Marketing Plan of Thread Assignment Answers

Marketing Plan of Thread
Table of Contents
TOC o 1-3 h z u Introduction PAGEREF _Toc4526727 h 3Marketing Environment PAGEREF _Toc4526728 h 3SWOT Analysis PAGEREF _Toc4526729 h 3PEST Analysis PAGEREF _Toc4526730 h 5POTERS Five Forces PAGEREF _Toc4526731 h 5Positioning and Targeting PAGEREF _Toc4526732 h 7Segmentation PAGEREF _Toc4526733 h 7Targeting PAGEREF _Toc4526734 h 7Positioning PAGEREF _Toc4526735 h 8Perceptional Maps PAGEREF _Toc4526736 h 9Strategies for growth and Marketing Objectives PAGEREF _Toc4526737 h 9SMART Objective PAGEREF _Toc4526738 h 9Re-designing the marketing mix to achieve the SMART objective PAGEREF _Toc4526739 h 11Product PAGEREF _Toc4526740 h 11Price PAGEREF _Toc4526741 h 12Place PAGEREF _Toc4526742 h 12Promotion PAGEREF _Toc4526743 h 12Lauterborns 4c of the marketing mix PAGEREF _Toc4526744 h 12Consumer PAGEREF _Toc4526745 h 13Cost PAGEREF _Toc4526746 h 13Communication PAGEREF _Toc4526747 h 13Convenience PAGEREF _Toc4526748 h 13Budget, Measurement, and control PAGEREF _Toc4526749 h 13References PAGEREF _Toc4526750 h 15

IntroductionThis report presents the marketing plan for company Thread. It is a British startup and founded in 2012. It is an E-Commerce Company and presently helping 480000 men to dress well or simply help them to their clothes shopping. The thread is working with eight stylists. The Thread provides free online styling services to the customers. The target customers of the company are men and capture the online market of clothing. The team of Thread having seventy-six people working together (Thread 2019). It also provides home delivery to the customer. This report will analyze the market environment and positioning the segmentation of the company. With the help of marketing tools, the report will determine the marketing strategy of the company and the outline of the marketing plan. It also suggests the budgetary requirement of the organization with appropriate measurement and control techniques. The main purpose of this report is to recommend the two SMART objectives to the company one will be short term and second will be medium-term objective.
Marketing EnvironmentSWOT AnalysisThe SWOT analysis evaluates the performance, risk, and potential of the company. It also evaluates the internal and external factors of the organization (Phadermrod, Crowder and Wills 2019). The SWOT analysis of Thread is mentioned below
Strengths
The Thread is completely different from the other companies because with clothing it also provides a stylish suggestion.
Through the website company directly communicate with the customers and maintain the relationship.
The company provides a benefit to customers like online shopping is cost saving for the customer.
To display the product is very easy on the website and the pricing of the products is reasonable.
Weakness
On the website the company can display the limited products it cannot show lots of product at the same time.
The company having a limited exposure because not all the people access the website of the company (Phadermrod, Crowder and Wills 2019).
Many times consumer likes to buy the products personally from the market instead of shopping online because of customer satisfaction.
The customers get physical products but they feel lack of personal services which are intangible.
Opportunity
The business is available 247 for the customer with one click.
The company can start with the women apparels and also recommend clothing style to them.
In the current situation a large number of people is using the internet. So, the company should come with an innovative idea with the technology (Phadermrod, Crowder and Wills 2019).
The company can expand its online business in another region which will boost the growth of the business.
Threats
The company is using online platforms so it has a risk of the fake website like others may create exactly the same website or may use the company name.
The competitors in online clothing business are increasing day by day. They provide the same products and services to the customers.
Changes occur in law and regulation affects the online business.
PEST AnalysisIt is an analysis of the macro environmental effect on the firm. PEST evaluates the political, economic, social and technological factors of the company (SammutBonnici and Galea 2015). The PEST analysis of the Thread is mention below
Political Factors
The political condition of the United Kingdom is stable and the government supports E-Commerce business. Due to the political condition business is successfully running.
