LEVEL 7 DIPLOMA IN STRATEGIC MANAGEMENT & LEADERSHIP

Learner Name Katerina Hanakova Friedrichova

Learner Registration 0822

No.

Study Centre Name Lincoln University of Business and Management

Qualification Title OTHM L7 Diploma in Strategic Management & Leadership

Unit Reference No. Y/616/2732

Unit Title Strategic Marketing

Word Count 3592 Words

Submission Date 17th June

Declaration of authenticity:

1. I declare that the attached submission is my own original work. No significant part of it has
been submitted for any other assignment and I have acknowledged in my notes and
bibliography all written and electronic sources used.

2. I acknowledge that my assignment will be subject to electronic scrutiny for academic honesty.

3. I understand that failure to meet these guidelines may instigate the centre’s malpractice
procedures and risk failure of the unit and / or qualification.

Katerina Hanakova Friedrichova Dr. Umesh Kothari

_________________ _________________

Learner signature Tutor signature

Date: 13th June Date: 25 May 2024

 LEVEL 7 DIPLOMA IN STRATEGIC MANAGEMENT & LEADERSHIP

Table of Contents

Executive Summary.............................................................................................................................4

1. Introduction..................................................................................................................................5

2. Market Environment Analysis.....................................................................................................5

2.1. PESTLE Analysis................................................................................................................5

2.1.1 Political Factors...............................................................................................................6

2.1.2 Economical Factor...........................................................................................................6

2.1.3 Social Factors..................................................................................................................7

2.1.4 Technological Factors......................................................................................................7

2.1.5 Legal Factors..................................................................................................................7

2.1.6 Environmental Factors.....................................................................................................8

2.2.1 Threat of New Entrants.......................................................................................................8

2.2.2 Threat of Substitutes............................................................................................................9

2.2.3 Competitive Rivalry............................................................................................................9

2.2.4 Bargaining power of Suppliers:...........................................................................................9

2.2.5 Buyers' bargaining strength...............................................................................................10

2.4 SWOT Analysis.......................................................................................................................10

2.4.1 Strengths............................................................................................................................10

2.4.3 Opportunities.....................................................................................................................11

2.4.4 Threats...............................................................................................................................11

3 Strategic Marketing Model STP (Segmentation, Targeting, Positioning).................................12

3.1 Stakeholder Analysis.........................................................................................................13

 LEVEL 7 DIPLOMA IN STRATEGIC MANAGEMENT & LEADERSHIP

4 Internal Stakeholders: Supervisors and Workers.......................................................................13

5.1 Customers:.........................................................................................................................13

5.2 Suppliers, Distributors, and Shareholders:........................................................................14

5.3 Retailers:............................................................................................................................14

6.1 Government:......................................................................................................................14

7 SMART Objectives....................................................................................................................14

7.1 Market Segmentation.........................................................................................................15

7.1.1 Use of Market Segment to the Organization.................................................................16

7.2 Selection of Market Segment (Target)..............................................................................17

7.2.1 Justification....................................................................................................................17

7.3 Brand Positioning..............................................................................................................17

8 Marketing Mix............................................................................................................................18

8.1 Price...................................................................................................................................18

8.2 Promotional Strategy:........................................................................................................18

8.3 Distribution strategy..........................................................................................................19

Conclusion.........................................................................................................................................19

References.........................................................................................................................................20
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Executive Summary

This strategic marketing plan addresses the challenges and opportunities posed by Amazon Go's

entry into the UK market, focusing on how a local business can adapt and thrive. The arrival of

Amazon Go brings a significant shift towards cashier-less, technology-driven retail, emphasizing

convenience and efficiency. Our local business aims to leverage its strengths such as community

presence, personalized service, and local sourcing to differentiate itself. In the development of

strategic marketing plan, this report firstly analyzes the market environment by using PESTLE

analysis, Porter’s Five Forces analysis, SWOT analysis and stakeholder analysis. After analyzing

the company’s internal and external environment, this report sets the SMART objectives for the

organization to make the best strategic plan. SMART Objectives set clear goals for increasing our

customer base, boosting loyalty, enhancing brand awareness, expanding online presence, and

collaborating with local suppliers.

