Next plc. Marketing Plan: Audit, Analysis, and Recommendations Report

This report provides a comprehensive marketing analysis of Next plc., a British multinational retailer. It begins with an introduction to marketing management and the company's background, highlighting its global presence and operations. The first section focuses on a marketing environment audit, detailing its role in strategic planning and the importance of analyzing internal and external factors. The report then delves into the macro-environment, examining political, economic, social, technological, environmental, and legal factors influencing Next plc. It also discusses the importance of competitor analysis and the application of Porter's Five Forces model. The report identifies key contemporary trends impacting the company, such as changing consumer behavior and technological advancements. The second section presents a marketing plan, outlining SMART objectives for Next plc. and offering recommendations for segmentation, targeting, and positioning strategies. Finally, it provides suggestions for the marketing promotional strategy. The report aims to provide actionable insights for Next plc. to optimize its marketing efforts and improve its market position.

MARKETING
MANAGEMENT

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
The role of the marketing environment audit.............................................................................1
Advise on undertaking the audit for the macro environment......................................................2
Determination of key contemporary trends and changes in the external environment that can
create impact for the company ..................................................................................................4
Audit of competition(Porters five forces analysis).....................................................................4
Major opportunities and weaknesses faced by the company......................................................5
Section 2: The Marketing Plan........................................................................................................6
SMART objectives for Next plc.................................................................................................6
Recommendations for the segmentation, targeting and positioning...........................................7
Recommendations for marketing promotional strategy..............................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing management is the process which helps an organisation to oversee and plan
the development of new products through advertisement, sales promotion etc. In other words, it
can be said that marketing management is the process used by the company in order to define
what products and services they are required to produce as per the customer’s interest (Barnes
and et.al, 2010). In addition to this, it helps company to develop various strategies that can be
used by them at the time of sales, business development and communication. Next plc. is the
British multinational company in United Kingdom headquartered in Enderby, Leicestershire.
This company was founded by Joseph Hepworth. It has around 700 stores operated in the world
and out of which 502 are operated in UK itself.
In the following report, marketing audit of Next plc. has been done in order to analyse
market environment of the company. In addition to this, SWOT, PESTLE and Porter's Five
Forces analysis have been done in order to overcome the problems that are faced by the
company. In this report market plan has been prepared for the launch of T-shirt introduced by
Next plc. In the following report, marketing plan has been prepared in order to recommend better
strategies to the company for the segmentation, targeting, positioning.
TASK 1
The role of the marketing environment audit
Marketing audit is an organized, encompassing, periodic and independent evaluation of
the company's marketing products. It is one of the significant tools that are used by the company
in order to analyse the competence of marketing strategy, its objectives, policies and strategies.
Role of marketing audit
Marketing audit plays an important role in designing market plan in order to conduct
marketing in different markets. Marketing audit helps an organisation to design and implement
marketing plan properly (Beverland and Lindgreen, 2010). In addition to this, marketing
environment audit assists company in analysing the impact of internal and external factors on all
the functions and activities that are undertaken by the organisation. Major role of marketing
environment audit is to analyse the internal and external environmental factors in order to
develop various marketing strategies and plans. This in turn will assist Next plc. to easily grow
towards the profitability. Through market audit Next plc. will also be able to ascertain the
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strategies and policies that are used by its competitors in order to attract more and more
customers. In addition to this, it will also help company to reduce its cost of production.
Therefore, marketing audit will ascertain company to analyse the latest trends, and
customer preferences as well as their wants, requirements and taste. This in turn will help
company to manufacture and launch the T-shirt easily in the market. In addition to this, it will
also aid company how segmentation can be done on the basis of demographic and geographical
criteria. Marketing audit assist the company in identifying the strengths and weakness of the
business. It also aids the company in evaluating the threats and opportunties that is present in the
external environment and can affects the functioning of the organisation.
However, at last, it can be said that major role of marketing environment audit is to
examine strengths, weaknesses, opportunities and threats in the respect of company at the time of
manufacturing products (Foxall, 2014). Along with this, company will also be able to ascertain
its target market where they are required to launch their products.
