5MK006 Marketing Planning Assignment Sample
Module code: 5MK006 Marketing Planning Assignment Sample
Introduction
A marketing plan is an essential strategy that allows organizations to execute the delivery of a new or existing product in the market. In order to develop a marketing plan, it is essential for organizations to understand the various dynamics of the macro and microenvironment in which the company operates which can be done by a situational and marketing analysis.
The following report is based on Pret a Manger which is a chain of restaurants in the UK specializing in making sandwiches and organic coffee. The report aims to explore a new segment in which the company can avail of new opportunities to enhance its overall profitability in the market. As a segment, the report would explore the possibility of selling vegan-meat items which would be a new offering and would suit their existing selling channels.
Section 1: Mission, Aims and objectives
Organisation mission statement
- To serve freshly made food and good organic coffee, whilst also trying to do the right thing. That’s why our food is handmade in our shop kitchens throughout the day and anything we don’t sell goes to charity (Pret, 2022)
Organisation’s aims and objectives
- To support farmers and enhance the overall value chain of the company (Pret, 2022)
- To achieve sustainability while also ensuring consumer satisfaction (Pret, 2022)
- To ensure meat-free and 100% plant-based products are more delicious than ever at the Veggie Pret outlets (Pret, 2022)
Marketing mission statement
- To explore the opportunities linked with vegan meat items.
- To identify the exciting resources that can be utilized as well as the new resources that can prove to be beneficial for selling vegan meat.
- To create an engaging market communication plan which can allow Pret A Manger the communicate with its target customers and thus increase their chances of sales.
- To Identify the financial requirements and forecast of sales helping to map the opportunities and profitability that can be attained based on the market analysis.
Section 2: Situation analysis
SWOT Analysis
Pret A Manger has major strength in the market of the food industry and can benefit while launching vegan meat products. Pret A Manger has a strong brand value with an extensive number of outlets throughout the market which provides them with the ability to reach the targeted customers with the new products (Pret, 2022).
The company is also considered to be a popular brand among the vegan people in the food industry. The company also utilises 100% organic products as well as focuses on sustainable operations and a strong value chain (Pret, 2022).
As per the weaknesses of Pret A Manger, it has been seen that the company faces a lack of customer engagement and lack of product diversity. Hence, Pret A Manger is only focused on providing products such as coffee and sandwiches. Thus, other companies in the food industry are providing a number of popular products that attract customers to their outlets. Apart from that, it has been noted that Pret a Manger has untapped opportunities in the F&B market.
One of the major opportunities for Pret A Manger is the increasing popularity of veganism all around the UK (Vegan society, 2022). Whereas there is a significant growth in technological development and knowledge transfer in terms of vegan meat development (Saari et al. 2021).
Which enables them to reach new customers and increase their customer retention rate. One of the major opportunities is Pret A Manger entering the market with the advantage of early mover (Gerhardt et al. 2020).
As for the threats that might be faced by Pret A Manger is the adoption of Brexit and its impact on its supply chain. As the company is initiating to launch new products to the market, it is required to hire new employees based on their skills (Hendry et al. 2018). Hence, a shortage of skilled employees has been a major threat to the company.
It has also been noted that the increasing amount of customer scepticism regarding the safety of food ingredients has been a challenging factor for Pret A Manger. The major threat that has been faced by Pret A Manger in the UK market is the increasing amount of competition in the local food industry..
PEST Analysis
As per the political issues of the UK, it has been noted that there has been a significant impact of Brexit on the supply chain of Pret A Manger (Hendry et al. 2018). Thus, several food industries in the UK market have been facing difficulties and weaknesses due to Brexit applied throughout the country. Therefore, it has also been noted that the UK has mild political instability due to the geopolitical tensions in Europe (Ozili, 2022).
Figure 1: GDP growth rate of the UK (Source: Trading economics, 2022)
In the case of the economic factors of the UK, it has been concluded that the GDP of the UK has been growing at a rate of 8.71% (Trading economics, 2022). Hence, significant growth of the GDP can be a positive indication for Pret A Manger to launch the new products in the market among the vegan customers.
