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Dissertation Example-HR 6004 _ The Business Professional, Marketing plan for Lidl GB: Tackling plastics for a sustainable shopping experience.

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A dissertation submitted in partial fulfilment of the requirements of the Royal
Docks School of Business and Law, University of East London for the degree of

 

BA Hons Business Management (Marketing)

June 2020

WORD COUNT 6061

 

I declare that no material contained in the thesis has been used in any other
submission for an academic award

 

 

Student Number: U1710522                                                                                                          Date: 11/6/2020

 

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Student Number: U1710522                                                                                                   Date: 11 /6/ 2020

 

Contents

Executive summary

Acknowledgments

Chapter one: Goal setting
1.1 Introduction
1.2 Corporate Vision and Mission:
1.3 Corporate Objectives

Chapter two: Situation review
2.1 Market and consumers
2.2 Positioning and competition
2.3 SWOT Analysis:
2.4 PESTLE analysis

Chapter 3: Strategy formulation
3.1 Assumptions
3.2 Marketing objectives and strategies:
3.2.1 Product objectives
3.2.2 Promotion:
3.2.3 Prices objectives:
3.2.4 Place objectives
3.2.5 People, process and physical evidences

Chapter 4: Resource allocation, justification and monitoring
4.1 Implementation and costs:
4.1.1Advertising:
4.1.2 Product costs
4.2 Monitoring:

Conclusion

Chapter 5: Reflective statement 

References 

Appendices

 

Executive summary

This document aims to deliver a 24-month marketing plan for Lidl GB, with the goal of better communicate the efforts undertaken by the company to reduce plastic packaging of the own-labeled products by 20% by 2022, whilst engaging its customers in more sustainable behaviors when shopping at Lidl by increasing awareness about sustainability. Secondary data has been collected for this project. Firstly, the paper will cover the background information about Lidl and its history, profit, and geographical expansion with the focus on the UK. In the situation analysis chapter more information about the corporate vision and mission statement will be discussed to set the objectives of the marketing plan accordingly to the brand’s core values to ensure the maximum affinity between market positioning and strategies. SWOT and PESTLE analysis will highlight the major factors of influence on the strategic decisions of the company over two years. Furthermore, the gathered data will be useful to discuss the market in which the brand operates, target segments, people’s concerns with plastic usage, disposal and recycle. Within the same section, Lidl’s positioning and competition will be assessed maintaining the focus on the UK. Assumptions will be made centered on the review chapter and will include the limitations of the plan. The marketing strategies will be suggested by relating them to each of the marketing mix elements and to the brand core values. Online and instore communication will be enhanced to reach the objectives. The final section will justify the resource allocation by reporting the costs of the plan, which needs to respect the given budget of £500.000. Achieving the objectives will be possible only through continuous monitoring of the campaign as reported in the final chapter of the plan.

 

Acknowledgments

I would like to thank the University of East London for the opportunity of learning new skills and gaining knowledge. A special thank you goes to all the professors and students who supported me through the years. A personal thanks to Dr. Kelly and Dr. Kypuram for the supervision.

I would also like to thank my family and my friends for the support shown day after day during my studies. A special thanks go to my parents for the possibility of studying abroad.

 

Chapter one: Goal setting

1.1 Introduction

Lidl Stiftung & Co. is a German global discount supermarket chain (Evans, 2011) which operates in the grocery industry. The company is based in Neckarsulm, Germany, it has been established by the Schwarz family in the ‘30s as a grocery wholesaler. The brand opened its first grocery store in 1973, and in 1994 Lidl has established the first UK store. Since then, the organization built 13 regional distribution centers in the United Kingdom. At present, Lidl operates in 29 countries. The firm employs over 22000 people and has more than 760 stores in the UK, holding around 6% of the market share. (Lidl GB, 2020)

The brand represents the “everyday low price” category of stores (Goworek and McGoldrick, 2015). Lidl’s product portfolio includes a diversified variety of grocery products, essential for the home, decorations, gadgets, toys, garden tools, and power tools. A fast growth rate led Lidl’s expansion on the territory. The brand aims to make its distribution stronger by opening 40 to 50 stores annually (Bhasin, 2019).

1.2 Corporate Vision and Mission:

Lidl’s vision:

“To enhance the lives of our customers, by providing quality products at a market leading value, whilst ensuring that customer satisfaction is at the heart of everything we do” (Lidl, 2020).