After setting goals, the strategic marketing plan then come to existence with using STP

(Segmentation, targeting, positioning) model. Market Segmentation targets the "Conscious

Consumer" segment, emphasizing sustainability and ethical practices. This segment aligns with our

strengths and provides a strategic advantage over Amazon Go. Brand Positioning aims to establish

our organization as the leading local grocery store committed to sustainability, ethical practices,

and community engagement, appealing to the conscious consumer segment. In addition, Marketing

Mix strategies give the suggestions for best strategy implementation which include competitive

pricing, promotion of ethical practices and sustainability, distribution through both physical and

online platforms, and leveraging technology for efficiency. By implementing this strategic

marketing plan, our organization aims to navigate the evolving retail landscape, differentiate itself

from Amazon Go, and build lasting brand loyalty among socially conscious consumers.
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1. Introduction

There is no denying that the arrival of Amazon Go in the UK market has had a profound impact on

the retail scene. Conventional businesses embrace innovation and new prospects, but they also face

problems. In addition to addressing the difficulties presented by Amazon Go, this strategic

marketing plan seeks to maximize its potential. Amazon Go is a shop concept that is set to

revolutionize the retail industry by doing away with cashiers. It puts ease, effectiveness, and

customer-centricity first, which poses a danger to the customs and expectations of consumers.

Conventional retailers need to get ready for the effects of this revolutionary strategy. However,

hardship frequently acts as a spur for development and creativity. The arrival of Amazon Go forces

us to reassess our plans, improve our methods, and adjust to a retail environment that is evolving

quickly. This strategic marketing plan is intended to give our company a clear road map so that we

may not only survive in this new environment but also successfully navigate the difficult terrain.

This strategic marketing plan examines how opportunity and challenge interact. It is our

preemptive reaction to the disruptive influence of Amazon Go. Not only do we want to adapt, but

we also want to completely transform, riding the waves of change and taking our company to new

heights. Even if the future is unpredictable, we can negotiate this changing retail landscape and

come out stronger and more resilient if we comprehend the fundamental factors at work.

2. Market Environment Analysis

2.1. PESTLE Analysis

A strategic management tool for analyzing the external factors influencing the remote or

macroenvironment is the PESTLE analysis model, which consists of the following: political,

economic, social, technical, ecological/environmental, and legal. The decision-makers in our

company can determine the biggest opportunities and risks based on external elements in the

company's distant or macro-environment by using the PESTLE analysis method.

Figure 1: PESTLE analysis

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2.1.1 Political Factors

Because supply chains are primarily affected by political stability and low tax rates, the political

environment in the UK is crucial for local enterprises looking to expand quickly into the market

(Boucher et al., 2017).The introduction of Amazon Go into the market is anticipated to draw the

interest of regulators and legislators. The competitive environment can be substantially impacted

by the UK government's position on matters like taxation, competition, and data protection.

Operating within the legal environment requires active engagement with political stakeholders and

ensuring conformity to shifting legislation.

2.1.2 Economical Factor

The economic aspect of the host nation is crucial to take into account since its citizens ought to be

able to afford to acquire wants rather than just necessities. The economy of the United Kingdom is

stable in the developed market as it increasing the proportion of the population in emerging nations

with disposable money (opportunity) (De-Ramon, et al., 2018). It comprises mitigating economic

risks related to the company's expansion into physical and online retail sector by resolving issues in

the remote or microeconomic domain. Having more disposable cash might help a business succeed

financially in expanding areas (Komarudin & Affandi, 2019). With the launch of Amazon Go,

shoppers now have an expedient and maybe affordable option for purchasing, thus our company

must adjust to changing customer spending habits. We must continue to be adaptable in our pricing

strategies and attentive to the macroeconomic environment in order to make well-informed

decisions about pricing and sales methods if we want to preserve our competitiveness and

profitability.
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2.1.3 Social Factors

The sociological element is another crucial one to take into account because, no matter how much

better a product or service we provide, it still needs to fit these people's customs, values, and the

demographics of the location in question. The use of contemporary technology and consumerism

are rising in the United Kingdom. Self-shopping and online shopping are growing in popularity.

