Marketing Plan To Increase Sales And Market Share For Barbour (Term Paper Sample)

Marketing Plan for Barbour
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Table of Contents TOC \o "1-3" \h \z \u Executive Summary PAGEREF _Toc470090574 \h 4Situational Analysis PAGEREF _Toc470090575 \h 5PESTEL Analysis PAGEREF _Toc470090576 \h 5Political PAGEREF _Toc470090577 \h 5Economic PAGEREF _Toc470090578 \h 5Social PAGEREF _Toc470090579 \h 6Technological PAGEREF _Toc470090580 \h 6Legal PAGEREF _Toc470090581 \h 7Environmental PAGEREF _Toc470090582 \h 7Porter’s Five-Force Analysis PAGEREF _Toc470090583 \h 7Competitive Rivalry Intensity PAGEREF _Toc470090584 \h 7Bargaining Power of Buyers PAGEREF _Toc470090585 \h 8Bargaining Power of Suppliers PAGEREF _Toc470090586 \h 8Threat of Substitute Products PAGEREF _Toc470090587 \h 9Threat of New Market Entrants PAGEREF _Toc470090588 \h 9Objectives of this Marketing Plan PAGEREF _Toc470090589 \h 10Current Strategies Analysis PAGEREF _Toc470090590 \h 11SWOT Analysis PAGEREF _Toc470090591 \h 11Strengths PAGEREF _Toc470090592 \h 11Opportunities PAGEREF _Toc470090593 \h 11Threats PAGEREF _Toc470090594 \h 12Current Tactics Analysis PAGEREF _Toc470090595 \h 12STP Analysis PAGEREF _Toc470090596 \h 12Segmenting PAGEREF _Toc470090597 \h 12Targeting PAGEREF _Toc470090598 \h 12Positioning PAGEREF _Toc470090599 \h 13Action PAGEREF _Toc470090600 \h 14Place PAGEREF _Toc470090601 \h 14Product PAGEREF _Toc470090602 \h 14Promotion PAGEREF _Toc470090603 \h 14Price PAGEREF _Toc470090604 \h 14People PAGEREF _Toc470090605 \h 15Process PAGEREF _Toc470090606 \h 15Physical Evidence PAGEREF _Toc470090607 \h 15Control PAGEREF _Toc470090608 \h 15References PAGEREF _Toc470090609 \h 17
Executive Summary
The marketing plan discussed in this report highlights a strategic path to achieve increased revenue and brand equity for Barbour in the United Kingdom. The firm is a luxury brand that provides outdoor wear to clients in this country. The company’s macro environment has been affected by recent political events in the nation, for example, the withdrawal of the UK from the EU. These factor and others within this environment necessitate a marketing plan that will optimize available opportunities, and minimize threats and weaknesses.
This report proposes adoption of personal selling and improvement of outlets’ décor as some of the strategies to achieve the proposed objectives. Additionally, the company should consider targeting the young generation, which is a growing demographic in the United Kingdom. In conclusion, the report highlights that Barbour needs to depart from its conservative approach to marketing if it wishes to maintain competitiveness and high brand equity.
Situational Analysis
PESTEL Analysis
Political
Elements in the political environment have a significant influence on a firm's operations and strategic direction (Ruvio, Shoham & Maja, 2008). Barbour's operations are predominantly in the United Kingdom, and such political activities in this region influence its core functions. In 2016, the United Kingdom annexed itself from the European Union, which meant that some of the trade tariffs firms based in the country received when exporting to other member states were no longer available. This decision may cause Barbour to incur higher costs in regional operations, which would disadvantage it in relation to competitors based in other EU countries. Additionally, the resignation of the UK prime minister, Gordon Brown, and the installation of a new regime creates uncertainty in the political environment, and this may discourage investors.
Economic
Economic indicators in the UK have been relatively positive in 2016, and although there was a slight economic decline after Brexit, the annual statistics illustrate an accentuating performance. The decline in inflation rates in the nation is favorable for businesses such as Barbour because it layers them against deflation in case of a recession; moreover, this trend necessitates real wage adjustments during declining nominal wage rigidities (Kanagal, 2009). One major setback in the country's economy was the weakening of the national currency, which increases cost of importing raw materials for firms such as Barbour. The exiting of the UK from the Euro Zone will increase tax obligations, as local companies are no longer subject to tax reliefs and trade tariffs.
