The purpose of this assessment is to produce a marketing audit that would support a ? marketing plan. The audit should be produced for a company (or business un

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Assessment Brief

Module Name:

Module Code Level Credit Value Module Leader

MKTM028 7 20 Deborah Clewes

Assessment title:

Assessment One MKTM028: Marketing Audit

Weighting: 40% of Module Marks

Submission dates: Please see NILE under Assessment Information

Feedback and

Grades due:

Please see NILE under Assessment Information

Please read this assessment brief in its entirety before starting work on the Assessment Task.

The Assessment Task

The purpose of this assessment is to produce a marketing audit that would support a

marketing plan. The audit should be produced for a company (or business unit) of your choice

in one sector from; mobile network providers, fashion clothing, automotive or charity and

should focus on the UK only.

You should conduct independent research using quality secondary sources, fully referenced, to

provide the evidence to support your analysis e.g. Mintel, MarketLine Advantage, ABI Global,

newspapers, journals, company websites etc.

This Marketing Audit is limited in scope and should contain the following areas:

(A full Audit, based on Kotler’s format, can be seen under Assessment Information)

• Macro analysis (PEEST)

• Micro analysis (market, customers and competitors)

• Internal analysis (strategy, functions, productivity)

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• One-page TOWS matrix and key strategic challenges summary

• Appendices (supporting information/model analysis, not included in the word count –

two sides maximum for each appendix)

Appendix 1: Company Overview to include; name, type, size, key competitors,

customers, products/services, specific area of focus for your audit – company or

business unit and country.

Appendix 2: supporting Macro model/framework application

Appendix 3: supporting Micro model/framework application

Appendix 4: supporting Internal model/framework application

This should be in report format. Your discussion in the main body should be succinct,

referring to the information/model analysis in your appendices. This should be addressed in a level 7 (MBA) academic style. It should show:

• critical awareness in relation to the identification and application of relevant

models/frameworks, analysis, evaluation, synthesis and original insights

• appropriate academic English for level 7 work

• appropriate support from secondary literature supported by appropriate UoN Harvard

referencing.

Word Limits

The word limit for this assessment is 1600 words. This relates to your discussion in the main

body. This should be succinct, referring to the information/model analysis in your appendices.

Cover, contents, abstracts, reference lists, appendices and footnotes are excluded from any

word limit requirements.

In accordance with the Assessment and feedback policy, where a submission exceeds the

stipulated word limit by more than 10%, the submission will only be marked up to and including

the additional 10%. Anything over this will not be included in the final grade for the

assessment item. Where a submission is notably under the word limit, the full submission will be

marked on the extent to which the learning objectives have been met.

Learning Outcomes

On successful completion of this assessment, you will be able to:

a) Identify, analyse and integrate information from a range of sources,

drawing heavily on current research, academic publications and

appropriate primary sources.

d) Devise and sustain an argument, supported by valid and evaluated

evidence, including some elements which offer new insights.

e) Identify and analyse complex strategic marketing tasks.

Your grade will depend on the extent to which you meet these learning outcomes in the way

relevant for this assignment. Please see the grading rubric at the end of this assessment brief

for further details of the criteria against which you will be assessed.

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Your grade will depend on the extent to which you meet these learning outcomes in the way

relevant for this assessment. Please see the grading rubric on NILE for further details of

the criteria against which you will be assessed.

Assessment Support

Specific support sessions for this assessment will be provided by the module team and

notified through NILE. You can also access individual support and guidance for your

assessments from Library and Learning Services. Visit the Skills Hub to access this support

and to discover the online support also available for assessments and academic skills.

Academic Integrity and Misconduct

Unless this is a group assessment, the work you produce must be your own, with work taken

from any other source properly referenced and attributed. For the avoidance of doubt this

means that it is an infringement of academic integrity and, therefore, academic misconduct to

ask someone else to carry out all or some of the work for you, whether paid or unpaid, or to

use the work of another student whether current or previously submitted.

For further guidance on what constitutes plagiarism, contract cheating or collusion, or any other

infringement of academic integrity, please read the University’s Academic Integrity and

Misconduct Policy. Also useful resources to help with understanding academic integrity are

available from UNPAC .

N.B. The penalties for academic misconduct are severe and can include failing the

assessment, failing the module and expulsion from the university.

Assessment Submission

To submit your work, please go to the ‘Submit your work’ area on the NILE site and use the

relevant submission point to upload your report. The deadline for this is 11.59pm (UK local

time) on the date of submission. Please note that essays and text based reports should be

submitted as word documents and not PDFs or Mac files.

Written work submitted to TURNITIN will be subject to anti-plagiarism detection software.