(Brown & Vergragt, 2016). Londoners who lead hectic lives are about to experience "Just Walk

out" technology for the first time. Amazon Go's emphasis on convenience is in line with the

changing needs and tastes of the contemporary consumer. Our firm has to continue to pay attention

to these societal trends in order to stay competitive. This means adapting to shifting consumer

preferences, such as the rise of tech-savvy generations and a growing emphasis on efficiency and

convenience. Customer retention and attraction will be greatly aided by aligning our product line

with these changing social dynamics.

2.1.4 Technological Factors

It is vital to consider potential clients' familiarity with technology when launching a technology-

heavy business like Amazon Go. They should also be willing to accept the process while

maintaining a familiar lifestyle with their smartphone and internet. Additionally, the host nation's

investment levels in research and development, acceptance of mobile payments, and fintech

services ought to rank better. In light of those reasons, the UK has a strong technological

foundation.

2.1.5 Legal Factors

Rules pertaining to consumer rights, data protection, and competition are all part of the legal

environment (Kemp, 2020). Potential legal concerns may arise when Amazon Go's presence

enhances the competitive climate. Ensuring legal compliance through adherence to competition

laws and data protection standards is vital for our firm to maintain a vigilant state. When

developing our strategies, we must take legal risks and difficulties into account. For this reason,

maintaining legal counsel and adhering to industry norms are crucial.

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2.1.6 Environmental Factors

Growing ethical and environmental concerns are major factors in today's consumer environment.

Notably, Amazon Go has embraced a sustainability-focused strategy that is likely to strike a chord

with the increasing number of environmentally conscious consumers. We may take advantage of

this by adopting sustainable practices within our organization. This entails looking into alternative

energy sources, cutting waste, and procuring goods locally. Consumer values are not only aligned

with environmental responsibility, but it also has the ability to provide great publicity.

2.2. Porter’s 5 Forces

A strategic management method for analyzing industries and figuring out the fundamental

profitability levels in a certain sector is Porter's Five Forces Analysis (Bruijl, 2018).

Figure 2: Porter’s 5 Forces

2.2.1 Threat of New Entrants

This force takes into account the ease or difficulty with which competitors can enter the market.

The likelihood that a well-established company's market share will be reduced rapidly with which a

new rival enter the market easily (Masroor & Asim, 2019). Amazon Go's entry into the UK market

has been facilitated by several factors, including cost advantages, simple access to inputs,

economies of scale, and a strong brand identification. Because Amazon Go poses a danger to my

company, we must grow our current clientele and promote innovation in order to keep market

share. Differentiation must come first if we are to successfully address this challenge.
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2.2.2 Threat of Substitutes

This force investigates the ease with which customers can move from a company's good or service

to one offered by a rival. Consequently, since Amazon Go provides its customers with the best

services and the newest technology, our company faces a greater threat from competitors. In order

to overcome this obstacle, our company needs to broaden the range of products it offers in order to

stay current and interesting to customers. By investigating alternative company ventures,

collaborating with regional craftspeople, and launching distinctive services, one might lessen the

influence of replacement offerings (Yusuf et al. 2022). By providing a wider selection of goods,

such as unique or regionally sourced goods, we may differentiate our company from possible

competitors and offer a unique value proposition.

2.2.3 Competitive Rivalry

Small competitors find it challenging to compete with Amazon Go's broad reach, distinctive brand,

physical and online presence, and competitively low prices in the retail industry. Due to the

innovative nature of our company's automated stores, there is no chance that it will compete with

Amazon Go, as no other business in the industry employs Amazon's distinct business model. So,

we may enable seamless shopping experiences by connecting mobile and web platforms.

Furthermore, keeping an eye on competitors and adapting to changing consumer tastes are critical

to our company's success.