Social
Barbour is a luxury brand, and therefore it is subject to acculturation and reference groups influences during purchases. The desire by individuals to replicate the lifestyles of those they perceive as being of a higher social class means that luxury brands get to sell even to individuals outside their target market. However, the high cost of luxury fashion products has spurred the proliferation of counterfeit products, with some clients knowingly purchasing these items simply to create an allure of sophistication. This social trend usually floods a market with over-supply, and some clients who were purchasing a luxury fashion brand because of its exclusivity may opt for other products.
Health consumerism has been a dominant market trend as more individuals focus on their lifestyles and the manner in which they can improve them to avoid diseases such as cancer. One of the effects of health consumerism is a surge in outdoor activities, which is beneficial for Barbour because it increases demand for garments to be worn in such an environment.
Technological
Social media networks have been a notable milestone in the technological environment. This platform has increased brand exposure and created a platform where firms can engage their clients for feedback (Bullard, 2011). The UK is ranked among the top 25 countries with frequent users for popular networks such as Twitter, Facebook and YouTube. This high usage illustrates that Barbour can have virtual presence in approximately every region of the country, and globally (Park & Feinberg, 2010).
Technology has also helped improved manufacturing techniques, and this helps firms in the fashion industry improve their efficiency and optimize revenue while minimizing cost implications.
Digital media such as the use of websites help companies increase interaction with the market; this is beneficial in creation of customer-centric marketing strategies, achieving customer satisfaction, and ensuring repeat clients (Gill & Broderick, 2014).
Legal
The UK has minimized legal hurdles faced by companies operating within its borders. Nonetheless, as Barbour transacts with suppliers and clients from other regions, it is bound to be affected by the legislation and statutes of foreign nations.
Environmental
Consumers’ awareness and appreciation for firms that implement strategies that do not harm the environment has increased (Pelau, 2011). In the US, Nike, a fashion brand, experienced a decline in brand equity after its unsustainable business practices were made public. Therefore, Barbour's commitment to environmental conservation will be integral to its success.
Porter’s Five-Force Analysis
Competitive Rivalry Intensity
Competitive rivalry is intense in the luxury fashion industry, as each company seeks to endear itself to the market. A majority of consumers within this sector has an intricate and well-defined preference, and thus companies need to design their products to meet this specific need. Additionally, brand loyalty can be undone by a single incident of low quality product or bad customer service, and hence corporations are always seeking to gain from their competitors' inefficiencies (Vass, 2005). Frequent product differentiation is also common in this industry, and this intensifies competitiveness, with firms trying to out-do each other with new commodities or service delivery mechanisms. The luxury fashion sector is characterized by high margins and thus competitiveness is not focused on price, but on brand perception, product quality, and designers' skills (Yang & Wu, 2007). The emerging trend where wholesale customers give private label offerings in their stores has also intensified competitiveness in this sector. The high competitiveness in this industry necessitates Barbour to review its strategies frequently to ensure it does not lose market share or become redundant.
Bargaining Power of Buyers
The multiplicity of product offerings and brands in the luxury fashion sector gives buyers a high bargaining power as they can get the same product from different sellers. Additionally, some of the products in this sector are not basic goods, and thus consumers may opt not to buy them if the value a firm offers does not match their expectations (Brooks & Simkin, 2012). This element of the market requires luxury fashion brands to develop client-centric strategies to ensure that their operations and commodities satisfy the needs of different consumer groups. Wholesale customers in this sector have contributed to the erosion of brand equity as they use private labels for products sold in their outlets; however, this group forms a small percentage of the market and hence their influence on bargaining power may be limited.
Bargaining Power of Suppliers
Leading brands in the fashion sector have out-sourced or relocated their manufacturing function to countries such as China, Philippines, Vietnam and India. The core reason for this business approach is to take advantage of the low cost of materials and labor within these regions. Consequently, the existence of such cost-effective sources makes the bargaining power of suppliers relatively low in this sector. Furtherance, firms such as Barbour buy raw materials on a consignment basis, which ensures they benefit from economies of scale.
Threat of Substitute Products
Barbour operates in the high-end market and thus its customers are looking for specific product offerings. This attribute minimizes the threat of subst...