OTHM LEVEL 7
DIPLOMA IN STRATEGIC
MANAGEMENT AND LEADERSHIP
Strategic Marketing Plan
Individual Assignment
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Table of Contents
01.Introduction..............................................................................................03
02.Position of the Organization.....................................................................04
03.Market Analysis.......................................................................................11
04.References................................................................................................14
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01.Introduction
Strategic marketing is the road map to direct to achieving Business goal and objectives. It gives us
the clear understanding of target market audience and their needs. Strategic marketing needs to be
SMART that means, it can be specific, measurable, achievable, relevant, time based.
Marketing strategic plan will give deep understand about customers and their needs, well
understanding of competitors and their offerings to target market to all stakeholders. Before doing
strategic market plan, we need to analyse our market properly. Based on those data, we will create
the market plan. It streamlines the product or service development and help to manage their life
cycle effectively. Strategic business is the most important tool to direct to achieve business goals
and objective without distract. Therefore, it helps to optimize available resource and time. It
increases the sales and revenue. It helps rapid market penetration as it because, give full picture of
the market segment, target market and customer preferences. Normally, we need to follow these
steps to achieve worthy market plan for our business goal. Marketing planning process steps are,
first, clearly identify the goal and object of the project. Secondly, analyse the current market
position by using various models such SWOT analysis, Porter’s five force analysis, PESTEL so
on. Next, analyse the current market situation through market research and identify target market
clearly. Next need to resource plan and based on the, need to do costing and budgeting. Schedule
planning also important part of it. During the costing, management will define their price strategy
which they are going to apply this project. Next most important step is risk analysis and risk
mitigating plans. Develop strategy marketing using above all details and create the action plan for
implementation Planning are the next. Finally, need to have proper monitoring and Continue
planning for continue evaluation and continue improvement is the most important. (Porter, 2006).
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02.Position of the Organization
2.1 Porter's Five Forces Framework
Porter's five forces framework is use to analyse the current market position of the
organization in the competitive business environment. This framework explains the power
of the company toward supplier as well the customers. It explains further that how much
competitions and threatening company is facing in the current market and how much effort
the organization need to put to sustain in their business. Micheal Porter, the famous
Strategic Professor in Harvard University explained, organization competition level does
not only depend on competitors. It depends on five different forces such, bargaining power
of suppliers, bargaining power of customers, treat of new entrance, treat of substitutions
and rivalry among existing competitors in the market. Success of the company and
sustainability in the business will highly depends on how the organization handle these
forces and overcomes. Amazon Go Automate Store will have same forces when they
expand their business in UK. If they properly understand the forces around and have proper
mitigation plan will help them to minimized unnecessary operational cost and expensive.
They can easily align with UK trade police and compliance and create sustain automate
store business and faster market penetration. (Porter, 2006).
a) Bargaining Power of Supplier:
Bargaining power of supplier force explains how much power supplier have to
influence over organization. If the company has low bargaining power, then suppliers
have power to increase or reduce the price, quality of the raw material and quantity of
supply. Since, the Amazon Go store is new in the UK market and it has global
reputation, suppliers will supply goods in high price rate than other company in same
markets. It creates the force to sell product with low margin and will decrease the profit
and return on investment.
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b) Bargaining Power of Buyers:
Since, Amazon GO store is using innovative technology which help the customers to
just buy product whatever they want and walk out without waiting on the queue for pay
bill. This will bring new exciting experience to the customer who really value time over
money. Amazon Go is the only store in UK having this high convenience purchase
methods. Therefore, the bargaining power of the buyers are low and company has high
power to decide the price of the product.
c) Threat of Substitute Product:
Since Amazon Go store sells usual retailer items that already available in the market.
