Superdrug Marketing Plan Report

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This report analyzes Superdrug's marketing situation, reviewing changing perspectives in marketing planning and evaluating the organization's capability for future planning. It examines techniques for organizational auditing and analyzing external factors, assessing barriers to marketing planning and exploring ways to overcome them. A detailed marketing plan for Superdrug Advance Joint care 30S is presented, including SWOT and PEST analyses, objectives, strategies, financial plans, and implementation controls. The report also explains the importance of marketing planning in the strategic planning process, examines new product development techniques, justifies recommendations for pricing, distribution, and communication, and explains how factors affecting implementation have been considered. Finally, it explores ethical issues influencing marketing planning, analyzes organizational responses to ethical issues, and analyzes examples of consumer ethics and their effects on marketing planning.
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Introduction:
Marketing plan is considered as a complete manuscript or structure of the outline for
a organization about advertisement and marketing effort of their product. The marketing plan
is described by marketing managers to fulfil specific marketing objectives with in a specific
timeframe. As opined by McDonald (2013), marketing plan is a part of an overall business
plan. It has been observed that proper marketing strategy is backbone of company business.
Superdrug Stores Plc is popular health and beauty care product retailer in UK. This popular
organization founded by Ronald & peter Goldstein in 1964. Presently this organization has
more than 786 stores for selling more than thousand types of health care and beauty care
products. Apart from that Superdrug had started online sales from the year 2012. This
organization has collected the revenue of £1.75 billion in 2015 (Superdrug.com, 2016). It has
been found that besides the health and a beauty care product, this company has started to sell
medicines from 2011. Therefore, this report is based on the existing marketing condition of
Superdrug. After that the learner has planned to provide suitable marketing plan for
Superdrug Advance Joint care 30S. Apart from that, the learner has planned to discuss about
the ethical issue usually faced by several companies regarding marketing planning and
consumer ethics.
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Task1:
1.1 Review changing perspectives in marketing planning:
According to Shani and Chalasani (2013), on early days the marketing strategy of
organizations was depending on the products. Marketing managers were trying to convince
customers by their products. However, in twentieth century, the concept of marketing is
totally changed. Now the aim of the organization is to design a new product based on
customers’ requirement. Now the marketing process starts from the survey process and never
ends. Now the focus of organizations is more customer centric rather than product centric.
Now organizations try to earn profit along with customer satisfaction.
As stated by Boone and Kurtz (2013), Superdrug is a popular health, beauty care
product and medicine retailer in UK. Now their marketing concept is depending on four
pillars such as target market, customer requirements, integrated marketing strategy and
profitability. It has been found that Superdrug has connected two different concepts such as
selling and marketing for implementing advance marketing strategy for high competitive
market. Czinkota and Ronkainen (2013) argued that selling and marketing concept are totally
different such as selling concept focuses on the requirement of sellers but marketing focuses
on the requirements of customers. Therefore Superdrug has implemented the marketing
strategy and understands the demand of products and then supplies the products to the sellers.
Therefore, the demand and supply equation is one of the new key factor their marketing
strategy.
On the other hand, their market competitor AVON has implemented different
marketing strategy. The production operation of AVON is started after getting the market
survey reports. The product planning department gets a clear view about the requirement of
the customers and designs the product as per customer requirement (Turnbull and Valla,
2013). Before 1 to 2 months of product launching date, the organization has started the digital
advertisements and social media advertisements to increase customer attraction towards the
beauty care products. Therefore, the organization has already generated demand in market
before product launch. After the product launch the marketing team collects feedback from
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the customers and customize the product as well. Integrated sales and promotion always
creates market demand and the organization earns profit alongwith customer satisfaction.
It has been noticed that Superdrug follows the one to one marketing strategy whereas
their market competitor follows relationship marketing strategy. Superdrug is depending on
the technology based marketing strategy. The marketing team has considered every
customer’s requirement not group’s requirement (Nijssen and Frambach, 2013). On the other
hand AVON is trying to maintain a good relationship with their customers rather than just
serving their products. The organization believes that mutual relation will increase success in
business than transactional.