2.2.4 Bargaining power of Suppliers:

supply bargaining power is limited by a varied supply base. In the UK market, the majority of well-

known businesses have already signed agreements with their suppliers, retaining larger profit

margins for themselves. Thus, at first, Amazon Go will face difficulty to maintain product costs,

which will reduce the company's profit. Since this is advantageous to us, the business will

concentrate on keeping friendly ties with suppliers to prevent them from switching to Amazon.
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2.2.5 Buyers' bargaining strength

This examines the power of the customer to exert pressure on a business. When consumers have

more options, they are more likely to negotiate. In the UK, there are many brands and fierce rivals.

Thus, it's critical to offer goods at market value. If not, our company's minimal customer base will

cause it to lose both revenue and market share.

2.4 SWOT Analysis

A strategic planning tool called a SWOT analysis is used to determine the internal strengths and

weaknesses of a business as well as the external opportunities and threats (Gurl, 2017). One

important consideration when assessing a company's overall state of affairs is whether it is well-

positioned to seize lucrative market possibilities and fend off outside risks to its long-term viability.

A SWOT analysis is the most basic and readily used technique for this marketing planning process

from the outset, helping organizations to understand their external environment and internal

capabilities (Puyt, Lie & Wilderom, 2023).

Figure 3: SWOT Analysis

2.4.1 Strengths

Community Presence: A strong bond and a foundation of trust in the neighborhood, something

that big chains frequently lack.

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Personalized Service: The capacity to provide clients with individualized attention and cultivate a

personal rapport.

Local Sourcing: Having access to fresh, maybe organic, locally produced goods that appeal to

customers who are health-conscious.

Flexibility: The ability to quickly adjust to shifts in the market and consumer preferences.

2.4.2 Weaknesses

Restricted Technology: The absence of sophisticated technology, such data analytics and cashier-

less methods utilized by Amazon Go.

Smaller Scale: Compared to Amazon Go, there are fewer economies of scale and supplier

negotiating leverage.

Increased Operational expenses: Because of a greater reliance on human labor and less

automation, there may be an increase in operating expenses.

Brand Recognition: Not as well-known outside of the local community as a multinational

behemoth like Amazon.

2.4.3 Opportunities

Technological Adoption: The chance to improve the consumer experience by integrating certain

technological solutions (such as online ordering and delivery services).

Community Engagement: Using close connections to the area to participate in events and

initiatives that strengthen bonds and foster loyalty.

Niche Audience: Providing specialty items, including organic, vegan, or ethnic cuisines, to target

niche audiences.

Partnerships: Possibility of partnering with regional producers, farmers, and artists to offer

distinctive goods not found at Amazon Go.

2.4.4 Threats

Robust Rivalry: Amazon Go and other huge grocery chains, along with other technologically

advanced businesses, are becoming competitive.

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Economic fluctuations: Decreases in the economy that affect consumer expenditure and the

capacity to stay profitable.

Customer Expectations: As shopping becomes more technologically advanced and convenient,

consumer expectations are shifting accordingly.

Supply Chain Disruptions: Due to the smaller operational scale than Amazon, there is a danger of

supply chain disruptions.

Local grocery stores confront formidable competition from tech-driven rivals like Amazon Go,

despite their natural advantages like community presence and individualized service. Local

companies need to make the most of their special advantages, become involved in the community,

and think about implementing new technology to improve the shopping experience if they want to

stay competitive. Local supermarkets can stand out in the market despite competition from larger,

tech-savvy competitors by concentrating on specific markets and keeping good relationships with

local suppliers.

3 Strategic Marketing Model STP (Segmentation, Targeting, Positioning)

After setting SMART objectives, the next step is to use a model for the formation of marketing

strategic plan. The STP marketing model, which stands for segmentation, targeting, and

positioning, is a well-known strategic method in contemporary marketing. Marketing leaders credit

this model for effective and streamlined communications practices, making it one of the most

widely used marketing models in practice. The goal of STP marketing is to maximize commercial

success by identifying the most valuable market segments for a company and then creating a target

market and product positioning plan specifically for each target customer group (DeSarbo et al.,

2017).