Turnitin checks student work for possible textual matches against internet available resources

and its own proprietary database. Work

When you upload your work correctly to TURNITIN you will receive a receipt which is your

record and proof of submission. If your assessment is not submitted to TURNITIN, rather

than a receipt, you will see a green banner at the top of the screen that denotes successful

submission.

N.B Work emailed directly to your tutor will not be marked.

Late submission of work

For first sits, if an item of assessment is submitted late and an extension has not been

granted, the following will apply:

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• Within one week of the original deadline – work will be marked and returned with full

feedback, and awarded a maximum bare pass grade.

• More than one week from original deadline – grade achievable LG (L indicating late).

For resits there are no allowances for work submitted late and it will be treated as a non-

submission.

Please see the Assessment and Feedback Policy for full information on the processes related

to assessment, grading and feedback, including anonymous grading. You will also find the

generic grading criteria for achievement at University Grading Criteria. Also explained there

are the meanings of the various G grades at the bottom of the grading scale including LG

mentioned above.

Extensions

The University of Northampton’s general policy with regard to extensions is to be supportive

of students who have genuine difficulties, but not against pressures of work that could have

reasonably been anticipated.

For full details please refer to the Extensions Policy. Extensions are only available for first sits

– they are not available for resits.

Mitigating Circumstances

For guidance on Mitigating circumstances please go to Mitigating Circumstances where you

will find detailed guidance on the policy as well as guidance and the form for making an

application.

Please note, however, that an application to defer an assessment on the grounds of mitigating

circumstances should normally be made in advance of the submission deadline or

examination date.

Feedback and Grades

These can be accessed through clicking on the Feedback and Grades tab on NILE. Feedback

will be provided by a rubric with summary comments.

Faculty of Business & Law

Student Name

Student ID

MKTM028

Strategic Marketing

Lecturer:

Table of Contents

1.0 Introduction ………………………………………………………………………………………………. 4

2.0 Macro Analysis ………………………………………………………………………………………….. 5

2.1 PEEST …………………………………………………………………………………………………. 5

2.1.1 Social ……………………………………………………………………………………………. 5

2.1.2 Environment ………………………………………………………………………………….. 6

3.0 Micro Analysis …………………………………………………………………………………………… 7

3.1 Markets ………………………………………………………………………………………………. 7

3.2 Customers ………………………………………………………………………………………….. 8

3.3 Competitors ……………………………………………………………………………………….. 8

3.3.1 Porter’s 5 force Analysis ……………………………………………………………….. 8

3.3.1.1 Bargaining Power of Suppliers ………………………………………….. 9

3.3.1.2 Threat of New Entrant ……………………………………………………….. 9

3.3.2 Competitor Perceptual Map …………………………………………………………… 9

4.0 Internal Analysis ………………………………………………………………………………………. 10

4.1 Strategy review …………………………………………………………………………………. 10

4.2 Functions review ……………………………………………………………………………….. 11

4.3 Productivity review …………………………………………………………………………….. 12

5.0 TOWS and Strategic Analysis ………………………………………………………………….. 13

5.1 TOWS ……………………………………………………………………………………………….. 13

5.2 Strategic Analysis ……………………………………………………………………………… 14

i. References ………………………………………………………………………………………………… 15

ii. Appendices ………………………………………………………………………………………………. 19

Appendix 1: Company Overview ……………………………………………………………… 19

Appendix 2: Macro Analysis: PEEST ……………………………………………………….. 20

Appendix 3: Micro Analysis: Customer Segmentation, 5 Forces and Competitor

Perceptual Map ……………………………………………………………………………………….. 21

Appendix 4: Internal Analysis: Marketing Capabilities, Marketing Assets, 7Ps

and CBBE Model ……………………………………………………………………………………… 23

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1.0 Introduction

This purpose of this assessment task is to audit the marketing performance of Lush

Cosmetics Limited by focusing on Fragrance sector in the United Kingdom market only

(Full company overview is provided in Appendix1). The report will analyse the external

and internal factors to identify the key strategic for the company. By examine the macro,

micro, internal environment and then providing a TOWS summary and key strategic

challenges insights.

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2.0 Macro Analysis

2.1 PEEST

A Full PEEST analysis is provided in Appendix2. With this section will be discussed only

social (S) and environment (E).

2.1.1 Social

Nowadays, customers are concerning more about ethical and moral of the company

before buying the products which is opportunity for the company. Figure 1 shows there

are 47% of customers says that brand ethicality is a major factor when buying beauty and

personal care products (Mintel, 2019a).

For the reason of opportunity, Lush is the most ethically brand in the market as shown in

Figure 2. For the fragrances, they are 100% natural and some are made up of 60% natural

oils, resins and absolutes (Lush, 2019a).

