Marketing Management Report: Analysis of Next PLC's Strategies

This report offers a comprehensive analysis of Next PLC's marketing strategies. It begins with an introduction to marketing management and its application in the context of Next PLC, a multinational retailer of clothing, footwear, and home products. The report delves into market segmentation, detailing how Next PLC identifies and targets its customer base, including strategies for men, women, and various age groups. It explores the importance of understanding customer needs and developing subgroups within the target market. Furthermore, the report examines Next PLC's internal and external environments, utilizing the TOWS matrix to assess strengths, weaknesses, opportunities, and threats. It outlines various strategic approaches, such as SO, WO, ST, and WT strategies, to leverage internal capabilities and address external factors. The report also discusses the opportunities available to Next PLC, such as establishing franchise stores in new regions, and analyzes the marketing mix elements (product, price, and place) essential for successful market entry. The report concludes with a detailed framework for constructing a TOWS matrix for Next PLC, providing a strategic roadmap for future marketing operations.

MARKETING
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
1........................................................................................................................................................4
2........................................................................................................................................................6
3........................................................................................................................................................8
4......................................................................................................................................................10
CONCLUSION..............................................................................................................................12

INTRODUCTION
A mechanism or an application devised for tracing, tracking, and overseeing an
organization's marketing resources. The concept is related with implementing, planning and
governing the sessions organised to carry out the required trade with the consumers with a
motive of attaining the corporation's goals (Homburg, Kuester and Krohmer, 2013). The concept
of management is also related with the chalking out of a specific session, after the forecasting
and careful analysis of the executed plans to attain the objectives of the firm and the market
conditions (Applegate and Johnsen, 2007). The present scenario is focused on the analysis done
on Next Plc which is a well established multinational brand image in the world of footwear and
home products, clothing and footwear with a mission statement is of meeting the desires of
consumers by providing exciting and excellent quality clothing, beautifully designed, foot ware,
accessories and home ware. And its responsibility and an obligation to work to reduce the direct
impact of its business operations on the natural environment are recognised, both now and in the
future. The below presented report analyses the study on market segmentation which is to be
adopted by Next Plc for their future marketing operations. Further an audit is to be conducted on
the internal and external environment and also TOWS matrix is used to demonstrate the current
marketing situations of the organization.
Illustration 1: Marketing Management
(Source: Marketing management, 2016)
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Market segmentation is a process of subdividing and defining a large homogeneous
market into clearly identifiable distribution having similar needs demands or components. The
main motive is to develop a marketing mix that accurately matches the desires of the customers
in the targeted segment (Chandrasekar, 2010). This concept is concerned with the strategy
product differentiation which will give a firm a temporary commercial advantage. The most of
the market segmentation techniques are utilised to attract the right customers. The below
mentioned analysis is focused on the above specified concept which is used by Next PLC for
developing and enhancing its marketing strategies:
Identify the target market.
The initial step of the process is the identification of the selected or the specified market
segment. The marketers of Next PLC need to well verse with this so that target market can be
identified in effectual manner. The selected portion of the consumers should be so chosen so that
they should have something common in them. For example, male and female need to be separate
in different segment as both possess varied set of demands and desires (Glynn and Woodside,
2012). As the company is retailer of clothing and footwear, it is a mandatory task for the
marketing team to develop different segmentation strategies for the various sections such age,
gender etc.
Next PLC focuses on mass marketing for the purpose of promoting its formal apparels. In
this context, following approach is considered by the company:
 For Men: Set of premium brands shirts and trousers. For Women: Formal skirts, pants, tunics, shirts, jackets and blazers.
Identification of the desires of target audience.
Once the target market is determined, it is required to assess the needs and satisfaction
level of customers so that product can be developed according to it. Next PLC have developed a
team of experts who are focused in meeting the expectations of the customers (Aime and et. al.,
2010). By the interaction with the target audience regularly will enable the team members to
acknowledge the actual requirement of the customers.
Developing subgroups.
It is required to ensure that target market should be well defined so that subgroups can be
developed from it. This aids in gaining high revenue from the market.
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 Varied categories are available in Footwear for women
 High heels, baileys and sandal are available for the customers range from 21 to 35 years
 Sports ware, casual shoes and flats for the segment from 16-21.
Reviewing the need of Target Audience
It is essential for seller to assess the mind-set and requirement of individuals of different
segments. Consumers with specific background respond similarly and hence similar marketing
tactics need to be developed (Bontis and Serenko, 2009).
Name your market segments
A proper name should be given to each segment as this will make the process easy of
implementing the strategies. For instance, kids section includes different head such as new born,
infant, toddlers, etc.
Marketing strategies
Next PLC has developed varies set of tactics for promoting brands among several market
segments. It is not possible to follow same set of strategies for every segment and there must be
connection among products and the customers. For example a male model can’t be used to
promote the foot wares for women.
