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An Assignment on Marketing Planning

Table of Contents
Introduction......................................................................................................................................3
Task one: Be able to compile marketing audits...............................................................................4
a) Review changing perspectives in marketing planning.........................................................4
b) SWOT analysis of the Ritz Hotel London............................................................................5
Task two: Understand the main barriers to marketing planning......................................................7
a) + b) Barriers that McDonalds faces in their marketing planning and creative solution from
overcoming these barriers............................................................................................................7
Task three: Be able to formulate a marketing plan for a product or service..................................12
a) The marketing plan for a hotel situated in London.............................................................12
b) Discuss pricing strategy for the hotel and justify the selection..........................................17
c) Discuss three advantages that a Hotel will get in its marketing planning..........................18
Task four: Understand ethical issues in marketing........................................................................19
Discuss why ethical marketing is important for organisations..................................................19
Conclusion.....................................................................................................................................21
References......................................................................................................................................22

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Introduction
Over the years the nature and competition in business is changed all around the world. Numbers
of large companies have been emerged that makes the business too much competitive. In
addition, international policies and government policies increase fierce competition among the
companies. Hence, the companies are required adapting new strategies in their marketing plan to
sustain in the business strongly. Marketing strategies assist business organisation properly
utilizes the skills of staffs and stakeholders and support in developing the innovative approach in
sales and customer service (Bradlry, 2016). For effective marketing plan, organisation requires
considering both traditional and modern approach of marketing carefully. This report will discuss
theories of marketing planning, SWOT analysis of Ritz Hotel, major barriers in marketing
planning for McDonalds, and solutions from overcoming the barriers. In addition, this report will
demonstrate a marketing plan for a product or service, the importance of marketing planning for
an organisation, assess new product development techniques and the impact of ethical issues in
marketing planning.

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Task one: Be able to compile marketing audits


a) Review changing perspectives in marketing planning
Marketing is one of the most powerful forces to create wealth of business organisation through
influencing people. UKs Chartered Institute of Marketing describes marketing as a management
process that identifies, anticipate, and satisfy consumer needs profitability (Edward, 2009).
Traditionally marketing viewed as a business activity. In other words, marketing is considered as
delivery of increase of standard of living. The marketing theories are changed over the years.
Modern theories of marketing planning
This classical marketing concept focused mainly on product. Companies are developed their
marketing plan focusing the product. The customer perspective takes little concern in classical
marketing plan.
In modern marketing planning theories, companies are come back from focusing on the product
only rather they are focused more on customer oriented marketing and relationship oriented
marketing. Companies are focused more on customers viewpoint. Effective marketing planning
needs understanding properly the target customers and their needs. The main characteristics of
modern marketing plan are customers interactions and customers interests (Chan, 2015). In
modern marketing planning, the main aim of company is to know the customers choice, needs
so well that fits with the product or service and serve the companys goals.
In modern marketing, two most important trends are been shown:
Digital marketing: The revolution in technology changes the trend in marketing planning. The
companies are using internet now extensively in their marketing plan activities. Social media,
display ads, search engine optimization, mobile marketing, content marketing, marketing
automation etc are extensively applied in the modern marketing planning now (Chaffey, 2016).
Relationship marketing: It focuses on creating long-term relationships with customers. As a
result companies tries to do transactions looking for creating customer satisfaction and retaining
customers for long term. For example, Avon Cosmetics uses this relationship marketing where
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the company sales their product door-to-door which makes the company familiar to customers
(Lulin and Byron, 2015).
So, companies should consider the modern theories and trends in the marketing planning to
become successful in the business.

b) SWOT analysis of the Ritz Hotel London


To develop marketing plan, every organisation needs to assess some issues like resources,
location, competitors strengths, and customer behaviour etc. Different organisation assigns
consultancy firms to examine the strengths, weaknesses, opportunities and threats of the
company and SWOT analysis helps business to identify these differentiators thus the
management can able to formulate marketing plan effectively (Silva, 2013). In this case, SWOT
analysis is an effective technique to understand the current position of Ritz Hotel London for
possible marketing plan. As a marketing consultant it is my task to develop SWOT analysis of
The Ritz London by contacting with the owner of the Hotel.
SWOT analysis of The Ritz London
The Ritz London is one the renowned five star luxury hotel situated in the heart of London. The
SWOT analysis of the hotel is given below:
Strengths

High ranked hotel in UK.

