Marketing Principles Assignment Part 2: Report on Iceland Supermarket

This report provides a comprehensive analysis of marketing principles and their application to Iceland Supermarket. It begins with an introduction to marketing concepts, including the marketing process, and then delves into the benefits and costs of a marketing orientation for the supermarket. The report conducts a marketing audit, examining segmentation, targeting, and positioning strategies, including how Iceland Supermarket can market a single product to different segments. Part B of the report focuses on the marketing plan, explaining the 4Ps (Product, Price, Place, and Promotion) and the Ansoff matrix, along with product development, distribution, pricing, and promotional elements. The report also addresses the extended marketing mix, budget considerations, and concludes with an evaluation and references. The analysis covers various aspects of marketing, including buyer behavior, market coverage, and the development of separate marketing mixes for different market segments. This detailed examination of Iceland Supermarket's marketing strategies provides valuable insights into the company's approach to the market.

Marketing Principles
Assignment Part 2: Report
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Table of Contents
INTRODUCTION ...............................................................................................................................3
1 CONCEPT AND PROCESS OF MARKETING (LO 1.1)...............................................................3
2 EXPLANATION OF BENEFITS AND COSTS OF MARKETING ORIENTATION FOR
ICELAND SUPERMARKET (LO 1.2)...............................................................................................3
PART A : MARKETING AUDIT ........................................................................................................5
3 CONCEPTS OF SEGMENTATION/TARGETING/POSITIONING ..............................................5
2.2 One product that can be marketed to two different segments....................................................5
2.3 Market coverage strategy for selected product..........................................................................5
2.3 Defining target market for selected product..............................................................................5
2.4 Buyer behaviour affects marketing activities in different buying situations.............................5
2.5 Identification of positioning options for selected product ........................................................6
PART B: MARKETING PLAN ..........................................................................................................6
4 EXPLANATION OF 4 PS.................................................................................................................6
3.1 Ansoff matrix ............................................................................................................................6
3.1 Explanation of product development of the marketing mix......................................................6
3.2 Explanation of distribution element of the marketing mix........................................................7
3.3 Explanation of price element of the marketing mix..................................................................7
3.4 Explanation of promotional element of the marketing mix.......................................................8
4.1 Planning and recommendation separate marketing mixes for two different segment...............8
5 EXPLAIN AND ANALYSE EXTENDED MARKETING MIX (LO 3.5).....................................8
6 BUDGET ..........................................................................................................................................8
EVALUATION ....................................................................................................................................9
CONCLUSION ...................................................................................................................................9
REFERENCES...................................................................................................................................10
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INTRODUCTION
The present report describe element of marketing process which are benefits and cost of
marketing orientation. Research describes environmental analysis through two models. It introduces
the current market mix strategies, segmentation criteria, targeting techniques and positioning
method of method of the company (Beamish and Ashford, 2007). It also explains the competitive
strategies, firms network distribution system, pricing methods and promotional activities of
enterprise. Research also describes how they fulfil market objectives and market conditions through
various activities.
1 CONCEPT AND PROCESS OF MARKETING (LO 1.1)
Marketing can be defined as the process by which a company promotes, sells as well as
distributes a set of product and service offering. Marketing process is inclusive of the following
areas; Organization Objectives- Iceland Supermarket gives best quality products for the money.
Organization is applying huge efforts to solve customers problems regarding product
quality, queries, innovation and store facilities (Calkins, 2012). Market Audit -This Corporation has spread its business in 14 countries. This is the leading
company of Britain in retail sector. Organization uses social media like Facebook and
Twitter to interact with the customers. Currently, firm is offering price promise, fuel save
club card and coupons to attract consumers Market analysis- According to Iceland Supermarket report, company revealed 72 billion
pound sales globally in 2013. Company growth was 1.3 % higher than previous year. Firm
issued 19 million equity share of 0.05 p each in 2013. Corporation accounts 43 million
loyalty customers worldwide (Luther, 2011). SWOT analysis: SWOT is process to find out internal and external factors. This analysis
affects elements of the marketing process. Firm can remove its threats and weakness through
using this method.
 Strategies and Market objectives – This point can be linked with organization objectives.
Company applies all efforts in term of achieving marketing goal and mission. Firm sets
strategies after setting of goal and mission (Baker and Holt, 2004).
