Comprehensive Marketing Plan Report: Tommy Hilfiger Strategies

This report provides a comprehensive analysis of Tommy Hilfiger's marketing plan, covering various aspects of marketing planning. It begins with an introduction to marketing and its importance, particularly for a brand like Tommy Hilfiger. The report then delves into compiling marketing audits, including changing perspectives in marketing planning, organizational capabilities, and techniques for auditing both internal and external factors, such as PESTEL and SWOT analyses. It identifies and discusses the main barriers to marketing planning, like lack of skills and stakeholder cooperation, and suggests ways to overcome these. The report further explores the formulation of a marketing plan, integrating strategic planning processes and techniques for new product development, along with recommendations for pricing, distribution, and communication. It also considers factors affecting effective implementation. Finally, the report addresses ethical issues influencing marketing, how organizations respond to them, and the impact of consumer ethics on marketing planning, concluding with a summary of the key findings and recommendations.

MARKETING PLANNING

Table of Contents
INTRODUCTION.........................................................................................................3
LO1 COMPILE MARKETING AUDITS .......................................................................4
1.1 CHANGING PERSPECTIVES IN MARKETING PLANNING ...........................4
1.2 ORGANIZATION’S CAPABILITY FOR PLANNING ITS FUTURE MARKETING
ACTIVITIES ............................................................................................................4
1.3 TECHNIQUES FOR ORGANIZATION AUDITING AND EXTERNAL
FACTORS AFFECTING MARKETING...................................................................5
1.4 ORGANIZATION AUDITING AND EXTERNAL FACTORS AFFECTING
MARKETING...........................................................................................................6
LO 2 MAIN BARRIERS TO MARKETING PLANNING time scale, Gantt chart,
budget and human resources .....................................................................................7
2.1 MAIN BARRIERS .............................................................................................7
2.2 HOW ORGANIZATIONS CAN OVERCOME THESE BARRIERS ...................8
LO 3 FORMULATE A MARKETING PLAN...............................................................12
3.1 MARKETING PLAN ....................................................................................... 12
3.2 MARKETING PLANNING FOR STRATEGIC PLANNING PROCESS ...........13
3.3 TECHNIQUES FOR NEW PRODUCT DEVELOPMENT ...............................14
3.4 RECOMMENDATIONS FOR PRICING, DISTRIBUTION AND
COMMUNICATION...............................................................................................14
3.5 FACTORS AFFECTING EFFECTIVE IMPLEMENTATION OF MARKETING
PLAN ....................................................................................................................15
LO 4 UNDERSTAND ETHICAL ISSUES IN MARKETING ......................................16
4.1 ETHICAL ISSUES INFLUENCING MARKETING ..........................................16
4.2 ORGANIZATION RESPONDS TO ETHICAL ISSUES ..................................16
4.3 CONSUMER ETHICS AND ITS IMPACTS ON MARKETING PLANNING.....17
CONCLUSION.......................................................................................................... 18
REFERENCES .........................................................................................................20
Unit 19: Marketing Planning - September 2016

INTRODUCTION
Marketing is a very broad term that apples to a whole range of activities starting with
the communication of the product or services to the customers or prospects in the
target markets and making them aware of the benefits or the needs and expectations
it is designed to meet(Moore et al, 2008). The marketing planning deals with all the
strategies used by the marketer in eliciting the desirable responses in the customers
and making the sales and revenues possible for the company. Tommy Hilfiger is a
well known brand selling bags, clothing and luxury lifestyle products in world markets
and the study aims to discuss the various aspects in the marketing planning of the
brand along with discussing the barriers to the process of marketing planning.
The company had long history of using celebrities like Sheryl Crow and Carla Bruni
in its brand endorsements and had been focusing on the design of the products to
suit local need as in case of Europe. Also the paper discusses about how the
company has effected changes in its marketing strategies in order to meet the plans
and targets along with keeping a check on the activities of the competitors in the
global markets. In the process of marketing planning, the process of analyzing the
internal and external factors has a profound effect as studied in case of Tommy. Also
the last part of the study aims to explain the implication of ethics in marketing and
consumer behaviour in order to ensure ethical practices in planning for marketing
plans.
Unit 19: Marketing Planning - September 2016

