Marketing Planning of Naked Wines in Britain - Report Example

Running Head: Marketing Planning - Naked Wines Marketing Planning - Naked Wines [Institute’s Table of Contents Table of Contents 2 Introduction 3 Marketing environment of Naked Wines 3 Micro environment 3 Macro environment 4 SWOT analysis 4 Strengths 5 Weakness 5 Opportunities 5 Threats 5 Key areas of competitive advantage 6 Online Marketing 6 High quality 6 Market knowledge 6 Deep market reach 7 High consumer demand 7 Strategic Recommendation 8 Conclusion/ Future Assumptions 8 References 10 Introduction Naked Wines is a British online wine retailer that was founded in 2008 by Rowan Gormley with its headquarters in Norwich, United Kingdom. The core business activities of Naked Wines are to fund independent winemakers across the world to sell exclusive wines at wholesale and very modest prices (Hurley, 2010). Naked Wines has certainly performed well in the online sector and it has been able to sustain fierce competition from its rivals and has consistently been ranked as one of the most valuable online retail companies in the UK. Over the years, its operations have gone from strength to strength and it has made its presence felt in every corner of this globe. Their business is spread across various countries across the world notably UK, USA, Canada and Australia. The report will shed light on the marketing planning of naked wines and how the company’s marketing strategy has been affected by various factors in the past few years. This report will certainly prove to be handy for the business operations of Naked Wines, as it will depict the marketing planning methods that are essential for business development in the industry. Marketing environment of Naked Wines Marketing environment could be termed as the specific factors and reasons, which are able to affect a company’s ability to build and maintain successful relationship with its current and potential consumers. Marketing environment is primarily comprised of two levels: Micro environment According to Brassington (2006), the micro environment of a company includes all the minute forces within a company which can have a huge impact on a company’s ability to fulfill the needs of its customers. It includes the company, its competitors, its consumers, government and the public. By having a thorough analysis of Naked Wines at a micro level, it is evident that the company has been able to execute certain shrewd tactics and has also been able to develop highly effective and efficient strategies which have been implemented into actual plans. Macro environment From a marketing perspective, macro environment of a company affects the company’s operational activities and its marketing strategy to a much larger extent (Bogan, 2000). Naked Wines operates in a highly volatile and sensitive industry. It is aware of that its products must be regulated and complied along with the domestic rules and regulations of the UK and it has to abide the federal and national laws of its country. That is why it is very important for a company like Naked Wines to consider such influential external factors. It is a mandatory requirement for companies to market their products in a smart and effective manner because different regions and consumers have varying consumption patterns. SWOT analysis SWOT analysis is a very important when analyzing a company’s marketing strategy. They comprise of an Organization’s Strengths, Opportunities, Weaknesses and threats and how they are correlated to each other. It also defines a company’s marketing position and helps a company to improve its business strategy. Since its inception, naked wines has been able to improve its business operations in a very short span of time and has certainly benefitted from the high demand for liquor and wines. Below is the SWOT analysis of Naked Wines: Strengths It has become a highly reputed and successful retail company and is able to provide a wide variety of products at a very compatible price It is a highly dynamic and competent company It produces and promotes high quality wines. The company has recruited highly competent and technically sound staff Weakness The company has failed to diversify its brand portfolio The company gives significant discounts to customers which may affect profitability in the long run Opportunities Sudden change in the needs of male consumers on a consistent basis Possible implementation of quicker and simpler database system Huge demand of online shopping across the world which may guarantee huge revenue and profitability in the future Flexible scientific technologies will prove to be beneficial in the expansion of business Threats Highly intense and fierce competition in the wine industry products from rivals Extremely high bargain option for consumers due to a wide variety of brands Low entry barriers for potential entrants due to profitability and growth in the industry Key areas of competitive advantage Naked Wines has done extremely well in the online retail sector and through its knowledge and technical depth, can make a huge difference in the wine and liquor industry. Naked Wines has several credentials and laurels to its name and this does add to its competitive advantage to a huge extent. This could be further highlighted as follows: Online Marketing Online marketing does have various benefits associated to a company and it provides a company a huge array of consumers to choose for. Naked Wines has certainly made online marketing its lethal weapon and it has allowed the company to be termed as “Top Online Retailer” in the UK. This mode has allowed companies like Naked Wines to explore a potentially new market with utmost ease. High quality It is evident that Naked Wine