Strategic Marketing Planning Process Marketing Essay

Management Summery

This newspaper will discuss the Strategic Marketing Planning process and Marketing tools and techniques and its own application in three different circumstance scenarios.

Firstly it looks at a case of a supermarket for which ASDA, one of the leading vendors in UK is chosen. ASDA is more developed name among UK households and in the market since its inception in 1920. In 1999 the major turnaround took place to the business when it was acquired by American massive Wal-Mart. The company's marketing have been revitalised and invested many supper centres and ASDA livings. At present ASDA rank number two among retail chains in the country, using 160, 000 employees and having 365 stores throughout the world.

Secondly, the task will analysed the current crisis at Ford and verify their marketing strategy which put them down. Also the number of marketing strategic options for the Ford Motor Company is recommended to be able to revamp its business to among the most notable.

Thirdly, this newspaper explores the implications of changes in the marketing environment for organisations in the airline industry in UK economy in particular.

Finally, the troubles encountered by brands in the presence of private label brands and what strategies are recommended to counter the situation.


Marketing function is an important part of whole business functions in ASDA. Marketing, when consider as a function it consists of typically the process of creating, promoting, and delivering goods and services to consumers and businesses. The duties of Marketing Manager's include effect the level of timing composition and structure of demand to meet the organisation's purpose.

Marketing has been identified by Philip Kotler 2003 [1] in two perspectives one is as cultural and the other is managerial. The social explanation of marketing says "Marketing is a interpersonal process by which individual and organizations obtain what they need and want through creating, offering and widely exchanging product and services of value with others". For managerial explanation marketing is thought as "the skill of advertising products".

American Marketing Association identify "Marketing is a process of planning and executing the conception, charges, promotion and syndication of ideas, goods and services to generate exchanges that meet specific and organisational goals.

The marketing concept emerged in middle 1950s and challenged the preceding product and reselling principles. Thus "marketing concept holds the key to attaining its organisational goals contain being far better than opponents in creating, delivering and communicating superior customer value to chosen focus on markets".


Task 1 Marketing Planning Principals

A formal proper planning is essential if organizations are to conform a coordinated and target approach. The strategic plan defines the total organizational quest and aims. Marketing plays an essential role in the execution of the proper plan and, therefore, it is against the background of the proper plan that the marketing plan comes from.

Macdonald (1995) [2] shows that several stages need to be completed to be able to arrive at the proper marketing plan. They are summarized in a figure 01 below. The overall marketing planning process can be divided into four stages; the entire corporate goals therefore should nourish into start point of the marketing planning process. What sort of corporate goals do is seen through business description.

Following an initial environmental and business research, the introduction of a mission affirmation is the starting place both for commercial and marketing planning since it symbolizes the eyesight of the actual company is or should try to become.

ASDA's Objective;

"Is to be the cost effective merchant exceeding customer needs. . . . every day Supported by their reason for portion everyone's money every day [3] A number of the above information has been taken from asda. co. uk site appeared on 03 Nov. 2009.

That is made possible by dedicated staffs and the determination to ensure that customer always come first in everything they are doing. What ASDA value;

  • Respect for the individual
  • Strive for excellence
  • Service to the customers

Tools and Techniques involved with Marketing Strategy

Current Market analysis

In the process of formulation of any strategic marketing plan, the most important part is the research of the company's current situation. This includes the research of both interior and external environments of the business. There are different techniques to analyze the internal and external environment of the business. SWOT and Infestations will be the two most frequent techniques that are being used frequently. The next is the use of SWOT and PEST on ASDA;

SWOT Analysis

The overall analysis of the company's talents, weaknesses, opportunities and threats are called SWOT Research.


