Strategic Marketing Plan for Grenade - MKT6041, University Project

This marketing plan analyzes the current market situation of Grenade, a sports supplement company, using PESTLE and Porter's Five Forces to understand the external environment. It also conducts a SWOT analysis to identify the company's strengths, weaknesses, opportunities, and threats. The plan proposes strategic objectives based on the Ansoff matrix, focusing on market penetration and product development. It also outlines a SMART framework for achieving these objectives and suggests a Performance Governance System. Furthermore, the plan details segmentation, targeting, and positioning strategies and recommends a strong marketing mix to effectively promote Grenade's products in both existing and new markets. The plan also addresses tactics, actions, and control mechanisms for successful implementation.

Running head: MARKETING PLAN
Marketing Plan
Name of the student
Name of the university
Author Note:

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MARKETING PLAN
The Marketing Plan:
Part 1. Situational analysis/Audit:
Part 1.1. External Analysis:
Part 1.1.1. PESTLE of the United Kingdom:
Political factors:
The United Kingdom is politically stable country with a parliamentary government at its
heart. The country has the prime minister at the head of the state government and Queen
Elizabeth II as its nominal head (Gov.uk. 2020). The country has emerged as the 14th politically
stable nation in the world in 2019 (Radu 2019). However, Brexit, which is supposed to take
place in January 2020, would have deep impacts on the political stability of the country (Dewan
2020). Terrorism remains to be one of the severe political threats which the United Kingdom
suffers as it remains to be one of the highly targeted nations (Morrison 2018).
Economic factors:
The United Kingdom is an economically strong country with GDP figures surpassing
USDbn 2600 (Tradingeconomics.com. 2020). This means the country is experiencing increasing
productivity of goods and services. The country is experiencing a positive rate of employment
which means the residents have more disposable income to afford expensive products like
supplements (Ons.gov.uk. 2020). The country has strong financial networks comprising of
multinational banks which facilitate smooth mobilization of financial resources and clearance
(Huang et al. 2016). However, Brexit is expected to slow down the country economically as it
would have to cede the free access to the EU it enjoys (Colchester 2020).

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Figure 1. Statistics showing GDP of the UK
(Source: Tradingeconomics.com. 2020)
Figure 2. Unemployment rate statistics of the UK
(Source: Ons.gov.uk. 2020)
Social:
The social factors prevailing in the country have strong impacts on the firms operating in
the sports supplement industry. Kårlund et al. (2019) mention that rising disposable income and
health consciousness are pivotal to the growth in the demands of sports supplements. The
consumers in the UK have high disposable income which enable them to join gymnasiums and

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sports centers which further create the need to include sports supplements in their diet. This can
be established by the fact the country experiences presence of global chains of gymnasiums like
Gold’s Gym (Goldsgym.co.uk. 2020).
Technological factors:
The United Kingdom is technologically extremely strong which enables manufacturing of
technologically sports supplements (Aimé and Simon 2018). The country has a very high rate of
internet access (Ons.gov.uk. 2020). This means that the sports supplements marketing companies
are able to market their products online and generate high revenue. However, the ecommerce and
digital platforms face high rates of online data theft risks (Thomas 2018).
Legal factors:
The legal system in the United Kingdom operates with the Supreme Court of the United
Kingdom at its peak. The companies should comply with the laws formed by the government of
the United Kingdom (Gov.uk. 2020). The strong legal system in the United Kingdom enable the
companies protect the intellectual properties by acquiring IPRs for the same as per Intellectual
Property Act 2014 (Legislation.gov.uk. 2020).
Environmental factors:
The business organisations operating in the United Kingdom have to comply with the
environmental laws passed by the government of the United Kingdom as well as international
bodies like the United Nations. The firms operating in the sports supplement industry have to
ensure that they manufacture their products using environmentally sustainable ways to the
feasible extent (Meyer and Reguant-Closa 2017).

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Part 1.1.2. Porter’s 5 forces:
Threats of new entrants The sports supplements market in the United Kingdom suffers from
high threats of entry of new firms based both in the United
Kingdom and abroad.
Threats of substitutes The threats of substitutes in the UK sports supplements market is
low. This is because the product namely, sports supplement is a
very specific product which aims to increase the nutrient gain of the
people involved in strenuous sports and work outs.
Bargaining power of
buyers
The bargaining power of the buyers is very high low since the
number of companies manufacturing sports supplements is related
low in the market. Moreover, quality and authenticity are immense
issues which restrict the customers to the few top companies in the
market.
Bargaining power of
suppliers
The bargaining power of the suppliers are extremely high in the
supplement market in the UK. This is because, manufacture of
supplements required high quality raw materials like milk and
involve use of high level food and nutrition technology. Thus, the
suppliers supplying raw materials to these sports supplement
manufacturing firms have high power to control the market prices
of the products.
Competitive rivalry The market of sports supplements experience high level of
competitive rivalry among the firms operating the market. This is
because the market experience presence of companies of British

