MARKETING PLAN FOR HMV

MARKETING PLAN FOR HMV STORE COUNTRY MISSION STATEMENT MARKETING ENVIRONMENT MARKETING MIX MARKET SEGMENTATION,TARGETING& POSITIONING MARKETING STATEGY MARKETING COMMUNICATION MIX PERFORMANCE ENVIRONMENT KENYA,AFRICA SMART PESTLE ANALYSIS 7 PS

COST LEADERSHIP KOTLERS SWOT

WHERE ARE WE?

COUNTRY Kenya is a Country in East side of Africa with a population of approximate 36 million, with majority of it people between ages of 15-35. HMV STORE HMV being a global Entertainment retail chain in Britain and many other countries in the world, HMV wants to penetrate its market share in Africa in order to increase its sales volume and get market extension. It has opened many branches across Europe and as well as countries like Hong Kong, USA, Ireland and many other countries, HMV has decided as a marketing strategy to expand its market share to set up another branch in Kenya.

MISSION STATEMENT We want to be the market leader of global entertainment retail.

MARKETING ENVIRONMENT Having taken a comprehensive analysis about the African buying behavior the best method to market HMV is through setting up many high street stores where they can find the products and by creating an online store where all the customers will be referred to after visiting the physical store and sensitizing them that the online store will really save their time after knowing what the stores have and making the deliveries in time whenever they are made by the customers. y Anything happening outside where the business is and is relevant to it.

General points y y y y Environment are complex Dynamic and changeable (continuous and discontinuous) No Organization operates in a vacuum Environment forces affect Organization

ENVIRONMENT TYPES y y y Internal Environment External Environment Performance Environment

PESTLE ANALYSIS FACTORS Political SITUATION The political factors which includes stability of the country is friendly and got positive impact to our business, the Appreciates and encourages international investors The Economic forces are deemed to influence the business in Kenya, this factors includes employment levels, inflation, interest rates and taxation This are the global laws that affects business, there are no excessive legislation in Kenya that will limit our business there The awareness of improved technology and distribution will be a positive factor to us. The government is planning to develop its IT infrastructure throughout the country. Our target market fall in our age bracket of 1540,which are young adults and thus our target will be achievable because they are flexible to change IMPACT Political situation in Kenya will help HMV to penetrate the market and make its investment more secure, as government is encouraging the foreign investment. Kenya is also a part of global business. The global economic crisis may slow down the business growth in Kenya.

Economical

Legal

As there is no legislation barrier, it will help HMV to enter the market.

Technological

Kenya is not a technologically advanced country. This could restrict the growth of business.

Social

Most of the Kenyan people choose to watch movies as their part of social and cultural activities. This indicates that HMV have the greater chance to gain its market share easily.

Ecological

The competitive Ecological issue will have the environment, which our minimum impact on HMVs business will be business growth. surrounded with, and thus effective marketing tools must be used. Kenya is not

INTERNAL ENVIRONMENT The conditions events and factors affecting an organization within, influences the activity and choices especially employees behavior, this includes leadership styles or organization culture

SWOT ANALYSIS FACTORS STRENGTH y y y y y IMPACT Based on research,HMV has a good marketing team and good reputation When penetrating or when getting in new market extension Right products, quality and reliability Products have required accreditations Market size: our target market is so big and there are no people who have already ventured in this business, making our growth rate or accessibility earn an advantage. Equipments and machinery availability Outstanding brand name The movies and music products are reasonably priced. Offer a wide range of products Expertise in these field of products Customer staff needs training Limited budget No pilot or trial done yet Customer lists not tested Selling only few products a day will lead to loses Expensive to market a new product.

y y y y y WEAKNESSES y y y y y y

Unable to deal with multi disciplinary, example the pirating OPPORTUNITIES y y y y y y y y y Development of new market Profit margin good New specialist application Can surprise competitors Cheap rent and distribution channels The law has a very firm action against pirating Strategic market Customer service which is very outstanding Great advantages that we can take in the intended market being a new innovation. Its a new entity in the African market Legislation could impact Negative publicity Market demand very seasonal Competitors coming in after the establishment of the business Similarity of business Proximity or personal preference

y THREATS y y y y y y

PERFORMANCE ENVIRONMENT These consists of those organization that directly or indirectly influence another organization operational performance, thesefactors includes_ Government Competition Suppliers Consumers

Small retailers

An Organization is a process that will convert various resources into products and services, Organization is guided by its own criteria and feedback,thus all this factors where all crucial to be analyzed before setting up the new market

Where do we want to be?