Apart from that, consumer in the UK have an increased purchasing power since the pandemic of 2020, which might result in Peter England successfully launching its products in the market. Whereas, the inflation rate of the UK based on their economical factor is noted to increase from 7% in March to 12% by the end of April 2022 which can be a significant threat to Pret A Manger (Office of National Statistics, 2022).
Figure 2: Growing Inflation rate in the UK (Source: Office of National Statistics, 2022)
In terms of the social sector, there has been significant growth in consumers’ preferences for veganism throughout the UK. Thus, consumer preference toward veganism products might result in Pret A Manger launching their vegan meat products successfully in the UK food market (Vegan society, 2022). Apart from that, it might also help the company as there is an increasing amount of consumer awareness regarding organic products as well as their benefit for health.
There has been significant growth in technological development in food science throughout the UK (Erem et al. 2021). Based on the products of Pret A Manger, the company might get beneficial effects in the market for vegan and organic food products. There has also been a development in the machinery of the food industry in the UK market.
As a result, it can be stated that advanced technology and machinery in the manufacturing units of vegan food might attract consumers that are more conscious of food safety and standards. Based on the technological factors, Pret A Manger might attract several new customers to the company.
Section 3: Market analysis
When it comes to the demography of Vegas in the UK it has been seen that the number of vegans has significantly increased over the years. 1.2% of the total British population at present is vegan. As of 2019, it was estimated that approximately 600,000 British people have adopted veganism (Vegan society, 2022).
Not only that but the popularity of veganism has had a significant influence on the consumer behaviour in the British market as 1 out of 4 British citizens has been found to reduce their meat consumption as of 2021. 12% of the entire population has also reflected a drop in the consumption of eggs with indicates that arise in veganism can soon be seen in the country.
Furthermore, when it comes to purchasing vegan food it has been seen that the sale of vegan food items has increased by 63.5% as of 2021 which is a rise of 13% since 2019 (Vegan society, 2022).
Competitor analysis
As for competitors the number of vegan meat sellers in the UK is fairly limited and the market is still unsaturated therefore this is the best time for entering this segment and offering vegans a product that would offer them new varieties. Currently, companies like Green force and The Vegan Butcher are the two most prominent competitors of the company (Vegconomist, 2022). There are also companies like Tempeh that hold 2% of the entire meat alternative market share in the UK.
The company is currently valued at $8.8 million and is a global company originating from Indonesia and has recently expanded its operations in the markets of the UK (Vegan society, 2022). While, on the other hand, Greenforce as identified above is also growing significantly and has recently received a funding of €15 million which is a significant growth to propel their growth in this segment (Vegconomist, 2022).
The UK meat alternative market reflected substantial opportunities for growth and as of 2019 its market value was $489.2 million and is expected to grow at a CAGR of 6.8% and reach $726 million by 2025 (Vegan society, 2022). Considering such opportunities for growth in this segment the company can expect other organisations to also enter the market in the near future. Therefore, it is quite essential for Pret A Manger to enter the market early and establish a firm position among the existing competitors before the market gets saturated.
Section 4: Marketing strategies
| Specific | Measureable | Achievable | Relevant | Time based |
Marketing objectives
|
Can be measured by assessing the successful returns from the marketing campaign | Can be achieved by following the directives of the marketing plan | Relevant as this would determine the company’s market visibility | 3 Months |
Financial objectives
|
Can be measured by analysing the financial growth | Can be achieved by resilient financial management | Relevant as these objectives aim to provide better financial position to the company | 2 Months |
Societal objectives
|
Can be measured by analysing consumer behaviour | Can be achieved with effective marketing | Relevant as it helps to achieve consumer recognition | 3
Months |
|
New market |
Market development
|
Diversification |
|
Existing market |
Market penetration
|
Product development
Pret A Manger would be following the product development strategy by introducing the vegan meat which a new product in the existing markets of UK
|
|
|
Existing product | New product |
Segmentation
Pret A Manger needs to explore the vegan meat segment in the market and it can be practically beneficial for the organisation considering the fact that the company already has vegan customers (Waters, 2018). In this regard, the B2C segment would be explored whereas the scope of B2B also remains at the company’s disposal.