Economic Factors
The economic growth of the United Kingdom is providing benefit to the business. With the great economic condition, the customers are getting products and services at an affordable price.
Social Factors
The education level of the United Kingdom is very high so the people support and understand online shopping (SammutBonnici and Galea 2015). The customers easily access the website of the company. A large number of people belong to great income group so they easily afford the services and product of the Thread.
Technology Factors
In the United Kingdom, the high availability of the internet makes the advertisement and promotion easy. The company easily promotes and communicates with the customers through social media and digital modes. The website of the company is very excellent and user-friendly to its customers.
POTERS Five ForcesThe POTERS five forces analyze and understand the competitiveness of the business environment and also identify the potential strategy for the company (Aithal 2016). Porters five forces of Thread are explained below
Bargaining power of suppliers
In the E-commerce industry, the bargaining power of suppliers is medium because suppliers have to follow the code of conduct set by them. There are large numbers of suppliers which provide with brands to the company. The company having the upper hand and the bargaining power of the suppliers is low.
Bargaining power of the Buyers
The bargaining power of the buyers is high in the industry. Because of a large number of competitors in the market bargaining power of the buyer is increasing day by day. The customer easily switches to other company and brands because the switching cost is low (Mathooko and Ogutu 2015). The Thread is stress on customer satisfaction and product quality.
Competitive Rivalry
The rivalry in the online market is high. In the past few years a large number of players has grown. There are many companies which provide the same clothes and brands through online mode to the customers (Aithal 2016). The topmost competitor of the Thread is ASOS, Gym shark, New look, Boohoo etc. Customers have many options to buy clothes online.
Threat of Substitute
The development and growth of digital technology have brought many changes in the online market. The substitutions to Thread are many in the market which provides similar services and the products to the customers. The Thread faces the high threat of the substitution.
The threat of new entry
The threat of new entry is low to the Thread because in the online clothing industry it requires lots of investment, efforts and time. The Thread has already earned a reputation in the industry so the new entry has to put lots of effort to establish in the market. The business requires investment in logistics, marketing, warehouse, and distribution.
The evaluation from the SWOT, PEST factors and Porters five analysis it has been determining that the Thread has achieved a remarkable position in the market. But the growth of the digital market has increased the lots of competitors to the company. The company has a threat from the substitution of the products and brands.
Positioning and TargetingThe segmentation, positioning, and targeting is a strategic approach used in marketing. The segmentation, positioning and targeting helps to determine the potential customers and then develop the products and marketing idea that suits them.
SegmentationThe segmentation process determines the particular needs, want of the customers and then company work accordingly ( Dwesar and Kesharwani 2016). The segmentation techniques are used by Thread to divide the customers into different categories.
Gender segmentation The target customers of the company are only men. The company offers men to wear only.
Age-related segmentation The Thread targets the above 18 age group boys. They provide trendy new fashion lines like jeans, shirts etc.
Geographic segmentation Thread objective is to target the customer base of the United Kingdom. It provides services and products to the customers of the United Kingdom.
Behavior-related segmentation According to the behavior and the choice of the customer Thread provide niche brands to the customers like Boohoo man, Adidas etc. It also offers a variety of products with various brands.
Lifestyle segmentation The Company provides different kinds of clothes and men wears according to the customers lifestyle. Like for office customer prefer formal clothes and for a party the customer prefers casual clothes. All these options are provided by the company.
TargetingThe market targeting evaluates the potential attraction of each segment.
Market Size The Company targets the male customer of the United Kingdom. It captures the online market (Schlegelmilch 2016). The market size of the Thread is a long tail market which reached through the web or internet to the customer.
Difference The segmentation done by the Thread is completely different from each other.
Accessible each segment of the market is accessible to the team of Thread. And the customers of Thread in each segment are able to receive the marketing messages of the company.
Money The total funding amount raised by the company is 40.9M over seven rounds and the total revenue of Thread is 2 M annually.
PositioningIt is a marketing strategy target to position the brand or product at a distinct level (Adina, Gabriela and Roxana-Denisa 2015).To analyze the positioning of Thread the 4Cs of positioning has been used which are mentioned below
Clarity Thread having a clear idea about its service and the product. The company provides products related to the men wears and also offer free online personal styling services to the customers.