Having one of the loveliest dining


rooms in Europe (Duncan, 2016).

award.
Well trained employees to serve the

Its fame is restricted to UK and some


nearby countries in Europe.

The fame and brand image cannot be


marketed widely.

World finest cuisine is served at Ritz


Restaurant which got Michelin Star

Weaknesses

Limited focus on the market e.g.


foreign business traveler can bear the
cost and less focus on local travelers.

guests.
Opportunities

Threats
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Open new hotels in other European


countries such as Italy, Ireland, and
Switzerland.

Use the brand image to expand the

May

attract

arrangement
support.

Brexit

may

reduce

the

European

travelers to the hotel.

business in Asia.

Arranging

experienced

and

skilled

employees is difficult.
future

and

higher

sponsorship
level

of

Fierce competition with other globally


well-known hotels.

Task two: Understand the main barriers to marketing planning


a) + b) Barriers that McDonalds faces in their marketing planning and
creative solution from overcoming these barriers

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It hardly found that without any barrier any company can develop their marketing plan smoothly.
Barriers are complementary in marketing planning but matter of fact is how effectively a
company can manage these barriers and develop effective marketing plan for the product or
service. The main purpose of marketing planning is identification and creation of competitive
advantage (McDonald, 2009). These barriers not only come from internal forces but also come
from external forces. A company that wants to successful in the business and retain its market
share should be ready for facing various challenges in formulating the marketing plan. The three
major barriers that McDonalds faces in their marketing plan and the creative solution to
overcome from the barriers are explained in the given table:

Name of the

a) Result of the barrier

b) Creative solution of the

barrier

barrier

Demographical

Demographic

factor

refers To overcome from demographic

factors

segmentation of customer based on factors

in

marketing

plan

age, gender, religion, ethnicity, race, McDonalds should take following


income, occupation, and marital actions:
status (Kokemuller, 2016). These
comprises in the manner people
work, live and think regarding
demographic trends and changes.
These issues are affecting on the
customer

desires,

and

market

potentials. If the marketing manager


of McDonald does not consider
these factors, it will consider as
worse

marketing

company.

plan

However,

for

the
these

demographic factors greatly affect


on the marketing planning, and if the
marketing plan does not affect these

McDonalds should not does


stereotyping

while

doing

market segmentation. For


different location it should
consider the local factors in
its marketing planning. For
example, USA people young
to aged are accustomed
having fast foods but Indian
aged

people

accustomed

are

not

having

fast

foods. This issue should be


considered

in

marketing
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issues then the marketing plan is


regarded as poor. So, demographic
factors are a big barrier in marketing

planning.

Western countries is not

planning for McDonalds.


Examples,

The consumable income of


similar to Asian countries

McDonalds

has

people. So, in marketing

operation more than 100 hundred

planning e.g. in case of

countries in six continents. The

product pricing this issue

demographic factors of all countries

must be carefully considered

are not same. For instance, the

by

demographic factors of USA are not

marketing manager.

the

McDonalds

same with the demographic factors


of India.
The income level and consumption
rate of USA and India are different.
USA people are accustomed having
first food regularly but McDonalds
brand food beef burger is taboo in
India (Financial Times, 2015). So, in
marketing plan for USA and India
this

demographic

factor

crates

barrier.
Cultural barrier

Culture is another barrier faces by The cultural barrier can be solved


McDonalds

in

their

marketing by McDonalds in following ways:

planning. Culture is shared values to


the society. A society develops
towards functional complexity and
differentiation; hence, culture of
present itself in different group or
class (Eliot, 2014). The components
of culture are language, values,