LO1 COMPILE MARKETING AUDITS
1.1 CHANGING PERSPECTIVES IN MARKETING PLANNING
As the marketing manager of Tommy Hilfiger , the review for the changing approach
in the perspective of marketing plan is made . Marketing plan is said to be a
established bridge between the achievement of objectives and the ability to
accomplish them. The three levels of marketing plan are:
 Corporate levels: at this level purpose of the business is established. The
mission, vision and aims are set.
 Operational level: it is incorporated from the corporate level and includes all
the objectives of various departments of Tommy Hilfiger.
 Developmental level: the marketing strategy can be formed from the financial
strategy. As the marketing strategy needs the financial aspects so as to
formulate it and make it feasible.
 Marketing planning focuses: The traditional approach to a marketing plan
comprises of 4p's viz., Product Price Place Promotion.product includes the
features, design, quality and what kind of benefit it is going to give the
customer . Price is associated with the profit maximisation and what value
they are going to give to the owners,. Place includes the segmenting and
positioning of the product. That where it would hit the customer and he will
buy it. Promotion is the techniques about the marketing .it may include
packaging of the product.
1.2 ORGANIZATION’S CAPABILITY FOR PLANNING ITS FUTURE MARKETING
ACTIVITIES
The capabilities of any organization like Tommy Hilfiger is marked in terms of the
physical, financial and the human resources aspects and its overall ability to grab the
opportunities posed by the marketing environment along with making the most
efficient usage of resources along with being effective in gaining market image
(Gordon, 2011). The capability of Tommy Hilfiger could be described as its ability to
Unit 19: Marketing Planning - September 2016

design special products as through design staff in Amsterdam designing new
products and luxury items for the European markets to grab the upscale fashion
customers in France and Italy. Thus the human resource capabilities of Tommy
Hilfiger are described in terms of its new product design as per target customers
along with effective use of human resources in implementation while the financial
capabilities refer to its availability of funds for deploying new markets in world as
Europe. This helped the Tommy Hilfiger for making use of innovative technology and
design of European customer needs and thus gaining market shares there thus
helping future marketing activities in Europe after US (Tedlow et al, 2014).
M1
The capabilities are analysed on the basis of the evaluation for planning the
needs of future activities. Core competencies are the example of the capability of
Tommy Hilfiger
 Human capabilities: It refers to the no. of personnel and the skills they
possess. They have a very immense range of employees in over 3600 stores
in 45 countries. Other functions of the business comprises of
IT,Finance,HR,Buying,Distribution,Production which have separate roles for
them. The management at Tommy Hilfiger has adapted a very efficient
technique so as to improve the employees performance. They have
implemented job rotations it has shown growth at every level. The cited
organisation has been relying a lot on the employees for achieving success.
 Financial Capabilities: Of Tommy hilfiger is their ability to raise funds . Their
multiple funds can be considered as the growth in profits, gaining investment
and to raise additional capital.
D1
Advantages and disadvantages of the market plan:
Advantages
 Helps in identifying the wants and requirements of the customers.
 Helps determining the product demand .
 New products are identified.
Disadvantages
Unit 19: Marketing Planning - September 2016

 Faulty decisions can be made because of wrong analysation to data.
 May lead to unrealistic financial projection if data is wrong.
1.3 TECHNIQUES FOR ORGANIZATION AUDITING AND EXTERNAL FACTORS
AFFECTING MARKETING
The auditing in any organization including Tommy Hilfiger includes a deeper
understanding of the internal and external factors that have a bearing on the
organization functions and capabilities (Moore et al, 2008). The external environment
of the organization s studied using many tools including PESTEL analysis which
corresponds to the study of the political factors in the country; economy of the nation
including taxation, monetary policies, availability of funds, interest rates, etc; social
aspects as including the society and culture; technological factors as including level
of the innovations in industry and nation; environmental factors as including the
geography, pollution, climate, etc; legal factors as including the laws and regulations
along with government initiatives, etc (Tedlow et al, 2014). The internal environment
is studied through analysis of company mission, strategies, vision, mission along
with use of tool like SWOT analysis which includes the internal strengths and
weaknesses of the company while also looking for the opportunity and threat that
underlie its environment and may impact Tommy Hilfiger’s future.
1.4 ORGANIZATION AUDITING AND EXTERNAL FACTORS AFFECTING
MARKETING
SWOT ANALYSIS
STRENGTHS-
 The brand is recognized throughout the world (Moore et al, 2008)
 Good distribution network as operating in more than 90 countries with around
1000 stores around the world
 Celebrity endorsements helping in generation of good brand image
 Popularity of the established American designs of Tommy Hilfiger
WEAKNESSES
 The cost for the maintenance f the brand is high (Gordon, 2011)
 Competition for the well established brands like Nike, Lee, etc
Unit 19: Marketing Planning - September 2016

