MKT2201: Marketing Plan for Lee Valley Tools - Report

This report provides a comprehensive marketing analysis for Lee Valley Tools, focusing on the potential launch of a rotary sharpening tool. It begins with an executive summary outlining the report's objectives and conclusions. The report then delves into the internal and external marketing environments, including a SWOT analysis and an examination of competitive factors. It explores the sources of competitive advantage, evaluating them through VRIO analysis, and discusses the consumer buying decision process. The report also details segmentation, targeting, and positioning strategies, proposes a plan for corporate social responsibility (CSR), and addresses customer relationship management and marketing mix strategies. The conclusion summarizes the key findings and recommendations, emphasizing the importance of effective marketing strategies for product success. The assignment is a student report for the MKT2201 course, demonstrating an understanding of marketing principles and their application to a real-world business scenario.

Running head: MARKETING AND MANAGEMENT
Marketing and management
Name of the student
Name of the university
Author note

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Executive summary
The aim of this report is to discuss about the marketing strategy to be initiated by Lee Valley
Tools for their new product in the market. This report proposed that they should come up
with rotary sharpening tool in the market to cater to larger and different customer segments.
In view to this proposal, this report discussed about number of marketing strategies such as
segmentation, targeting and marketing mix strategies. It is concluded that effective
implementation of these strategies will help Lee valley Tools to push their sales of rotary
sharpening tools in the market.

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Table of Contents
Introduction................................................................................................................................3
Evaluation of the internal marketing environment.....................................................................4
Evaluation of the external marketing environment....................................................................5
Cost leadership strategy.........................................................................................................7
Production differentiation strategy.........................................................................................8
VRIO analysis............................................................................................................................8
Consumer buying decision process............................................................................................9
Impacts of the influence.......................................................................................................10
Segmentation strategy..............................................................................................................10
Targeting strategy.....................................................................................................................11
Positioning strategy..................................................................................................................11
Proposed plan for CSR.............................................................................................................11
Customer relationship management.........................................................................................12
Marketing mix strategies..........................................................................................................12
Conclusion................................................................................................................................13
Reference..................................................................................................................................14

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Introduction
Contemporary business organizations should have to initiate effective and distinctive
marketing and business strategies in order to push the sales of their new products and to stay
ahead in the competition. However, in order to have the scope for effective marketing
strategies, it is also important for them to have the clear understanding about the market
where they are operating (Borland & Lindgreen, 2013). The more efficient they will be able
to determine and analyse the business environment, the more benefits they will gain in
offering products according to the market requirements. In addition, it should also be noted
that extending the business or product line is also important for the business organizations to
extend their market coverage.
Lee Valley Tools are one of the leading tool manufacturers in Canada. They
specialize in domestic gardening tools and woodworking tools. Lee Valley Tools were set up
in 1978 in Ontario, Canada by Leonard Lee (www.leevalley.co, 2018). Currently they mainly
cater to the domestic consumers but they are thinking of enhancing their business operation
and enter in other related sector in becoming a fully-fledged manufacturing company. They
are having the requirement of a product that will be related to their current product line and
that will be the within the same business line. It is suggested that Lee Valley Tools should
launch rotary sharpening tool. Currently they are not having this product in their product
portfolio and this product will help them to extend their product line by means of
complementing their current products.
This report will discuss about the internal and external business environment that will
influence the business activities of the new product. Influence of customer decision making
elements will also be discussed as well as the source of the competitive advantages.

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Marketing strategies for the new product include segmentation strategy and marketing mix
will also be evaluated.
Evaluation of the internal marketing environment
Strengths  Currently, they are having expertise in selling and marketing the
gardening tools. Thus, the new tool is also in same sector and they
are having the expertise to push the new product also.
 Lee Valley Tools is already highly penetrated in the Canadian
market with the current products and thus it will be easier to push
the sales of the new product also (Spann, Fischer & Tellis, 2014).
 Offering rotary sharpening tool will help them to assist their
existing customers by offering the option of sharpening the
gardening tools.
Weaknesses  There are number of existing and established players offering
sharpening tools in the market. They are having more expertise in
this product (Velamuri et al., 2013).
 Lee Valley Tools are having market only in Canada and thus they
will have limited market opportunities.
 Lee Valley Tools will require added investments for their new
product development. This may have impact on their financial
performance.
Opportunities  Extension of the product line will help Lee Valley Tools to cover
more market and customers.
 Canadian economy as well as the global economy is developing

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and thus the business opportunities will be more for Lee Valley
Tools (Van den Berg, 2016).
 Offering sharpening tools will help in catering to both domestic
and industrial customers.
Threats  Presence of established competitors in the market will reduce the
profitability of Lee Valley Tools.
 Introduction of more sophisticated and sustainable products in the
market will reduce the potentiality.
 Economic recession is another major threat due to the reason that
emergence of economic recession will reduce the market
opportunities (Cowling et al., 2015).
Evaluation of the external marketing environment
Competition  Intensity of competition will be more for Lee Valley Tools
due to the presence of number of already established players
in the market.
 Rotary sharpening tools are having number of variants
depending on their size and utility. Existing players are
offering large number of variants (Shahin & Azar, 2013).
 It is recommended that Lee valley Tools should offer their
products with high level of point of differences.
 Product differentiation will be the key source of competency