The organization promises good food accessible to everyone and a low pricing strategy at the heart of the brand values to achieve competitive advantage (Porter, 2011). Lidl is a budget-friendly, Mediterranean-oriented brand which aims to co-create value (Gbadamosi, 2019) with its stakeholders.

To improve efficiency in its processes. The targeted customers are price sensitive and might respond negatively to a price increase due to low product involvement. Lidl GB majorly depends on the local suppliers to produce its own-label products. Nearly 70% of the own-brand products are produced in the UK (Lidl, 2020), contributing to the development of closer and more sustainable relationship with the producers.

1.3 Corporate Objectives

  • Reduce 20% plastic packaging in own-labeled products by 2022
  •  Own-brand plastic packaging fully recyclable, refillable or reusable by 2025
  •  Minimum 50% of recycled contents in own-brand packaging by 2025
  •  Make good food accessible and affordable
  • Ensuring products are ethically and sustainably sourced
  • Support the recycling process
  •  Communicate the efforts to the audience
  •  Strengthen relationships with key shareholders

(Lidl, 2020)

Marketing objectives:

  •  Communicate the brand values and the sustainability approach
  •  Replace 10% of plastic bags with reusable cloth/cotton bags
  •  Repositioning the brand about sustainability improving customer’s perception
  •  Positive brand image, Increase visibility by 5%
  •  Online sustainability campaign to reach 10 million people.
  •  Engage customers to switch to non-plastic packaging
  •  Increase brand sustainability awareness by 10% in 12 months

The long-term corporate objective is to increase brand awareness by engaging customers to actively shop at Lidl. Moreover, the brand focuses its efforts to improve brand equity (Keller, 2001) alongside its sustainability communication. Both stores and distribution centers are essential parts of the corporate plan for sustainable growth. Lidl plans to open new supermarkets in the UK to enlarge its presence on the territory (Lidl GB, 2020)

Lidl’s management has recognized the need for an organizational culture change and now aims to establish a long-term relationship with its employees and increase job satisfaction by starting to provide a competitive salary and good working conditions as motivation factors (Herzberg, 1966).

Nearly 80 million tons of plastic packaging are produced each year, and this is estimated to multiply by 3 in less than thirty years (Coal Authority, 2019). Therefore, to accomplish corporate goals, it is necessary to align its sustainability goals with the Government plan while achieving economies of scale for the new products in the market. Although green lifestyle varies for different demographic segments (Florenthal et al. 2011), Lidl aims to prioritize the effort made to be more responsible and more competitive by centralizing the communication on the sustainability issues while providing eco-friendly solutions. The Brand’s strategic partnership with suppliers is essential to the “No-plastic” and eco-friendly approach. Interaction with customers becomes a priority for this document with the main objective to engage the audience in a more sustainable way of shopping at Lidl by increasing the online interaction and brand’s sustainability awareness.

 

Chapter two: Situation review

2.1 Market and consumers

The global grocery market size is now worth more than £193 Billion (Statista, 2020). The discounters channel in the UK has the highest cash growth sales forecast, reaching £23 billion in 2023 (IGD, 2018). As of January 2020, Appendix 1a shows that Lidl is holding roughly 6% of the total UK grocery market share (Statista, 2020). The UK population is projected to rise form 66.4 million to 69.4 million by 2028, faster than other countries and the number of people of working-age population is expected to grow by 3 million in 10 years, (ONS, 2019) enlarging the potential customer base

Lidl aims to attract customers between 20 and 65 years old. Lidl’s target market are price-conscious customers and convenience seekers. Moreover, the organization targets residents though demographic segmentation, lowincome families, and those who are concerned by food quality though psychographic segmentation.

The main reasons why customers shop in discounter stores is convenience (IGD, 2018), in facts, the majority of consumers say convenience is more important today than it was years ago (Marketing Charts, 2020) (Appendix 1.B.). The lowest income-earning households in 2018 spent more than 30% of the spending account for food and beverages (Statista, 2020). These segments might be the source of Lidl’s competitive advantage (Porter, 2011). Food quality and healthiness is becoming increasingly important in the market, nevertheless, the figures are still shocking, and nearly 30% of adults in the UK are obese (ONS, 2020). Customers expect companies to provide sustainable packaging and recyclable packaging, moreover, some believe the corporations should do more for the environment. Most of the people would be more encouraged to recycle if more instructions are provided on the packaging (Mintel, 2018). Therefore, consumers believe that brands should reduce their reliance on plastic. When choosing where to shop, the quality of fresh food is a priority concern for two-third of the grocery shoppers in the UK (Mintel, 2018). Moreover, 44% of the interviewed are more likely to consider how ethical a brand is before the purchase of food and drinks (Mintel, 2019). Lone parent families are expanding in numbers as well as low-income families (ONS, 2019), which might impact the shopping behavior and people to prefer online channels and convenience stores. Nowadays, one in ten customers only buys groceries online (Mintel, 2016)