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2 EXPLANATION OF BENEFITS AND COSTS OF MARKETING
ORIENTATION FOR ICELAND SUPERMARKET (LO 1.2)
Marketing orientation is a business model emphasizing on developing the goods and
services as per the end users requirements. There are four types of marketing orientation:
production, product, sales and marketing. Under production marketing orientation concept, the
manufacturing of the products are taking place without considering the service users needs and
desires and focused on mass production (Kasi, 2016). On the other hand, in product marketing
orientation concept, companies are emphasizing on improving the quality of the products rather
then increase the volume of production. Behind adopting the following framework is consumer are
buying those goods which are in good quality, attractive features and durable. In sales concept,
firms have focused on increase profits by putting more efforts on sales and distribution of the
commodities (Seun, 2013). Similarly, under marketing concept, companies are considering the
needs and wants of the customers at the time of developing the products and services rather than
emphasizing on making profit.
Explain benefits and downsides of a marketing orientation for Iceland Supermarket
Benefits of marketing Orientation Responding to demand- Market orientation oblige the firm to think about the need of
customer and which type of product he wants. This research helps the organization to
forecast on product trends and consumer needs regarding product (Stephenson, 2005). Competitive advantages-If Iceland Supermarket has huge knowledge about their customers
then it can take good competitive advantages. So Organization purchases their products
according to customer’s requirement. So this thing greatly helps enterprise to increase
consumer’s frequency. Customers will repurchase the product again and again Increased sales growth – Market orientation helps the organisation to increase sales growth.
Company sales growth is increasing globally like Asia, Europe and U.S.A. Sales of firm was
increased by 0.3 percent in UK since February 2014 (Strauss, 2010).
Downsides of marketing orientation
Marketing orientation results in many costs for Iceland Supermarket. Enterprise uses many
marketing orientation programs. Company conducts extensive market research because firm needs
higher intelligence data to respond customer’s queries but this type research is very costly for the
firm (Caemmerer, 2009). Corporation has to implement latest IT technology to interact with the
customers. Company has to recruit more IT experts to take care of IT equipment. Enterprise has to
conduct training for its employees which leads to higher cost.
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PART A : MARKETING AUDIT
3 CONCEPTS OF SEGMENTATION/TARGETING/POSITIONING
2.2 One product that can be marketed to two different segments
Iceland Supermarket carpet cleaner can be marketed in two different segments being
Demographic segmentation where income can be taken as the criteria. Organization can consider
middle and elite class consumers for this product. Company should then adopt promotional and
advertisement strategies (Dibb, Farhangmehr and Simkin, 2001). In psycographic segmentation,
firm can focus on knowing changing behaviour of customers, their needs, life style, attitude and
trends. According the Iceland Supermarket carpet cleaner can be launched.
2.3 Market coverage strategy for selected product
Iceland Supermarket to launch its carpet cleaner can make use of differentiated targeting
Strategy because there are many segmentation to cover the target markets. Here, it can target every
segment there like every income group, gender and age. First company has to conduct research on
changing needs of customers, lifestyle, trend, perception of people (Fillis, 2010). Then after,
company can use this research in new product development. Enterprise can launch its new products
India.
2.3 Defining target market for selected product
The target market chosen for the strategy is female segment who are working as well as non
working.
2.4 Buyer behaviour affects marketing activities in different buying situations
Customer buying behaviour is demonstrated by buying process model Need recognition – one want to purchase carpet cleaner from Iceland Supermarket. He
searches out which type of carpet cleaner he wants (Harris, 2002). Information Search and evaluation of Alternatives - After recognition of need, company can
move towards information search of carpet cleaner. What is price of that kind, how much
discounts is running in different companies, how much organisation produces this type of
carpet cleaner and which is best organisation in term of quality purpose etc information can
be collected in product research (Beamish and Ashford, 2007). Purchase- After evaluation of alternatives, now a person takes final decision which type of
carpet cleaner he should purchase. Which type of carpet cleaner is best for use.
 Post purchase behaviour- In post purchase behaviour person gives review about carpet
cleaner performance, Aesthetics, reliability. He does self-analysis whether purchase decision
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is right or wrong.