But however, Amazon Go is differed from its competitors from Just walk out
technology. Since, UK is the developed country and they have capacity and
competency to find the substitute technology of this. So, there is moderate threaten in
the substitution of the service they provide.
d) Threat of new entrants:
Since, main theme of Amazon Go store is automate purchase with no checkup. They
are using patent "Just walk out" technology for auto tracing purchase items and use
amazon account open through amazon's app. These are unique innovative ideas that not
easier things to imitate their competitors who doing retailer business in the market as
competitors need to invest on R & D and create new alternative without infringe with
this patent technology.
e) Rivalry Among Existing Competitors
Analyzing rivalry force among the existing competitors help to Amazon Go to make
and plan their marketing strategy in the new market. Amazing new purchasing concept
bring the competitive advantage of the company and it reduce the rivalry force among
the competitors in the UK market.
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2.2 PESTLE Analysis
PESTLE analysis. This analysis done based on Amazon Go Store in UK near future.
a) Political:
Supply chain can be affected by unstable political and Government new tax will be
affecting the revenue and profitability. Since Amazon Go is the US base company entry in
to the UK market, they might have high taxation than local in order to prevent the local
business and minimize the rivalry toward local which they can not have capability to
compete with global reputation company like Amazon.
b) Economic:
Living cost in UK has increased. Therefore, there is the risk of low sale than expected
revenue. But however, as per the market research, anticipate the retail business is increased
around 23 trillion dollars.
c) Social:
High rate of educated consumer in UK are the key to success for this automate store. And
it is making easy for implement such high technology customer service and UK people are
more technology Friendly, so they will love to get experience on this. They have attitude
to give Immediate feedback, that will easy to improve faster what they want. UK peoples
are high contact people handling thing highly disciplinary manner than low contact people.
They are more sensitive in that point. Any small disappointment will create big issues and
eventually drop the sales. Therefore, even though, it is automated store, there are high
investment on make customer satisfaction and security.
d) Technology:
Technology requirements are Smart phone capability, Amazon App, high expensive sensor
technology. There are some draw back that need to tackle. Those are wrong detection of
sensor and safety for payment transactions.
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e) Environment:
Environment is another highly influence factor. Eco friendly Packing, proper waste
management practices, consumer Behaviors some environmental factor that influence
purchase decisions.
f) Legal:
Legal factors are most important as those are highly affecting the freedom of trading,
revenue, and profit. Certain level of security for automate store for both consumer &
product are standardizing by government and store need to fulfill the requirement.
Fluctuation of Government taxation Policies due to economic unstable in UK will also
affect the business environment. Another important one is health & safety. Store should
obey the regulatory and guideline during the sale.
2.3 SWOT Analysis
SWOT analysis the model that explain that the impact of internal environment and external
environment on the organization on their decision makings as well as the profit and
revenue. SWOT stands for Strength, weakness, opportunity and threaten of the
organization. SWOT analysis give better understanding of the organization and their
market competitors. It will help to top management, board of directors and investors to
make better business decisions and strategic plan with full of confident. since, Amazon Go
enter in to new market in UK, they should have clear understanding about their internal
environment as well as the external environment to plan, executive and maintaining their
business in such strategic planning’s, selecting marketing tools and techniques, partnering
subsidiary, suppliers as well as operational. It will help to amazon to optimize their
resources, competency, time, and money in order to add value to the customers as well as
high revenue and profit generation. Here strength and weakness explain the internal
environment and opportunity and threat explain the external environment. (Porter, 2006)
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a) Strengths:
Strength of the organization will help the organization positioning them in the market.
Innovation, new technology, strong strategic, competitive advantage, core competency and
strong leadership can be strengthening any organization. The amazon is the established
reputational organization globally with strong leadership. And Amazon Go's new
innovative idea of automated stores and high patent new technology are their biggest
strength in the theme of "Just Walk Out" concept. This will attract more customers who
really value time than price. Low price sensitive customers will rapidly attract by this
concept. Another thing is, UK people are above the education level and highly technology
friendly people can easily learn and adapt this technology. If the Amazon Go start their
business in Asian market, they need to put more effort to educate their customer than UK
market. And Amazon's green concept toward sustainability too help them to attract
customer who really concern about the environment.
