Marketing plan of Rensow ltd Current Marketing situation: With annual revenues of GBP 25,236,984 in 2009-10 and revenues of GBP 21,767,827 in 2008-09, Rensow has emerged as a major player in the UK patisserie industry. The company is the manufacturer of the very popular premium Gu chocolate pudding. The company supplies desserts to two segments: the airlines industry and the retail stores. PESTLE analysis of the UK market: Political factors: UK is a politically stable democracy with minimum political risks. Economic factors: The economic times are tough as the economy is recovering after one of the most painful bouts of recession. Social factors: Socially, UK is a developed and open society with high levels of consumption of food items. Technological factors: UK has a sophisticated technological infrastructure that makes it ideal for business growth and expansion. Legal factors: UK has well defined legal system with effective property and contract laws. Environmental factors: The environmental factors are important.
Environmental consciousness is high in both the regulators and the general public, Adverse environmental impact of business and marketing activities can call for punitive action. 2. Objective of the marketing plan: The objective of this marketing plan of Rensow is to make Rensow a national level brand in the patisserie industry.
This brand will have a high brand recall, positive brand image and positive brand equity. This will enable the company to maximize the value for all its different stakeholders. The marketing plan, if implemented successfully, will also increase the market penetration of Rensow thereby increasing its market share. Existing product New product Existing market Market penetration Product development New market Market development diversification Ansoff Matrix: The marketing plan will push for market penetration in the existing market of UK i. e.the first square of the Ansoff matrix. 3.
Marketing Strategy: 7Ps: The marketing strategy will revolve around the 7Ps. The 7Ps of the marketing mix of Rensow should: Product: Rensow Limited is a patisserie that supplies hand-made goodies, desserts and puddings to airlines and supermarket chains. It also manufactures the popular Gu puddings at its factory in Cambridge. Gu puddings is sold in around 3000 stores in UK. The company should strive for product leadership. Pricing: The pricing strategy of Rensow should charge premium prices for its products. Rensow positions its products as premium and the pricing strategy should support this positioning of the company. Place: The distribution strategy of the company should be to cover as many stores in UK as possible.
Its products have a mass appeal. By ensuring extensive distribution it can ensure that its products reach to the largest portion of the target segment. Promotions: This is the most important aspect of the marketing plan of Rensow. The promotional strategy should target at building Rensow as a brand in the patisserie segment. The customers should identify this brand and have a positive brand image of the company. Such a brand name and image will increase the brand value of the Rensow brand and create positive brand equity.
This positive brand equity will be reflected in better top line and bottom line for the company. The company should use multiple channels for promotions. This should include promotions through mass media like electronic media and print media and other channels of promotions like in-store promotions. Processes: The processes of Rensow limited should ensure that the company combines product leadership with cost leadership i. e. producing the highest quality products at the least possible prices. Physical infrastructure: The physical infrastructure – from factories to stores- should strengthen the value proposition and brand image of the Rensow brand. People: Rensow should employ the best people in the industry.
The best human resources at ever step of the value chain will ensure that it can sustain its competitive advantage in the patisserie industry. 4. Action programs: The action program will implement the marketing plan by focusing on each of the 7Ps of the proposed marketing mix. The special focus will be on promotions and distribution. The implementation of the new marketing plan will be done over a period of one year.
5. Implementation Controls: Once the implementation of the marketing plan is complete, monitoring will be done on a continuous basis so as to control the implementation according to the marketing plan. 6. Financial projections: Successful implementation of the marketing plan will increase the revenues of Resnow by 30% from the current levels of GBP 25.236 million. The projection is that revenues will continue to grow at this rate for the next three years. The net profit margin is also expected to increase from the current level of. 87% to 5% by the end of first year and 10% by the end of the second year.
The profit margin will be increased by having a higher market share through greater market penetration and more efficient processes that will also make Rensow a cost leader in its product category. The third and the most important financial objective of this marketing plan is to raise more equity capital at the end of the second year. By the second year Resnow will succeed in establishing a brand name with a high brand recall for itself.
The customers will immediately recognize and recall this brand. This will create the right conditions for Rensow to tap the equity market and raise fresh equity capital. This is imperative because the current leverage ratios of the company are very high. This makes it a financially risky company. The debt-to-equity ratio of Rensow in the year ending on 31st January, 2010 was a whopping 7.087. In 2009, it was even more at 13.34. The equity raised will be used to bring down its leverage by paying off a large portion of its debt.
References: Philip Kotler, 2008, Marketing Management, Pearson Education.