does operate in a highly profitable but a comparatively volatile industry. Not only Naked Wines has a great domestic reputation but it has established a great level of goodwill among its consumers and they still have a bargaining power due to their high quality wines. As stated by Marta and Carter (2008), customers want value for money, i.e. top quality products at modest rates. Naked Wines is certainly in a position to charge the price that it thinks to be the most convenient one. Market knowledge Naked Wines has been competing with several brilliantly performing rivals in the wine and liquor industry and it is certainly difficult to outshine those brands on a consistent basis due to their brand power and global reputation. However, Naked wines has been able to do well to achieve respectable profitability and growth in the last few years and even with the fierce competition from other reputed brands the company has done well able to perform exceptionally well in the wine industry. Deep market reach Internet marketing is certainly an inexpensive and the most optimum method of marketing. It has a huge outreach and can address directly to the market being targeted (Shimizu, 2009). Initially, Naked Wines core motive was to attract the highest possible number of potential consumers in a very small span of time. This mobility has also allowed consumers to purchase the products of Naked Wine with great ease and convenience. Internet Marketing does have various benefits to a company and Naked Wines has certainly benefitted from this strategy to a huge extent and in the near future it could well be in a position to capture a huge marketing base in the wine industry. High consumer demand Naked Wines is a highly successful online retailer and through this channel, it has gained widespread acclaim and praise for its business. Internet marketing and advertising does allow businesses to spread their business across to a wide pool of consumers that may possess different taste and ideas. The company has proven to be an ideal medium for independent but high quality winemakers around the world and for consumers who demand high quality wines at compatible prices. Naked Wines business strategy proves that it depends on the marketing strategy of a business and the amount of time it wishes to spend on promoting a particular brand. Strategic Recommendation As stated by Hemmingway (2009), a business must realize that it can only be successful if it is able to analyze that how it can make its potential and customers happy and satisfied. However, there are several parameters and boundaries within a marketing environment that business has to thoroughly analyze and it is through this method that the performance of any business may be determined (Bens and Monahan, 2008). An online retail company like Naked Wines has to understand that business at a global level has become highly competitive. There are many performance indicators which are evident for Naked Wines and which it has to realize in order to be successful. Included in these indicators is the level of quality of products, which are provided by the business and delivered to the consumers, service level, provided to the customers and the behavior and perception of customers when products have been delivered to them. Thanks to dynamism and fluidity of e-business and the flexible mode, customers cannot physically visit the market or the store and are unable to choose the products manually. (Solis, 2011) This puts companies like Naked Wines to consistently develop their website that can make it convenient for customers to purchase their products with ease and can help Naked Wines segregate its market according to the customer needs. Conclusion/ Future Assumptions Naked Wines can certainly benefit from the modern marketing techniques that are bit more dynamic and fluid unlike the stereotypical marketing methods that have been introduced by rival wine companies and this method can easily improve the level of competency for Naked Wines. Such procedures will have a highly positive influence on the business strategy of Naked Wines and will help the company to make a name for itself in the wine industry. Naked Wines does face rigid competition from its business rivals and the company needs to maintain its level of consistency by analyzing and assessing its past and present performance on a regular basis. It definitely has to thoroughly focus on its online business expansion plans and must realize whether this option will be beneficial in foreseeable future. Although it is a tough task for Naked Wines but with composure, commitment and determination, Naked Wines can certainly achieve its aim of becoming one of the leading online retailers across the UK. References Bens, A and Monahan, S. 2008, Disclosure quality and the excess value of diversification, International Journal of Business in Society 42, 691-730. Bogan, C., 2000. Benchmarking for Best Practices: Winning through Innovative Adaptation. New York: McGraw-Hill. Brassington, 2006. Principles of Marketing. England: Pearson Education Limited. Hemmingway, 2009. Personal values as a catalyst for corporate social entrepreneurship. Journal of Business Ethics, Vol. 5, pp.233-49. Hurley, J. 2010. "Wine site’s naked ambition frustrated by disbelieving suppliers." The Telegraph. Issue July 14, 2010. Marta and Carter, 2008, “Antecedents and consequences of Importance of ethics in marketing situations.” Journal of Business Ethics, Vol.21, 331-338. Shimizu, K., 2009. Advertising Theory and Strategies. 16th ed. Tokyo: Souseisha Book Company. Solis, B. 2011. Engage!: The Complete Guide for Brands and Businesses to Build, Cultivate, and Measure Success in the New Web. John Wiley & Sons, Inc. Read More