Moreover, Mintel (2018) reveals numerous retailers starting to reduce their plastic use, meanwhile, the Government aims to tackle the issue by proposing a 25 years sustainability plan which includes various eco-friendly objectives (Coal Authority, 2019). The UK population is aging and the people over-55s are estimated to grow up to 10% from 2017 to 2022 (ONS, 2019), perhaps, food packaging also needs to satisfy elderly customers.

2.2 Positioning and competition

Although Divine & Lepisto (2005) positively associated healthy food with higher income segments, Lidl promises to provide quality for good value, yet positioning itself as a discounter in customer’s mind, perhaps, due to the price strategies it is considered to be a low-involvement brand (Rosenbaum-Elliott et al, 2015). The Company uses offers a narrow product assortment with few brand alternatives for each product. The own-labeled products are mostly sold at Lidl due to their convenience and quality (Bhasin, 2019). Reduction of costs is crucial for Lidl to maintain its promises, so the brand opted for simple store design and layout (ICMR, 2008). Lidl’s low-involvement products aim to simplify customer decision making. Nevertheless, low-involvement brands want to generate positive emotional responses related to familiarity or wellbeing (Rosenbaum-Elliott et al, 2015). Hence, Lidl’s (2019) advertisements show messages of inclusivity and familiarity in order to associate the brand with positive family moments, happiness, and laughers whilst emphasizing the communication on food quality and low pricing.

Lidl’s main competitors are Tesco, ASDA, Sainsbury, Morrison, Aldi, Waitrose, and Co-op. As Appendix 1.A. shows, they hold the majority of the UK market share and are well-established on the market. Some competitors adopted similar price strategies, such as Aldi, which offers limited brand availability, low-priced own-branded products. Other brands are also committed to improve their sustainability and eliminate plastic packaging.

Tesco is the market leader holding 28.4% of market share. Its high brand recognition comes from its historical presence on the market, a broader appeal to the UK audience and its well-known small local stores which serves the local customers (Investopedia, 2018)

Sainsbury’s holds 17% of market share (Investopedia, 2018) targeting middle classes and Youngers. Its products are generally higher in prices. The brand has a historical presence on the territory with multiple brands and it is the industry leader in innovation and online development. The brand offers online shopping and delivery (Sainsbury’s, 2020)

Another main competitor is ASDA, which positions itself as a low budget discounter that aims to improve its sustainability and provides more brand alternatives, discounts, and coupons compared to Lidl.

2.3 SWOT Analysis:

Please refer to Appendix 2 for the SWOT analysis matrix.

Strengths: Lidl’s visibility and brand awareness have increased thanks to increasing sales and profit figures which led to the expansion of the market share in the UK. The corporate has strengthened its relationship with the key stakeholders which are employees, farmers, and suppliers. Lidl’s competitive advantage (Porter, 2011) comes from the pricing strategy linked with the quality of food. The majority of the products sold are own-brand. The company is well-known internationally and the brand has reduced its fixed costs by narrowing the product assortment. Another strength to consider is the growing number of stores shops and distribution centers. The closer relationship with local producers is a key factor in food quality. (Lidl, 2020)

Weaknesses: Lidl has the reputation of a discounter. The absence of a loyalty scheme such as a club card and the customer’s price consciousness might have negatively influenced customer loyalty. Due to the high price sensibility of the customer base, it is nearly impossible for Lidl to change price strategies, forcing the brand to cut costs to stay in business.

Lidl’s online shopping experience is not well developed and represents a weakness, moreover, the packaging is still made with plastic and many customers are not aware of the brand’s effort to reduce the plastic packaging. Inefficient communication regarding sustainability issues has left Lidl behind the strong competitors (Keller, 1999) such as ASDA and Sainsbury.

Opportunities: Increase the brand differentiation from competitors by targeting more specific segments, increase the efficiency of the communication tools by exploiting social media and online marketing activities as well as provide better customer service and an online shopping experience. Moreover, the company might also want to be more appealing to different segments such as millennials, and other segments that could not be reached before to increase its market performances. Another opportunity is to improve Brand reputation with instore and online communication. Lidl has the opportunity to sell more quality products with its “Deluxe” own-brand products. Furthermore, the introduction of valid alternatives to plastic packaging and bags will contribute to the achievement of the marketing objectives.