McDonalds should use local


language

in

their

advertisement
promotion
increases

and

campaign.
the

appeal

In
of

McDonalds to the customers


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symbols, norms, and beliefs. Values

mind.

indicate what is right and what is

language in advertisement

wrong. One thing right in one

and promotion often fails to

culture which is wrong another

communicate properly with

culture. The language of different

the customers.

culture also different which affect in


marketing planning also. The belief
of one culture is different from other
culture. So all these issues are
crating barrier in marketing planning
of McDonalds.
Examples,

in

Using

foreign

In Muslim belief pork meat


is prohibited and in Hindu
belief beef is prohibited. So,
McDonalds should produce
beef burger for Muslim
countries and chicken or

marketing

plan

goat meat burger for India.

language are considered as a big

In their marketing plan this

factor for McDonalds. For instance,

information

though

included that attract more

English

is

international

language, but Japanese, Chinese

must

be

customers.

people are very much unfamiliar


with English. They prefer local
language

mostly.

So,

when

McDonalds prepare its marketing


plan they have to consider the
language issue.
In addition, the beliefs also create
barrier in marketing plan. In Hindu
belief beef is prohibited. As a result
this creates barrier in the marketing
plan of McDonalds.
Legal barrier

It is another important barrier that The legal barrier can be solved by


McDonalds faces in its marketing McDonalds in following ways:
plan. Legal factor is the guidelines
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established by competent authority

McDonalds does not use any

such as government what things

advertisement

business organisation should have

unethical by the law of that

followed in their business activities.

location. For example, using

Government of different countries

any content in advertisement

establishes different legal system. In

like nudity or similar must

addition, within in the country,

be avoided by the company.

different state can adopt different

In many countries especially

legal system.

However, in legal

Asian countries, it is seen

system also described what can a

badly. In marketing planning

company do and what cannot in their

the

business activities. As a result legal

remember this.

factor creates barrier in marketing


plan.

that

company

McDonalds

is

should

must

avoid

aggressive marketing plan


Examples,

marketing

and

and

give

accurate

advertisement law of UK clearly

information

states that company cannot provide

advertisement

deceptive information that harasses

promotion.

consumers. In addition, companies

information reduces the trust

cannot

of

use

aggressive

sales

techniques in their marketing plan

customers

in
and
Misleading
over

the

company.

(Gov.uk, 2016).

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Task three: Be able to formulate a marketing plan for a product or


service
a) The marketing plan for a hotel situated in London

Marketing Plan for


The Ritz Hotel

1. Product/Service
The Ritz Hotel is a renowned five stat hotel situated in the heart of London. The hotel offers to
the customers highest level of hospitality. The following services customers can get at the hotel;
136 bedrooms and suits
Six impeccable private dining rooms
The Ritz restaurant
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Image 1: Entrance of The Ritz hotel and Interior of Ritz Club


Salon and Spa for both male and female
Club for playing poker, roulette

Image 2: Dining Room and Suits


Aristocrat Jeweler shop
Well decorated big Conference room
Gift shop
Rivoli bar
Big carking
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Swimming pool
Free Wi-Fi
Style and character: TH Ritz Hotel has a Palm Court and Long Gallery which is ravishing to the
guests. The loveliest dining rooms are at the Ritz Hotel.

2. Competitor Analysis
There exists high competition in Luxury hotel business in London. London is one of the most
attractive economic hubs and tourist places in the world. So that it is an attractive place for
luxury hotel business. The two major competitors are;

Claridges: It is situated in Mayfair, London. This hotel is a combination of British pomp


with a modern twist. This hotel has long been an attractive stop for film stars, aristocrats,
supermodels and statesmen.

Mandarin Oriental: It is situated in Hyde Park, London. This hotel is one of the most
revered hotels in London. It conveys Far Eastern theme and bedrooms and corridors are
decorated deeply with traditional flavour.

