The purpose of the report is to outline the marketing plan that will be used by the business to introduce sneakers in the UK market. One of the factors that will be analyzed is the external environment of the firm through the PEST and SWOT analysis. The plan will also outline the objectives that the business needs to achieve and the strategies that will be utilized to achieve the objectives. The PEST analysis shows that the UK market has a stable political and economic environment. Also, through the PEST analysis it is evident that the social-cultural aspect will not have an impact on the sales of the new product. Based on the SWOT analysis it was identified that there exist intense competition in the market due to the established global firms in the market. However, there is an increased demand of the sneaker products which is an opportunity that the business should maximize. The business will offer a product that has distinct features from the competitors’. Some of the objectives that the business plans to achieve include attaining a market share, increasing sales, and improved customer relationship. To achieve the objectives, the business will price its products based on what the competitors charge to ensure that it does not overprice.
Marketing Environment
One of the factors that a firm should consider to achieve and maintain sustainability is the analysis of the market environment (Gupta 2013, pp.34). The analysis of the environment is one of the factors that the management should consider in the decision making process. The marketing environment of the UK sneaker market would include elements such as the number of consumers, the competition in the industry, the economic factors, and the social factors. The marketing environment of the UK sneaker market will be done using the PEST analysis and the SWOT analysis.
PEST Analysis
The PEST analysis which is an acronym for political, environment, social, and technology is used to evaluate the external environment of a firm and provides useful information in the decision making process (Keung-Ho 2014, pp.6478). The table below outlines the PEST analysis of introducing a new product in the UK market.
Political " Legal Forces
The political environment in the UK is stable and, therefore, viable for carrying out business transactions.
In addition, the public has an influence on the policies passed by the leaders since there is a democratic process.
The issue of BREXIT which has been politicized might have an impact on business operations in the country
The laws and regulations of starting a new business are favourable.
Economic Environment
The Country’s is among the top five globally which implies that the consumers have a higher purchasing power.
The country’s population is large which therefore implies that there would be many consumers for the sneaker products.
There is a diversified economy in the country that makes it easier to conduct business in the country
There is a free economy in the country that is conducive for new businesses
Social-Cultural factors
The country has a high standard of living which would make it possible for the citizens to afford the product
The country has a large population
There is little cultural influence in the decision making process while consumers are purchasing products.
Technological sources
The level of innovation in the country is high
Source: https://en.portal.santandertrade.com/analyse-markets/united-kingdom/economic-political-outline
SWOT Analysis
The SWOT analysis is a management tool that is used to analyze the internal strengths and weaknesses and the external threats and opportunities. The introduction of the new product in the UK market, requires the analysis to determine the strategies that the business should make. Through the SWOT analysis, the business will determine the strengths and opportunities that should be maximized and the weaknesses and threats that should be minimized. The strength refers to the internal factors that act as a source of advantage to the business in meeting its objectives. The weakness refer to the elements that hinder the internal business operations which makes it difficult for a firm to achieve its goals. The threats refer to the factors outside the business that act as impediment to the achievement of the objectives. The opportunities refer to the external elements that might lead to additional source of revenue for the entity. The table below shows the SWOT analysis of the UK sneaker market.
Strengths
The company has a skilled workforce
The company has sufficient cash flow to finance the daily operation of the business. The cash flow will be financed by the bank.
High revenues and profitability.
Weaknesses
The amount of taxes might minimize the revenues for the business
The business does not have the knowledge about the Sneaker market in UK
Lack of management expertise in the UK sneaker market which is crucial in achieving the objectives
Opportunities
New market in the industry
Sensitization of health living standards provide increased demand of the products
Threats
Competition from the established firms in the industry
International companies that have a wide customer base
Competitive Review
The business needs to create a competitive edge in the market by segmenting the market. Marketing segmentation refers to the process by which an entity divides the market into various division to determine the sections of the market the resources should be focuses on. The strategy is used by the management to increase the revenues of the firms. In addition, the segmentation makes it easier for the company to identify the needs and wants of a particular segment of the market. The firm will focus on the demographic segment in the UK sneaker market. The demographic segmentation enables the business to divide the market into different components which include age, income, and the level of education. The business will target the middle-income and high income earners of the business. The income segmentation will enable the business to achieve its objectives of increasing the revenue and profitability. Higher prices will be charged to the high-income earners while moderate prices charged to the middle-income earners.