If the company starts manufacturing its own vegan meat, then the scope of the B2B segment can also be taken into consideration where the company would supply vegan meat to other various restaurants across the UK which will open a new revenue stream for the organisation (Díaz et al. 2022).
Targeting
In terms of targeting Pret A Manger needs to target the vegan consumers. The company needs to target consumers who have recently adopted veganism. The target age group for the customers of the company would be between 20 to 49 as this represents 10% of the British population who have converted to veganism (Statista 2021).
Figure 3: Age group distribution of Vegans in the UK (Source: Statista 2021)
Based on the above figure it can be determined that the age group for the launch of vegan meat would be much more popular among the chosen age group. Moreover, Pret A Manger’s target customers would be working individuals, with a minimum annual income of £10,000 to £15,000 (Bryant, 2019).
Positioning
Company needs to utilise its existing positioning strategy and continue to implicate itself as a 100% organic food and beverages seller in the markets of the UK (Pret, 2022). Apart from that, the company can also position itself as the leading vegan meat seller in the British market that values sustainability as well as the satisfaction of customers, especially the ones who have adopted veganism recently.
Section 5: Marketing Mix
4P Marketing mix strategy
Product
The product that the company needs to develop and sell is vegan meat which is a plant-based alternative to regular meat. In this regard, the organisation needs to particularly focus on the taste texture and the packaging of the product (Zabat et al. 2018). As a result, extensive research and development need to be incorporated so that the taste texture of vegan meat remains similar to that of conventional meat.
Price
Pret A Manger needs to adopt a competitive pricing strategy which needs to be flexible. The flexibility of the product and its pricing will help in ensuring that even in times of competition the company would be able to lower the prices and still make profits (Martinelli and De Canio, 2021). Not only that, but a flexible pricing strategy also allows the organisation to attract more customers as it returns the opportunity to provide discounts and offers from time to time.
Place
In terms of place Pret A Manger can utilise its existing outlets and can further expand its number of outlets in the different parts of the UK which have still not been explored (Jenkins, 2021). This would help the organisation to significantly increase their brand recognition as well as compete against other meat alternative sellers which would further enhance and increase their overall brand value.
Promotion
As a part of a promotional strategy Pret A Manger needs to extensively increase their presence on digital as well as traditional marketing channels. Would be essential to place in-store advertisements in their existing outlets throughout the UK so that consumer awareness can be significantly increased regarding the launch of the new product segment (Halim and Halim, 2019).
Section 6: Promotional and communication plan
The promotional and communication plan of Pret A Manger would include extensive social media coverage which can be done by utilizing sponsored posts on popular social media platforms such as Instagram, Twitter, YouTube, Pinterest and Facebook (Quesenberry, 2020). These social media platforms are quite popular among food critics, food bloggers and the entire vegan community.
Moreover, the organization can also collaborate with the vegan communities in the UK which can substantially help in increasing the engagement rate of the social media posts of the company. Furthermore, influencer marketing is another significant strategy that the organization can adopt in order to enhance its online visibility among its target customers (Vrontis et al. 2021).
Pret A Manger needs to specifically focus on digital marketing strategies as they have a better return on investment and are substantially less costly compared to traditional advertising including newspaper television, radio and Billboard promotions.
As a part of promotional strategy, the company can offer free vegan meat with a few selected dishes in the menu. This will help customers to try it out thereby helping to identify early response from customers. The customers can be offered discounts on future purchases if they leave a review on the new items thereby helping the company to create brand awareness as well as collect consumer feedback at the same time.