With the use of new technology company can easily identify the needs and demand of
its customer which help in increasing the sale of an organization. Further it can make use new
technology for making new products.
The perspectives regarding marketing have evolved over time. Technology is the
basic reason behind the occurred changes in marketing techniques and planning. Superdrug
usually aimed at promotional activities with help of newspapers, posters, billboards and radio
broadcasts. As the technological developments took place, people shifted their focus over
multimedia platforms like televisions, computers and telephones. Hence, marketing
techniques like telecalling, televised advertisements, etc. started developing. Business
organisations currently use internet as the prime medium for communicating products and
services to the potential customers. Marketing planning currently is focused on the platforms
of marketing that are more accessible for customers. The strategies that enable clients and
companies to communicate directly are focused nowadays.
1.2 Evaluate an organisation's capability for planning its future marketing
activity
There are different functional areas in Superdrug Stores Plc depending on the nature of
their health care and beauty care products. Apart from that, the nature of the business or
products of all organizations are depending on different properties such as:
Operation or production of organization
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Accounting and finance
Marketing activities
Distribution of products and logistic service
Corporate planning
Human resource management
Market Research and product development
Internal environment of any organization is depending on strength, weakness, opportunity
and threat.
Strength of Superdrug:
Superdrug still holds their market position. They are holding second position in health
and beauty care product retailer segment in UK market. Their strong position in UK market
makes them as a value-oriented beauty retailer in domestic market (Peck et al. 2013). They
have chosen exclusive brands and “A” category brands to attract customers. The shoppers
also get online facility to order their beauty care products and health care products. High
loyalty card membership attracts more customers towards the stores.
Weakness of Superdrug:
It has been noticed that there are low number of pharmacies in their retail stores. As
opined by Niffenegger (2013), there are lacks of focus on the product and space
development. The organization has maintained female centric products rather than male
centric products. As a result the male customers are not interested to visit stores. The stores
are old fashioned and products are not displayed proper way.
Opportunities of Superdrug:
The organization has increased the number of pharmacists in their stores. This has
increased the penetration in their stores. On the other hand the organization has determined
their boost margin and implemented strategy to improve their performance. The involvement
of more pharmacists will increase the profit margin of their stores.
Threats of Superdrug:
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It has been noticed that negative consumer sentiment about new NHS laws regarding
the records of the patients have created threat for their medicine business. The organization
has faced strong competition from AVON, Boots and Tesco. Almost same types marketing
strategy like discounts and offers creates almost no different from their competitors.
According to the evaluated attributes of Superdrug, it is clear that current marketing
planning capability is quite strong. The future market activities are completely dependent on
the firm’s ability to analyse current market structure and demands of customers. The strength
of company lays in its focused target i.e. A class customers and brands. On the other hand, it
has been evaluated that Superdrug holds good analytical capabilities in planning future
market activities. Financial capabilities are strong and human resource is efficient in
developing effective plans. However, operational plans are strong and brand power has
helped the company to maintain its customer share.
Stenght and weakness of Superdrug in order to plan its future marketing acitivity is as
follows Superdrug still holds their market position. They are holding second position in
health and beauty care product retailer segment in UK market. Their strong position in UK
market makes them as a value-oriented beauty retailer in domestic market (Peck et al. 2013).
They have chosen exclusive brands and “A” category brands to attract customers.
Weakness there are lacks of focus on the product and space development. The
organization has maintained female centric products rather than male centric products. As a
result the male customers are not interested to visit stores. The stores are old fashioned and
products are not displayed proper way.
1.3 Examine techniques for organisational auditing and for analysing
external factors that affect marketing planning
Superdrug has maintained their basic marketing audit and marketing audit checklist.