Figure 5: STP marketing model

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3.1 Stakeholder Analysis

Stakeholder analysis is the process of classifying individuals before the start of a project based on

their degree of involvement, interest, and impact. It also determines the most effective means of

communication and involvement for each of these stakeholder groups (McGrath & Whitty, 2017).

stakeholders who are active in our company are divided in three following catagories.

4 Internal Stakeholders: Supervisors and Workers

Because the UK economy depends heavily on labor, businesses must find and keep qualified

employees. As, our organization's performance greatly depends on the dedication and morale of our

workforce. To increase staff happiness and promote great customer experiences, we place a high

priority on making investments in training, providing incentives, and assuring equitable treatment.

5 Connected Stakeholders- Distributors, Shareholders, Customers, Suppliers, Retailers

5.1 Customers:

The most significant stakeholders in the UK retail sector are the customers. In order to thrive in this

fiercely competitive market, businesses must meet the requirements and desires of their customers

(Madhani, 2021). Therefore, the core of our stakeholder environment is our customers. We can

customize our offers and products to not just fulfill but also beyond our customers' expectations by

learning about their requirements as well as their tastes.

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5.2 Suppliers, Distributors, and Shareholders:

Suppliers, distributors, and stockholders are significant players in the UK food retail sector. Our

operations and profitability are greatly impacted by the supplier's prompt and economical delivery

of their goods and services. Through cultivating partnerships that benefit both parties, we guarantee

a consistent flow of goods, advantageous conditions, and assistance for nearby enterprises.

5.3 Retailers:

The market is fiercely competitive, with several major corporations vying for market share,

including Tesco, Sainsbury's, and Asda.

6 External Stakeholders- Government, Media and Press Releases, Pressure Groups, Local

Communities, Professional Bodies, Society

6.1 Government:

One significant player in the UK food retail sector is the government and media. The legal and

regulatory environment in which the industry functions is established by the government and the

one which forecast this legal environment is media. So, our organization will follow all legal rule

and make good relations with the media by updating and consulting them to increase their interest

level. In addition, We place a great deal of significance on the local community since we cherish

our relationships with them. Their participation and encouragement in a range of activities and

causes not only foster positive relationships but also solidify our standing as an ethical business.

This proactive involvement builds community support and loyalty while enhancing our brand

image.

7 SMART Objectives

After Market environmental analysis, our organization's strategic marketing plan calls for the

identification of SMART strategic objectives that will guide the venture toward its aims. It will

guarantee that objectives will be met within the allotted period and uphold internal company

transparency (Morgan, 2020). Every aim and target ought to be grounded in the SMART strategy

framework depicted in the figure below.

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Figure 4: SMART Goals Framework

Objective 1: Increase Customer Base: Within the following eight months months, bring on new

customers by putting together a strong social media marketing strategy and providing alluring

promotional offers.

Objective 2: Boost Customer Loyalty: Within the next ten months, raise the average customer

return rate by 20% to increase client retention.

Objective 3: Increasing Brand Awareness: "Start a focused PR and marketing campaign to

increase brand recognition by 30% within the next nine months."

Objective 4: Increase Online Presence: Within the next 11 months, the company wants to adopt

technology and launch an e-commerce platform.

Objective 5: Increase product variety and cut expenses: In next 10 months, the company hopes to

work with regional vendors to increase the variety of products it offers while also cutting expenses.

7.1 Market Segmentation

The strategy of segmenting a market into smaller, more manageable groups is known as market

segmentation. The purpose of segmentation is to approach the largest potential market to purchase

the company's goods. By using it, the company may choose the right target audience for their

marketing information, which will improve the campaign's efficacy (Venter et al., 2018). Our
 LEVEL 7 DIPLOMA IN STRATEGIC MANAGEMENT & LEADERSHIP

company's plan also includes selling every everyday necessity item and operating a virtual

automated store. Thus, by carefully choosing the right market segment, companies may provide

customers with a quick and easy purchasing experience.

7.1.1 Use of Market Segment to the Organization

There are six primary categories of characteristics that can be used to segment the market: needs-

based, psychographic, behavioral, demographic, geographic, and business connection variables.

