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MARKETING PLAN FOR HMV STORE COUNTRY MISSION STATEMENT MARKETING ENVIRONMENT MARKETING MIX MARKET SEGMENTATION,TARGETING& POSITIONING MARKETING STATEGY MARKETING COMMUNICATION MIX PERFORMANCE ENVIRONMENT KENYA,AFRICA SMART PESTLE ANALYSIS 7 PS
COST LEADERSHIP KOTLERS SWOT
WHERE ARE WE?
COUNTRY Kenya is a Country in East side of Africa with a population of approximate 36 million, with majority of it people between ages of 15-35. HMV STORE HMV being a global Entertainment retail chain in Britain and many other countries in the world, HMV wants to penetrate its market share in Africa in order to increase its sales volume and get market extension. It has opened many branches across Europe and as well as countries like Hong Kong, USA, Ireland and many other countries, HMV has decided as a marketing strategy to expand its market share to set up another branch in Kenya.
MARKETING ENVIRONMENT Having taken a comprehensive analysis about the African buying behavior the best method to market HMV is through setting up many high street stores where they can find the products and by creating an online store where all the customers will be referred to after visiting the physical store and sensitizing them that the online store will really save their time after knowing what the stores have and making the deliveries in time whenever they are made by the customers. General points y y y y Environment are complex Dynamic and changeable (continuous and discontinuous) No Organization operates in a vacuum Environment forces affect Organization ENVIRONMENT TYPES y y y Internal Environment External Environment Performance Environment .MISSION STATEMENT We want to be the market leader of global entertainment retail. y Anything happening outside where the business is and is relevant to it.
This indicates that HMV have the greater chance to gain its market share easily. inflation. This could restrict the growth of business. this factors includes employment levels. Social Most of the Kenyan people choose to watch movies as their part of social and cultural activities. there are no excessive legislation in Kenya that will limit our business there The awareness of improved technology and distribution will be a positive factor to us. Our target market fall in our age bracket of 1540. Technological Kenya is not a technologically advanced country. Economical Legal As there is no legislation barrier. the Appreciates and encourages international investors The Economic forces are deemed to influence the business in Kenya. The government is planning to develop its IT infrastructure throughout the country. as government is encouraging the foreign investment. it will help HMV to enter the market.PESTLE ANALYSIS FACTORS Political SITUATION The political factors which includes stability of the country is friendly and got positive impact to our business. interest rates and taxation This are the global laws that affects business. Kenya is also a part of global business. The global economic crisis may slow down the business growth in Kenya. .which are young adults and thus our target will be achievable because they are flexible to change IMPACT Political situation in Kenya will help HMV to penetrate the market and make its investment more secure.
y y y y y WEAKNESSES y y y y y y . making our growth rate or accessibility earn an advantage. quality and reliability Products have required accreditations Market size: our target market is so big and there are no people who have already ventured in this business. Equipment¶s and machinery availability Outstanding brand name The movies and music products are reasonably priced. surrounded with.HMV has a good marketing team and good reputation When penetrating or when getting in new market extension Right products. influences the activity and choices especially employees behavior. and thus effective marketing tools must be used. Offer a wide range of products Expertise in these field of products Customer staff needs training Limited budget No pilot or trial done yet Customer lists not tested Selling only few products a day will lead to loses Expensive to market a new product. this includes leadership styles or organization culture SWOT ANALYSIS FACTORS STRENGTH y y y y y IMPACT Based on research. Kenya is not INTERNAL ENVIRONMENT The conditions events and factors affecting an organization within.Ecological The competitive Ecological issue will have the environment. which our minimum impact on HMV¶s business will be business growth.
thesefactors includes_ Government Competition Suppliers Consumers . example the pirating OPPORTUNITIES y y y y y y y y y Development of new market Profit margin good New specialist application Can surprise competitors Cheap rent and distribution channels The law has a very firm action against pirating Strategic market Customer service which is very outstanding Great advantages that we can take in the intended market being a new innovation.Unable to deal with multi disciplinary. It¶s a new entity in the African market Legislation could impact Negative publicity Market demand very seasonal Competitors coming in after the establishment of the business Similarity of business Proximity or personal preference y THREATS y y y y y y PERFORMANCE ENVIRONMENT These consists of those organization that directly or indirectly influence another organization operational performance.