b) Weaknesses:
Since, Amazon is new to UK market, their low bargaining power to supplier and Reputated
company globally will increase the cost of the operation and raw materials. Research and
innovation cost the invested to find the patented "Just walk out Technology" need to
recover from the business. Expanding the business to another country make more trend
approval cost as well. Therefore, those are making them hard to maintain the low-cost
product than their competitors. There are some draw back that need to tackle. Those are
wrong detection of sensor and safety for payment transactions in the technology.
c) Opportunities:
Amazon Go have high opportunity to expand their automate shopping concept across the
European market after the successful launch this expansion. After sustain in the business,
they can have higher bargaining power from supplier and can purchase low cost in order
to reduce price of the product. Uniqueness and differentiation from competitors are the key
success as a brand globally. Outstanding innovative customer experience such Automate
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Stores are sustain their business further. Amazon Go can tailor their products and service
to fit the Asian market culture and go to expand their business in Asian market as well.
d) Threats:
UK is the developed country have competency to find the alternative cheaper technology
than this "Just Walk Out Technology". Then it makes local competitors stronger than
Amazon since, the local customers do not need to have approvals and high taxations.
Technology base AI can be replaced by this automate shopping concept with cheaper cost.
And still after pandemic, people are more willing to purchase things online and anticipate
the door delivery system. People after some time, feel, still online purchase is more
convenience than this automate shopping concept. Another threatening can be cultural
differences. UK peoples are high contact people handling thing highly disciplinary manner
than low contact people. They are more sensitive in that point. Any small disappointment
will create big issues and eventually drop the sales. Therefore, even though, it is automated
store, there are high investment on make customer satisfaction and security.
2.4 SMART Strategy:
Strategic marketing is the most important part in every business to achieve goal and set
objectives. It gives us the clear understanding of target market audience and their needs.
Strategic marketing needs to be SMART that means, it can be specific, measurable,
achievable, relevant, time based. Marketing strategic plan will give deep understand about
customers and their needs, well understanding of competitors and their offerings to target
market to all stakeholders. Before doing strategic market plan, we need to analyse our
market properly. Based on those data, we will create the market plan. It streamlines the
product or service development and help to manage their life cycle effectively. Strategic
business is the most important tool to direct to achieve business goals and objective without
distract. By using Amazon Go store as an example, their strategic marketing planning
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process will be in 9 steps. First, they need to set the goal and objective what they need to
achieve in this expansion. Second, they need to analyse the current market position by
using various models such SWOT analysis, Porter’s five force analysis, PESTEL. Next, by
doing market research, they should get clear understanding about current market situation
and then decide their market segments and the target market. Next, we need do costing,
price strategy and schedule to achieved set target. Next, they need to analyse the risk and
risk response plan. Finally based on all available data, Amazon Go need to create the
strategic marketing plan. (Porter, 2006)
This SMART strategy will help to Amazon Go to define their goal and objective in this
expanding business. It will help them to structure their activity in to flow chart and measure
their performance as well. It will help them to make clear decisions based on their
performance in new market as well as the customer feedback. SMART strategy helps them
to maintain the transparency in the business in order to get more support from their
investors as well. It will increase the value proposition of the product and increase the
organization reputation as well.
Some suggestion I could give to Amazon Go for their future moves. They would be making
partnership with well reputed digital marketing organization in UK region to increase the
search engine optimization in automate shopping concept. They would be
making joint venture agreement with local suppliers and distributor to increase the
potential market shares and minimize the impact on cost fluctuation. Amazon Go can tailor
their products and service to fit the Asian market culture and go to expand their business
in Asian market as well.
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03.Market Analysis
3.1 STP Model
a) Segmentation
STP model is the most important marketing model. S stand for Segment. Segmentation
cab be based on geography, demographic, psychological, purchase approach so on.
Here the amazon chooses UK & US as segment bases on geography and brand loyalty
customer as segment bases on personal characteristic. (Philip. K, 2016).
b) Target Segment
Their target markets are smart shopper who value the time and convenience over
money, and need super-fast service. Due to high research & innovation and operational
cost, their product price is comparatively higher than the competitors. Therefore,
Amazon Go could attract more people who really have stronger feeling about time than
money. The people who really have emotional connection with the brand have still
opportunity. (Philip. K, 2016).
c) Positioning
Amazon position it brand as core asset, they place the brand name in customer mind by
amazing service and innovative technology solution. They have strong branding
strategies to do achieve these. (Philip. K, 2016).