One can employ multiple approaches in the segmentation process (Madzík et al., 2021). In an

energy market analysis, for instance, we first concentrated on developing a psychographic

segmentation before segmenting the Australian population as a whole. But we also took needs,

behavior, and demography into account. Upon conducting an analysis of the data, we discovered

that the primary segmentation elements were household characteristics and location, while

psychographic features offered an extra layer of support for the establishment of communication.

Nevertheless, the segments offered no help in comprehending the use of the product or service

without the geographical and behavioral data. The primary methods by which a company can

divide its market are listed below.

Figure 5: Types of Segmentation to use the Market Segmentation

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7.2 Selection of Market Segment (Target)

It has been determined that the "Conscious Consumer" segment is quite pertinent. Making educated

purchases to guarantee that one's shopping habits can have a good social influence is known as

conscious consumerism. Because of this, ethical shoppers frequently only purchase necessities and

prioritize sustainability when doing so. According to Kumar et al. (2020), this specific group is

committed to sustainability, ethical behavior, and community involvement.

7.2.1 Justification

Our company's focus on the "Conscious Consumer" category is on psychological and demographic

factors. We chose the mindful consumer category based on demographic factors because our

company provides a wide variety of products for both men and women. This particular segment is a

great fit for our company's strengths and offers us a great chance to set ourselves apart from

Amazon Go. We can actively participate in community projects, provide locally sourced and

sustainable products, and highlight our steadfast commitment to moral business practices in order

to explicitly target this market. This section can contribute to the increased interest in promoting

regional companies and sustainable, psychologically grounded methods. In addition, strong

community ties can enhance brand loyalty and repeat business.

7.3 Brand Positioning

The distinctive value that a brand offers to a customer is referred to as brand positioning. In order

to communicate their value proposition—the reason a buyer would choose their brand over

competitors—brands use this marketing tactic to build their identity (Iyer et al., 2019). Since our

company doesn't have as strong of a brand as Amazon Go, its position in the market can be

preserved by concentrating on the following tactics.

Figure 6: Brand Positioning Strategies

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8 Marketing Mix

The 4Ps marketing mix aid in the analysis of the strategies currently employed in the process of

marketing planning. The marketing mix is a tool used for advertising and selling goods and

services. It involves deciding how to position a product such that it will sell at the appropriate

price, right location, and right moment (Bahador, 2019).

8.1 Price

Pricing is a crucial element since it affects a company's ability to make money and survive. It is

appropriate to maintain our company's price strategy-based marketing matrix based on competition.

To encourage more customers to purchase the items, the corporation should devise a plan that

offers products at a lower price than Amazon Go.

8.2 Promotional Strategy:

The main focus of our brand promotion should be on ethical behavior, community service,

sustainability, and the convenience that comes with technology. Social media platforms,

captivating community events, and content marketing are some of the most efficient ways to spread

these important ideas. Given the given circumstances, our company can readily implement the

following marketing techniques:

1. The best marketing techniques to promote and increase awareness of automated retailers.
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2. One smart technique that might help to maximize the potential of online plpatform

and website is search engine optimization.

3. Social media accounts are the best means of communication for promoting consumer

experiences, reviews, and word-of-mouth.

8.3 Distribution strategy

Priority should be paid to having our products available through e-commerce platforms as well as

physical stores. For local sourcing and effective distribution, technology is essential. Another idea

is to draw in as many people as possible to the store by placing it in the heart of a city where they

can readily access it via reliable public transportation.

Conclusion

Our company needs to properly position itself to not just resist but also thrive in the face of

Amazon Go's entry into the UK market. Our strategic marketing plan offers a clear path for

adjusting to and succeeding in the constantly changing retail landscape. It is supported by thorough

analyses such as PESTLE analysis, Porter's Five Forces, SWOT analysis, stakeholder analysis,

SMART objectives, market segmentation, brand positioning, and the marketing mix. Through our

adoption of technology, development of community ties, and emphasis on sustainable practices, we

hope to set ourselves apart from the competition and create enduring brand recognition among

socially conscious consumers.

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