As stated by Morrison (2013), the checklist is designed to understand the current marketing
situation. Superdrug has developed the marketing audit checklist to understand internal
marketing environment and external marketing environment. After understanding situation
the organization has planned to develop current marketing plan.
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As opined by Berman and Evans (2013), the marketing audit is a fundamental part of
marketing planning process. The organization has not conducted the marketing audit on the
beginning of the process. The organization has implemented market audit before designing
new marketing plan. It has been observed that the internal marketing environment is
influenced by five different factors such as employee, finance, equipment, time and factor of
production.
As stated by De Mooij (2013), the external factors are depending on four differ
factors such as political, economic, social and technology.
Political factors:
It has been observed that some skin care products of Superdrug are not tested on
animals. Therefore, the organization creates a doubt about the health and safety regulation.
On the other hand, Superdrug has planned to expand their business in Asian country such as
China. Some bad and unchecked beauty products have sold by the organization are harmful
for skins which is against their brand image.
Economic:
Some years ago the organization has faced an economic recession due to crisis of
global economy. However, the organization has enough financial resources to manage one or
two financial recession but regular financial recession would not manageable for organization
(Lee et al. 2013, p.256).
Social:
The organization has to consider global sustainability trend and implement some new
marketing plan to sustain in tough competition. According to the envision protection act,
every organization has to reduce usage of paper. Therefore the organization has to develop
technical implementation to reduce use of papers.
Technology:
Almost every organization has implemented online retail stores and digital marketing
strategy. Therefore, the organization has to give importance their ecommerce websites and
social media marketing strategy to increase the efficiency of technology.
Legal:
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The legal frameworks that are designed by government of the country are mandatory
for business organisations to be followed. Superdrug is liable and accountable for following
the legal policies and structures. Till date the company has been operating in accordance with
legislations and security policies.
Environmental:
Each and every activity of the organisation must be in accordance with natural
ecology. From production to execution of products and services no such marketing activity
must be encouraged by firm which can cause harm to nature or living organisms. Superdrug
can face serious legal allegations if any such violation is experienced.
The technique that is used for analysing external factors is PESTLE. This is a tool that helps
in identifying and evaluating all factors which influencing marketing planning and business
strategies of the company.
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Task 2:
2.1 Assess the main barriers to marketing planning
Popular organizations like Superdrug have developed their logical sequences of
marketing planning for achieving marketing objectives. However, the organization has faced
some complex during implementation of marketing plan.
Barriers regarding legislation:
It has been noticed that marketing planning is restricted by the limitations and
government legislations. There are some regulating corporate conducts for the organization
to interact with the environment. As opined by Camelo-Ordaz et al. (2011, p.1443), the
corporate regulation may prevent comparison marketing. It has been found that market
surveyors try to compare their products along with competitor’s substandard product. On the
other hand the organization does not involve unskilled workforce because it increase wages
but according to the labour law, the organization has to involve large workforce to conduct
field survey to understand customer requirement. It has been noticed that the marketing
campaigning of the competitors forces the marketing team to change or modify their
marketing plan.
Barriers regarding culture:
The culture is considered as a combination of knowledge, morals, values, belief,
attitude and any other capabilities and habits which re shared by the people. As opined by
Chang et al. (2011, p.814), the performance of the organization is influenced by culture in a
big way. It has been found that the market planning of any organization is resist by culture. It
has been found that the organizations often implemented faulty marketing plan for
international market before understanding cultural sensitivities. The assumption ability varies
country to country. It has been noticed that US customer want to know benefit of products
but Japanese want to know benefit from the product as too pushy and arrogant.
Behaviour related barriers:
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It has been noticed that behavioural issues have created barrios in marketing plan. On
the other hand lack of top management involvement and lack of cross function involvement
may affect marketing plan. Now almost every organization involves celebrities for launching
the products in market but sometimes conservative top management feels uncomfortable with
the idea. Apart from this, interpersonal issue and ego clash among the employees may affect
sustaining marketing plan.
