Unit 19 Marketing Planning Pearson BTEC Level 5

Task 1

1.1

In the present scenario, the competition among businesses in the clothing retail sector has become so intense that it is no longer easy for companies such as Hilfiger to attract new customers and retain their old ones (Passiante, 2006). Furthermore, people in the market are now available with a wide range of options and alternatives to choose from, and this has created several kinds of obstacles to the overall success of brands such as Hilfiger. As per the provided case study, the brand was established by two men, who were Mohan Murjani and Tommy Hilfiger. During its earlier stage, the selected brand faced issues in terms of increasing sales and attracting desired customers. In addition to this, in traditional times, Hilfiger has adopted traditional tools of marketing and promotion.

This mainly includes carrying out advertisements with the help of strategies such as celebrity endorsements. The selected business enterprise has carried out marketing of its jeans and other related products with the help of celebrities such as Sheryl Crow and Jewel, Beyoncé. Other than this, Hilfiger has also carried out marketing of its products and services offered with the help of placing ads in newspapers and television. The main objective behind this was to create more and more awareness among people in the market and attract them to buy the products that have been offered by Hilfiger (McGuinness and Morgan, 2005). However, it can be critically argued that along with the passage of time, there have been certain changes in the concept of marketing, and this has resulted in enhancing the overall sales and profits of brands such as Hilfiger. According to the modern approach to marketing, sources such as the internet, social media, and email have been used by the company.

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According to the provided case scenario, Hilfiger also relied traditionally upon processes such as whole selling in order to sell it and profit. Along with the modernization, the brand has started laying emphasis on sources such as the internet. At present, Hilfiger has developed its official page on social media sites such as Facebook and Twitter. In addition to this, it has also established its online store, from which it is marketing and selling a wide range of products. It can be stated that, as compared to traditional forms of marketing, the modern approach is more efficient. The rationale behind this is that the modern marketing approach is cost-effective and it also provides results in a very short span of time. On the other side of this, brands such as Hilfiger also get the opportunity to interact with their customers and understand their changing demands by using the modern approach to marketing. The use of information collected from customer reviews, feedback, and interaction results in the development of new products and services. The changes in approach have forced the selected business enterprise to make some modifications in the way it is carrying out all its marketing activities (Kwan, Fong, and Wong, 2005). Furthermore, it can also be reviewed that the changes in the marketing planning approach have also resulted in lowering the cost of operations.

1.2

In terms of organizational capabilities, it can be stated that the selected business enterprise is capable in terms of human, physical, and financial resources. This can be justified by the example that at present it is having a team of effective and efficient workers who are capable enough to understand changing customer demand and then deliver services according to the same. On the other hand, over the past few years, the sales and profits of Hilfiger tend to keep on increasing, and this means that the selected business enterprise has adequate financial resources to carry out marketing of its products and services (Hittle and Leonard, 2011). Apart from this, adequate physical resources are also available with the firm, and because of this, it has become very convenient for the selected business enterprise to implement the marketing strategies developed.

1.3

The external and internal analysis of factors affecting the marketing planning of Hilfiger is provided below:

SWOT Analysis

External analysis using the Porter Five Force model

TASK 2

Executive Summary

Marketing strategies used by Hilfiger to achieve its objectives are Differentiation strategies, achieving goals directly by creating high-quality products that lead to creating an image in the minds of its clients. Techniques for New Product Development are Experimentation Design and Test marketing and effective marketing mix used in the marketing plan is unique designs available and various prices ( RICHA, 2014). Premium pricing strategies communication mix to advertise fashion products by using TV, internet, mobile, and social media that cover domestic as well international markets in market segmentation.

Role of Marketing Plan in Corporate Strategy:

Difference between marketing strategy and corporate strategy

Marketing Strategy: Marketing strategy includes basic, short-term and long-term activities. It deals with the situation by analysing the situation of the company and formulating and evaluating them to achieve organization goals and marketing objectives (Concept Of Pricing Decision And Objectives Of Pricing Policy, 2012). The strategy begins by scanning both the internal and external business environment. It also includes how marketing mix, market segmentation and market research are adjusted by marketers.

Corporate Strategy: Corporate strategy is effective for the organization; it identifies valuable resources which a business unit creates on their own. It includes crafting the business portfolio and designing the organization structure and its system as well as function. It is also used in the management to share activities and transfer of various skills across the business.

Tommy Hilfiger's goal is to become one of the leading sustainable designer lifestyle brands by creating high-quality products, managing operations and meeting the objectives of stakeholders. Tommy Hilfiger adopts a Differentiation strategy; it is one of the strategies that create products and services that emphasise brand image, special features, superior service and proprietary technology (Ashe-Edmunds, S., 2016). Strong market abilities, creative personnel, effective product engineering, and the ability to perform basic research exist to support a differentiation strategy. Differentiation strategy achieves goals directly by creating high-quality products that lead to creating an image in the minds of its clients. It helps to increase Customer satisfaction as well as profit increase that will be distributed among its shareholders equally (Priya, Baisya and Sharma, 2010). This strategy also forces the organization to improve the quality of products by providing various benefits to its employees, such as salary compensation, flexible working hours, bonuses and various incentive plans, so this strategy helps to meet the objectives of stakeholders.

