business marketing. Industrial
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Najafi-Tavani, S., Sharifi, H. and Najafi-Tavani, Z., 2016. Market orientation, marketing
capability, and new product performance: The moderating role of absorptive
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Palacios-Marqués, D., and et.al., 2019. Social entrepreneurship and organizational performance:
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Polonsky, M. J., 2017. The role of corporate social marketing. Journal of Social Marketing.
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