I need help to write a 3 year marketing plan 3,000 words. The suggested assignment structure attached. The assignment has to be referenced as per Harvard Guidelines and completed by 1/July/2019.  Turn

Kogan: Marketing Plan

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1. Executive Summary

The report was designed to market entry plan of Kogan in the UK market for this purpose internal and external analysis was done and external analysis was done through PESTLE analysis. Moreover, porters used to analyse the industry environment which depicted the political, economic and competition related issues and at the same time it showed some supportive factors such as an increase in disposable income and increasing trend of online shopping. This report is recommended to use the marketing mix and STP model which would be based on the market and industry research.

1. Introduction

Kogan is an Australian based online retailer and services oriented company which was originated in 2006. The major company success is its financial growth because the company achieved 3 million of sales in the third year of its performance. With the passage of time, the company expand its operations and now providing insurance and other financial services as well for example loans. In Australian online retailing Kogan set its position and the purpose of this report is to design the marketing plan for Kogan in the United Kingdom market.

1. PESTLE Analysis

PESTLE analysis is helpful in marketing because it helps organizations to analyse external factors which have the potential to impact the organizational operations. Moreover, it helps to design reliable and valid business and marketing strategies. (referencing)?

1. 1. Political Forces

There are some political factors such as Brexit which is impacting the country political stability in terms of business. It is because in the case of Brexit the UK may face an increase in trade tariffs at the same time poverty and homelessness is increasing (Ryan, 2018). Japan, Australia, Canada and some other developed countries are having free trade agreements with Europe which can be beneficial in terms of business.

1. 1. Economic Forces

BBC in 2019 claimed that UK economic growth is declining and its growth is reached at zero (BBC, 2019). In a report The Guardian claimed that it is expected to increase the UK financial growth to 1.5 in 2020 (Inman, 2019).

Figure no1: Forecast Inflation rate in the UK

Source: (Trading Economics, 2019)

The given figure is depicting that the inflation rate is expected to decline in the future. According to Statista 2019, disposable household income is expected to increase by 1.6 percent, in 2019 it is £276. At the same time Labour cost in the UK is increasing.

Figure no2: Forecasting in Labour Cost

Source: (Trading Economics, 2019)

According to the Bank of England it is expected to increase the interest rate around 1.5 percent in the next five years. UK stock market is also fluctuating due to Brexit (Inman, 2019).

1. 1. Social Factor

The consumer purchasing power is increasing, due to the high literacy rate in the country trend of online shopping is increasing. Consumers are educated and aware of the product quality and saving trend is also increasing in the UK (Business Matters, 2019). According to statistics annually 15 percent increase is seen in online shopping in the UK (Inman, 2019).

1. 1. Technological Forces

UK technological infrastructure is supporting online shopping by high android usage that's why the UK is the third largest e-commerce market. It is expected to increase more than 40 percent in the future because online shopping trend is increasing that's why most of the retailing companies are introduced their online shopping apps.

1. 1. Legal Forces

CMA in the UK is responsible to control market monopoly and power recently to market Giants Sainsbury and ASDA were dealing with a merger agreement but the government refused this agreement because of market monopoly and the threat of price war. At the same time different rules are designed to protect suppliers, quality management and patent related issues.

1. 1. Environmental Forces

Government is designing different rules in terms of packaging and plastic use which can impact retailer business in the UK. UK population is educated so preferring eco-friendly products and concerned about the environment.

1. Porter’s Five Forces

Porter Five Forces help to determine the market competition and industry situation as well as recent or future trends.

1. 1. The threat of New Entry

High

In online retailing industry profitability is needed economies of scale, products are least differentiated, buyers are moderately brand conscious, the consumer switching cost is also low in online retailing, property is and technological infrastructure is not an issue and the high initial investment is required.

1. 1. Threat of Substitutes

High

The threat of substitute is high because a lot of low priced supermarkets are available it means substitute of online retailing is easy to access and available at low price as well. Same quality products are available so consumer switching cost is low.

1. 1. Bargaining Power of Buyers

High

In the supermarket or retailing industry buyers and sellers are equally concentrated, least differentiated products that's why there is always retailing industry having price war to attract more customers. Well educated and quality conscious buyers are making bargaining power of customer high because a lot of substitutes are available in the market.

1. 1. Bargaining power of Suppliers

Low

Bargaining power suppliers determinants are depicting that power is low because suppliers are although highly concentrated but a lot of suppliers are available in the market. Moreover, the least priced supply is available in the market.

1. 1. Industry Rivalry

Highly intense

Amazon, eBay, Alibaba and Walmart are the main competitors and set a high standard of technology as well as other retailing giants such as Tesco and Sainsbury are also providing online purchasing options. The distribution of market shares is depicting that Kogan will face a highly intense market in the United Kingdom.