Mixing theory:- Mixed theory says that the Next plc. should first probability distribute
over all the possible pure strategies and than afterwards they should utilise a mixed strategy at
the time of the launching new products.
Advise on undertaking the audit for the macro environment
Factors Affects
Political Political factors influence the development and growth of organisation as
well as industry. These factors affect the various rules of competition,
presence of different lobby groups and operational costs.
Economic These are one of the important factors that create an impact on the working
of organisation. Growth and development of the company majorly depends
upon the economic condition (Hollensen, 2015). This in turn will help
company to increase its profit margin by reducing the cost of production.
Imposition of VAT (value added tax) by the UK government has increased
the cost of production to a great extent.
Social Availability of various social factors such as attitudes, belief, preference of
the customers and fashion cycle affects the demand of product.
Technological Use of latest and improved technology will help company to reduce the cost
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of production and business operations. In addition to this, presence of these
factors will increase the production capacity and quality.
Environmental Availability of this factor plays an important role in the success of company
because presence of this factor affects the input manufacturing content.
Legal Imposition of various laws by the government related to the health and safety
of the customer like regulation of monopolies, laws governing labour
relation, redundancy law and many more can affects the launch of the new
product by Next Plc.
Some of the topics which should be researched by the company at the time of conducting
research are as follows:-
 Company should analyse the strategies and policies that are followed by its competitors
to improve its products and services in order to attract more and more customers. On the
basis of which, company should set the price of its products in order to survive in the
market and achieve objectives.
 Before launching any new product in the market, company should find out the rules and
regulation imposed by the government (Hutt and Speh, 2012). This in turn will help
company to manufacture and launch the product in the market as per the requirement of
government.
 Company should research to select target market where they can easily launch their
products. This research can be done on the basis of demographic, geographical and socio
culture. This in turn will help company to launch T-shirts at the right place which will be
beneficial for the company. For example: if, company launches baby product at the area
where old age people are living than in that case, company will not be able to flourish.
 Increase in cost can enhance the cost of production. This in turn will reduce the profit
margin of company.
 Analyse of political factor will assist company to ascertain various policies and norms
imposed by the government at the time of introducing T-shirts in the market. Availability
of this factor can affects the working of company to a great extent.
 Ethical concerns that are taking place in the country/market can affect the introduction of
T-shirt in the market.
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 By using latest technologies, chances of getting success while introducing T-shirt can be
enhanced.
Research on such factors will help company to launch T-shirts in an effective and efficient
manner. Proper research aids company to easily introduce T-shirt in the market. Research done
through marketing audit will move company towards the high growth rate.
Determination of key contemporary trends and changes in the external environment that can
create impact for the company
Contemporary trends that can create impact on the functioning of company are as follows:-
 Changes in the customer behaviour, attitude and preference make direct impact on the
sales revenue of company (Leonidou, Palihawadana and Theodosiou, 2011). Company
are required to introduce new, unique and innovate features into the product because
customer’s taste, wants and needs keep on changing.
 Entry of new entrant and presence of existing company affect the profit margin of Next
plc. In order to attract more and more customers Next plc. Is required to undertake
various activities into consideration.
 In order to survive in the changing business environment, company is required to use
latest technologies in order to build up its strategic position in the market.
Audit of competition (Porters five forces analysis)
This model was developed by Michael E. Porter in order to analyse the industries and
competitors that are present in the market. This model is based on the insights that how the
formation of corporate strategy helps company to meet the opportunities and threats available in
the business’s external environment. Porter has defined five competitive forces which shape
every market and industry. Five forces that are included in Porters five force model are as
follows:-
1. Entry of competitors: - Entry of competitor is high. New company can easily enter into
this type of market easily. Some of the factors that can be faced by Next plc. at the time
of introducing the T-shirt are: - existing loyalty of customers towards major brands,
government legislation and restrictions, entry protection, expected retaliation by
superjacent, capital obligation and many more (Ling-Yee, 2011).