These competitors offer similar services at different price. Per night stay cost is high at Mandarin
Oriental and Cladriges compared to The Ritz Hotel.
3. Marketing Mix

Product: Top quality accommodation facilities with or without breakfast service, fully air
conditioned; free Wi-Fi, room service, complementary daily newspaper, shoeshine
service, chauffeur service and mini bar service. Guest can take their meal at Ritz
Restaurant, afternoon tea, club, and jewelry and gift shop generating high levels of repeat
business.

Place: The guest can get information of products and services via telephone call to the
room service team, Ritz brochure, personal selling, Ritz official website, international
reservation systems and travel agents.
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Price: Pricing has been selected considering the products and services. Product line
pricing includes different price points within the same product range.
Room and Rates

Room description

Breakfast excluding rate

Breakfast including rate

Executive King

350

375

Deluxe King

435

485

Junior Suite King

540

600

Executive Suite King

750

810

Piccadilly Suite

940

1025

Promotion: Primarily focus will remain in various travel TV channels, travel magazine, mass
media and mainstream newspaper. Social media campaign, direct mail, and sponsorship will
allow in promotion.

4. Target Market
The primary targets of Ritz Hotel are:

Business professional

Travelers

Nearby business organisations for private dining rooms, conference

Aristocrat family for weeding and family program.

London is a centre of Europes business. One of the largest airports named Heathrow situated in
London. Business professionals are gathered in London. They are the target customer of the Ritz
Hotel. The main advantage of the hotel is its location. It is situated at the heart of London as a
result business professionals can easily check in the hotel and do their business dealing easily.

5. Segmentation
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Demographic condition: London is one of the mega cities in the world. It is a place of different
ethnic, race, religious, age people. London is an economic hub in Europe. London also is a
historical city. So, London is a place of multicultural people where millions of travelers are
gathered each year, business professionals and business conference are occurred, film stars and
local community makes the London an attract place for hospitality business.
Behaviours: London saw an unprecedented record in 2014 in hotel business. Though 2015 did
not continue the previous trends, but still the average performance metrics are still very good
compared to other global city standards (PWC, 2015). The demand is still high and 17.8 million
foreign travelers gather in London in 2014 (PWC, 2015). In it expected that the coming years the
number of international travelers in London will increase. In London, the average hotel room
occupancy rate is 84%, average daily rate is 145, and average revenue per available room is
122. So, the customers behaviour is very much favourable for hotel business.

6. Brief budgeting
Marketing Expense Budget
2016

2017

Print Advertisement

75,000

82,000

Internet Advertisement

62,000

67,500

Electronic Media Advertisement

105,700

110,500

Public Relations

25,000

31,200

Other

16,000

20,500

Total marketing budget

283,700

311,700

7. Promotion sample
The primary focus will be on print media, electronic media, internet, direct mail, personal
selling, and public relations activities.
Promotion Campaign
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Promotion technique

Number of activity

Print Advertisement

Twice per week

Internet Advertisement

Everyday

Electronic Media Advertisement

Everyday three times between GMT 18:00 to 21:00.

Public Relations

Once per two weeks.

b) Discuss pricing strategy for the hotel and justify the selection
Pricing strategy is one of the complex tasks for every business organisation. Appropriate pricing
strategy attracts more customers whereas inappropriate pricing strategy brings away the
customers towards competitors.
Price skimming: It is a pricing technique where initially the price of products and services
introduced relatively at high price and after certain period of time the price would be lower
(Cant, Strydom and Jooste, 2009). This pricing technique is suitable for new featured cell phone
and other electronics products.
Price penetration: It is a pricing technique where initial price of products and services set at low
level in accordance to penetrate in the market rapidly and strongly hoping to attract more
customers and to capture competitive market share (Cant, Strydom and Jooste, 2009). For Ritz
Hotel is adopted Penetration pricing for various reasons.
There are many five star hotels doing business in London. And, there are very small
differences in services between the hotels. So, small difference in price can attract more
customers especially those are concern about price factor and this type customers are
many. So, penetration pricing is appropriate for Ritz Hotel.
The visitors of The Ritz Hotel are mainly business professionals and local business
organisations. Business professionals require coming in London regularly because of
business dealing. In addition, local business corporations are using conference rooms and
dining for various occasions. To reduce business dealing cost and business expenditure
these target customers consider price difference. However, travelers also consider price
issue.
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Most importantly Ritz Hotel provides almost similar services compared to other Hotels. So,
penetration price will attract customers.