In addition, the business will focus on the age group while selling the sneaker products. The business will focus on selling the sneakers to the people aged between 25-60 years. The reason for selecting the range is because almost everyone in the age group has a steady flow of income. The business will focus on both genders by providing both male and female products in the market. The major competitors in the UK’s sneaker market based on the number of consumers are Adidas, Nike, Converse, and Reebok, and Puma (Statista.com, 2018). Since most of the competitors are established firms that operate globally, the business needs to perform an effective market segmentation that will drive sales in the competitive market. The control that the competitors have in the industry will affect the possibility of penetrating into the market. Since the competitors have an economies of scale, they might charge less prices to avoid new entrants into the market. An appropriate strategy in terms in pricing and quality of product is required to convince the customers to purchase the new sneakers. Therefore, the business will offer high quality products at a lower price to gain entry into the UK sneaker market.
Positioning
Marketing positioning is imperative for the business since it persuades the consumers to purchase a particular good or service (Kotler and Keller, 2009: 308; Radoviciu and Stremţan 2009, pp.1072). The business should ensure that the products have distinct features that will attract the customers. One of the factors that the business should consider to effectively position the new product in the market is understanding the expectation of the consumers. Once the business understands the consumers’ expectations, it will create products with features capable of meeting the clients’ needs. The other factor that the business will consider is the brand image of its competitors. The firm should conduct an analysis of the market to determine how the customers perceive their competitors and the additional features that should be included in the product.
One of the distinct feature that the business will provide in the sneaker market is excellent customer service. The relationship between the business and its consumers is critical in gaining entry into the market. The products will be fitted with devices that determine the speed and the number of kilometers covered. The products will be of a higher quality and have a lower price tag compared to the competitors’ sneakers. The company will also ensure that the sneakers have durable spikes that can withstand any type of terrain.
Marketing Objectives
Marketing will play a significant role in launching the new product in an industry that is highly competitive. One of the objectives of marketing is to penetrate the new UK sneaker market. The main challenge that is being faced by the business is that there is intense competition in the market due to the established sneaker companies such as Adidas, Nike, and Reebok. Therefore, it is through marketing that the business will convince its consumers to purchase products from the new outlet. The other objective of marketing is to increase the sales level of the company. The management will measure the objective by comparing the revenues recorded by the firm over a number of years. The revenues of an organization are important since they determine the profitability level. It would not be viable to invest in the new outlet if the firm can’t generate enough sales to cover the cost of operations. Another objectives that the firm plans to achieve through its marketing process is increasing its awareness. The only way that the consumers would know about the company’s offering is through marketing. In addition, marketing will make the brand known in the new environment.
Another objective of marketing would be creating a competitive advantage in the UK sneaker industry by informing the consumers about the price and quality of the product. The other objective of marketing will be enhancing the relationship between the business and the customers. The customers’ relationship can be measured by the increase in the level of sales and number of return clients. Also, marketing will be utilized to target a particular segment of the UK sneaker industry. Finally, the business plans to achieve an increase in the market share through marketing.
The product that the business plans to introduce in the UK market targets a mass market since there are a number of firms in the industry offering the same product. To penetrate the mass market, the business will ensure that it has the right strategy in place. Some of the factors that the entity will consider are the price and the quality of the sneakers.
Marketing Strategy
Marketing strategy is an approach that is used by the business to obtain value from the products they sell by communicating to the consumers (Isoraite 2009, pp. 114). In a market that is characterized by increased competition, internationally and locally, firms should ensure that they adopt they right strategy to achieve its objectives. The analysis of the business environment is crucial in selecting the appropriate marketing strategy for an organization. Notably, the firm should determine the needs of the consumers and identify what its competitors are offering in the market. One of the marketing strategy that will be utilized by the organization is the marketing mix.
The marketing mix is a concept that utilizes the product, price, place, and promotion to achieve the objectives of selling (Singh 2012). The business will ensure that the elements are combined to achieve the objectives of the business. The product that the business will introduce in the UK market is sneaker shoes (Isoraite 2016, pp.25). The product plays a significant role in the business since it is offered to satisfy the needs of the consumers. The product being introduced by the business will be used in sports activities. Some of the strategies that will be utilized to place the product in the market include sales discount and using celebrities in the UK. The product will be sold to the people aged between the ages between 25-60 years. In addition, the target market of the product will be on the high and middle-income earners.
The pricing strategy used by the business will also play an imperative role in enabling the business achieve its objectives (Riaz 2011, pp.45). The price determines the level of profitability of a firm and, therefore, the business will ensure that the appropriate prices are charged. Charging higher prices than the competitors might reduce the level of sales while setting lower prices might lead to an upsurge in the sales level. Hence, it would be important for the business to analyze the market and determine the best prices that will be charged for the products. The business will use the competition strategy to determine the prices that will be charged for the products. Since the business is introducing a new product in a highly competitive environment in the UK, charging lower prices compared to other competitors will enable the business penetrate into the market.
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