Review the behaviour
Target customers must be reviewed regularly in order to make necessary corrections in
the process (Elanain, 2009). Perceptions change, Demands vary and interests vary, therefore
company need to conduct study on target audience.
Size of the target market.
The company need to assess the size of the target market and also collect relevant
information for the same as it assist conducting planning for sales and forecasting.
The following is the evaluation of demographic segmentation which Next PLC should
target in their future marketing operations:
Gender: Men and women can be target market for Next PLC but one gender portrays
larger market share. For instance the organization can focus on females and can develop products
accordingly (Isaac, Herremans and Kline, 2009).
Income level: While planning the pricing policies the entity considers the income level of
the target market. For example some of the designers of Next PLC should create affordable
clothing ranges.
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Age: This segment plays an integral part with context to marketing of products at online
and offline space. Company need to incorporate change in price and must also offer varies colour
option while segmenting on the basis of age. For example Next PLC should release a range of
casual apparels for all the age sections at an affordable price.
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The business must have awareness in marketplace and it must neither self-sufficient nor
self-contained. In the further analysis of Next PLC's external environment is termed as every
forces that affects the business operation and influence the business activity (Lawler, 2009).
Organizations that take inputs from the macro environment usually transform goods and services
and sent it back to market for further use. Contrary, internal environment involves the factors
that affect the behaviour and operational capabilities of the firm. It is within the control of
business entity. The following is the explanation of TOWS matrix for Next PLC groups current
market situation:-
TOWS Matrix.
This concept involves same basic concept of listing the internal environment of an
organization but with a TOWS analysis, threats and opportunities are been evaluated primary and
then emphasize is laid on strength and weakness. This matrix helps managers in assessing both
internal and external forces of organization through which appropriate actions can be
incorporated (Maurer and Lippstreu, 2009). Next PLC should consider TOWS analysis as a
significant mechanism if the formulation of strategies. The Strengths and weakness are the
internal factors of the organization which can be altered as per the business tactics. Contrary to
this, opportunities and threats which are beyond the control of company and it include factors
like competition, change in demand, shift in taste and preference and other related. The below
are the four main kinds of the strategies which are to be developed by the making the use of this
matrix:
SO strategies (Strengths-Opportunities)
Business firm focuses on attaining advantages from resources and it is possible only by
utilizing the potential strength for addressing the opportunities. An opportunity through resources
for Next PLC can be developed from the organizations internal strength which is present in the
form asset (Wang, He and Mahoney, 2009). For instance when Next PLC has a sound financial
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condition, it will be its strength and which can be utilised to avail the opportunity of increasing
the business exponentially. This is been termed as SO strategy.
WO strategies (Weakness-Opportunities)
It is a pair that incorporates weaknesses and outer opportunities which can affect the
business operation of Next PLC. WO strategy can be proved useful for Next PLC when the
organization will try balance its internal weakness with the help of external opportunities (Bolton
and et. al., 2014). For example when the organization have severe financial crisis then it became
weakness which can be dealt through merger from any multinational corporation.
ST strategies (Strengths-Threats)
The effective ST strategies helps the organization to overcome from the external threats.
However, it is not necessary that a business faces threat on regular basis. In this context, cited
company focuses on ST strategy through developing new branches for the purpose of
overcoming competitive threat.
WT strategies (Weakness-Threats)
Every organization have a desire to overcome its weakness and to reduce threats. For
removing the weakness Next PLC can apply WT strategy in order to beat with external threats.
For instance, when the business faces issues related to distribution channel that it affects the
overall operations of company (Dixon and et. al., 2014). By making strong enough the
distribution network, varied set external problems can be rectified within the organization.
The below mentioned are the steps which are utilized in constructing TOWS matrix for
Next PLC:
 Ranking of opportunities.
 Ranking of external threats and internal strengths.
 Ranking of internal weakness.
 Making relationship among strength and external opportunities and then recording the
result of SO strategies.
 Making relationship with opportunities and weakness and recording the results in WO
strategies.
 Dealing with strength and threat and recording the results in ST strategies.
 Developing relationship with external threats with that of weakness and recording the
results in WT strategies.
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With the help of external opportunities an organisation is provided with a means to
improve its potential and competitive advantage in a market environment. Some opportunities
can be expected such as being able to establish a franchise store into new region. Establishing its
branches, outlets and franchised stores can be considered as an opportunity and competitors for
Next PLC which is explained further:
Establishing franchise into new cities (Opportunity).
The organization can take this concept as an opportunity for an enhancement and
improvement in the productivity in the business activities and overall development of the
corporation (Gummesson, Kuusela and Närvänen, 2014). For setting up the business in a new
region the company will have to undertake many type of marketing mix activities which are are
as follows:
Product As Next PLC will be establishing its branches in new cities it must ensure
itself that it must well verse with the products that exist in the market.
At the phase of product development, the marketers of the organization will
conduct in-depth research over the lifecycle of products so that they will be
able to launch a product in the markets of the new region (Klaus and et. al.,
2014).