  • ASDA is one of the powerful retail brand and among big 4 in UK. It contains the reputation for value for money and wide range of products under one roof top.
  • ASDA is a household name over the years and is rolling out substantially after the acquisitions by Wal-Mart in 1990. ( Wal-Mart is world's biggest dealer)
  • The technological leadership is the company's key competence which supports its logistics system to screen specific products performance country large and store wise instantly. It also recognized by Wal-Mart effective procurement.
  • A good culture in organisation wide and centered HR management strategy in place. Investing on training and development and produce through productive and trained staff and low employee turnover.


  • Due to magnitude of the business enterprise it could leave weak in a few areas due to the huge period of its control.
  • Due its product range is so big and across many industries (such as foods, clothing and stationary) it might not exactly be flexible enough of it's more concentrated and specialised rivals.


  • To utilize the Wal-Mart resources to capitalise local market where in fact the major talk about is considered by Tesco.
  • Utilize the current economic down-turn strategically for boost the share on low price strategy.
  • New store types and locations to provide different segments especially convenience purchasers.
  • Continue with current strategy of large supper centres.


  • Being on the list of big 4 retailers means it has threat of losing share its competition and especially from Tesco's who also contend on price as major strategic option.
  • Competing on price is always threaten by the competition as it is easy to duplicate thus if any scientific or tactical integration or kind of move that really helps to reduces the competitors prices will always threatening.

Porter's five makes analysis

Porter discovered five major areas that competition might be posed for the company. Complete and careful analysis of five forces reveals the typical of company in the light of competition that may intern influence your choice making process to formulate strategies.

New Entrants

"New entrants to the industry will boost the degree of competition. The menace for the industry usually will depend on the entry obstacles. In some market sectors it is not hard to type in and whereas other establishments it is hard to enter into due to high admittance obstacles. " ASDA is facing a doubts competition due to new entrants to the market. The retailing industry is certainly even small corner shop is a rival to ASDA.

Threat of substitute

"Existence of replacement products could reduce the industry attractiveness because it will have an effect on current product price as well as the earnings of the business. Buyer's determination to substitute and relative price and quality of swap products also due to threat of replacement of the industry. " The other major problem that ASDA is facing is their tactical emphasis is very susceptible to competitors due to reality it is simple to reproduce. Tesco price slices are posing a considerable danger to ASDA and vice versa.

Bargaining electricity of Suppliers

According to Porter "If the suppliers have higher bargaining power then your industry can be less attractive. Bargaining electric power of suppliers depends on,

  • The variety of buyers and suppliers
  • Product differentiation and value of the product
  • The industry not key customer group for suppliers"

This is a one area that ASDA can have some power if indeed they use the scale benefit by synchronising Wal-Mart to the buying process. ASDA has to use the Wal-Mart's bargaining power to gain some range advantages. Bargaining vitality of Buyers

As Porter has detailed "Buyer's power depends upon,

  • Number of the suppliers
  • Degree of the standardization of products

This is the ASDA's weakest area as the bargaining electric power of buyer is at its most in the retailing industry anticipated to mainly the above two point described by Porter.

ASDA has unveiled "asda. com" which really is a very smart strategically move by the business to counter the competition from Tesco. com. ASDA is creating a very solid customer base and it's really increasing in volumes daily. ASDA has developed the web store very effectively to entice customers from its opponents with a well organised delivery system to deliver the goods to customer's doorstep.

Task 2 Range of Marketing strategy options

Boston Consulting Group's (BCG) expansion share matrix

In the mid-1960s, the Boston Consulting Group (BCG) was formed to provide market solution predicated on portfolio analysis. BCG is simple but useful strategic planning technique predicated on an evaluation of company's product stock portfolio. The technique requires assigning every individual product of a business to 1 of four possible cells in a simple matrix in line with the relative market show and rate of market development associated with that one product/business. Current product portfolio examination of Ford Motor Company

According to the BCG Matrix the next amount shows current position taken by Ford Engine Company's brands. In the next matrix shows how imbalance is the Ford's current product pipeline. Ford and Mazda will be the two better doing brands from the lot and producing cash flow to pay the other problem children. Ford has lost its market talk about to its ASIA opponents like Toyota, Nissan, Honda and even Hyundai. To be able to establish the business's brands, Ford must turn out with robust online marketing strategy.