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origin and foreign origin, thus intensifying the market competition.
Part 1.3. SWOT:
Strengths:
1. Strong market position-Grenade received
‘Product of the Year’ award which ratifies its
strong market position.
2. Financially strong- Innovations like protein
spreads proves the financial strength of the
company to bring about new products.
Weaknesses:
1. Stronger competitors- The company is not
listed unlike some of the strong competitors
like Optimum Nutrition which is listed on the
NYSE.
2. Lacks innovation in terms of pricing- The
company lacks innovation in terms of pricing.
It gives no discounts to customers.
Opportunities:
1. Product innovation- The company should
carry out more innovations both in terms of
products and pricing. For example, Grenade
can offer protein biscuits in different
packages at legitimate prices.
2. Foreign expansion- The company should
expand into foreign markets. The company
should aim to expand into emerging markets
like India.
Threats:
1. Intensifying market competition- The
market competition is intensifying with the
sports supplements marketing firms based in
both the UK and foreign markets.
2. Not listed- The company is not listed and
has no access to the share market.

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Part 1.3. Direction for competitive advantage- differentiated focus, cost leadership:
Grenade should adopt cost leadership to strengthen its market position. The company
should market superior quality products at comparatively lower prices in comparison to its
competitors like British Nutrients. This also means that company should offer products like
protein biscuits in different price variants. This would enable it to serve both upper and middle
class customers in the United Kingdom and generate higher revenue by using the cost leadership
strategy.

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Part 2. Objectives- Ansoff matrix and SMART:
Existing markets Market development (new
innovative product variants)
Diversification
New markets Market penetration (Introduce
existing products)
Product development
Existing products New products
The Ansoff matrix of Grenade shows that the firm should introduce new and innovative
products like protein biscuits and ready-to-consume shakes in its existing market namely, the
United Kingdom to attract new customers and create more value to the existing customers.
Similarly, the company should also enter new markets like India with is existing products like
protein spread. This would enable the company to achieve higher revenue by serving larger
customer bases. The business strategies which the firm would use to achieve the aforementioned
business aims should qualify the SMART framework.
SMART elements Justifications of strategies in Ansoff matrix qualifying SMART criteria
Specific Strategies like introduction of new products are specific
Measurable The level of the achievement of the strategies are measurable. For
example, the company can measure the profit increase owing to
introduction of new products.
Attainable The strategies can be attainable in reality.
Relevant The strategies would strengthen the market position of Grenade and are
hence relevant to the business of the company.

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Time based The management of the company can set deadlines like 2 years within it
would aim to enter a new market like India. Thus, the strategies are time
based.
Part 3. Strategy:
Part 3.1. Achievement of objectives:
Grenade would be able to achieve the SMART objectives by marketing its goods more
aggressively in the existing and new markets. For example, it would aim to market new products
like protein shakes. The company should also ensure that it brings about continuous research and
development to ensure improvement of its product quality on continuous basis to create value to
customers on perpetual basis.
Part 3.2. PGS:
The company should adopt a strong Performance Governance System or PGS under the
leadership of its apex management. This would ensure that the company for the better of its
stakeholders including customers and investors.
Part 3.3. Ansoff:
The company should keep on using Ansoff matrix to introduce new products in the
existing markets. Similarly, it should also expand into new markets like India in order to
maximise its revenue generation.

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Part 3.4. Segmentation, Targeting & Positioning:
Segmentation:
Grenade should segment its customer bases in order to ensure that it serves the
appropriate customer bases to generate high revenue. As far as customer segments are
concerned, the company should serve the upper and middle class customers in terms of
demographic segmentation. Similarly, it should segment its markets based on geographical areas
like countries.
Targeting:
Grenade should target the upper class and middle class customers, who have high
disposable incomes to afford expensive sports supplements. This would enable it to generate
high income by serving these customer bases.
Position:
It should position itself as the manufacturer of superior quality sports supplements. It
should also carry out continuous innovations to market more customer oriented products which
would enable it to retain its current position and strengthen its position in the market.
Part 4. Tactics/marketing programs-marketing mix:
The company should form a strong marketing mix to market its products in both the UK
and in the foreign markets. The company should ensure that it’s marketing mix cause value
creation to customers.

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Part 5. Actions:
The company should acquire resources to implement these strategies within a
predetermined timeline. For example, the management can set a deadline of 12 months to
introduce new products like protein biscuits.
Part 6. Control:
The management should set KPIs (like gross profit generated and number of new
customers acquired) to control the business outcomes. It should form strategies to ensure
appropriate implementation of strategies.

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References:
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[Accessed 13 Jan. 2020].
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Kårlund, A., Gómez-Gallego, C., Turpeinen, A.M., Palo-oja, O.M., El-Nezami, H. and
Kolehmainen, M., 2019. Protein Supplements and Their Relation with Nutrition, Microbiota
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Meyer, N. and Reguant-Closa, A., 2017. “Eat as If You Could Save the Planet and Win!”
Sustainability Integration into Nutrition for Exercise and Sport. Nutrients, 9(4), p.412.
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