3.2 Amazon’s Brand Position
Amazon positioning its brand in the market as an organization, not the particular product or
services. Their attractive Business Story such start for Book sell in US convert into provide
everything to Worldwide through online. They are following Customer centric approach that
make focus more customer flexibility in purchasing and value time over money and through
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effective customer feedback system, they response customer feedback and improve based on
that. Therefore, customers are emotionally connected with brand and Build brand Loyalty
customer. Uniqueness and differentiation from competitors are the key success as a brand
globally. Outstanding innovative customer experience such Automate Stores are sustain their
business further. (Philip. K, 2016).
Below is the key element that create most attractive brands and Brand Positioning.
a) Attractive Logo:
Design of Amazon's logo simply reflect their business covered A to Z business, that means
almost everything.
b) Attractive Color:
Black color indicated "Power" and Orange indicate "Excitement" in Amazon's logo.
c) Attractive Slogan:
Amazon's slogan is “Earth’s most customer centric company”
d) Name:
Amazon name start with “A”, it make them in top of the list everywhere and it enhance the
Search Engine Optimization in the GOOGLE, Yahoo and other searching engines.
e) Simple Symbol:
Amazon's happy face & Arrow symbol simply reflect that their Satisfied customer globally.
f) Business Story:
Amazon's attractive brand story that start as book seller in US, then convert into online
retailer seller globally create emotional connect with their customers.
g) Eco Friendly:
Amazon's eco-friendly packing system attract the customer who are highly concern about
the environment.
3.3 4Ps Market Mix
4Ps market mix is another important marketing models. 4P stand for product, place, price, and
promotion.
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a) Product:
Product describes such wide range of product portfolio which fulfil maximum customer
needs at one store and wide range of product will give productive information such high
demanded product to relevant manufacture too. (Philip. K, 2016)
b) Place:
Place is another important marketing factor, Location is important to set up new business
to attract customer faster, Sales will boost near residential area, it will provide opportunity
to get max attention from customer if it located in dense residential area. Amazon is looking
larger place across the UK to fulfil the requirement and larger space is more comfortable
for customer for purchases. (Philip. K, 2016)
c) Price:
Price is another important part of marketing plan, price strategies are vary based on the
nature of the business and organization policy. Amazon follow competitive base price
strategy that attract the customer faster, however that included to cover overall cost &
Resource required such new technology development and security expenses. (Philip. K,
2016).
d) Promotion:
Promotion is another important factor that help to reach and penetrate target customer
faster. Amazon create very attractive advertising for their automate stores and how it works
in video. And they increase Search engine optimization (SEO) to converted visitor to
consumer. Amazon maintained the best communication practice and listen to their
customer feedback, based on that, they improve their process. (Philip. K, 2016)
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References:
1. Rahman, M., 2021. How and What. [Online]
Available at: https://howandwhat.net/pestel-analysis-sri-lanka/ [Accessed 27 July 2021].
2. Johnson, G., Whittington, R., Regner, P. and Scholes, K. (2020). Corporate Strategy:
Text & Cases. 11th ed. Sydney: Exploring Hall International.
3. Philip, K., Kevin, K. (2016) Marketing Management. 15th ed. Global Edition.
4. PESTLE Analysis | Factsheets | CIPD. [online] Available at:
https://www.cipd.co.uk/knowledge/strategy/organisational-development/pestle-analysisfactsheet/ [Accessed 11 July 2017].
5. Datta, Y., 2009. A Critique of Porter’s Cost Leadership and Differentiation
Strategies. Oxford Business & Economics Conference, Oxford.
6. Ginter, P. and Jack Duncan, W., 1990. Macroenvironmental analysis for strategic
management. Long Range Planning, 23(6), pp.91-100.
7. Jackson, P., 2001. Public Sector Added Value: Can Bureaucracy Deliver? Public
Administration, 79(1), pp.5-28.
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