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2.1.1 Environmental

Plastic pollution is also an opportunity to the company, as it is one major of environmental

concern. In Figure3 shows 51% of customer is interesting in plastic-free stores and there

are 43% who interesting in stores which is packaging-free (Mintel, 2018a). Mostly of Lush

products are naked product or packed with nothing (Dang,2018). Moreover, the company

has launched the first naked shop in Manchester, UK which is selling product with no

plastic packaging (Lush,2019b)

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3.0 Micro Analysis

3.1 Markets

The market trend now is an opportunity for the company as Figure4 shows that fragrances

market in 2018 was at 1.48 billion pounds, and it was estimated to increase in 2023 to

1.51 billion pounds which means that the demand of customer is increasing (Mintel,

2018b).

Moreover, Fragrances is the most recent market growth according to the growing trend

of unisex and a need for natural ingredients of customers has given an environmental

company became a leader, while others get left behind as shown in Figure 5. (Mintel,

2018b)

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3.2 Customers

There is a threat to the company as the main target customers is a niche demographic

which focuses on women who has age between 16-24 years old as shown in Figure 6.

Moreover, the company target on a person who born in Generation Y and Baby Boomer

which have creative and fun personality and vegetarian lifestyle.

However, there is also be an opportunity as their customers are concerning more on

health problem such as non-chemical products (Lin et. al., 2018). When they are buying

product through stores, they want high level of services and explanation from salesperson

and they love to experience the product before buying. In Lush shops, salesperson is

willing to help and provide how to use the product and customers can tested them whether

they like it or not which it can be an opportunity for the company (Please see more details

in Appendix3A).

3.3 Competitors

3.3.1 Porter’s 5 force Analysis

A Full Porter’s 5 force is provided in Appendix3B. With this section will discussed only

bargaining power of supplier and threat of new entrant.

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3.3.1.1 Bargaining Power of Suppliers

The bargaining power of suppliers is Low, it is an opportunity to the company as Lush

have a wide range of suppliers in many countries and the company can adapt their

product formula according to any circumstance. Moreover, they are investing in growing

of their own raw materials for long term benefit. (Lush,2018a)

3.3.1.2 Threat of New Entrant

The Threat of new entrant is high for the fragrance industries which is threat to the

company. According to market growth and low capital of investment, it is easy for other

competitors to come in the market and make the market become more competitive

(Mintel,2018b).

3.3.2 Competitor Perceptual Map

According to Appendix 3B, the positioning map shows the direct competitors that offer

similar products and position which are The Body Shop and Origins.

The Body Shop was operated under L’Oréal brand which offers natural ingredients and a

large product mix. It has the highest sales among others even though it has a smaller

number of shops than Origins. Origins is operated under Estee Lauder brand which

focusing on environmental manufacturing process. It has highest number of shop but

sales are lower than The Body Shop.

On the other hand, Lush has the smallest sales and the minority number of shops which

it can be threat to the company. However, Lush tried to differentiate from others by

providing story about their products. It creates Lush Kitchen where customers can easily

get information about the products and able to buy a limited product (Vizard, 2014).

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4.0 Internal Analysis

4.1 Strategy Review

This section will explain the strength and weakness of the company by using marketing

capabilities and marketing assets models. The full models are provided in Appendix4A

and Appendix 4B.

The company has significant strength which is strong brand positioning that focusing on

100% vegetarian brand, against animal testing and the company is also a packaging free

product and stores. Moreover, the company has high quality of salespersons as they have

knowledgeable and kindness which makes the company has strong relationship with

customers.

On the other hand, the company also has some weakness which they have focus on a

specific group of customers and the product has short lifetime.

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4.2 Function Review

This section will explain the strength and weakness of the company by using marketing

assets and 7Ps models. The full models are provided in Appendix 4B and Appendix 4C.

The company has an important strength which is superior quality and innovative products

and the company also has a strong relationship with customers according to high quality

of salespersons.

However, the company has some weakness which is the price of products are high and

the company has lower shop than other competitors. Furthermore, the company provides

less promotion to customers.

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4.3 Productivity Review

According to CBBE model in Appendix 4D, the company was positioned as an ethical

company with vegetarian and freshest handmade products which it can be threat to the

company as it is focus to specific group of customers and the product lifetime is short.

However, after customers use the products, they will feel modern and fashionable

according to the creativity and innovative of the product, it is a strength of the company.

Moreover, they will perceive the brand as a high-quality product and they would love to

be a part of helping society by using the products that are no animal-testing.

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5.0 TOWS and strategic analysis

5.1 TOWS analysis

This section provides the linking between opportunities, threats, strengths and weakness.