application. consumer market and B2B market as well. religion etc. Market segmentation has a significant role in marketing. education. and buyer-seller relationship. It is also based on the understanding customer. psychographic. Organization is guided by its own criteria and feedback. We can segment the markets in many ways such as geographic. The micro has some characteristic those are. . product. which have the detailed understanding of individuals. The marketers segment the product as well and they provide those products in classified way. gender.thus all this factors where all crucial to be analyzed before setting up the new market Where do we want to be? SMART OBJECTIVES Smart objectives To earn a at least 20percent of the new market share by the July 2012 To sensitize and make the all our customers believe and trust in online These objectives can be achieved through or customer service which is a very unique way to put the customers 1st before everything How will we get there? Market segmentation: Marketing segmentation is a process to divide the market into the small parts. decision-making process. and behavioral and techno graphic. purchasing policies. developing the detail etc. decision-making unit structure. On the other hand it can also find as a micro segmentation base. demographic.- Small retailers An Organization is a process that will convert various resources into products and services. technology. To segment the market we also need to look at the age.
HMV have to use its marketing skill to deal with the large number of young aged population and middle-income segments. It is believed that. It is very important to make a strong start when penetrating a new market. But the µright size and growth¶ are relative matters. Company fit It indicates that. If the company can¶t match the skill and resource with its targeted segment. Another important segment is the middle-class earners. income and social trait of the people. HMV have to take a closer look at the cultural background. if the company has the strength to match with its selected segments. sex of our customers. it will lose the market share and become a weak competent in the market. Both of the target segments have large number and growing. . 2. Segment attractiveness Segment with right size and growth characteristics are interesting. It will be appropriate for HMV to target the largest and fastest growing segments in the market. The firm now has to evaluate the various segments and decide how many and which ones target. When entering in Kenya. like opening stores in busy high streets. In Kenya most attractive segment is the population of people aged between 15-35 years.Consideration for HMV When doing Market segmentation in Kenya. In evaluating different market segment a company must look at two dimensions: 1. HMV also have to use its resources to make its physical appearance in the market. these three segmentations are very important when penetrating in a new market. Targeting: Select a segment to target. location. HMV will also have to consider the age. Marketing segmentation reveals the company¶s market segment opportunities. At this point we will look at how companies evaluate and select target segment. living. because HMV has the both skills and resources to deal with the large scale of target segment.
It could be tangible or intangible. HMV is a well-known brand in UK. HMV should consider developing a mobile device linked with HMV online store.Positioning for success: Developing a marketing strategy which positions the product in relation to rivals in order to appeal to target segment. We want to position HMV as the number one entertainment retailer in Kenya and in Africa later on. which is very important. HMV should have the diversity of entertainment products and services. HMV should focus on high selling products like Music CDs. The main products of HMV are Music Products. as it is very expensive for people in Kenya to afford devices like iPod or iPhone. So that the customers can purchase and download the contents from the store directly. Games and Movies DVDs and Blu-Rays. while setting price for its products in Kenya . Price: Price should be competitive in the market and bring profit for the company. Music Players. It will give HMV competitive advantage in Kenya. mainly the entertainment products. etc. Books and Electronic products for entertainment like TVs. Movies. This will help HMV to position itself in Kenya as a premium brand. It should be competitive within the market. The prices should be not too low that customers think it¶s not qualitative and not too high that their budget can¶t buy it. Proposal for 7P¶s The 7Ps in marketing are as follows: y y y y y y y Product Price(s) Promotion Place Process Physical Evidence People Product: Product is described as what we sell to customers. Games. It will give consumers mobility. DVD and Blu-Ray Players. HMV should consider Market-Orientated pricing. Gadgets. and it has good brand image in the market. Game Consoles etc. But the product must be something that provides values to the customer.