OPPORTUNITIES
 Design of innovative products in luxury and other segments
 Large untapped potential in emerging nations (Wilkie et al, 2015)
 New product lines and sub-brands under Tommy Hilfiger
THREATS
 The frequent changes in the fashion trends (Tedlow et al, 2014)
 Rising competition from international brands
 Changes in customer preferences as per the geographies and nations
PESTEL ANALYSIS
Political factors- this includes the political stability and the regulations in the country
including power of the politicians in influencing business activities and the form of
government as democracy, etc.
Economic factors- includes the economy as developed in case of Europe including
taxation policy, interest rates prevailing to avail funds for business operations as for
Tommy Hilfiger investors, etc (Tedlow et al, 2014)
Social factors- the society and the culture in the country impacts the business
organization as it must supply products and services as per the characteristics of the
target markets as Tommy Hilfiger did in case of European fashion upscale society
especially at France and Italy by designing new products.
Technological factors- it includes the level of technological advancements in the
country and industry (Moore et al, 2008).
Environmental factors- the country’s climate, geography and the overall environment
is important consideration as for Tommy Hilfiger must design warm sweaters and
jackets in case of cool regions like US which may not be same for hot regions as in
Arab nations.
Legal factors- this includes the laws and the legal framework impacting the
organization as including purchases, investments in the country, etc. Flexible labor
regulations will help Tommy Hilfiger in gaining easy labor and it must abide by all the
laws in the country it operates(Gordon, 2011).
Unit 19: Marketing Planning - September 2016

LO 2 MAIN BARRIERS TO MARKETING PLANNING time scale, Gantt chart,
budget and human resources
2.1 MAIN BARRIERS
Any organization including Tommy Hilfiger needs a strong planning of its marketing
initiatives in order to gain success and loyal customer base. In determining the
success of the products of the organization like Tommy Hilfiger the marketing
planning lays important role as deciding fro celebrity endorsement strategy in
advertising and promotions (Wilkie et al, 2015). Though the marketing planning is a
very essential part of any organization but there are certain barriers to this marketing
planning that impacts the organizations like Tommy Hilfiger as:
 Lack of the capability of the stakeholders including the top management to
take the challenges and incorporate changes in order to reap the benefits of
the opportunities. Also the organization culture may be such as to resist any
changes thus playing a barrier to effective marketing planning as was not
case with Tommy Hilfiger.
 Lack of the skills and expertise required for the planning may also act as a
barrier in effective design of marketing plan (Tedlow et al, 2014)
 Lack of cooperation between the management and the other stakeholders
 A dominant firm like Tommy Hilfiger may become overconfident with solving
the issues in the organization environment thus impacting effectiveness of the
marketing planning
2.2 HOW ORGANIZATIONS CAN OVERCOME THESE BARRIERS
The organizations like Tommy Hilfiger may overcome these barriers as through:
 Through auditing of the environmental factors (Moore et al, 2008)
 Involving in situation or SWOT analysis practice in organization
 Design of organization structure around the marketing function
 Development of the skills and attitudes to accommodate changing marketing
environment in marketing planning (Wilkie et al, 2015)
 Avoiding over confidence in planning and decision making as Tommy Hilfiger
is a leader in the industry
 Effective design and implementation of the strategies through co-operation
among the stakeholders (Tedlow et al, 2014)
Unit 19: Marketing Planning - September 2016

The overall strategy and the goals of the organization plays an important role in the
planning and the design of the marketing activities and also marketing helps in the
generation of the strong customer base for the company by making the customers
aware of what they make, sell and provide to the markets.
Marketing environment is seldom stable and due to this nature of the marketing
environment, the company must be capable of planning to accommodate with the
changes and the challenges posed by the environment as in case of Tommy Hilfiger.
Unit 19: Marketing Planning - September 2016

Any organization including Tommy Hilfiger needs a strong planning of its marketing
initiatives in order to gain success and loyal customer base.
Lack of the capability of the stakeholders including the top management to take the
challenges and incorporate changes in order to reap the benefits of the
opportunities. Also the organization culture may be such as to resist any changes
thus playing a barrier to effective marketing planning as was not case with Tommy
Hilfiger.
Lack of the skills and expertise required for the planning may also act as a barrier in
effective design of marketing plan (Tedlow et al, 2014)
Unit 19: Marketing Planning - September 2016

Lack of cooperation between the management and the other stakeholders
A dominant firm like Tommy Hilfiger may become overconfident with solving the
issues in the organization environment thus impacting effectiveness of the marketing
planning
The organizations like Tommy Hilfiger may overcome these barriers as through:
Through auditing of the environmental factors (Moore et al, 2008)
Involving in situation or SWOT analysis practice in organization
Design of organization structure around the marketing function
Development of the skills and attitudes to accommodate changing marketing
environment in marketing planning
Unit 19: Marketing Planning - September 2016

Avoiding over confidence in planning and decision making as Tommy Hilfiger is a
leader in the industry
Effective design and implementation of the strategies through co-operation among
the stakeholders
D2
Importance of marketing planning: It is very critical factor for any firm. It consists of
set of marketing activities which are required to attain the marketing objectives the
development and growth of the firm. Marketing planning consists several factors
covers the importance of planning which are menioned below: Product development: As its name suggest, product development is a set of
steps which covers the conceptualization, designing, innovation and
development and marketing of newly formed or newly re modified products or
services Marketing communication: marketing communication is an essential task for t
getting introduced the firms new product or service in front of general public.
Unit 19: Marketing Planning - September 2016