c) Discuss three advantages that a Hotel will get in its marketing planning
In marketing planning, the hotels of London can get the following advantages:
Advantage for selecting target customer: Hospitability service can receive by any age
people. The demographic factor is very narrow in hotel business. For example, the
demographic factors like age, gender, marital status, religion, ethnicity etc do not affect in
marketing planning because hospitality service can be taken by anyone without any
demographic differences. As a result selecting the target is easier in marketing planning.
Common UK laws: UK government establishes common laws for tourism and
hospitality industry. So, every hotel gets similar opportunity in doing business according
to the law. This will provide advantage in marketing planning.

Advantage in cultural issue: In hotel business, cultural difference does not make any
barrier in marketing planning. Any language, beliefs, norms, values people can get the
service from any hotel in London. So, marketing manager of hotels in London get
advantages about cultural issue in their marketing planning.

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Task four: Understand ethical issues in marketing


Discuss why ethical marketing is important for organisations
Today ethical issue takes especial attention to the both customers and organisations. Ethics is the
standards of right and wrong actions of human behviour in accordance with society, obligations,
virtues and rights or fairness (Andre et al, 2015). Ethical issue is very important for marketing
planning. For example, the information which is given in advertisement must be accurate and
authentic that fit with the products and services. Any misleading information will commit as
unethical that reduces the trust of the customers from the brand and helps the rival organisations
to pick new customers and market share.
Two examples of unethical marketing that suffered the companies
The case of Volkswagen emission scandal: Volkswagen is a renounced Germany based car
manufacturing company. On 29th March 2016, a lawsuit was filed against Volkswagen by the
Federal Trade Commission which claimed that the company had cheated customers by its Clean
Diesel vehicles advertisement campaign. In 2015, the company sold around 550,000 diesel cars
in USA by telling that this diesel car was environmentally friendly, according to Wired (Heilpern,
2016). For false advertising, the company could have to give billion dollar fines for breaching
the Clean Air Act.
The case of New Balance sneaker scandal: In 2011, New Balance Shoe Company was alleged
for lie advertising where the company demanded that their sneaker could help wearers burn
calories (Reuters, 2011). But when studies conducted the result showed no health benefits could
be gained by wearing the shoe. Bistra Pashamova filed a lawsuit against the company who said
they had been cheated and harmed by the sneaker. The plaintiff was demanded 5 million dollar
compensation. On August 20, 2012 New Balance settled down the lawsuit by paying $2.3
million, according to The Huffington Post.
Importance of ethical marketing
From the above examples, it is very clear how much important the ethical issue in marketing
planning. Today customers are more aware and Government Bodies are also active. So, no
company can get away by providing false information in their marketing campaign. The
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company can gain profit in the short run but when the cheating will found, the company will face
a huge amount of fines and decline of brand reputation. Moreover, the rival organisation will be
benefitted in the competition and the company may able to capture more market share. If a
company is just slept once, the company cannot get back the position again because market is too
much competitive now. So, every company must follow ethical issues in its marketing planning.

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Conclusion
To promote the product, service and brand, marketing planning is only mechanism for every
business organisation. Many small business organisation becomes giant corporation and today
leading in the global business because of adopting suitable and effective marketing plan. To
develop marketing plan, the marketing manager needs to consider demographic issue, target
customer, location, promotion techniques, pricing technique, organisations capability and many
other issues. Careful selection of marketing planning can make a business profitable and valuable
in the market. However, every marketing manager must consider the ethical issue in their
marketing planning for increasing appeal in the customers mind.

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