Due to the problem the Company have to either Divest or Invest on those problem children to be able to make it through the hyper competitive vehicle industry.

Porters general strategies

Michael Porter has proposed three common strategies offering a good starting point to Ford Electric motor Company's proper plan;

This is a strategic model where an company clearly identifies its strategy predicated on cost leadership and differentiation. But in today's hypercompetitive business climate it is rather difficult to maintain the competitive benefit since it might be lost to competition in short period of time. Therefore Richard D'Aveni's revised this strategy, getting and regaining competitive benefits, is more suitable for the today's business community. The method of gaining and regaining competitive benefits is more suitable for the today's business world. The means of gaining and regaining competitive edge are Emphasis, Differentiation and Cost Control. This is actually the strategy, Ford Engine Company should continuously adhere themselves to. Ford has to change their products consistently with changing customer demands.

The Ansoff's Matrix

Ansoff [5] has proposed the thought of 'product/market scope' to assist in the formulation and collection of strategies, specifically for those companies with development objectives. The essential framework of the approach is shown in the fig. 5.

Ford Motors have to look at the above #1 1 and 2 strategies if they're to carefully turn around the company by saving the prevailing brands.

  • Market Penetration strategy; Ford has to reorganise its marketing communication strategy by emphasising its primary values which can be quality, economy, eco friendliness and safe practices. Thus the business should transfer the positions presented by those problem children to star category.
  • New Market Development; Ford must look for new markets using their new value preposition. Those customers who've shifted from the business's brands are to be regained. New geographical areas have to be covered.
  • New Product Development; Ford have to identify new market development especially with this global economical downturn and credit constraints. Company have to emphasis on more fuel efficient features in their products concerning capitalise the marketplace. Customers have to be introduces with some sort of easy payment scheme to sell and thus get all sections of the marketplace.
  • Diversification Strategy; the company must identify new sections in the market and give you a differentiated products and features to meet up with the requirements of those new segments. Thus Ford should balance their product range. Also they must be communicated by complementing the different features using their customer requirements.

Above all, the main thing that Ford required to do is to revamp its marketing communication combine strategy this is actually the area the company was not proficient at over the last five years. Although company, was creating a wider range these were not doing well due to poorly prepared marketing. Therefore Ford must capitalise on the main values with their products.

Task 3 Implications of changes in Marketing Environment for Airlines industry

Airlines industry is the most delicate industry to the changes of Marketing Environment. Any change in marketing environment like standard economic conditions, the seasonal aspect of the air travel, as well as movements in airlines, costs, and gasoline cost will have a huge impact of industry. Through the general monetary downturn the airline's marketing environment experience negative consequences because a substantial portion of airline travel (both business and personal) is discretionary. When examining the impact of marketing environment changes in the UK economy in particular and world business environment on the whole on airline industry, the following analysis can be produced.

Before going deep in to the discussion the author likes to offer a caption from Uk Airway's annual statement 08/09 [6] which says "Our earnings is highly hypersensitive to economic conditions in the market segments where we operate".

Next price is from a budget flight called Ryanair and it was posted in their total annual record 09' "Ryanair Has Made a decision to Freeze its Development in the U. K. Market and Curtail Certain U. K. procedures. Ryanair enlightened its U. K. -founded pilots on June 16, 2009 which it had completed a review of its U. K. growth ideas. The review was prompted by the recessionary environment in the U. K. " [7]

Above two quotations simply says the entire answer to the question in a nut shell but also for the academic purpose this paper will further elaborate on the trouble. Firstly it will check out;

Fuel prices and currency fluctuations

Changes in the air fuel costs and availability will have a direct impact on airlines industry. Regrettably the jet fuel costs and money fluctuations are at the mercy of wide fluctuations consequently of various economical and political factors and situations occurring round the world where companies on the market haven't any control by any means which is highly unpredictable as well.