The main threats are represented by the strong competition in the UK market and the high availability of food alternatives, therefore, the organization is challenged by competitors such as ASDA, Morrison, and Sainsbury which adopted similar price strategy and offers more brand alternatives. Moreover, the competition holds the majority of the market share (Statista, 2020). Historical brands have a larger presence on the territory. Low price fast-foods with delivery services represent other indirect threats. Online competition and future industry regulations might strongly impact the brand.

2.4 PESTLE analysis

In this section, an explanation of the macro elements which might impact the business and shape the future of the industry has been provided before to take into consideration the best strategic approach for Lidl.

The Political factors to consider are mainly Brexit and the possible implementation of tariffs on imported food from the European Union. Economic factors refer to the possible recession that might affect the employment rate and the price of crude oil. The labor market conditions might shift unpredictably and less disposable income might influence customer’s shopping behavior.

Socio-cultural: Expansion of the food and beverage market, demographic changes such as increasing and aging population (UK National Statistic, 2019), and customer shopping behavioral changes. Environmental knowledge and personal involvement are important contributors to general eco-friendly behavior (Chan 1999). Corporations are becoming more “green”. A healthier population’s lifestyle might impact customer’s shopping behavior, especially regarding plastic and wastage.

Automation, machine learning, and AI are only some technological factors that will impact the industry. New method of payments, new product development, a more efficient food production, an increased product’s lifecycle, the usage of eco-friendly materials, and the increased online interactions will most certainly impact the grocery sector.

Legal: Future regulation might restrict the use of plastic in packaging, the legislation might affect product prices, material’s quality standard, compositions, ingredients, and disposal rules. Moreover, the introduction of taxes and tariffs might affect imports. On the other hand, the government might incentivize “greener” production, materials, and initiatives.

Environmental: Paris Agreement committed 197 countries to improve their sustainability and reduce C02 emissions (UNFCCC.int, 2020). Climate change will most certainly affect the food production (e.g. wines) (Asimov, 2019). Consumer health, consumption of plastic and the irresponsible wastage of plastic are other major population’s concerns. Moreover, customers are now more concerned about disruptive company’s decisions. The short and medium-term issues regard Covid-19 and its impact on the store’s profitability and health and safety issues by restricting customer entrance and increasing decontamination costs.

 

Chapter 3: Strategy formulation

3.1 Assumptions

The strategies in section 3.2 are formulated based on a stable and growing market conditions, which will leverage the brand’s power over the suppliers when buying cardboard and PET plastic bottles. The plan assumes the readiness and the willingness of the customers toward sustainable shopping. Moreover, the plan assumes the stability of the company, proposing strategies that are based upon the brand’s future financial ability to implement further strategies in order to optimize the campaign’s efficiency. The objectives are expected to be reached in 24 months and refer to the UK market only. Extra circumstances might impact severely the sales and the results of the following marketing.

Due to the financial limitation of this Marketing plan, cost-effective strategies have been taken into account, nevertheless, other strategies could have been more efficient for the purpose of the plan. However, those would have required a considerably larger amount of financial availability for the implementation.

3.2 Marketing objectives and strategies:

Based upon the market analysis, objectives and strategies are provided in this section for the relevant elements of the marketing mix (Doyle, 2002) aligned to the core brand objectives. The purpose is to help the customer learning about the brand and what it does (Keller, 2010). Customer satisfaction and market share are likely to rise when corporates embody socially responsible and sustainable behaviors. (Luo and Bhattacharya, 2006)

Market Objectives

  •  Reduce 20% plastic packaging in own-labeled products
  •  Increase customer satisfaction by 2%
  •  Customer retention + 2%
  •  Increase online engagement by 5%
  •  Increase online visibility by 10%
  • Replace 10% of plastic bags with plastic-free alternatives
  •  Lidl App download +5% annually
  •  Online sustainability campaign to reach 12 million people.
  •  Sell 300.000 reusable cloth bags

3.2.1 Product objectives

  •  Replace 10% of the plastic bags with alternatives
  •  Reduce 20% plastic packaging in own-labeled products
  •  Trial Introducing nut gravity dispensers in 60 stores
  •  PET bottles to replace plastic bottles
  •  Redesign packaging for more sustainable use
  •  Redesign product labels to identify plastic-free and reduced plastic

Based on the situation analysis, Lidl must cope with strong competition which is already implementing strategies related to sustainability. In order to reduce plastic usage, Lidl must also provide physical pieces of evidence of its approach as part of brand communication. Plastic bags account for 5% of total Lidl’s plastic footprint (Lidl GB, 2018).