Section 7: Planning Budget and forecast
Based on the market analysis and current scope of opportunities present in the market the following sales forecast for Pret A Manger in the next 5 years has been developed. It has been estimated that the organisation has the potential to reach a sale of £400,000 and the next 5 years
Figure 4: Sales forecast for the next 5 years (Source: Estimated by the learner)
Following is an estimated profit and loss statement for the year 2022 and implicates all the essential financial aspects linked with the marketing plan.
| Profit and loss statement for 2022 | ||
| Particulars | Amount £ | |
| Revenue | Net sales
(Units sold – 17000 at £5 each |
85,000 |
| Cost of sales | 15,000 | |
| Total Revenue | 70,000 | |
| Expenses | Cost of procurement | 3,500 |
| Cost of labour | 7,000 | |
| Production cost | 6,000 | |
| Miscellaneous | 1,500 | |
| Total expenses | 18,000 | |
| Gains | Income from promotions | 7,000 |
| Losses | Damaged items | 2,000 |
| Net income | (Revenue + Gains) – (Expenses + Losses) | 57,000 |
Section 8: Implementation monitoring and control
The plan would be implemented in a series of steps within the next 3 months starting from the existing outlets of the company. Pret A Manger already has the required infrastructure which can help them to start its operations immediately (Stevens et al. 2021).
As a part of a monitor in strategy, the organisation would make to conduct fortnight meetings to evaluate the current position of the company’s investments and how they are performing along with the sales that the company is achieving. The organisation can utilise a set of Key performance indicators which can help them to better understand how the company is moving forwards towards achiving its goals and objectives.
| KPI | Requirements |
| To achieve sales growth | 30% |
| Increased consumer satisfaction | 90% |
| Increased positive feedback from customers | 80% |
| Improved brand visibility | 60% |
The KPIs can help the organization to keep a close track over the performance of the company as well as how effectively it is achieving the above-mentioned objectives. The managers in the company also need to conduct regular meetings with all the involved stakeholders. This will help in identifying issues that are often overlooked and would also help in coming up with solutions.
References
Bryant, C.J., (2019). We can’t keep meating like this: Attitudes towards vegetarian and vegan diets in the United Kingdom. Sustainability, 11(23), p.6844.
Capper, J., (2021). A sustainable future isn’t vegan, it’s flexitarian. Veterinary Record, 188(1), pp.40-40.
Díaz, E.M., Lado, N. and Martín-García, D.F., (2022). Correction to: An Original Social Marketing Campaign to “Try Vegan”: Effectiveness and Impact on Quality of Life. In Applied Social Marketing and Quality of Life (pp. C1-C1). Springer, Cham.
Erem, E., Icyer, N.C., Tatlisu, N.B., Kilicli, M., Kaderoglu, G.H. and Toker, Ö.S., (2021). A new trend among plant-based food ingredients in food processing technology: Aquafaba. Critical Reviews in Food Science and Nutrition, pp.1-18.
Gerhardt, C., Suhlmann, G., Ziemßen, F., Donnan, D., Warschun, M. and Kühnle, H.J., (2020). How will cultured meat and meat alternatives disrupt the agricultural and food industry?. Industrial Biotechnology, 16(5), pp.262-270.
Halim, K.K. and Halim, S., (2019). Business intelligence for designing restaurant marketing strategy: A case study. Procedia Computer Science, 161, pp.615-622.
Hendry, L.C., Stevenson, M., MacBryde, J., Ball, P., Sayed, M. and Liu, L., (2018). Local food supply chain resilience to constitutional change: the Brexit effect. International Journal of Operations & Production Management.
Jenkins, R., (2021). Campaign for vegan-inclusion. Early Years Educator, 22(7), pp.12-12.
Martinelli, E. and De Canio, F., (2021). Non-vegan consumers buying vegan food: the moderating role of conformity. British Food Journal.
Office of National statistics, (2022). Consumer price inflation, UK: April 2022. [Online]. Available at: https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/april2022#:~:text=to%20January%201989.-,The%20Consumer%20Prices%20Index%20(CPI)%20rose%20by%209.0%25%20in,which%20began%20in%20January%201997. [Accessed on 21 June 2022]
Ozili, P.K., (2022). Global economic consequence of Russian invasion of Ukraine. Available at SSRN.
Pret, (2022). About Pret. [Online]. Available at: https://www.pret.co.uk/en-GB/about-pret. [Accessed on 21 June 2022]
Quesenberry, K.A., (2020). Social media strategy: Marketing, advertising, and public relations in the consumer revolution. Rowman & Littlefield Publishers.