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for Lee Valley Tools.
Regulatory  There are number of regulations and legal standards should
have to be maintained by Lee Valley Tools in adding new
products in their portfolio.
 In addition, they also have to adhere to the safety standards
due to the reason that target market will be the end customers
(Baldwin & Yan, 2014).
 It may get difficult for Lee Valley Tools to get adhered to the
regulations.
Economic  Economic condition is better and favorable for Lee Valley
Tools due to the reason that Canada is having positive growth
of their economy.
 However, it should also be noted that Canada is having
highly globalized economy and thus the risk of impact of
global recession is more for Lee Valley Tools (Panayotou,
2016).
 It will also be a risky affair for Lee Valley Tools to invest in
developing new product and probable return on investments.
Social  Market for personal gardening tools is favorable in Canada.
Thus, the potentiality of the rotary sharpening tool will be
more due to the reason that requirement for sharpening the
personal gardening tools is there in the Canadian market.
 However, the preference pattern of the customer will get
changed with the introduction of more updated products in

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the market. Thus it may be one of the major risks for Lee
Valley Tools.
 Offering of more variants of sharpening tools will help Lee
Valley Tools to cater to different customer requirements.
Technological  Lee Valley Tools are new in this sector and thus they will
have less access to the latest technology.
 Huge investments are required for Lee Valley Tools to get at
par with their global competitors.
 Technology is rapidly changing and it is important for Lee
Valley Tools to frequently update their products.
Sources of competitive advantages
It is important for Lee Valley Tools to identify the sources for gaining of competitive
advantages. This is due to the reason that competitive advantages will only be able to help
Lee Valley Tools to push the sales of their new product in the market. This will be
determined with the help of Porter’s generic strategies.
Cost leadership strategy
Cost leadership strategy refers to offering products in the market at lowest price
available. Thus, initiation of cost leadership strategy will help the business organizations to
attract more customers over their competitors (Kaliappen & Hilman, 2013). It is
recommended that Lee Valley Tools should also initiate the cost leadership strategy in order
to offer the products in the lowest price in the market. It is also being recommended that in
order to have cost leadership in the market, Lee Valley Tools should opt for lean

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manufacturing in order to have lower average cost of production. In addition, increased of
automated system will also enable Lee Valley Tools to have lower cost of production.
Production differentiation strategy
It is recommended that Lee Valley Tools should also initiate product differentiation
strategy. This refers to the offering of products in the market with more unique and
distinctive features and attributes. Therefore, the more will be the distinctive features of the
product, the more will be the point of differentiation for Lee Valley Tools (Becerra, Santalo
& Silva, 2013). For instance, they can offer rotary sharpening tools with more portability and
battery power. This will enhance the convenience for the customers.
VRIO analysis
VRIO analysis will be used to evaluate the sustainability of the sources of competitive
advantages (Knott, 2015).
Valuable  Reducing the production cost will increase the
profitability and organizational value.
 Offering differentiated products will help to create more
value for the customers along with the increase in the
value for the organization by the means of increased
market growth (Bondarenko et al., 2017).
Rarity  Strategies to be initiated by Lee Valley Tools in reducing
the production cost will be unique. Skills of the
employees will help in initiating lean production process
(Bhamu & Singh Sangwan, 2014). Distinctive skills of
the employees are rare in nature.

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 Product differentiation by means offering unique
products will also be rare and will not be available to the
rivals.
Imitable  Skills of the employees can be imitated by the competing
firms.
 Distinctive features to be used in the product will be
patented and cannot be imitated.
Organizational
structure
 Lee Valley Tools are having facilities and expertise in
manufacturing gardening and woodworking tools. Thus,
they will able to use their expertise in manufacturing of
rotary sharpening tools also.
 They have the favorable idea about the Canadian market
and it will help them to offer product according to the
local specification.
Consumer buying decision process
There are number of steps being involved in consumer buying decision process. The
first step is need recognition that refers to requirement of the customers to buy a certain
product (Karimi, Papamichail & Holland, 2015). The target customers for Lee Valley Tools
will be the customers with having the requirement of portable and personal sharpening tool
for their gardening tools. The next step is the search for information. As Lee Valley Tools is
the new entrant in this sector, thus the chance for internal search is less and customers will
have to focus more on the external search. Thus, it is recommended that Lee Valley Tools