External Opportunities 1. The increasing demand of vegan,

ethical and environmental products (H)

2. Plastic Pollution concern (M) 3. The number of buying online is

increasing (L) 4. Customers concern more on

services of salesperson (L)

External Threats 1. The market is competitive and

arrival of competitors (H) 2. Niche geographical (M) 3. Social Media Network trends (The

company do not have social media channel except company website) (L)

4. Growing trend of Unisex 5. Competitors have higher shop and

sales

Internal Strengths 1. Ethical brand and

100% vegetarian (H) 2. Superior quality and

innovative products (H)

3. Strong customer relationship (H)

4. Good quality of salesperson (Knowledgeable and Friendly) (M)

5. Good at public relation (L)

Strengths-Opportunity strategy

• (S1, S5, O1, O2) Develop more on brand awareness to make customer know and trust about their ethical products by doing more advertising and doing more on public relation

• (S3, O3) Offer more promotion for existing customer and new customer if they are buying online such as free delivery or free gift if the it reached minimum order.

• (S4, O4) Encourage salesperson to satisfy customer needs

Strengths-Threats strategy

• (S2, S3, T1, T4) Try to develop the quality and creativity of product to retain customer relationship and get more new customers

• (S4, T2) Encourage salesperson to attract customers not only interested customer but also everybody

• (S5, T3) Doing more public relation to create word of mouth instead of advertise through social media channel

Internal Weakness 1. Specific group of

customers (M) 2. High price (M) 3. Lower Stores than

competitors (M) 4. Lifetime of product is

short (L) 5. Provides less

promotion

Weakness-Opportunity strategy

• (W1, O1) Promoting more on product that position in ethical and vegan to catch the interest from customers

• (W2, W4, O1, O2) Present that the product price is reasonable with the quality of ethical products and acknowledge customers that the freshest product will have a short life time

• (W3, W5, O3) Providing more promotion and campaign on online shopping and continue development online channel

Weakness-Threats strategy

• (W1, T2, T4) Expand more product line to get more customers such as fragrance for unisex or men

• (W2, T1) Develop the quality of product in order to remain the high price without creating the price war with competitors

• (W3, T3) Expand more stores to create brand awareness and doing more events

Remark: H = High significant, M = Medium significant, L = Low significant

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5.2 Key Strategic Challenges

1. Brand awareness: Develop brand awareness by doing more advertising and

public relation to become the most ethical brand that help to develop the society.

The company should collaborate with a well-know charity or hiring a famous person

to promote their brand.

2. Quality and creativity: Maintain the quality of products and try to create new

attractive and interesting product for customers. The company should differentiate

design of products by hiring a creative designer.

3. Promotion: Doing more promotion for online shopping such as free delivery or

discount for bulk buying. Moreover, the company should develop company website

to be more interesting for attractive online customers.

4. Product line: Expanding more product line to get more customers such as

fragrance for men or unisex according to the increasing trend of unisex

5. Salesperson: Developing salesperson to keep relationship with customers and

able to close the deal with interested customers by providing more training and

giving some incentive to their salespersons.

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References:

BBC News (2019), Lush quits social media in UK. Bbc [online] Available from:

https://www.bbc.co.uk/news/technology-47871948 [ Accessed 20th October 2019].

Dang, B. (2018). EU competitor benchmarking of cosmetic primary packaging in rigid jar

form. Case company: Sulapac.

Williams, D. (2019), Lush store investments and innovations bring strong year results.

retail-insight-network [online]. Available from: https://www.retail-insight-

network.com/news/lush-store-innovations-results/ [ Accessed 20th October 2019].

Elca (2018), 2018 annual report, elcompanies [online]. Available from:

https://media.elcompanies.com/files/e/estee-lauder-companies/universal/news-and-

media/media-resources/resources-and-reports/reports/2018-elc-10k.pdf [ Accessed 20th

October 2019]

KPMG (2018), Up close and personal, kpmg [online]. Available from:

https://assets.kpmg/content/dam/kpmg/nl/pdf/2018/advisory/up-close-and-personal.pdf [

Accessed 4th November 2019].

Lin, Y., Yang, S., Hanifah, H. and Iqbal, Q. (2018). An Exploratory Study of Consumer

Attitudes Toward Green Cosmetics in the UK Market. Administrative Sciences, 8(4), p.71.

Lush (2018), Lush Cosmetics Limited Annual report year ended 30 June 2018.

companieshouse [online]. Available from:

https://beta.companieshouse.gov.uk/company/0416033/filing-history [ Accessed 20th

October 2019]

Lush (2019a), Perfume, Lush [online]. Available from:

https://uk.lush.com/ingredients/perfume [ Accessed 27th October 2019].

Lush (2019b), Lush Naked Shop: Inside the packaging-free cosmetic stores, Lush

[online]. Available from: https://uk.lush.com/article/lush-naked-shop-inside-packaging-

free-cosmetic-stores [ Accessed 27th October 2019].

https://media.elcompanies.com/files/e/estee-lauder-companies/universal/news-and-media/media-resources/resources-and-reports/reports/2018-

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