Techniques for New Product Development

Experimentation Design: It is one of the most significant techniques used for new product development. To develop a new product, market research is done by marketers by obtaining data from the market about customer expectations and requirements (O'Shaughnessy, 2014). Primary experiments are done by identifying the critical as well as non-critical factors that directly affect the performance and after this, multi-factorial experiments are done to determine the four critical factors. Optimum design is developed by confirmatory experiment for the best combination of four critical factors and optimum performance index.

Test marketing: marketing strategies used by the development of new products It is a process in which a marketer places the product in the market for sale in one or more segmented areas, such as demographic and geographic areas observes them and finds out the deviation between actual performance and proposed marketing plan (Sadjadi, Yazdian and Shahanaghi, 2012). It is used to evaluate various factors such as the performance of the product, customer satisfaction, response of product, material and distribution required for a full launch, etc.

Product Description

Tommy Hilfiger is one of the world's leading designer fashion brands, with various sizes available to all types of customers (men, women kids, etc.) that have unique designs available and various prices. Fashion products include watches, denim, footwear, western and traditional dress, etc. They deliver various products on occasion every year They provide unique and attractive design products and services that create an image in the minds of customers and solve the problems of customers by delivering high-quality products.

Pricing Strategy and Distribution Strategy

Tommy Hilfiger uses premium pricing strategies because the company offer high-quality products to its customers; it sets costs higher than its competitors ( Wrenn, B. and Mansfield, 2014). It is more effective for the company to sell its unique fashion product. Along with this, owners should ensure the product's packaging, store décor and create high-quality products to support the premium price. Intensive distribution strategies are used to provide saturation coverage of the market by using all possible outlets. It is usually used when customers require brand products . Premium pricing strategies and Intensive distribution strategies are used by the company to meet the marketing objectives and satisfy customers by providing them high-quality of products.

Communication Strategy

Tommy Hilfiger uses a communication mix to advertise its fashion products by using TV, internet, mobile, and social media that cover domestic as well as international markets in market segmentation. Marketing objectives are successfully achieved by providing a wide range of products at high quality at high prices as well as fulfilling customer satisfaction and there is a positive deviation between actual and proposed outcomes in the marketing plan.

TASK 3

4.1

Ethical issues that focus on honesty, fairness and responsibility relating to pricing, advertising and government standards and regulations that influence marketing planning are discussed below-

Honesty: Advertising should be transparent while marketing about possible side effects that ensure that the product satisfies customer needs and provides a standard of living (Yu, W. and Ramanathan, 2012).

Ethical pricing: The price should be based on target market information relating to overhead cost and supply and demand of its product. Unethical market practices are considered when the price they create is a fake shortage and bad mouth in the market.

4.2

Hilfiger company made a marketing plan by considering various ethical issues by marketing its fashionable brand product in the market segmentation. They ensure and satisfy customer needs and desires by offering high-quality fashion brands and providing a standard of living that is mentioned in advertising so the customer comes to respect the honesty of Hilfger 's advertising (Mish and Scammon, 2010.). The price of fashion products is considered to be ethical; they offer fashion products at various prices by analysing the target market. The marketing manager of Hilfiger keeps its customer information secure with them when they obtain from customers while making marketing plans that create enough trust in customers' minds.

4.3

In order to make a good marketing plan, Hilfiger should first consider the customer's rights in its plan if it is immoral in fashion brand products sales and its purchase that may give or cause a bad impression in the minds of customers ( Huang, R. and Sarigöllü, 2012). For example, If any customer, men or women, purchases denim or footwear which is against the law or illegal and directly affects the overall market itself and the organization does not stop the customer's right to complain and take legal action against the product, it will be spread all around in the marketplace.

Conclusion

In the project report, we conclude that Hilfiger faces various barriers and may overcome these barriers by adopting customer-focused strategic and integrated communication tactics, PESTLE analysis, etc. Goals are to be achieved by using differentiation strategies, price premium strategies and intensive distribution strategies used in marketing plan. Various techniques used in new product development are Experimentation Design Test marketing and the effective marketing mix used in the marketing plan that has a unique design available and various prices. Premium pricing strategies communication mix to advertise fashion products by using TV, internet, mobile, and social media that cover domestic as well international market in market segmentation by considering various ethical issues in a marketing plan and positive deviations find out.

Here are some of the best marketing dissertation ideas you can put to use in your dissertation or assignments.

References

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