2. Threats of close substitutes: - Threats of close substitutes in retail industry is high.
Large number of substitute products related to Next plc. are present in the market which
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can create challenge in front of the company. In case of retail sector, if company charges
high rate then, in that case, customers can switch to any other product. This in turn may
reduce the profit margin of company.
3. Bargaining power of suppliers: - Bargaining power of suppliers is less in this case as
large number of suppliers are present in the market. Next plc. can anytime switch to
another supplier if present supplier charges high price for the goods supplied by them.
4. Bargaining power of buyer: - Bargaining power of buyers is high. If, Next plc. charges
high value for their products then in that case customers/ buyers can anytime move to the
product of another company (Michaelidou, Siamagka and Christodoulides, 2011).
5. Rivalry among the existing players: - Rivalry among existing players in case of retail
industry is high as competitors make an attempt to introduce new product in the market
only by simply adding two to three new features in the existing product.
Major opportunities and weaknesses faced by the company
Opportunities
 By launching T-shirt in the market, company can increase its productivity and
probability.
 This in turn will also help company to expand its business unit
 By introducing new product in the market, Next plc. Will be also being able to enhance
its market share (Morgan, 2012). Actuation of T-shirt in the market will build up and sustain competitive advantage against
the rivals.
Weaknesses
 Quality of the product introduced by the government can affect the sales of product. Poor
quality or high price of the product can cause a challenge in front of the customers.
 Poor promotion methods can also affect the sales of products. If, customers are not able
to know about the product then, how they will be able to purchase it.
 In addition to this, if company wants to introduce new features in the product then, in that
case, it may create problem for the company.
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Section 2: The Marketing Plan
SMART objectives for Next plc.
 Specific- Specific states that objective must be specific in nature and these must go in
one direction. These objectives must be related to the specific thing. Next plc. is planning
an advertisement campaign and its objective is to complete its campaign in one week.
This means that advertisement campaign must not exceed this time period (Moutinho,
2011). Here, one week is mentioned which specifically states that advertisement
campaign must be executed in the given time period.
 Measurable- Objectives that are determined by the managers must be measurable in
nature. In respect to this, it is determined that advertisement program must be completed
in 7 days and on seventh day, it must be completed by 7 PM. This is measurable in nature
because here, time period within which project will be executed is clearly determined.
 Achievable- Objectives determined by the manager must be achievable in nature.
Objective of the company should upto that extend which can be easily understood by the
employees. Tough objective creates a understanding problem in the mind of the
employees. As per the above discussion, marketing campaign must be completed in seven
days and it is achievable in nature.
 Realistic- Objectives determined by the manager must be realistic. It means that it must
be possible in reality to achieve determined objectives (Navarro and et.al, 2010). The
objective is to complete marketing campaign in seven days and it is realistic in nature.
Hence, it can be said that objective is determined in a right way Time bound- Objective determined must be time bound in nature. Here, target is to
complete marketing campaign in seven days. This is time bound objective because here,
duration for the execution of project is determined.
Second SMART objective
 Specific- Project for preparation of marketing plan must be completed in 30 days.
 Measurable- Here, days are determined which means that project is measurable in
nature.
 Achievable- Project can be completed in the mentioned days hence, it is achievable in
nature.
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 Realistic- It is possible to complete project in mentioned days and due to this reason, this
project is considered realistic in nature (Sharma and et.al, 2010). Time bound- Time period for project is determined. Hence, project is time bound in
nature.
Third SMART objective
 Specific- Data required for preparing marketing plan must be completed in 10 days.
 Measurable- Here, days are determined and due to this reason, project is measurable in
nature.
 Achievable- Data can be collected in ten days and due to this reason, objective is
achievable in nature.
 Realistic- Inputs for marketing plan can be easily collected in ten days. Due to this
reason, project is realistic in nature.
 Time bound- Time period for data collection is ten days and due to this reason, project is
time bound in nature.