Lidl single-use plastic bags issued were 53 million in 2017, while in 2018 only 3 million in 2018 (Gov.uk, 2020). The brand can give the customers a strong visual proof of the shift toward sustainable products by gradually eliminating plastic carrier bags and by replacing them with more eco-friendly ones such as cloth bags, which will help the customers to acknowledge Lidl’s desired positioning. Limiting plastic should help Lidl to minimize costs and build a connection with consumers. (Rynarzewska, 2019)

With the given budget, the achievable percentage of reduction of plastic carrier bags is 10%. Customers now prefer to buy loose fruit and vegetables (Mintel, 2018), this system is are already in use at Lidl, nevertheless, the measure will be enhanced by removing 20% of the remaining fruit and vegetable packaging by offering loose products such as fruit and vegetables with the possibility of purchasing cloth bags to carry products without plastic packaging.

Industry innovations such as new PET plastic bottles made with less plastic can be introduced and used to store liquid products such as milk and juices. Nuts self-service gravity dispensers can be introduced to replace nuts packaging, starting with 60 stores across the country as a trial. The customer will choose the amount of nuts and pay for the net weight of the chosen product. This measure will diminish the amount of plastic used to pack ownlabeled products because nuts can be stored in cardboard bags, which Lidl already uses for pastries. In order to keep the focus on sustainability, the packaging will communicate its purpose and Lidl’s commitment.

3.2.2 Promotion:

Online activity:

  •  Increase App download by 5% / year
  • Increase online Brand visibility by 10%
  •  Provide information on origins and how to recycle on the packaging
  • Interaction social media (Facebook, Instagram) +5%
  • Increase website traffic by 10%
  • Improve brand image
  •  Online order placement increase by 5%
  •  10 million accounts reached
  •  Increase of 100 000 followers on Instagram
  • QR codes introduction on own-labeled products
  •  SEO= increase organic search traffic by 5%

As Chapter 2 shows, one of Lidl’s biggest threat is its competition and its sustainability campaigns, which reaches millions of people. Therefore, the brand is lagging behind competitors when it comes to providing information. Rynarzewska (2019) indicates that providing more information about sustainability should increase green customer behavior.

Birkin et al. (2017) highlight the importance of a multi-channel approach and internet integration into brand strategies. Hence, different elements of the promotional mix (Chaffey, 2017) will be used to promote the brand and improve consumer-based brand equity (Keller, 2010). The first stage of the implementation will be the identification of related keywords. Following on Chapter 2, there is the necessity of raise awareness about Lidl’s sustainability through multiple online and offline tools. The implementation and its costs will be illustrated in Chapter 4.

The website is a key element of online communication and must be updated with a more generous section about sustainability and highlighting its visibility. The target audience will be able to order online by linking the website and social media pages. Google AdWords can be used to increase website visibility and to list Lidl’s sustainability section to appear as a top search result. (Appendix 3a).

Lidl’s Facebook posts and advertisements need to communicate the Brand sustainability approach, perhaps focusing on recycling issues, waste, newly available products, and might provide information on how to recycle the packaging and improve brand image. (Jamal and Goode, (2001) find that improving brand image might positively affect brand preference, satisfaction, and loyalty.

Instagram can be exploited for online communication in such a way that the target audience will link the brand with the desired set of associations Del Rio et al. (2001). This can be achieved by increasing customer exposure to with paid advertisement as explained in Chapter 4. The main focus of the communication will be about eco-friendly bags, packaging, and the issue of recycling, providing the needed information on how to properly recycle the food packaging. The recently developed Lidl App plays a key role in the strategy and could be used to place online orders. LIDL APP will be updated and linked to the other online platforms, which will allow the brand to increase visibility. Moreover, Lidl can improve customer retention by offering rewards such as prizes and discounts. The app will also increase customer awareness and functioning as an extra touchpoint. Lidl Radio will also be useful to increase awareness, spreading the voice of Lidl’s Sustainable approaches. Sending follow up emails and newsletters to the LIDL APP members will also help to raise awareness and keep the focus on the importance of recycling. This measure will increase visibility by interlinking Lidl’s social media pages and websites. YouTube ads will be created to increase brand visibility by 5%. QR codes (Appendix 3b) can be introduced on billboards, online promotions and instore stickers, posts and banners as a cost-effective measure which will provide the customer’s information by directing them on the brand’s webspace. (Chaffey, 2017)

Lidl already uses some of the proposed tools such as online advertisement and social media management, nevertheless, the aim of the document is to maximize the outputs to achieve a better position in customer’s mind and to restore the efficiency of communication through physical evidence and the online campaign.

