I have been given the task of doing a marketing audit together with my colleagues. We choose Superdrug because it is a very well established company. Together we tried to work as a team to do each task. First of all we did an Organisational

Marketing Planning

To: Julie Storr

From: Asad Iqbal

Date: 1st February 2005

Subject: Group Based Presentation

Introduction

Recently I have been successful in gaining a three-month work placement with Superdrug and have been placed in the marketing department.

I have been given the task of doing a marketing audit together with my colleagues.

We choose Superdrug because it is a very well established company. Together we tried to work as a team to do each task.

First of all we did an Organisational and Environmental Audit also known as a SWOT and PESTEL analysis.

Identifying the Organisational Audit or Micro-Environment Audit for Superdrug

The micro environment includes those forces that impact on the Superdrugs ability to serve its customers. These are often referred to as internal forces as the company has direct contact with them. The company has the potential for level of control over these forces and may be able to reverse or lessen the impact of a negative trend or encourage a marketing opportunity. Superdrug should take these forces and trends into account when developing a marketing strategy.

Included in the micro-environment are the following factors:

Superdrugs own internal environment

In developing marketing plans, Superdrug must consider the other departments within their organisation, such as top management, finance, research and development, purchasing, manufacturing and accounting. All these departments have their own objectives that must be considered and many of them will provide information relevant for the marketing plan.

The marketing channel firms

Suppliers and intermediaries need to be examined before Superdrug develops a marketing strategy as their activities can significantly impact on the Superdrug organisation. Supplier’s product availability needs to be monitored as well as their price and overall performance. Suppliers and intermediaries that appear to be becoming less `amicable' over time may need to be reviewed. Intermediaries are firms that assist in the distribution process and their performance and attitude towards the product need to be monitored closely as they often have direct contact with the end customers.

The relevant customer markets

Superdrug must examine all five of its customer markets closely and look for changes in their particular needs and wants. These markets include:

Consumer markets - individuals and households that purchase goods for their own consumption
Industrial markets - organisations that purchase for use in their production process
Reseller markets - organisations that buy goods and services to resell them to the end consumer
Government markets - government agencies that purchase goods to transfer them to their customers who need them.
International markets - overseas buyers including any of the above categories.

Competitors

For Superdrug to be successful they need to satisfy consumer’s needs and wants better than their competitors. Therefore it is important to monitor the trends and behaviour of your competitors. Identifying customers' perceptions of your competitors and their strengths and weaknesses is important.

The organisation's publics

A public is any group that has an actual or potential interest in, or impact on, Superdrugs ability to achieve its objectives. These could be financial, media, government, and citizen-action, local, general or internal publics. Increased attention from these groups may require you to make changes ...

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Competitors

The organisation's publics

Source: Kotler, Adam, Brown and Armstrong (2003). Principles of marketing, 2nd Edition, Prentice-Hall

In the SWOT we mentioned then Strength, Weaknesses, Opportunities, and Threats of Superdrug:

Strengths –

Superdrug have loyalty scheme
Superdrug only leading specialise in body care products
Superdrug is the best known retail name in the UK
Superdrug is a market leaders
Superdrug are more competitive in price
Superdrug operates over 700 stores in high street and shopping mall locations throughout the UK.

Weaknesses-

Undifferentiated Products or services (i.e. in relation to your competitors)
High price needed
High cost structure or high expenditure
Too many brands,
Too much competitors
Low budget

Opportunities

Lower cost
Cheaper workforce
Larger market
A developing market
Takeovers Mergers, joint ventures or strategic alliances
Moving into new market segments that offer improved profits
Customer needs not fully fulfilled

Threats

National laws and directives
Competition from existing/new competitors
The cost of developing R&D against other competitors
EU laws
Competitors have more access to channels of distribution
New regulations

In the PESTEL analysis or Macro-environment which consisted of Political, Economical, Social, Technological, Environmental, Legal. Or dem ographical.

The findings we found included:

Demographic

Demographic trends are those concerning the human population in terms of size, density, location, age, sex, race, occupation and many other statistics.

These influence Superdrug through the population of teenagers i.e. 17-27 years olds Superdrug main target audience is 17-27 years olds if there are less in the population this will affect their decision in production.

Economic

Economic trends are those factors that affect consumers buying power and spending pattern.

Superdrug will be influenced by the economic trend because it would want to market its product in a rich environment so they can make maximum profit.

Natural

The natural environment includes those natural resources that are included in production or that are affected by marketing activities. Trends in this environment include shortages of raw materials, increased cost of energy, increased levels of pollution and government intervention in natural resource management. As Superdrug consumers are becoming more environmentally aware, these trends are having a more significant impact on As Superdrug marketing strategies.

Technological

The technological environment consists of forces that affect new technology, hence creating new product opportunities and market opportunities. This faster pace of technological change is also causing shorter product life cycles, higher research and development budgets, concentration on minor improvements, and increased regulation.

