Marketing Plan about Gu Puds on UK - Assignment Example

? Marketing plan about Gu Puds on UK Table of Contents Introduction 3 Company Background 3 Objectives- SMART 4 PESTLE Analysis 5 SWOT Analysis 7 Ansoff Matrix 8 BCG Matrix 9 Conclusion 10 Reference 12 Introduction This project aims to develop a marketing plan for a top notch chocolate manufacturing brand, Gu Puds in the United Kingdom. The project primarily tries to understand the marketing position of the firm in the region. For doing so, the project tries to make an external analysis of the company. This is done using PESTLE analysis. It then presents the objectives of the same in the present business context. Based on the above concepts of marketing, the company’s strengths and weaknesses are analyzed and presented. The competitive environment of the firm is also studied, based on which the opportunities and threats for the firm are analyzed. The next part of the project tries to make a strategy for the firm which it could implement and which would prove to be profitable for the same in the long run. The strategy of the firm is developed using the Ansoff Matrix and the BCG matrix. Company Background Gu Puds is one of the top chocolate manufacturers based in London. It was launched in the year 2003 with three major products. Immediately it emerged as a tremendous success and was soon joined by its fruity sibling, Fru which was established two years later. However, the two brands eventually joined together and worked under the brand name Gu. The company is known as the provider of the largest varieties of chocolates, mousse, souffles, cheesecakes, melting middles, tortes, brownie cakes, nibbles and naughties. However, the different delicacy that is provided is aimed to create an ambience which is strictly restricted for the adults. It provides a ‘sit back’ and relaxing atmosphere where people could indulge in themselves in their delightful delicacies (Gu-a, n.d.). The company thrives on its brand image which was developed after lengthy and careful and analysis. It emphasizes greatly on its looks which was also developed after long and hard thoughts about what they aimed to stand for and what exactly keeps them going (Gu-b, n.d.). The merging of the two brands resulted in rapid growth for the company. This was complimented with some of the tempting new packaging which featured their mysterious new characters The Gu Decadents and also a manifesto for having a more indulgent life (Gu-b, n.d.). Objectives- SMART The project considers development of the SMART objectives crucial and the foremost priority for the company as it helps to present the objectives in a well defined manner. SMART objectives are presented as the set of objectives which are specific, measurable, agreed upon, realistic and time/cost limited (Richman, 2006, p.65). Smart objectives help in the removal of all kinds of conflicts between the client and the internal stakeholders regarding the project. The smart objectives for Gu Puds have been presented below: Specific: Gu Puds would have the objective of evolving as the topmost chocolate pud brand in UK. The idea would be to develop the brand image considerably and emerge as the most popular brand for all adults. Measurable: This objective would be directed towards increasing the sales of the company’s products to a desirable extent which would be measurable. Gu Puds could set the objective to increase its sales by 10% within the next year. Agreed Upon: Gu Puds must ensure that all stakeholders of the company agree upon the projected objectives. This would especially applicable for the workers who are associated with the production unit of the company. Since the company seeks to enhance its sales by 10%, this would have to be agreed upon by the producers of the products who would be directly accountable for the increased production of the product (Richman, 2006, p.66). Realistic: The increased sales must have adequate resources for complementing the strategy. This would help to prevent cost or schedule overruns. The present strategy for the company would require an enlarged and efficient sales team who would be accountable for the sales development. Also marketing professionals would be required for analyzing the present market conditions and developing proper marketing strategies based on the sane. The objective would also require use of the latest technologies and tools for the optimum of resources. Time/Cost Limited: This objective would ensure that sufficient time and costs would be available in order to attain the desired objective. As per the present strategy of the company, it would aim to increase its sales by 10% within a span of one year. PESTLE Analysis The British Government seeks to promote industrialization. The spread of industrial revolution Thus it would be the most suitable place for conducting business operations. The industrial revolution has been primarily accountable for strengthening its position among the European powers. The nation has also been demonstrating rapid economic growth which accounts for providing an environment conducive for the growth of business operations (Bureau of European and Eurasian Affairs, 2010). UK also accounts for one of the leading financial centre and trading power after Germany and France. The nation also demonstrates high GDP growth and high purchasing power parity. This would account for few of the most favorable reasons for making transactions in the nation. The nation was hit be the economic recession in 2008. However, suitable measures have been taken for stimulating the economy and stabilizing its financial markets. This has been attained through nationalization of the banking system, cutting taxes, suspending the borrowing rules in the public sector and enhancing public spending on the capital projects (Central Intelligence Agency, 2011). The nation’s population comprises of a huge urban population, which demonstrates 0.7% annual rate of change in urbanization. It is evident that a chocolate brand would be more popular in the urban population in comparison to the rural areas. Out of the entire population 66.2% of them are aged between 15 to 64 years. Thus it is evident that the company would be able to target a large population base as it aims to target the adults the most (Central Intelligence Agency, 2011). The nation has witnessed the spread of its technology, language and commerce at the greatest extent, encompassing about one fifth of the one quarter of the global area and population. The social life in Britain reflects huge spending on drinks, night clubs, and youth clubs. Thus it can be assumed that consumers spending on chocolates and beverages would also be high. Britain is based on the common law traditions with the early Romans and the modern continental influences and has non-binding judicial review of the Acts of Parliament under Human Rights Act, 1998 and accepts the compulsory ICJ jurisdictions with reservations. It can be presumed that the company would not be confronted with too many judicial obligations for conducting business operations (Central Intelligence