3.2.3 Prices objectives:

  •  Increase plastic bag prices to £1
  •  Set cloth bags price to £1.2
  •  Cloth bags £0.3 for spare fruit and vegetables
  •  Delivery prices £2 supplement for delivery

The market review highlights the importance of keeping prices low as Lidl’s customer base is majorly price-conscious, moreover, the brand core values and main competitive advantage (Porter, 2011) comes from the low pricing strategy, therefore, the price might be very impactful on customer loyalty.

In order not to shock customers, plastic carrier bags must be reduced in numbers and gradually increased in price. Rising the price of plastic bags is reasonable and essential in accordance with the government’s sustainability plans to forward the shift to a more sustainable shopping (Coal Authority, 2019). 10% of plastic bags must be replaced. Hence, in the first 6 months of the plan, they will be reduced by % in and tripled in price from 10p to 30p while introducing cloth bags priced £1.2. After the first 6 months, the plastic carrier bags will be priced 60p for each bag until the 12th month of the plan. Then, the price will be raised to £1 for the year remaining. Additionally, the current single-use plastic bags for fruit and vegetables will be completely replaced by cloth carrier bags, which will be priced £0.3 each.

These measures provide evidence of the commitment toward sustainable shopping.

3.2.4 Place objectives

  •  Online orders increase by 10%

Davies et al. (2018) believe that grocery click&collect is an invention that gives vendors a competitive superiority. Lidl might opt to introduce this concept for a plastic-free shopping. Moreover, during the lockdown caused by the Covid19 virus, the delivery of Food in the UK has increased by 30% (Statista, 2020). Therefore, Lidl’s store-oriented approach needs to cope with online completion for orders and services. The recently developed Lidl App can be updated with new rewards. Therefore, the updated channel of distribution alongside the instore communication and incentives will increase online purchases by 10% annually, saving plastic packaging.

3.2.5 People, process and physical evidence

  •  Provide alternative packaging
  • Substitution of 10% of the plastic bags
  • Trained personnel to spread WOM and suggest plastic-free alternatives.
  •  Receipt with an incentive for online orders
  •  Instore communication: 2 posters, floor stickers and 2 banners each store

The new carrier bags must communicate their purpose aligned with desired brand positioning. Two billboards each shop will highlight the problems regarding environmental issues such as plastic waste and recycle, two banners, and floor stickers will provide more exposure to the campaign. A partnership with activists for plastic reductions will make it possible to raise awareness by appearing on Lidl’s online web space and sharing Lidl’s objectives with their communities. The employees must be conscious of what to say to the clients all times, supporting the campaign by suggesting to buy cloth bags at the self-check-out, moreover, the Self-check-out machines can display the communication on each screen at the moment of the payment, functioning as an extra touchpoint.

 

Chapter 4: Resource allocation, justification, and monitoring

This section provides a brief justification of resource allocation for the proposed marketing strategies, which has been drawn based on a £500,000 budget and spread over two years. Due to the restricted availability of resources and the plan’s objectives, this plan only considered the implementation of low-cost activities which usually have a greater impact on a broader audience. Please refer to Appendix n.4 for the full breakdown of the marketing activities costs.

4.1 Implementation and costs:

Keller (1999) believes inadequate financial support for marketing communication risk to disadvantage the brand. As shown, part of the budget will be utilized to reinforce existing online communication tools and correspond to a total of £183,000

4.1.1Advertising:

Instagram paid advertisement cost per thousand impressions is £5 (Influence Marketing, 2019; WebFX, 2020), therefore a total of £50,016 is allocated, expecting to reach 10 million accounts. Posts and “stories” on Instagram will cost an extra £20,160. Facebook cost per thousand is around £4, the allocated budget will be £30,000 expected to reach 7 million accounts (Chen 2016; WebFX, 2020). Moreover, an extra £5,040 for posts promotion will be allocated to the Facebook campaign. YouTube Advertisement is expected to cost £10,080 and it is expected to reach 50,000 accounts, the ads can be set to interact at a specific time (Lunch/dinner) to enhance the efficiency and relevancy. Google AdWords (Appendix 4) will be the tool used to increase Lidl’s website visibility by allocating £21,000 for the campaign duration, which means £1,000 / month to reach 15,000 people, for a total of minimum 400,000 website visits. Online space (banners) will be purchased for a total of £5,022. Lidl’s radio advertisement creation budget is £1,000. Furthermore, the budget allocated to sponsorship programs to relevant online pages and influencers will cost £16,500. Marketing E-mails such as newsletter and follow up emails costs £80 per month (SendinBlue, 2019), the customized plan allows to send 240,000 E-mails, costing a total of £1920 for 5,600,000 emails. The online content creation will cost £400 each month, for a total of £2,400. Other marketing activities consist of new website design that will cost up to £3,000. IT costs will be 300/month, for a total of £7,200 for maintenance, Moreover, LIDL App updates budget is set to £10,008. Extra funds are available for £10,000

4.1.2 Product costs

Products to be distributed across all the stores: Instore Banners, (Appendix 3c) will cost £12,000, an extra £40,000 for store signage (DiscountDisplays.com, 2020), and £10,000 for floor stickers (StickerYeti.com, 2020). Cloth bags cost approximately £0.5 each, the objective is to replace 300,000 bags. Cloth bags bulk prices will not allow to fully replace the totality of bags with the given budget, therefore, only 10% of the bags will be replaced, costing a total of £150,000 to replace 300,000 plastic bags. Nevertheless, cloth bags are expected to be priced £1.2, generating revenues for £360,000. Moreover, 300,000 fruit bags will be introduced, costing a total of £30,000.

Gravity dispensers cost £77 each and ordering 5 of this item each store for 60 stores will cost £23,100 (Market Zero Waste, 2020).

The allocated budget to giveaways and rewards as incentives will be £4,000.

4.2 Monitoring:

Monitoring the campaign will be essential to improve its efficiency and check the progress. Monthly records and updates will be released to track the objectives and suggest modifications if necessary. Customers will be identified through demographic data which will be collected in order to provide information for future campaign development.

Customer’s reaction to the campaign will be seen through online feedback and reviews. Monthly sales figures will be used to monitor product objectives to ensure the 300,000 bags are sold. The Number of interactions will be measured by click-through and by any action taken from the campaign such as replies, feedbacks, and shares to measure the account reached. The awareness objectives also include an increase in website visits, which will be possible thanks to the interlinkage between online platforms supported by advertising. The number of Lidl App downloads, active users, and repeated purchases can provide information on customer retention, loyalty, and reveal other customer behaviors. Google analytics tools will be used to make a monthly traffic analysis of the website. The number of new followers, likes, comments, and feedbacks will be assessed to develop more specific ads based on profiling and customer response. The success of social media campaigns will also be assessed through interactions using Google Search Console to improve the efficiency of the website. The awareness of the campaign will be increased with WOM, reinforced by Lidl staff and instore communication. The efficiency of the billboards and the information displayed on the self-checkout machines is relatively difficult to esteem but will most certainly result in increased awareness due to exposition. Follow-up emails will be sent to Lidl APP members and subscribers to promote the brand and keep informed the customer about sustainability at Lidl. A competition benchmark will be drawn once every 3 months in order to check the direction of the market. The tactics will be modified in case the objectives are not reached in terms of costefficiency ratio or market performances.

To fully exploit the potential of the campaign, the firm might also consider a future enlargement of the activities by allocating ulterior resources to the plan.

 

Conclusion

The paper aims to increase brand awareness on sustainability issues by empowering the customers to opt for a “greener” approach when shopping at Lidl. This document has provided a 24-month marketing plan for Lidl GB based on the market review and respected the given budget of £500,000. Following market trends and customer profile, the price strategies and the quality of food must be untouched as they are key competitive advantages. Nevertheless, the company needs to better communicate the plastic reduction by utilizing multiple channels and touchpoints, increasing its online interaction with customers. More products will be changing design and packaging for the sake of sustainability, loose products will also visibly reduce the plastic packaging and provide the expected results by modifying the brand positioning in the customer’s mind. Furthermore, a persistent campaign monitor is essential will ensure to achieve the objectives by 2022 creating the conditions for larger resource allocation.