Cognitive barriers:
As opined by Jiang et al. (2012, p.1265), lack of knowledge and skills is consider as
main reason for creating faulty or unsuccessful marketing plan. Sometimes, lack of skills
may prevent the marketing team for conducting a market survey to identify the new trends or
customer preference to launch effective marketing campaigning.
System related barriers:
Sometimes, implementation of marketing plan is resist by the inappropriate system. It
has been found that marketing team is not empowered enough for some activities. Therefore
it simply drags down the efficiency and create barrier for timely implementation.
Resource related barriers:
Lack of important resources such as time, people and money have created biggest
barriers to the market planning. The success of any marketing plan is depending fund.
Therefore, cash crunches force the marketing team to focus on low cost alternatives. It also
provides less value for money. Sometimes the organization cannot arrange proper market
survey and campaigning due to lack of employees. The organization does not conduct door-
to-door campaigning due to shortage of ales executives (Muethel et al. 2012, p.526). On the
other hand lack of time also creates a barrier to prepare an eye-catching visuals or quality
promotion materials to generate higher responds.
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2.2 Examine how organisations may overcome barriers to marketing
planning
Superdrug can understand the marketing barriers by analysing external environment.
The marketing barriers are exhibited by PEST and SWOT analysis. After considering SWOT
and PEST analysis, the marketing managers has developed new strategy to overcome
marketing threats. Therefore, the marketing managers follow some specific steps to
overcome barriers:
Monitor the environment:
As opined by Hong et al. (2012, p.62), continuous monitoring process of threats is
considered by the pace of change in economy. Therefore, the marketing manager has
developed or adjusts existing strategy to reduce threat. The marketing managers have taken
the help of internet to monitor the activities of existing and emerging competitors.
Price competition:
The marketing managers always try to protect their market share from against the
competitors by offering lower price, developing new strategy or highlighting product
strength. The marketing team tried to reduce their price without damaging profit levels.
New products:
It has been found that better products face threats from new products that offer
superior performance to the existing range. Then marketing team has implemented long term
strategy to develop new product development plan. Therefore, the organization can overcome
the threat by implementing the strategy of sourcing new products from business partners.
New competitors:
Sometimes the organization has faced threat for new entry of competitor. Therfre te
marketing managers are implemented the loyalty strategy to protect their customer base from
competitors (Renwick et al. 2013, p.5). The customer loyalty program helps organization for
maintaining their existing customer base and increase business.
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Task 3:
3.1Write marketing plan for a product or a service
Executive summary:
This marketing plan has been developed by the learner for a particular product of
Super drug. Then learner has developed this marketing planning after considering SWOT and
PEST analysis. The learner has developed marketing objectives so that the organisation can
implement new marketing strategy easily.
Current marketing situation:
Swot analysis (Internal situation):
Strength
Superdrug still holds their market
position.
They are holding second position in
health and beauty care product
retailer segment in UK market.
Their strong position in UK market
makes them as a value-oriented
beauty retailer in domestic market.
They have chosen exclusive brands
and “A” category brands to attract
customers.
The shoppers also get online facility
to order their beauty care products
and health care products.
High loyalty card membership
attracts more customers towards the
stores.
Weakness
It has been noticed that there are low
number of pharmacies in their retail
stores.
As opined by Alfes et al. (2013,
p.348), there are lack of focus on the
product and space development.
The organization has maintained
female centric products rather than
male centric products.
As a result the male customers are
not interested to visit stores.
The stores are old fashioned and
products are not displayed proper
way.
Opportunity
The organization has increased the
number of pharmacists in their
stores.
This has increased the penetration in
their stores.
On the other hand the organization
has determined their boost margin
and implemented strategy to
Threat
It has been noticed that negative
consumer sentiment about new NHS
laws regarding the records of the
patients have created threat for their
medicine business.
The organization has faced strong
competition from AVON, Boots and
Tesco.
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