The influence of technology will affect Superdrug in many ways.

This faster pace of technological change is also causing:

shorter product life cycles within Superdrug
higher research and development budgets within Superdrug
concentration on minor improvements within Superdrug
Increased regulation within Superdrug

Political and legal

Marketing decisions are strongly affected by laws, government agencies and pressure groups in society. Trends in the legal and political environment include, increased legislation regulating business, changing government agency enforcement, and the growth of public interest groups.

Superdrug will be influenced by political and legal factors; this includes pressure from local government agencies that limit various organisations for example legislation such as competition i.e. monopoly, fair trade practices, environmental protection, product safety, truth and honesty in advertising, packaging, labelling and pricing. Superdrug will be influenced to abide by these regulations otherwise they will be penalised. E.g. Microsoft was fined for monopoly.

Social cultural

The cultural environment consists of forces that affect society's basic values, perceptions, preferences and behaviours. Some cultural values, such as the idea that people should have a job, persist over time Superdrug will be influenced by social and cultural trends For example, the number of people that believe in physical fitness and a healthy diet has been increasing in recent years. This will influence Superdrug to market their ideas more and increase productivity, and just maybe the price.

How the information from the Audit contributes to the Marketing Plan

A framework for identifying and analysing strengths, weaknesses, opportunities and threats.

The force to analyse a situation and develop suitable strategies and tactics.

A basis for assessing core capabilities and competences.

Helps to identify potential problems

Comparisons against competitors

Accurate segmentation of markets

The information we found would help us in our marketing plan to identify any potential obstacles, problems and solutions.

The Benefits of the above are that it will let Superdrug know what it is good at Superdrug could then specialise it what it is good at. In addition Superdrug will be aware of it weak points and will develop solutions to become stronger. Superdrug will also know its opportunities and will do everything to take advantage of this Furthermore it will develop solutions to any threats

Marketing Ethics

Pressure from the general public often arises to control the activities of businesses. Two such movements currently operating are consumerism and environmentalism.

Consumerism - an organised movement of consumers whose aim is to improve the rights and power of buyers in relation to sellers (Kotler et al, 1994).

Environmentalism - an organised movement of concerned citizens and government seeking to protect and improve people's living environment (Kotler et al, 1994).

Organisations are responding to consumerism and environmentalism in order to better serve their customer needs. Many companies are focussing on the long term performance of the marketing system. This long term focus is driving the emerging popularity of five principles.

Consumer-orientated marketing - Superdrug are viewing their activities from the customers perspective.

Innovative marketing- Superdrug is seeking real product and marketing improvements rather than unnecessary features.

Value Marketing- Superdrug is putting most of their investment into value-building marketing investments rather than activities that merely raise sales in the short term.

Sense-of-mission marketing- Superdrug is redefining their mission from a broad social perspective rather than a narrow product one.

Social – Superdrug are considering a combination of consumer needs and wants, their own requirements, and the consumers and society's long run interests before making a decision. Nowadays competitors want to design desirable products rather than useful, pleasing or deficient products.

Superdrug need to develop corporate marketing ethics to ensure all their employees act in a manner which is considered moral. Not all guidelines can solve the dilemmas that Superdrug face. Under a public marketing concept Superdrug must look beyond the mere legal requirements and develop standards based on personal integrity, corporate conscience and long run consumer welfare. There are several principles that might guide the formulation of marketing ethic codes. These include the principles of consumer and producer freedom, curbing potential harm, meeting basic needs, economic efficiency, innovation, and consumer education and information and consumer protection. These principles are based on the idea that a Superdrugs goal is not merely to make profits but also to maximise life quality.

Here are some of the Marketing Ethics Boots and Superdrug have

Boots ethics in marketing's is to build customer trust
Superdrugs is against animal testing
Boots want to be open and transparent, and communicate their progress to customers
Superdrugs is minimising the production of waste
No animal testing of any kind is undertaken or commissioned by Boots Group PLC or its subsidiary businesses"
Responsible energy management and to cost effective energy efficiency throughout all stores and Regional Distribution Centres
Reducing the amount of fuel used by our HGV fleet
Minimising the environmental impact arising from the use of materials and services provided in building,shopfitting, repairing and maintaining premises
Minimising the production of waste, ensuring its safe disposal and maximising recycling wherever practicable
Ensuring good environmental practices amongst our own-brand suppliers and including environmental issues in buying decisions
Minimising the use of unnecessary packaging; maximising recovery and recycling, with total
commitment to packaging waste regulations and meeting our obligations contained therein
Working with suppliers of own brand pulp derived products and wood products to use material from well managed forests
Bringing to an end all testing on animals of cosmetic and toiletries products, and their ingredients
Being aware of the environmental issues surrounding the use of our own brand products and to taking appropriate action
Ensuring acceptable environmental, health & safety, and employment conditions in own brand product suppliers in developing nations