HMV should give introductory promotions and early membership discounts to get a quick market share. The first benefit to our campaign is the pull method. because most of targeted consumers are medium earners. Place: The place where it is located and people can buy products and services. who gets the agents to purchase the product from producers. . Promotion: There are a vast number of promotion methods to choose from. promotions are very important. With this method. A good place attracts good business and quicker business growth. There are two main benefits to our promotion campaign. Psychological Pricing This method understands that customers have a set price range. Internet is another place. consumers will be prepared to pay more for it. And how products reach there. It is very important for the company opening business in new market. For HMV it¶s better to choose a greatlybusy place like city center or market places. Psychological pricings. For a high quality product. where people come for shopping and entertainment. it will in turn make the consumer push the retailer who pushes the wholesaler. which they can spend for the goods or services. and finding the best method that will allow our product to flourish in the market is a challenging step. loss leader. Loss Leader Pricing This method can be practiced where one product can create revenue from another product. In Kenya HMV should go for mass advertising. Because communication matters. which provides quicker access for customers at any time. as it is a new market. Prestige Pricing This method ties together price and quality. with out strategy of marketing our products to individual that has certain needs.This form of pricing uses a mixture of demand. costs and competitors though still watching for the profitability. the supply is based on the demand from the consumer. There are four different types of market orientated pricing. these are. Prestige. HMV should go for the medium range price in Kenya.
What needs to be improved and how to take a leap ahead in achieving goals. because it is very important to know if the business is going on right track. offering of booklets and directories etc. make a trial before they buy on certain products.In Kenya. It helps people to get hands on to electronic devices. so it is vital to provide physical evidence to the customers about the products. It is alsocrucial to keep employees motivated and keep the management team active all the time and keep them continuous development process. It also refers to how it will maintain its chain with supplier and consumers. employees. management teams and everyone else that is involved in the whole process of business are considered as people. How well did we do? THE business is always measuring the performance of its activities after going there. and keep the online store for supporting the customers and 24/7 business. HMV have to be very careful about securing its investment and business grown. People: People are the most important resource for any organization. so people can come and get their hands on the products. The best process of serving customers for HMV will be in stores. It is important for the company to have good customer services to ensure customers are always happy and make repeated business. Physical Evidence: The Company have lots of physical evidence in their stores. And online store will help to get more customers as. technology awareness is increasing day by day in Kenya. Process: It indicates that how HMV will deal its customers in the market and run its day-to-day business. They have to be aware of Kenyan culture and social trait. it will be very . HMV will be making a huge investment in Kenya. HMV have to train it¶s employees to deal with the new market environment and give the best service to the customers. Customers. If HMV fails to achieve the goal in Kenya. HMV have to open high street stores in busy places. high street stores will be more appropriate to make the business.
This is a great opportunity for HMV to extend its market to Africa. Bibliography: Marketing Management. because there is no major competition in the market and market it growing faster. 1. Baker M. 4th edition published by Pearson Education. . 2. If HMV can overcome its weakness and relevant threats. HMV have to do contentious evaluation of its performance and growth. Principle of Marketing. pp (13-15) published by Kogan Page. class lecture given by Louise Hunt. pp (598-606). Conclusion: We have done the SWOT and PESTLE analysis to identify and understand the KENYA market. 3. 5. published by ButterworthHeinemann. Adcock D. 4. published by Pearson. The idea of going global will provide great opportunity for the company as long as it takes all the required precaution. The sales promotion hand book. HMV can achieve its goal. Marketing principle and practice. it follows all our key strategies. 5th edition. 6. It is always hard to penetrate the new market but as long as all the strategies are operational and the culture in the new place is considered. Marketing lacture Clips from iTunes Uni. it will not be that hard to get going and make good market share in Kenya HMV should be the leader in entertainment retailers in the world if. Brown C.hard for HMV to grab the African market in future. J. Halborg Al and Rossl C. pp(117-130). P kotler. The marketing book. which is gaining market share of 20% by 2012.