2.5 Identification of positioning options for selected product
Iceland Supermarket uses many positioning techniques like functional, symbolic, price and
experimental positioning in the market to attract the customers. Company uses positioning
techniques to create firm image in customers mind (Calkins, 2012). Organization uses functional
positioning to target premium class customers. It just sales high range products and services which
is best in quality. Iceland Supermarket while entering into the Indian market can club up symbolic,
price and experimental positioning into one positioning technique. Reason is that rest three
positioning techniques targeting elite, middle, and lower class customers because many times lower
and middle class customers think about value, brand and health issues (Luther, 2011). Firm should
introduce new scheme for middle and lower class customers like discount on products and EMI
scheme without interest so that these classes can purchase value products. So Iceland Supermarket
sales and turnover can increase through these activities. Enterprise can attain good profits. It can
improve its market performance (Baker and Holt, 2004).
PART B: MARKETING PLAN
4 EXPLANATION OF 4 PS
3.1 Ansoff matrix
Ansoff matrix has delivered a simple and quick way of thinking to the organizations about
best possible risks of growth in a business. It is sometime called product/market expansion
framework. It has four quadrant: market development, diversification, market penetration and
product development (Stephenson, 2005). The best possible strategy for Iceland Supermarket is
market penetration because here firm is seeking to gain growth with the help of current product in
two different segments as well as increase market share. The reason of suggesting the following
strategy for the company is it will the firm to develop new marketing tactics to attracting more and
more consumers to chose carpet cleaner product. With the help of this, Iceland Supermarket well
able to collect good information about end users needs and competitors new strategies and plans
(Strauss, 2010). By doing this, organization will increase the sales of the existing product in the two
different segments demographic and psycho-graphic via more effective promotions and distribution
activities.
3.1 Explanation of product development of the marketing mix
Iceland Supermarket has introduced its new product carpet cleaner in two different
segments: demographic and psycho-graphic. Development of this product will help the company to
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sustain competitive advantages (Caemmerer, 2009). A systematic process will be follow during
evolution of new good and it will contain different stages such as problem analysis, idea generation,
assessment of those options, selection of appropriate idea, development of prototype and its testing,
market analysis, final product development, test marketing, commercialization and launching. At
the time of development of new product i.e. is carpet cleaner, different things will be considered
such as attractive design of cleaner model, high durability and good in performance (Dibb,
Farhangmehr and Simkin, 2001). Along with this different features like adjustable height, dusting
brush etc, good packaging style so that the chance of damaging of carpet cleaner can be minimized
etc will be included during development of new product.
3.2 Explanation of distribution element of the marketing mix
Distribution of the goods must be always conduct by considering customer convenience.
Iceland Supermarket can take decisions with respect to distribution channels so that the developed
goods can easily available in proper quantities on those places where consumers can shop it (Sujai,
2010). There are two options available in front of Iceland Supermarket: direct and indirect
distribution. The most appropriate distribution method for the organization is direct because it will
help the company to directly deliver the goods at the place of customers. Along with this, by
opening the different outlets that are easily approachable for the service users, the effective
distribution of new carpet cleaner can be made (Fillis, 2010). It will give competitive advantages to
Iceland Supermarket because it will reduce the extra expenses on distribution.
3.3 Explanation of price element of the marketing mix
Pricing is one of the important factor for all types of organizations who are wishing to meet
the success on the basis of pricing of the goods. In the case of new carpet cleaner product of Iceland
Supermarket, there are two pricing strategies: skimming and penetration pricing. In skimming
pricing tactic, at initial level, company is charging high prices and market is dividing according into
segments on the basis of elasticity of demand. On the other hand, in penetration pricing,
organization is charging low prices for new product with the help of increase sales, capture more
market share, achieve economic of sales etc (Chand, 2016). From the market research, it has been
found that Iceland Supermarket is having good brand image in the market. The appropriate pricing
strategy for firm for new product is penetration pricing strategy. The reason of suggesting the
following tactic is it will able the company to increase the awareness between the females regarding
use and benefits of carpet cleaner (Harris, 2002). Along with this, it will raise market share, gain
competitive advantages, increase market share etc.
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3.4 Explanation of promotional element of the marketing mix
For promoting the new product of Iceland Supermarket, different promotional strategies can
be adopted. First tactic in this direction is personal selling where the sales representative of
company can visit the customer place and meet with them face to face (Beamish and Ashford,
2007). With the help of this, the sellers can easily promote carpet cleaner by their appearance,
attitude and features of the products. On the other hand, advertisement can be adopted by Iceland
Supermarket where it can use digital and traditional advertisement techniques to promote the new
product between the target market (Calkins, 2012). In this context, by using direct marketing
method, company can directly communicate with the customers via messaging, websites, catalogue
distribution, promotional letters, emails, email newsletters etc.