Saari, U.A., Herstatt, C., Tiwari, R., Dedehayir, O. and Mäkinen, S.J., (2021). The vegan trend and the microfoundations of institutional change: A commentary on food producers’ sustainable innovation journeys in Europe. Trends in food science & technology, 107, pp.161-167.
Statista, (2021). Do you follow vegan nutrition rules?. [Online]. Available at: https://www.statista.com/forecasts/1261046/adults-following-vegan-diet-in-uk-age-group [Accessed on 21 June 2022]
Stevens, R.E., Loudon, D.L., Wrenn, B. and Warren, W.E., (2021). Marketing planning guide. CRC Press.
Trading economics, (2022). United Kingdom GDP Annual Growth Rate. [Online]. Available at: https://tradingeconomics.com/united-kingdom/gdp-growth-annual#:~:text=UK%20Annual%20GDP%20Growth%20at,2%25%20and%20construction%207.4%25. [Accessed on 21 June 2022]
Vegan society, (2022). UK meat alternative market. [Online]. Available at: https://www.vegansociety.com/news/market-insights/meat-alternative-market/european-meat-alternative-market/uk-meat-alternative-market [Accessed on 21 June 2022]
Vegan society, (2022). Worldwide growth of veganism. [Online]. Available at: https://www.vegansociety.com/news/media/statistics/worldwide#:~:text=Behavioural%20changes,150%2C000%20(0.25%25)%20in%202014. [Accessed on 21 June 2022]
Vegconomist, (2022). Vegan Strongman Patrik Baboumian Brings “Game-Changing” GREENFORCE to UK. [Online]. Available at: https://vegconomist.com/products-launches/vegan-strongman-patrik-baboumian-brings-game-changing-greenforce-to-uk/ [Accessed on 21 June 2022]
Vrontis, D., Makrides, A., Christofi, M. and Thrassou, A., (2021). Social media influencer marketing: A systematic review, integrative framework and future research agenda. International Journal of Consumer Studies, 45(4), pp.617-644.
Waters, J., (2018). A model of the dynamics of household vegetarian and vegan rates in the UK. Appetite, 127, pp.364-372.
Zabat, M.A., Sano, W.H., Cabral, D.J., Wurster, J.I. and Belenky, P., (2018). The impact of vegan production on the kimchi microbiome. Food microbiology, 74, pp.171-178.
Appendices
Appendix 1 : SWOT Analysis
| Strengths | Weaknesses |
| ● Strong brand value
● an Extensive number of outlets through the market ● Strong brand recognition ● Popular brand among people preferring vegan items (Pret, 2022) ● Sustainable operations and strong value chain (Pret, 2022) ● 100% organic products (Pret, 2022)
|
● Lack of consumer engagement
● Lack of product diversity ● Absence of popular products other than coffee and sandwich ● Untapped opportunities in the F&B market |
| Opportunities | Threats |
| ● Increasing popularity of veganism (Vegan society, 2022)
● Technological development and knowledge transfer in terms of vegan meat development (Saari et al. 2021) ● Increased access to suppliers of raw material ● Entering the market with the advantage of early mover |
● Immutable business model
● Brexit and its impact on supply chain ● Increased requirement of skilled workforce (Hendry et al. 2018) ● Consumer scepticism regarding ingredients and food safety ● Increased competition from other chain of restaurants in the market working on similar product development strategies |
Appendix 2: PEST analysis
| Political | ● Brexit and its impact on supply chain (Hendry et al. 2018)
● Mild political instability due to geopolitical tensions in Europe (Ozili, 2022) |
| Economical | ● The GDP of the UK growing at 8.71% (Q1 2022)
● Consumer purchasing power has increased since the pandemic in 2020 ● Inflation rate has gone up from 7% in March to 12% in April 2022 |
| Social | ● Consumer preferences towards veganism gaining strong ground (Vegan society, 2022)
● Increased consumer awareness regarding organic products and their benefits |
| Technological | ● Technological developments in food science (Erem et al. 2021)
● Advanced machinery in the manufacture of vegan food |
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