Consistency Thread maintains the consistency in the product and services. It provides high-quality services with an excellent brand. It also gives personal styling services to the consumer.
Credibility The target customer of the company believes the idea of the company to provide the clothes with free styling. The thread is successful to create positioned in the consumers mind ( Athanasopoulou, Giovanis and Avlonitis 2015).
Competitiveness The company provides the services at a competitive edge. They offer the solution to the customers by helping them to find appropriate clothes through the stylists online.
Perceptional MapsThe perceptual map is also known as the product positioning maps which is used by the markets to understand the situation. It also provides an understanding that how consumers view the product of a specific company. This map is an innovative effort to support the position of the product in the market. The perceptional map of Thread shows that there are some niche products which have high cost with a high-quality lie between the high cost and high-quality quadrant (Adina, Gabriela and Roxana-Denisa 2015). There are also some products which have affordable pricing with high quality so those products lie between the low cost and high-quality quadrant. In the map product position shows customer satisfaction with the company.
Strategies for growth and Marketing ObjectivesSMART ObjectiveThe SMART objective means the statement which describes that the particular organization or individual is hoping to achieve certain SMART objectives where SMART stand for specific, measurable achievable, realistic and timely.
Specific The outline of the statement should clear.
Measurable The aim or target should be measurable and its progress can be the monitor.
Achievable The objective of the company should be achievable by the employees.
Realistic The organization should focus on the outcome of the objective.
Timely The organization should agree to the date which the objective can be accomplished.
The SMART objectives of the Thread which are as follow
Short Term Objective Highly focus on the Customer engagement of Thread
In the period of one year Thread need to focus on customer engagement for the long term success in the market ( Bjerke and Renger 2017). Thread employees can share the products on the social media which encourage the higher rate of commitment in practices of likes, share, comments, and retweets. This process is simple to achieve the target which will be beneficial for the long term success of the business. The customer engagement determines the need and want of the customer so with the help of it Thread can determine the desire and expectation of the targeted customers. With the high customer, Engagement Company is able to sustain its customer in the existing market with existing products. This short term goal of the company is easily achievable with the help of the online platform. It can easily measure by monitoring sales growth and customer satisfaction. This objective is realistic and time bounded.
Medium Term Objective- By 2021 establishes a business in the women and kids clothing and styling.
Specific - The objective is specific that the company will establish the business in a new market segment. It will launch the women and kids clothing product and freestyling services to women and kids.
Measurable- This objective is measurable by monitoring its progress in the market against the competitor.
Achievable- The objective of the business is achievable by making the setup for kids and women clothing as well as hiring the stylist for them. The business can grow through the promotion of social media and digital platform.
Realistic- The objective of the company is real which will financially beneficial for the organization. It will enhance the growth of Thread in the online industry.
Timely- This objective is time bounded by 2021 the company completely establish its business in the women and kids clothing sector (Bjerke and Renger 2017).
The medium-term objective of Thread can also focus on the new market segment that is India, China where the concept of online shopping of clothes with free online styling service is new.
The selection of a SMART objective of Thread is justifiable with the help of Ansoffs matrix. The Ansoff matrix can be used which focus on the organizations current and potential products and customers. The Ansoffs matrix gives four growth strategies that are market penetration, market development, product development and diversification (Schawel and Billing 2018). The product market growth strategy of Thread is mentioned below
Market Penetration The Thread uses the market penetration strategy aggressively. It sells the existing product in the existing market that is men wear in the online market. The company concentrates on the user experience personalization which positively effects on the volume of sales of products to the existing market. In the market, penetration Thread can focus on a large number of customer engagement which enhances the sales of the existing product.
Product Development In the upcoming time the Thread Company need to develop new products in the existing market (Schawel and Billing 2018).It can introduce womens apparels in the market. The product categories will be clothes, shoes, and jewelry etc.
Market Development The market development means the organization seeks growth by aiming the existing product to new market segments. In the present situation the Thread targeted market segment is United Kingdom market and the target customer are male population. In the future, the Thread has the potential to target the online market of India, China etc. It can provide its services of styling and clothing range to the customer of India and China where the free online personal styling concept is new.