The organization will maintain wide range of quality products and services to
address individuals needs and demands of consumers.
Price Next PLC groups marketers should consider this concept as a crucial point
while developing the strategies for establishment of products in new market,
as price of the product have a great impact on the entire marketing strategy
and also influences the sales and demand of the product (Payne and Frow,
2014).
The marketers of the organization can use Penetrating pricing policy to settle
their footsteps inn the new market.
In this strategy the company will offer good quality of products at an
affordable range.
Place Next PLC should have a deep understanding regarding the new target market.
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Through this, company can be able to reach to utmost audiences in an
effectual manner and this gradually increase the sale of the company
(Strandvik, Holmlund and Grönroos, 2014).
The company will establish both online and offline infrastructure to outreach
the consumers.
The following are some of the tact which can be used by Next PLC as
distribution strategies:
 Intensive distribution
 Exclusive distribution
 Selective distribution
 Franchising
Promotion Next PLC will have to choose the best and the most effective mediums of
advertising its products in the new market (Wirtz, Tuzovic and Kuppelwieser,
2014).
Company can make use of offline and online mediums in promotional
activities, such as business magazines, pamphlets, hoardings and banners as
offline means and social media and internet.
Competitors from new region (Threat).
Competitors are the most common threat which is faced by an organization. Next PLC
will have to design the marketing mix accordingly and side by side facing the barriers which are
explained as follows:
Product Next PLC should design a good range and quality products at a reasonable
price in order to tackle with the competition in the new market (Fillis, 2011).
The company should focus more and have a deep study on the needs and
desires and design the an innovative range of products and also should have a
diversified range of the goods and services.
Price The organization needs to carry out a detailed research on the pricing
strategies used by the competitors and then should design the pricing
strategies.
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Place The organization should mak use of the most effective and influencing means
of distribution channels which are easy and accessible to the consumers
(Jácso, 2009).
Next PLC should make use of innovative ideas and interesting and attractive
packages for its products and goods in order to set an distinctive image of the
company.
Promotion The company should make use of the most influencing and effective means
of marketing to advertise its products and to set the image of the same in the
minds of the consumers.
Organization can use offline modes for promotion such as business
magazines, banners, hoardings and pamphlets and online modes such as
internet and social media.
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The below analysis is the explanation of the implementation of the marketing mixes
which are stated as under.
Next PLC has developed a diversified range of products and services as per the needs and
requirements of the consumers through using the marketing mix strategies. This has resulted in
an enhancement of the brand image in the eyes of the consumers. Through this mix the company
has succeeded in satisfying the needs and wants of the consumers (MSc Marketing Management,
2016). The organization has reached all income level groups of consumers by developing the
products at a reasonable price range. A good and strong bond has been developed with the
suppliers and dealers through implementation of these strategies. Next PLC has made a
successful approach towards making aware the consumers regarding the products and services
and through which the company has effectievly grabbed a wide range of market share.
Ansoff's Matrix
This matrix helps in developing strategies for boosting the business. This gives option of
market development, product development, market penetration and diversification. Through this,
manager is able to assess the risk in the market and incorporate decision accordingly. This model
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helps in taking decision that whether products will be new or existing one. Underneath
mentioned the explanation of each quadrant of the Ansoff matrix.
Market penetration: This concept focuses on raising the existing market share of Next
PLC by selling existing product in existing market with the help of aggressive marketing. This
aids in rising the sale through sales promotion strategies(Marketing Management, 2016).
Product development: Here, new product can be introduced in the market by reviewing
the needs and wants of customers in particular region. This will aid Next PLC in addressing the
opportunities that exist in the market.
Market development: Further, Next PLC can even focus on entering into fresh market in
which it is not presently opening. Through this, opportunities of new market can be addressed in
an effectual manner. In this context, the company can enter into emerging economies like India,
Thailand etc.
Diversification: Here, company focuses on entering into new market with new product in
order to address the opportunities of new industry. This will help Next PLC in increasing its
portfolio and make it more sustainable in the market.
VRIO analysis
It is a model for assessing the resource capability of company. It stands for value,
rareness, limitability and organization. It is been used for the purpose of assessing micro
environment of the company which incorporates following heads:
 Financial resources
 Material resources
 Non-material resources
 Human resources
VRIO framework aids in assessing the competency and capabilities of Next PLC. It aids
in assessing the competitive advantage of the firm along with potential improvement within the
specified area (Business with Marketing Management BA, 2016).
This particular concept can be used through combination of other tools that aids
management in evaluating the business resource. Financial aspect of company can be reviewed
through varied financial indicators. Similarly, human resource, information and property can be
used to assess the performance and efficiency of business.
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CONCLUSION
From the above analysis it can be inferred that Next PLC has carried out a market
segmentation which can be used by the organization for future marketing operations. Further
Internal and external environments of the organization are evaluated by taking the
demonstration of TOWS matrix for the current market situations of the corporation. Moreover
the opportunities and threats for the organization while establishing the business in new market is
explained.
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