1. Market Size

The United Kingdom is the third largest market for online shopping and according to the office for national statistics online retailing sales in 2018 was increased 18 percent whereas on a global level this ratio is 15 percent (Office for National statistics, 2019). Retail sales index is expected to grow in future and according to Statista 80 percent internet users in Europe are using online shopping option which is largely expected to increase in next five years (Statista, 2018). In the United Kingdom value of online retail sales is 80 billion US dollars (Office for National statistics, 2019). It is seen that most of the working class is using online purchasing options and young generation also using online purchasing moreover old age population is also using online purchasing because of easy to access even online grocery trend is also largely in old age people.

1. Situational Analysis

The situational analysis allows the organization to identify its internal strengths which can help to grow faster and to analyse the internal weaknesses which are needed to manage by using different strategic approaches. Moreover help to assess the external opportunities and threats which helps in future strategic and business approaches.

Figure no 3: SWOT Analysis of Kogan

Need to increase to overcome weakness

Need to minimize

Factors beyond Organizational Control

Factors in Organizational Control

Need to avail

Need to find alternate or avoid

Analysis: The given SWOT analysis is depicting that Kogan is although providing high quality services and products but still facing different issues which can be minimized by using external opportunities for example it is the main weakness that Kogan does not have global presence so by using the global market opportunities and technical support company can expand its services. The intense market competition is a threat to the company so it can be controlled by using its wide services and retailing options.

1. Segmentation Targeting Positioning

Most of the companies or brands are using STP Model to apply the different market personas. For this purpose firstly they have to identify the market segmentation and later on use the process step by step to get marketing success. (please remove the screen shot below) I will not get marks for screen shots you need to articulate it or create table)

Given figure is describing the steps of the target market with the detailed information about how these steps can be met by the organization. Here are some recommended steps for Kogan.

1. 1. Segmentation

Segmentation is about the consumer division that how an organization can divide its customers. It is an activity in which expected or potential customers are divided into subgroups according to their characteristics on the base of four categories. Here are segmentation is given for Kogana;

1. 1. Introduction (point out that need to take fresh look at customers/clients in ‘the market’ - hence segmentation – in order to review/pick target market, and then review/pick positioning)

1. 1. Targeting

Target market is a way to choose the segment which is more appropriate to target for organization. In this respect for the United Kingdom market entry it is recommended to target middle-class families because the largest part of United Kingdome is comprised of the middle-class families. As well as these families prefer to use the high-quality product at a low price that's why this target market is more relevant to Kogan’s missions and objectives.

1. 1. Positioning

Khan, et al., (2019) stated that a brand or company could use 5 basic elements to differentiate its products and these are quality, customer service, technical, user experience, and product. According to Kogan information previously in Australian market company is using product strategy and now in the UK market it is recommended to increase the user experience because there is more high competition as compared to Australia.

1. 1. 1. Value proposition

The value proposition is a unique marketing statement which is providing an idea about the uniqueness and helps the company to convince the new customers. The value proposition for Kogan can be "Kogan aims to provide premium quality products at affordable prices because our customers are valuable for us".

1. 1. Positioning Statement

“To get everything is the right of everyone so Kogan is enhancing your life quality and making your life more stylish in affordable prices”.

1. 1. 1. Positioning Map

Position map helps to determine where a company wants to position its products According to market rivalry and according to company objectives or goals. Here is a positioning map of Kogan in the UK market:

Amazon

Alibaba

Kogan

Product Quality

Product Prices

The given positioning map is determining that Kogan does not only have to fight to maintain quality but also have to attract customers by low pricing strategy.

1. Marketing Objectives

The marketing objectives of Kogan would be:

• Increase company profit

• Increase market position

• Target more customers

• Provide high quality products to get loyal customers

• Provide wide range of services and products to increase market position

• To achieve the organizational objectives

• Reach the company profit till 30 million dollars in first three years

1. Marketing Mix Strategy

Marketing mix is a mixture of strategies which allow company to develop different ways according to market segment and to achieve the marketing objective (Wenzel, AM 2012). Cost leadership is recommended for Kogan because this strategy allows the leadership to control product cost which ultimately help to get competitive edge in market by maintaining high quality in low price.

https://www.smartcompany.com.au/startupsmart/startupsmart-marketing/website-strategy/kogan-goes-international-with-launch-of-uk-site/

Can you please bring in some of the ideas mentioned here about

1. 1. Product Strategy

It is a road map of the product through end to end vision about the product. In this respect Kogan can introduce wide variety of products. For example, in apparel industry as well as in toys, electronics and many other options can be availed. This strategy will be useful not only to target wide market but also will be helpful to increase the market shares. It will help to achieve the increase the market position which is a major objective of Kagan. It is necessary because Kogan have to face the high competition in market so by wide variety of products and services as well as high quality of products will help Kogan to compete market and to get loyal customers.