Diversification The organization diversifies into new business by creating new products for the new market segment. The Thread can use the diversification strategy to grow the business in the market. The company can introduce the kids clothing range which will be the new product for the company and target customer will be kids which will be a new market segment.
Re-designing the marketing mix to achieve the SMART objectiveThe marketing mix means putting the correct product in the correct place with the correct price. The marketing mix is comprised of product, place, price, and promotion (Ang and Rusli 2018). The redesigning of the marketing mix of Thread as given below
ProductThread sells its all product online. Currently, it deals with men products like men clothes, accessories, shoes etc. But to achieve the new SMART objective of the company Thread have to launch new products like women clothes, women stylists, kids clothes and all other products which are related to the women and kids clothing range. Products will be women dress, kids dress, women accessories, footwear etc.
PriceCurrently, Thread is providing mens product at reasonable pricing. Sticking to the same pricing strategy the Thread can offer the women and kids products to the customers. Thread deal in different product of various brands so the pricing strategy will vary from product to product. It should keep maintaining the pricing transparency with the customers to gain loyal customers.
PlacePresently the Thread only takes an order through the website. But it can develop various modes to place the order with the help of technology. Along with the online platform, Thread can open its physical store to gain trust among the customers (Ang and Rusli 2018). The company can take the order through the mail, Facebook, Instagram etc. Thread should continue the local postal and courier services for the transportation of the products. The Thread should develop the warehouse in the strategic location to reach the remote places.
Promotion
In the present situation the company is using social media like Facebook, Instagram, Twitter etc. and other digital platforms for the promotion. And it is also providing special offers and discount on the products. To enhance the business of the company it can use brand endorsement by the celebrity. It can also provide free gifts with the products or direct mail to the potential customers about the products and services. For the promotion company can use the creative commercial advertisement or target the customer through their browsing pattern. The company can focus on the public relation exercise to develop the brand image in the consumer mind.
Lauterborns 4c of the marketing mixLauterborns 4c of the marketing mix is the consumer-oriented version. It involves consumer, cost, communication, and convenience ( Hisrich and Ramadani 2017). It focuses on the quality of buying experience. Threads 4c of the marketing mix is mentioned below
ConsumerThe Thread should focus on the consumer wants and need related to the product and services. To attract the target consumer the Thread focus on the product like womens clothing range with various brand, kids clothing range with various brands. The product automatically satisfies the customer needs and wants.
CostThe cost reflects the ownership of the product. With changing of objective the company should focus on the cost to sustain and satisfy the customer. The price of the product is the small element of the total cost. Focusing on the cost will grow the customer base and the customers experience.
CommunicationHere the communication means a two-way process where Thread promotes the product through social media and another digital mode. But after consuming the product and services the company should take the feedback of the consumer about their experience with the company ( Hisrich and Ramadani 2017). This communication process builds a strong relationship between customer and organizations. The thread can take help of public relation and viral marketing for the targeted buyer.
ConvenienceThe buyers are not limited to the particulars places to fulfill their needs and wants. Thread should focus on the other location of the world to increase business growth. It will provide ease to the buyer for buying the products. It should also concentrate to develop the delightful buying experience which increases customer satisfaction and gain customer loyalty.
Budget, Measurement, and controlBudgeting is the foundation of the plan with the numeric term. The budgetary plan needs a control system and measurement of the budget. The given budget for the company is 50 K for the marketing activity. The estimated marketing cost is 2 K monthly which requires for social media management and campaigns. This marketing activity helps to achieve the objective of the Thread by using the social media platform and other campaigns platform for the promotion of the company. To measure the success of a SMART objective of Thread the financial statement will be evaluated. The financial statement will show the increased revenue of the company. To determine the success of the company it will calculate income statement, balance sheet, and cash flow statement. It measures the profitability state of the business (Rogulenko et al 2016). The evaluation of financial statement determines the business performance and the money flow of the business.
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Thread (2019). Retrieved from https//www.thread.com/help.
 

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