Marketing Planning Consultancy for MD Inc - Report Example

Report Marketing Planning Consultancy Report for MD Inc UK Module 262MKT Module Applied Marketing Management SID number: Course: Date submitted: Word count: 1491 Table of contents Executive Summary This paper develops a Marketing Planning Consultancy report for MD Inc, a public limited company based in the United Kingdom. This is in view of its plans to venture into the UK electric hair appliances market. The initial sections of the paper introduce the basic concepts about marketing planning and management. The main body of the paper is divided into various sections in order to cover the topic exhaustively. Such sections include Mission Statement and overall corporate objectives, marketing audit, SWOT analysis, marketing objectives, appropriate core objectives, competitive strategies and marketing mix. The paper ends by giving a brief overview of organization, implementation and control measures to be adopted by MD Inc UK in its venture. Mission Statement and Corporate Objectives MD Inc is a Public Limited Company based in the United Kingdom that manufactures beauty products with a special emphasis on hair care accessories. The company operates under the Bliss Beauty brand name, with its slogan being ‘Bliss in Beauty.’ This company records an annual turnover of about ten million Sterling Pounds and an annual growth of about ten per cent. The company’s focus is generally on beauty products and has recorded considerable success with its collection of hair care accessories under the ‘Bliss’ brand name. MD Inc’s product collection is marketed under the ‘gentle care for hair’ positioning and has built a rapport with clients who seek gentle hair care accessories. As a result hair care accessories line has become the fastest moving and most profitable product line. The company is now in serious consideration of the viability of venturing into new market; that of electrical hair care appliances. A quick examination of the conditions of this market has revealed a variety of factors which may affect the future direction of MD Inc’s strategic marketing. The UK electrical hair care machinery market is projected at around 203 million Sterling Pounds in the year 2008. Conversely, this market has not seen much in terms of value growth since the year 2005, and has instead registered a six per cent general growth in volume. Marketing Audit Marketing audit is an essential part of the process of marketing planning, usually carried out both at the start of the process and at various points in the plan’s implementation. This audit takes into consideration both the external and internal influence on the marketing planning and also the plan’s review (Enis and Cox, 1991). There are numerous audits and tools used, such as SWOT analysis of both the external and internal environment. Others mainly focus on the external environment and include Five Forces Analyses and PEST. In a number of ways, marketing audit is used to clarify any threats and opportunities and therefore allow the manager to alter the plan should necessity arise. Any marketing audit has a check list aimed at determining the marketing situation at present (Schwartz, 1965). Marketing audit is carried out in consideration of three essential aspects namely internal marketing environment, external marketing environment and a review of the current marketing plan. MD Inc has sufficient of the three essential M’s of an internal marketing environment. These M’s include men or labour, money or finances, machinery or equipment, minutes or time and materials or production factors. The company has adequate human resources to steer this venture to a great success. Moreover, its 10 million Sterling Pounds annual turnover is sufficient for a successful venture into a new market line. The company also seems to adequate equipment to enable its efficient operation. The company’s factors of production are in good balance to allow it to venture into electrical hair appliances market. On the other hand, MD Inc does not seem to have an organised, effective and efficient marketing management team. Such a team would interface the company’s internal functions and other organisations. The company’s customer relationship management does not seem effective enough to handle the new venture. However, its state of marketing planning process and new product development seems good enough. The new product’s profitability is very promising since electrical hair appliances have become a vital part of a woman’s routine hair maintenance. The product will therefore quickly attract these women and become part and parcel of their daily lives. The new electrical hair appliance will meet the specific needs of clients, who are mainly women. It will offer them convenience and save them some money. Currently, the electrical appliances market is flooded with numerous such appliances. This has in effect led to very low prices of the appliances to stiff competition. There are a number of competitors who will pose a challenge to MD Inc, such as Nicky Clake, Phillips, Tresemme, Boots, Superdrug, Argos, GHD. Some of these competitors will give MD Inc a run for its money in its quest to acquire market dominance. For instance, GHD targets salons where it distributes its products and at the same time uses celebrities such as Jennifer Aniston and Madonna to endorse them. Nicky Clake also appears in television in person to endorse his products. One of the greatest assets of the company is its target market, whose lifestyles demand that they have such appliances. These are mainly women under 45 who spend a large amount of money on their hair. These women rely on salons, which is