Agency, 2011). SWOT Analysis The greatest strength for the company would be the huge demand for confectionaries in UK. The growth of the chocolate industry in the region has been massive and also huge spending has gone into the consumption of chocolates. However, the demand for Swiss chocolates is the maximum in the region (Patalinghug, 2011, p.5). The company’s brand position in the market is also favorable which ensures that it already holds a favorable position in the minds of the consumers in the industry. The company also produces a large variety of puds which are also available at reasonable prices. This makes it a popular brand in the UK market. The company also has a large number of distributers and stores in the market which makes its products easily accessible to its customers (Gu-c, n.d.). The brand is primarily favorable for the adults in UK, but not meant for the children. This would a major weakness for the company as a large market is present in the UK market, aged below 14 years whish has a huge demand for chocolate products. The brand would also require using advanced technologies to fight the fierce competition already existing in the market. The band mainly specializes in the production of puds. It must also try and venture into bar chocolates and other varieties. The main opportunity for the company would be the huge demand for confectionery products in the market. Moreover, the brand already has an established customer base which has consequently resulted in a favorable attitude in the minds of the customers. It offers a refreshing ambience in the midst of the hectic life schedule of the UK citizens which is different from all other confectionaries. The company seeks to enhance its customer relations by maintaining friendly attitudes with customers. It welcomes suggestions from its customers and tries to meet their expectations. Customers are allowed to provide their feedback based on which the company tries to improve on its products and services (Gu-d, n.d.). The confectionaries market in UK is already flooded with big players which hold major portions of the market. Also people are more attracted towards branded chocolates in comparison to the local manufacturers which makes penetrating in the market all the more difficult. Some of the major players are Bournville, Caramac, Club Mint, Divine etc. Ansoff Matrix The following Ansoff Matrix has been developed to provide a strategic tool for the company which would define the future direction in which the company would move. The following diagram demonstrates the Ansoff Matrix that would define the four strategic alternatives before the company. Figure 1: The Ansoff Matrix (Source: Luck, 2008, p.346) The Ansoff Matrix provides a simple tool for understanding of the generic options before the company while defining the future direction in which its business would be moving. Since Gu Puds is an already established brand and is famous in the country, it would be feasible for diversifying its products. The company mainly produces a large variety of chocolates, mousses, souffles, cheesecakes, melting middles, brownie cakes, tortes, nibbles and naughties. It does not produce bar chocolates which are greatly in demand in the UK market. Thus it is suggested that it could diversify its product categories and produce bar chocolates. This would complement its brand image even further. It is also said that the company’s products are strictly meant for adults and not meant for the younger children. The company could look forward to penetrate new markets, mainly the young generation in which the demand for chocolates is high. As per the Ansoff matrix, the company’s generic strategy would fall in the fourth grid, i.e. new products and new markets. The long run strategic path would be to diversify its products and capture new markets in the industry (Luck, 2008, p.347). BCG Matrix The BCG matrix has been provided to provide a framework for the evaluation of the relative performance of the business in which the organization operates (Griffin, 2005, p.258). It is also helps making the assessment of the preferred distribution of cash as well as other resources among the existing businesses of the company. The following figure demonstrates the BCG matrix. Figure 2: BCG Matrix (Source: Michael, 2010, p.25) A per the BCG matrix, the company would fall in the first grid, “cash cows” which represents the products and services which has high potential and moderate share of the market. Since Gu Puds has an already established market, it could exploit this situation and use the revenue generated in diversifying into other product categories. The presence of large customer base and the potential for making profits require consideration for making investments. The money which is generated through its existing products can be utilized to support production in other sectors. However, it is important to ensure that the new product categories remain relevant to the customers (Michael, 2010, p.25). Conclusion It is evident from the project that Gu puds specialize in the production of varieties of chocolates which are strictly meant for the adults. However, a large market is left to be explored, which is aged below 14 years of age and has a high demand for chocolate products. Moreover the chocolate variety is limited for the adults and do not offer too many alternatives for the children. Thus it is suggested that the company could take the strategic option to diversify on its present product categories and expand on its share of the market. The aim would be to develop new markets through new products. As per the BCG matrix the existing products of the brand would be utilized for generating the desired revenue to be invested in other product categories. Reference Bureau of European and Eurasian Affairs. (2010). Background Note: United Kingdom. [Online]. Available at: http://www.state.gov/r/pa/ei/bgn/3846.htm#travel. [Accessed on May 26, 2011]. Central Intelligence Agency. (2011). Europe :: United Kingdom. [Online]. Available at: https://www.cia.gov/library/publications/the-world-factbook/geos/uk.html. [Accessed on May 26, 2011]. Gu-a. (No Date). About the Wonderful World of Gu. [Online]. Available at: http://www.gupuds.com/about-us. [Accessed on May 26, 2011]. Gu-b. (No Date). News. [Online]. Available at: http://www.gupuds.com/news. [Accessed on May 26, 2011]. Gu-c. (No Date). FAQs. [Online]. Available at: http://www.gupuds.com/faqs#Where%20are%20%C3%BC%20sold?. [Accessed on May 26, 2011]. Gu-d. (No Date). Share the luv. [Online]. Available at: http://www.gupuds.com/share-the-luv. [Accessed on May 26, 2011]. Luck, D. (2008). CIM Coursebook Assessing the Marketing Environment. Butterworth-Heinemann. Michael, L. (2010). Marketing: Defined, Explained, Applied. Pearson Education India. Patalinghug, J. C. (2011). Structural change in the US confectionery industry. [Pdf]. Available at: http://web.uconn.edu/are/graduate/students/docs/Job_Paper_JP.pdf. [Accessed on May 26, 2011]. Richman, L. (2006). Improving your project management skills. AMACOM Div American Mgmt Assn. Read More