1. 1. Pricing Strategy

Pricing strategy is the most common and important way to target segments as well as to increase the market shares (Kotler et al, 2013). Market penetration pricing is recommended for Kogan because it would be helpful to attract new customers by generating revenue and profit. At the same time it will be helpful to compete the competitors. This strategy is recommended to create the more future demand of Kogan in UK and this strategy is having strong theoretical support for new market entrants. Doesnt make sense?

1. 1. Place Strategy

Place strategy is about to outline the place where company have to outline the products and this strategy is necessary to approach the accurate target audience for example Hugo Boss is a brand when they enter in UK market they open all their stores near to parks and university or colleges because their target audience was youngsters and runners in shoe apparel industry. In this respect Kogan will use online presence initially in urban areas where they have easy access to its target market.

1. 1. Promotional Strategy

Promotional strategy is one of important set of strategies which allow to use different promotional and communicational tools to attract more customers. Integrated marketing communication is recommended for Kogan because of its cost effective speciality and easy to reach the target audience. For disseminating the message to reach the large size of target audience. It will help Kagan to increase sales in this perspective Digital marketing, Social media marketing is recommended for Kagan.

Digital marketing is considered a traditional way of marketing in which different TV and magazines ads are used to target audience. This marketing strategy is effective but at the same time it is costly so it can increase the company expense. This strategy is recommended for the initial market entry because it can target middle class families by using family channels or news channels in peak hours.

Social Media Marketing is one of crucial elements which can help the Kogan to increase its market position because Kogan is entering in online retailing which is targeting internet users so social media websites, Facebook, Instagram, Twitter and YouTube can be used to reach target audience.

1. Implementation Plan

Pre-Launch Actions

While Launching the Shopping website

Control Program

1. Conclusion

This marketing plan is designed on the base of secondary research and secondary research concluded that it would not be easy to enter in UK market because of Brexit, fluctuating economic condition as well as due to high market competition. This report is suggesting different strategies to enter in UK marketing and these strategies are designed according to the expected challenges and threats for Kogan that’s why it is recommended to offer wide variety of products and to use market penetration pricing to attract more customers with one year plan of entry.

1. References

BBC, 2019. BCC Forecast: Brexit stockpiling to hit economic growth in coming years. [Online]
Available at: https://www.britishchambers.org.uk/news/2019/06/bcc-forecast-brexit-stockpiling-to-hit-economic-growth-in-coming-years
[Accessed 29 June 2019].

Business Matters, 2019. Brits to save nearly £1600 by changing spending habits in 2019. [Online]
Available at: https://www.bmmagazine.co.uk/news/brits-to-save-nearly-1600-by-changing-spending-habits-in-2019/
[Accessed 29 June 2019].

Croll, P., 2008. Occupational choice, socio‐economic status and educational attainment: a study of the occupational choices and destinations of young people in the British Household Panel Survey. Research papers in Education, 23(3), pp. 243-268.

Inman, P., 2019. Bank of England warns of interest rate rise over next three years. [Online]
Available at: https://www.theguardian.com/business/2019/may/02/bank-of-england-holds-interest-rates-and-vows-to-restrict-future-rises-
[Accessed 29 June 2019].

Inman, P., 2019. UK growth likely to rise above 1.5% next year, says thinktank. [Online]
Available at: https://www.theguardian.com/business/2019/apr/25/uk-growth-likely-to-rise-above-15-next-year-says-thinktank
[Accessed 25 April 2019].

Khan, Y. H., Hakeem, A. & Naumov, N., 2019. The Use of Branding and Market Segmentation in Hotel Marketing: A Conceptual Review. Journal of Tourism Intelligence and Smartness, 1(2), pp. 12-23.

Kotler, P., Burton, S., Deans, K., Brown, L. and Armstrong, G., 2013. Marketing. Frenchs Forest, N.S.W.: Pearson Australia.

Office for National Statistics, 2019. Retail sales, Great Britain: October 2018. [Online]
Available at: https://www.ons.gov.uk/businessindustryandtrade/retailindustry/bulletins/retailsales/october2018
[Accessed 29 June 2019].

Ryan, F., 2018. Set Brexit aside – here are the political issues you mustn’t lose sight of in 2018. [Online]
Available at: https://www.theguardian.com/commentisfree/2018/jan/01/political-issues-2018-homelessness-universal-credit-social-care-child-poverty
[Accessed 29 June 2019].

Statista, 2018. E-commerce in the UK - Statistics & Facts. [Online]
Available at: https://www.statista.com/topics/2333/e-commerce-in-the-united-kingdom/
[Accessed 29 June 2019].

Wenzel, AM 2012, The Entrepreneur’s Guide to Market Research, The Entrepreneur’s Guide, Praeger, Santa Barbara, Calif, viewed 16 June 2019

Trading Economics, 2019. United Kingdom Inflation Rate. [Online]
Available at: https://tradingeconomics.com/united-kingdom/inflation-cpi
[Accessed 29 June 2019].