Recommendations for the segmentation, targeting and positioning
Recommendations for the segmentation
Segmentation refers to dividing market into several parts on the basis of specific
parameter. It is important to do market segmentation in a proper manner. This is because if
segmentation will not be done in a proper manner then targeting will also not done effectively.
Ultimately, product will be positioned in a wrong manner. Fashion product can be launched by
using several factors like demographic, geographic and psycographic. In order to select the best
factor for market segmentation, it is necessary to evaluate all these factors in a proper manner
(Sheth and Sisodia, 2015). If, demographic factor is selected for market segmentation then entire
market will be divided on the basis of income, education and religious factors. On the other
hand, there are geographic factors in which entire market will be divided on various parts and
from these parts, target customers will be taken out. Third segmentation criteria are psycographic
factor in which target customers are selected by the firm. Out of these three factors, it will be
better to do market segmentation on the basis of demographic factors. This is because as in this
factor, people income level comes. In research, it has been find out that people’s preference for
fashion products depends on their income level. Apart from this, social class to which they
belong is another important factor which influences people’s preference for fashion products to a
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large extent. Hence, for new start up product, it will be better to do market segmentation on the
basis of demographic factors. If, this will not be done on the basis of demographic factors, then it
will be difficult to do market segmentation in a proper manner. Hence, due to these reasons,
demographic segmentation is selected for the company’s fashion product.
Recommendations for the targeting
Targeting refers to selecting a specific group of customers to whom firm specifically
wants to sale its product. There are many targeting strategies and firm needs to select specific
type of people as target customers for the newly launched product. For this, firm needs to
evaluate its product and must try to identify the age group of people who mostly use that specific
product. There are several types of targeting strategies like undifferentiated, differentiated,
concentrated and customized. They should target the area where large number of people are
present who prefer to wear T-shirts. For example:- if Next Plc launch T-shirts at the place
where large of population are prefering to wear suits than in that case sales of the new product
will not be able to increase.
Similarly, Undifferentiated targeting strategy refers to the targeting of product to the
general public. In other words, it can be said that in this strategy, specific group of people is not
selected as target customer by the firm (Vargo and Lusch, 2011). On other hand, there is a
differentiated targeting strategy in which specific type of customers are selected as target market
by the firm. For such type of customers, different marketing mix is prepared. Third is
concentrated strategy in which single type of customers are served by the firm in the market. It
means that firm forms a single marketing mix for its product. Customized targeting is different
and in this case, product features are changed from customer to customer. This targeting strategy
is commonly used in the service sector. Out of all the strategies, differentiated targeting strategy
will the best for the firm and it is recommended to same. This is because all types of people will
not prefer firm’s product. Hence, it will be better to serve limited people with different marketing
mix.
Recommendations for positioning of the product
Newly launched product of Next plc can be apparel and it should be positioned on the
basis of design and style. Product which will be positioned is T-shirt. In order to position
product, Next plc must use design as well as style and these two factors should be highlighted in
a proper manner in the advertisement (Wilson and Gilligan, 2012). Both these factors will create
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distinct image of Next plc’s product. Next plc before positioning its new product should see that
design and style of the product is good. It does not hurt anybody. In addition to this the Next plc.
should select the market area where large number of young peoples are living. . Hence, it is
highly recommended that on the basis of style and design, firm must position its product.
Recommendations for marketing promotional strategy
It is necessary for the company to start up a new business unit in order to create
awareness in the mind of customers regarding various products that are introduced by the
company. These can be done by using various promotional tools like advertisement, sales
promotion, direct selling and so on. Company can also prefer the use of social media sites such
as Facebook, Google+ , Yahoo, Twitter, E-mails and many more (Target marketing: Four
generic target marketing stratgies. 2015). In order to start up a new business unit or to launch a
new product, company can sponsor various events in order to attract more and more customers.
Through this, company can promote its products at full extend. This in turn will create
awareness in the mind of customers about the product. Through various promotional strategies,
consumers can be able to gain more knowledge about the use and features of product. Through
advertisement and various other promotional method, customers are able to easily compare
different products that are present in the market.