M. Dibb. http://www. 34-46 5.html. [Online] Available at: http://www. Marketing Management. The 7Ps of Marketing Mix.businessplans. & Nicholson. published by Gower Publishing. date access: 17/08/09 References: 1. http://en. Pp. Accessed on [15th Dec 2010] . 2. P. Accessed on [16th Dec 2010] 7. Johnston K and Mayer R. Chaffey D. S. Hayes J and Dredge F. Lancaster. 8. Croft M. pp (1-5). published by routledge. Marketing for manager market segmentation. 13. Change: How to Adapt and Transform the Business (Decision Makers). J. Kimmel AMarketing communication new approaches. Harlow: Pearson Education.com/hair_replacement_and_salon_business_plan/market_analysis_su mmary_fc. Marketing Management3rd Edition.scribd. (2001). Houghton Mifflin. 201-222 4. Anand. (2005). Mc-Graw Hill.cfm. 99. Managing customer service. &Housden. (2005).bplans. Date access: 17/08/09. N.com/?The-7Ps-of-Marketing-Mix&id=1486721. Chadwick F Ellis. Ltd. 44-56 3. technologies and style. pp (6-10). 3rd edition. published by Oxford University Press.com/doc/3497149/Monitor-Making-Segmentation-Work.org/Segment. (2008). 11. 10-12 6. London: Thomas Learning. (2001). Pp. published by Pearson Education. J. G. Pp. 71. Marketing in Changing Times. [Online] Available at: http://ezinearticles. Pp. page-1. 9. N. 46. 10. Kotler. date access: 17/08/2009 12. Marketing Research for Managers. Crouch. M. Behera. Butterworth Heinemann. (2003). Unknown (2010).org/wiki/Market_segment. 31-39. Internet marketing strategy.wikipedia. implementation and practice. Pp. http://www. International Students. Marketing: concepts and strategies. S.7.
When a new business comes with a new strategy in the market they face a lot of barriers. We should focus on those barriers. Our new strategy could face many problems in the new market. We have a new strategy for KENYA market but we are not sure that. magazines. If we want to improve music environment of KENYA market government should help us. we can apply our entire plan in the KENYA market or not. As per KENYA¶s political factors. gadgets. games etc. their government has limited technology. Which is a great question mark for us.g. As per of these concern of those things HMV should change their strategy as ongoing market environment. E. Music market of KENYA is not very strong. Problem working in a group: . which were dealt with strong focus and determination.B How I feel HMV is a name of a brand that sells master copy of CDs. HMV products are exclusive but their collection and quality exclusive as well. Undoubtedly HMV provides best quality and great collection as well but their cost of product is higher than other substitute company. video games. PART. DVDs. HMV are still doing their business and in the leading position but nowadays their sell is going down. DVDs etc. Their buying power for music is much more lower. AMERICA and other countries. from Internet free of cost. What went wrong? KENYA is a developing country and not enough strong as UK.HMV MARKETING PLAN. I feel our project went on right process even though there were some of barriers. Government can reduce taxes from HMV. Customers downloading music. They start their business from 1921.
where we can make more profit. We should make loyal customer who are really important for market environment. SWOT analysis also can improve our business as well. Marketing is very important in a new market environment. We can decide. But final we have overcame all the barriers and finished our assignment on time. Eg. - - Overall KENYA could be a strong market for HMV if we focus on all barriers carefully deal with the threats. Market segmentation also can improve our business. HMV should reduce their prices as customers buying capacities. We can supply our product through online. Possible sectors can improve We should focus some specific sectors. this will open a door of opportunity for HMV for growing it¶s business in African continent. If we become successful in Kenya. speak on telephone. arrange party with loyal customers etc. which hold a greater opportunity in future. We must emphasis SWOT analysis. magazine and Internet. If we focus on young customers and their requirements we can improve our business. So we can take extra care for our loyal customer. Sometime we had problem with analyzing KENYA market environment because all of those information we collect from books. Loyal customers can make more customers through word of mouth. .We had some problems to get together with team members. newspapers. Huge marketing can really improve a market environment. which can improve making customer and buying our products. So that we can provide those places our retail shops which can improve our business. Giving gift. This made our assignment process bit slower. So everybody can buy our product from home.
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