relatively expensive compared to purchasing our products. SWOT Analysis Strengths Hair driers and strengtheners are very popular especially among women who are under 45. These women are striving to make salon conditions at home in order to save on the cost and time, hence more convenience (Hughes, 2005). This target market is likely to boost the sales in the electrical hair appliances. MD Inc’s hair care electrical appliances have a combination of both a hair drier and a hair straightener, both of which are on high demand among these consumers. Weaknesses The market is already dominated by too many such products, hence exerting too much pressure on its pricing. This will in turn bring down profit margins and hinder its growth in the long run. Heat treatment of hair has been attributed to extensively damaging the hair. As a result, some clients have their reservations about the hair care appliance, a situation that may spread to other clients and affect its sales (Kotler et al, 2005). Opportunities This particular brand seems to have an untapped market potential since not very many women have them. They instead visit salons for the services of these appliances. With the increasing awareness, there is no doubt that many more women will purchase the appliance (McCarthy, 2001). Moreover, there is a growth trend in the market; a 28 per cent growth is expected by between the year 2008 and 2013 to hit at 260 million Sterling Pounds. Generally, the future looks bright for the hair care appliances market. Threats The current recession and economic crisis has put pressure on the consumers; they are either scaling down their consumption of the products or opting for cheaper ones (Schawrtz, 1964). The company’s competitors are coming up with better appliances made of ceramics, which are capable of controlling heat. This new technology threatens to render MD Inc’s hair care appliances obsolete even before penetrating the market Marketing Objectives and suggestions for appropriate Core Strategies and Competitive Strategies The main objectives for this marketing campaign to create awareness of MD Inc’s new electrical hair care appliances. It is aimed at investigating the current market trends in order to come up with appropriate strategies to tackle it (Frey, 1961). The company’s competitive strategies are mainly pegged on cost leadership, differentiation strategy and strategy of focus. MD Inc will strive to be unique in the beauty care sector along certain aspects that clients value greatly (Lauterborn, 1990). The company will select a number of attributes perceived as vital by the consumers and strive to meet them. Such attributes include efficiency, quality, cost and convenience of the appliances. The company will also strive to become a low-cost producer in the beauty care industry (Hammer and Champy, 1993). It will achieve this by streamlining its operations to make them more effective and efficient to lower the cost of the appliances. Moreover, MD Inc will narrow its scope its competitive scope within the production and distribution of electric hair care appliances. Marketing Mix Decisions Marketing mix refers to a group’s decision to make a certain product by quality, place, branding, packaging, physical appearance and pricing (Barlon, 2006). MD Inc’s products will be manufactured on a large scale although the prevailing market conditions will greatly influence the number of units produced (Borden, 1964). This production will also take into consideration the growth trend in the market. Moreover, the company will strive to make its product pricing as attractive as possible although this will have to be done profitably. Additionally, MD Inc’s new electrical hair care appliances will be available in many retail outlets and beauty shops countrywide to reach as many clients as possible. Finally, a number of communication media will be employed to market the new product and create awareness among the consumers. Such media include television, print media, banners, radio, Internet marketing among other media forms. Organization, Implementation, and Control measures MD Inc will thoroughly plan how the marketing of the new electrical hair care appliance will be organized, implemented and any control measures to be adopted in the course of the implementation (Culliton, 1948). For instance, team work will be a major attribute of the marketing campaign. All employees of the company will be its marketers and not just the marketing department. Quality of the company’s products will be given high priority to enable it to market itself (Bitner and Booms, 1981). References and Bibliography Barlon, K (2006) The concept of the marketing mix, Turku University, Finland Bitner, J and Booms, B (1981) Marketing strategies and organizational structures for service firms, American Marketing Association, Chicago Borden, N (1964) The Concept of the Marketing Mix, Journal of Advertising Research Culliton, J (1948) The Management of Marketing Costs, Graduate School of Business Administration, Boston, Mass: Harvard University Enis, B and Cox, K (1991) Marketing Classics, Allyn and Brown, Boston Frey, A (1961) Advertising, Ronald Press, New York Hammer, M and Champy, J (1993) Reengineering the Corporation, Harper Business Books, New York Hughes, M (2005) Buzzmarketing-Get People To Talk About Your Stuff", Penguin/Portfolio, New York Kotler, P et al (2005) Marketing Management, Prentice Hall Lauterborn, R (1990) New Marketing Litany, Advertising Age McCarthy E (2001) Basic Marketing-A Managerial Approach, Irwin Homewood Schwartz, G. (1965) Science in Marketing, John Wiley, New York Schawrtz, G (1964) Schwartz G. Science in Marketing, John Wiley and Sons, New York Read More