At the time of introducing T-shirt in the market, company is required to state the key
features of product. This in turn will help the company to move on towards the growth and
development. By adding tag line to the product, Next plc. will be able to attract large number of
customers towards the new product launched by the company. Next plc. can also undertake
campaigning with an aim to increase customer base. This tactic can influence the behaviour of
customers and will force customers to purchase the product introduced by the company. This in
turn will increase the productivity and probability of company.
Marketing mix of new fashion product is as follows:-
 Product: - It indicates the thing that is offered to the customers. Availability of product
plays a beneficial role in satisfying the needs and wants of customers. Now days, new
generation prefer new and latest variety of clothes that indicates their standards of
living. Therefore, introduction of new features in the product can help company to
increase its market share.
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 Price: - It is another leading element of marketing mix. Availability of this element is
very important in setting up new suitable pricing strategy in order to attract more and
more customers. In case of Next plc., customers prefer those products more which are
of high quality and are available at an affordable price. Offering new products at low
rate in order to attract more customers can reduce the profit margin of company.
 Place: - In order to increase the sales of product, selection of right market is very
necessary. Next plc should make a research to find out right target market where they
can sell their product. In order to sell T-shirt, company cannot choose the market where
people prefer to wear suits (Shaw and et.al, 2012). Thus, it can be said that before
launching any product in the market, company should first analyse the external
environment in order to select the right target market. Promotion: - There is variety of promotional methods available with the Next plc. that
it can use to promote its product (Ashill and Frederikson, 2003). By using various
promotional methods, company can make aware customers about the new product that
is launched by it. In lieu of which, company can give an advertisement in newspaper,
magazines etc. They can also give an advertisement on social networking sites in the
form of pop up.
DRIP framework
DRIP marketing program is used by Next plc. to send e-mails as well as newsletters in
order to provide information regarding the launch of new T-shirt. DRIP marketing is known as
life cycle campaign and DRIP campaign (DRIP marketing. 2015). DRIP can be defined as a
strategy that is used by the organisation to send written messages to the customers with a
specified time frame.
The principle and practice of promotion planing helps the company in identifying the
behaviour of the customers and at the same time also assist to meet up the varying objectives for
each and every target customers segment. But before planning and implementing any
promotional activities, Next plc should interpret how objectives of a company changes by
customer segment. In addition to this company should keep in mind the category of the product.
Therefore, in regard to the principle and practice of promotion planing Next plc can send
message to the customers before launching the product. They should consider the attractive tag
line and should promote the product by giving various small message to the people. This in turn
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will help the company to increase its sale. They can add on the message with the promotion of
the product like coming soon and so on.
Similarly, at the time of or after launching the product company should introduce various
attractive scheme to grab the attention of the customers towards the product. They can offer
various discount schemes like early 1000 peoples will be able to get 60% discounts or hurry up,
sale 65% off and so on .
Therefore, on the basis of above characteristic, Next plc is required to target those people
who are highly concern about their standard of living (Baker, 2000). However, in order to attract
more customers, company should introduce new innovation in T-shirts.
CONCLUSION
On the basis of above discussion, it is concluded that before starting new business, firm
must conduct various types of analysis like PESTEL analysis and porter five forces analysis. By
doing so, firm came to know about the entire market condition as well as to analyse that it is in
the position to make sound business decisions. Apart from this, it is also recommended that
business firm is conducting proper segmentation, targeting and positioning of their products. If,
these will not be done in a proper manner then it will be difficult to serve customers effectively.
Hence, firms must do segmentation in a legitimate way. In this regard, they must consider lots of
factors that will help firm in doing segmentation of market in a proper manner. Apart from this,
firm can do targeting in an effective manner by selecting optimum relevant strategy for the
product. Next plc is required to focus more on positioning the product. Therefore, company
should sell its product by considering the unique selling proposition method. By doing same,
successful marketing of product can be done in a proper manner.
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