As the jet fuel prices are denominated in U. S. dollars, fuel prices are put through certain exchange rate risk mainly to non U. S. airlines. The possible most severe case situations include adverse exchange rates, unavailability of satisfactory supplies, without any limitation, and any such incidents that ignites the hostilities in Middle East and other fuel producing nations and so forth.

Government polices and trade unions demands

Different governments and different airport accessibility, slot allocation and ground handling charges are at the mercy of recurrent changes and always increase that may adversely impact the bottom-line of airlines. For a good example 10 of Air Passenger Duty "APD" per departing passenger is said to be increased to 11 by end of November 09 which was just 5 before 2007. Likewise many governments have increased the travel taxes. But airlines think that increase in federal government taxes will possess the negative impact in passenger volumes. Another such example would be liberalisation of European union air travelling market which allowed US carriers to operate in intra European union markets.

Green issues are the other obstacles facing the complete industry. For your example EU rules on emissions trading could improve the future cost of air traveling that can come to influence from 2012.

This is an extremely complicated and complicated phenomena that is happening in air travel industry. In many countries have their own flag carriers, government own companies etc. , and sometimes they are receiving federal concessions and subsidies especially for airport access and earth handling. Such talk about aids will give strategic edge compared to that air travel and that will adversely have an effect on the other players on the market.

British Airlines Pilot Association (BALPA) is conducting a advertising campaign for union acknowledgement had brought on Ryanair to reconsider its position in U. K. British Airways is actually having union problems requiring pay hikes etc and when not decided by employer these are protesting without working putting whole company at risk.


Terrorism is one of the major risk element in airline industry suffer from. Grater security steps are expensive as well as a trouble to air tourists which exerts a negative affects on passenger quantities too.


There have been variety of diseases like swine-flu, SARS, ft. and mouth disease and so forth. All these have a negative impact on flights industry worldwide. Some nationwide authorities had enforced limitations on air traveling.

Other Factors

Unfavourable financial conditions scheduled to recessionary market, increased unemployment rate, constrained credit market segments and increasing business operating cost are one of the factors that influence the consumers both leisure and business.

Competition from other mode of transportation desires sea and trains mainly. Tourists looking for alternative transportation sometimes high speed rail systems such as TGV in France exemplify this example.

Brands vs. privet label brands

Over nearly two decades, private label branding has turned into a popular strategy among some main supermarkets in Europe as well as U. S. Privet Label branding has been using by main retailers as a differentiation technique their product from other rather established brands and thus commanding customer devotion with their products.

Above figures shared by Cornell University or college in 2001 [8] and according to the above data United Kingdom is the leading country to have very dedicated customer bottom part for private label brands. Nevertheless the current characters should be much higher than this. It had been revealed that the major stocks of privet label brands are of iced and refrigerated products. Recommendation

As a branded product production, to counter this example there's been various strategies used. Among mostly recognisable an example may be giving high discounts to the sellers to make it happen preferential shelf space and to the customer end sales promotions.

By considering each one of these strategies the best answer is always to present more value added brands and also to establish the worthiness in their brands by proper marketing communicational mix.

References and Bibliography

  1. Kotler. P, "Marketing Management 2003", London.
  2. Malcolm H. B. McDonald, 2005, "British Journal of Management", Amount 1 Issue 3, Webpages159"170.
  3. www. asda. co. uk web site appeared on 03 Nov. 2009.
  4. Porter M. E, "Competitive Strategy", Free Press, 1990.
  5. Ansoff Matrix used from Philip Kotler, Marketing Management 2003, p 100
  6. British Airway's total annual report 08/09 came out on britisairway. co. uk site on 05th Nov 2009.
  7. Some of these information taken from ryanair. com website on 07th Nov 2009
  8. Cornell University website under a research conducted on behalf of Privet Lable Makes Association, came out on 08th Nov 2009
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