4.1 Planning and recommendation separate marketing mixes for two different segment
Marketing mix Demographic segmentation Psycho-graphic segmentation
Product Carpet Cleaner Carpet Cleaner
Prices $ 20 to $30 $ 25 to $ 40
Place Malls and shops Malls and shops
Promotion TV, radio, newspapers, fairs etc. Ad films, internet, social media etc.
5 EXPLAIN AND ANALYSE EXTENDED MARKETING MIX (LO 3.5)
The extended marketing mix rather than 4P's are people, process and physical evidence.
Iceland Supermarket has needed to considering the extended marketing mix during developing
separate marketing mixes for two different segments. In this context, company has to recruit and
train the employees about new carpet cleaner product so that these people can easily explain the
benefits of new product to the customers (Johnson, 2014). Beside this, at the time of explaining the
features of new product, sales representatives of Iceland Supermarket has to provide the physical
evidence of carpet cleaner and show its working. On the other hand, organization has to develop a
process where it can be easy to handle the customers complains, solving their queries etc.
6 BUDGET
The advertisement plan for promoting of new carpet cleaner product of Iceland Supermarket
is as follows.
Set up of goals: The aim of advertisement plan is creating the awareness in the females regarding
the use of carpet cleaner as well as increase market share by increasing sales.
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Outline of advertisement plan: Here, marketing team of Iceland Supermarket will develop an
outline for promoting the new product by creating tag line and including features of carpet cleaner.
Target: The target segmentation will be decide and these will be demographic and psycho-graphic.
Location for promotion of new product will also be select. Along with this, the age, interest and
other things will be taken into the consideration (Duval, 2013).
Define budget and time line: Budget of advertisement plan will about to $3000 and time duration
of completing the plan will be approximate 6 months.
EVALUATION
The existing marketing planning of Iceland supermarket has delivered several benefits to the
company such as effective allocation of scarce resources, provide a base of assessment of actual
outcome, effectively promote the business, increase profit ratio etc. But, the existing marketing plan
of Iceland Supermarket is it is more time consuming, dynamic changes in market leads to hard to
take forecast the sales of services etc. To overcome the weaknesses of marketing planning, company
needs to review the plan once more time and try to determine loopholes which might affected the
action plan in neat future.
CONCLUSION
From the above research, it can be concluded that the effective strategy for Iceland
Supermarket has market penetration. The different marketing mix has helped company to gain
sustainable competitive advantages in the competitive marketplace. With the use of penetration
pricing, organization has increase its market share and raise profitability. The effective
advertisement plan has assisted Iceland Supermarket to promote new carpet cleaner product in
demographic and psycho-graphic segment in appropriate manner.
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REFERENCES
Books and Journals
Baker, S. and Holt, S., 2004. Making marketers accountable:a failure of marketing education?.
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Beamish, K. and Ashford, R., 2007. Marketing Planning 2007-2008. Routledge.
Caemmerer, B., 2009. The planning and implementation of integrated marketing communications.
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Calkins, T., 2012. Breakthrough Marketing Plans: How to Stop Wasting Time and Start Driving
Growth. Macmillan.
Dibb, S., Farhangmehr, M. and Simkin, L, 2001. The marketing planning experience: a UK and
Portuguese comparison. Marketing Intelligence & Planning. 19(6). pp.409 – 417.
Fillis, I., 2010. The art of the entrepreneurial marketer. Journal of Research in Marketing and
Entrepreneurship. 12(2). pp.87 – 107.
Harris, P., 2002. Marketing Plans: How to Prepare Them, How to Use Them (4th ed.). European
Business Review. 14(3). pp.230 – 230.
Luther, W., 2011. The Marketing Plan: How to Prepare and Implement it. AMACOM Div
American Mgmt Assn.
Stephenson, R., 2005. Marketing Planning for Financial Services. Gower Publishing, Ltd.
Strauss, R., 2010. Marketing Planning by Design: Systematic Planning for Successful Marketing
Strategy. John Wiley & Sons.
Online
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