 

Chapter 5: Reflective statement

Just before the start of the third year of University, I came back from the Erasmus experience, so I first had to re-set my mind and focus on the University Of East London’s activities and courses. The module itself was a well-structured, well-communicated, active, and vibrant possibility of gathering information and getting ready to write the final assignment. During lectures, the professor was able to stimulate the students and the material was easily obtainable online. Lectures are for me an essential part of the learning, therefore, I made sure to attend in order to gain more insight into methods of research and objective setting. It was important to understand which dynamics and factors contribute to the development of different marketing strategies in order to achieve brand differentiation. I briefly considered the opportunity to take part in the competition called “The Pitch” but the conciliation of both work and studies required me to focus on the modules, assignments, and graduation.

The next goal was to understand how to properly gather all the information in a document. I am aware that the dissertation is more adequate to discuss the theoretical aspect of an issue and its consequences, nevertheless, both the marketing plan and the academic dissertation are valid opportunities to actively learn and gaining knowledge. I chose the Marketing Plan pathway because it is more direct and also a valid example of what a marketer might be asked to produce, moreover, its functionality might help me in my future career.

From this module, I have learned how to create a marketing plan by conducting an internal and external audit by analyzing quantitative and qualitative data. It has been interesting to discuss how to transform raw data into a real insight into the market. I also learned how to set SMART objectives based on the situation review in order to align them with the core corporate values and strategies.

During the course, I understood the value of strategic planning and how it affects real businesses. The knowledge of the market and the industry are vital elements in order to concretize the success of any campaign. I consider communication as one of the most impactful tools used in marketing. I quickly realized that the learning outcomes might be applied across multiple industries, which is one of the main benefits of this module and this particular course because similar plans and skills are required in the job market. This final project is particularly important for my overall grade and for the prospect of graduation, so I grabbed the chance to dedicate myself to the practical implementation of the marketing theory into the project, which might also help me in a future career. The marketing plan pathway was more appealing to me because of its versatility. I have never produced a paper that involved the creation of marketing strategies and the management of its communication plan due to the fact that during my University path spent the second year abroad, perhaps, learnings in France were majorly assessed through MCQ exams.

One of the most important factors to the success of the module was access to academic databases. The digital library materials helped me to gather useful information. In my perceptive, another useful benefit of this project was the merging between previously studied marketing theories and the practical strategies and tactics. In my opinion, participation in lectures is essential for the coursework and the assignment. The nature of the module prioritized individual studies. I am aware of the fact that the final project must be individually assessed rather than by groups, but I am also conscious of the fact that I prefer to work alone and to take full responsibility for my workload by managing it my way without team-related issues. I appreciate the empowerment the professors gave to the students for their assignments and the overall experience of it, nevertheless, this assignment has been one of the most challenging I had to produce, for its length and the fact that it has been puzzling because of the critical financial limitation of £500.000.

During the research phase, I was fascinated by many notions that I retained. I analyzed various articles and reports to find sufficient data, I have improved my research skills and learned information about different segments of the market, moreover, other information about the company itself, the competition and the grocery industry gave me the possibility to expand my knowledge. The critical part of the research phase was to extrapolate only the useful information. I had to match the requirements of the project and the primary objective of the company to gather appropriate data. I believe synthesis skills are crucial in life, but it’s also a good time-saving process. My weakness is to find each data useful, therefore I had to narrow my interests for the sake of the word count. Applying marketing theories and combine them with the creation of new strategies has intellectually stimulated me. On the other hand, setting the objectives was not straightforward. During the course, I understood the significance of setting SMART objectives, yet during the writing process, it was not easy for me to develop new goals. I was worried about the legitimacy of my objectives, with the fear of not being able to set SMART objectives as required.

Due to the relatively small budget of £500,000 spread over the two years of the plan, I preferred to minimize resource allocation by maximizing the existing IMC tools. I have also considered cost-effective measures to respect the given budget. This section was one of the most challenging, during which I have learned how to find all the correct costs for each element of the communication, form product costs to campaign costs, describing how to track the developments of the tactics. I believe that budgeting it’s an important skill for marketers and business owners, which needs to identify the real costs of their strategies. Although I would have liked to have more flexibility with the expenditures, I am overall satisfied of my work and the final results.

 

References

 

Appendices

Appendix 1:

A) Statista, 2020

 

B) Marketing Charts, 2020

 

Appendix 2:

SWOT ANALYSIS

 

Appendix 3:

A) Google AdWords Online advertisement Example

B) QR codes (Working): please try to scan

Leads to sustainability page

 

 

Leads to Lidl’s Instagram

Leads to: “A better tomorrow” Lidl

 

C) Instore banners rendering example

 

Appendix 4: Forecast Budget Spreadsheet 24 months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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