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should have extensive policies of promotion and advertisements in order to enable the
customers to have more awareness about their products (Ke, Shen & Villas-Boas, 2016). The
next is the evaluation of alternatives. This step refers to the selection of the chosen product
from the available products based on the criteria of the customers. In this case, the point of
differences to be offered by Lee Valley Tools will determine the preferences of the
customers.
The next step is the purchase decision. Customers will purchase a certain product only
if their requirements are being met effectively (Sallam, 2014). Thus, it is suggested that Lee
Valley Tools should offer their products according to the requirements of their target
customers. In addition, it is also suggested that they should initiate the continuous the process
of updating their product to deal with the change in taste and preference pattern of the
customers with time. The last step in the customer decision process is post purchase behavior.
Thus, Lee Valley Tools should have proper after sales service for their customers.
Impacts of the influence
One of the major influences of the customer decision making process is on the sales
of the products. Social factors is the major influential factor the customers. This is due to the
reason that if the customers are having the requirement or the market trend of using the
personal gardening tools then only the demand for rotary sharpening tools will be there in the
market (Rani, 2014). It is also to be noted that economic condition of the country will also be
a determining factor for Lee Valley Tools due to the reason that more favorable economic
condition will ensure more market potentiality of the products.
Segmentation strategy
It is suggested that they should initiate the mass market segmentation strategy for
their rotary sharpening tools. This is due to the reason that initiation of the mass market

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segmentation strategy will enable them to cover the maximum number of customer and
maximum market area. Moreover, sharpening tool is necessity product and not a luxury
product. Thus premium pricing strategy will not be viable enough for them (Craft & Hassan,
2015). In terms of the geographical segmentation, tier I cities should be targeted at the first
stage due to the reason that customers are having added purchasing power in the metro cities
to buy the rotary sharpening tool. In terms of the demographic segmentation, the age group
between 30 and 65 will be targeted due to the reason that adult professionals will have the
requirement due to their lack of time and older aged people will have the requirement due to
their inability to opt for external help in sharpening their gardening tools (Cross, Belich &
Rudelius, 2015).
Targeting strategy
Lee Valley Tools will initiate cost leadership and differentiation strategy in order to
cater to the target segments. The first phase of the targeting strategy will be gathering
feedback from the segmented set of customers in order to identify their preference and
requirement patterns (Tanwar, 2013). In accordance to that, generic strategies will be
initiated.
Positioning strategy
It is suggested that Lee Valley Tools should be position their sharpening tool as a
necessity item and as a complementary item for their gardening tools. This will help them to
attract the existing customers of them who are already using the gardening tools of them
(Akpoyomare, Adeosun & Ganiyu, 2013). This will also cater to the new customers who are
willing to have their own set of gardening tools. Thus, relating with the gardening tools will
ensure that rotary sharpening tool will be sold alongside with the existing products of Lee

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Valley Tools. This is also recommended that product differentiation will also help them to
offer distinctive value to the customers over their competitors.
Proposed plan for CSR
The CSR activities of Lee valley Tools should include free training of farming and
gardening. This will enable them to portray the utility of their new rotary sharpening tools
and how this can help the customers in enhancing their value. In addition, they can also offer
their new products as free to the rural areas in order to help the people in their job (Servaes &
Tamayo, 2013). On the other hand, this will help Lee Valley Tools in demonstrating the
advantages of using their rotary sharpening tools.
Customer relationship management
Point of sale and kiosk will be extensively used in order to gain customer data. This is
due to the reason that in the rural areas, web services will be less. Kiosk and physical point of
sale will help to gather the date directly from the customers (Khodakarami & Chan, 2014).
More offline mediums will be focused over the online medium in the rural areas. Customer
loyalty program will be initiated according to the customer data. This will help in providing
most effective service to the customers. Customer data will also be used in product
development due to the fact that the further product development will be initiated based on
the feedback gathered from the customers (Tseng & Wu, 2014).
Marketing mix strategies
Product  Proposed product is specialty product due to the fact that customers
will not buy daily and it will be for once.
 Core element of the product will be to provide portable and personal
sharpening tool.

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 Actual product is the tool provided.
 Augmented product will include the effectiveness of the after sales
service (Kim & Krishnan, 2015).
Price  Market penetration pricing strategy will be initiated.
 It will help to increase the volume of sales along with increase in
profitability (Liozu & Hinterhuber, 2013).
 Price will be the lowest compared to the competitors.
Promotion  Advertising, public relation and sales promotion will be the used in
promotional mix.
 Public relation will help to cater and communicate with the rural
market effectively (Nour & Almahirah, 2014).
Place  Retail channels will be used to cater to the end customers.
 More focus will be given on brick and mortar stores due to the fact
that it will have more effectiveness in the rural stores (Beck & Rygl,
2015).
Conclusion
This report concludes that offering the rotary sharpening tools will help Lee valley to
further increase their market share in the Canadian market. In this report, there are numbers
of marketing strategies being discussed that can help Lee Valley Tools in pushing the sales of
their new product in the market. This report concluded that the segmentation and targeting
strategies discussed will help Lee Valley Tools to effectively cater to the market.

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www.leevalley.co. (2018). Retrieved from https://www.leevalley.co