SMART OBJECTIVES Smart objectives To earn a at least 20percent of the new market share by the July 2012 To sensitize and make the all our customers believe and trust in online

These objectives can be achieved through or customer service which is a very unique way to put the customers 1st before everything

How will we get there?

Market segmentation:
Marketing segmentation is a process to divide the market into the small parts. Market segmentation has a significant role in marketing. We can segment the markets in many ways such as geographic, demographic, psychographic, and behavioral and techno graphic. The marketers segment the product as well and they provide those products in classified way. It is also based on the understanding customer, consumer market and B2B market as well. On the other hand it can also find as a micro segmentation base, which have the detailed understanding of individuals, developing the detail etc. The micro has some characteristic those are, product, application, technology, purchasing policies, decision-making unit structure, decision-making process, and buyer-seller relationship. To segment the market we also need to look at the age, gender, education, religion etc.

Consideration for HMV

When doing Market segmentation in Kenya, HMV have to take a closer look at the cultural background, living, income and social trait of the people. HMV will also have to consider the age, location, sex of our customers. It is believed that, these three segmentations are very important when penetrating in a new market.

Targeting:
Select a segment to target. Marketing segmentation reveals the companys market segment opportunities. The firm now has to evaluate the various segments and decide how many and which ones target. At this point we will look at how companies evaluate and select target segment. In evaluating different market segment a company must look at two dimensions: 1. Segment attractiveness Segment with right size and growth characteristics are interesting. But the right size and growth are relative matters. It will be appropriate for HMV to target the largest and fastest growing segments in the market, because HMV has the both skills and resources to deal with the large scale of target segment. In Kenya most attractive segment is the population of people aged between 15-35 years. Another important segment is the middle-class earners. Both of the target segments have large number and growing. 2. Company fit It indicates that, if the company has the strength to match with its selected segments. If the company cant match the skill and resource with its targeted segment, it will lose the market share and become a weak competent in the market. It is very important to make a strong start when penetrating a new market. When entering in Kenya, HMV have to use its marketing skill to deal with the large number of young aged population and middle-income segments. HMV also have to use its resources to make its physical appearance in the market, like opening stores in busy high streets.

Positioning for success: Developing a marketing strategy which positions the product in relation to rivals in order to appeal to target segment. HMV is a well-known brand in UK, and it has good brand image in the market. This will help HMV to position itself in Kenya as a premium brand. We want to position HMV as the number one entertainment retailer in Kenya and in Africa later on.

Proposal for 7Ps

The 7Ps in marketing are as follows: y y y y y y y Product Price(s) Promotion Place Process Physical Evidence People

Product: Product is described as what we sell to customers. It could be tangible or intangible. But the product must be something that provides values to the customer. The main products of HMV are Music Products, Movies, Gadgets, Games, etc, mainly the entertainment products. HMV should have the diversity of entertainment products and services. HMV should focus on high selling products like Music CDs, Games and Movies DVDs and Blu-Rays, Books and Electronic products for entertainment like TVs, DVD and Blu-Ray Players, Music Players, Game Consoles etc. HMV should consider developing a mobile device linked with HMV online store, So that the customers can purchase and download the contents from the store directly. It will give consumers mobility, which is very important. It will give HMV competitive advantage in Kenya, as it is very expensive for people in Kenya to afford devices like iPod or iPhone. Price: Price should be competitive in the market and bring profit for the company. The prices should be not too low that customers think its not qualitative and not too high that their budget cant buy it. It should be competitive within the market. HMV should consider Market-Orientated pricing, while setting price for its products in Kenya

This form of pricing uses a mixture of demand, costs and competitors though still watching for the profitability. There are four different types of market orientated pricing, these are; Prestige, loss leader, Psychological pricings. Prestige Pricing This method ties together price and quality. For a high quality product, consumers will be prepared to pay more for it.

Loss Leader Pricing This method can be practiced where one product can create revenue from another product. Psychological Pricing This method understands that customers have a set price range, which they can spend for the goods or services. HMV should go for the medium range price in Kenya, because most of targeted consumers are medium earners.

Promotion: There are a vast number of promotion methods to choose from, and finding the best method that will allow our product to flourish in the market is a challenging step. There are two main benefits to our promotion campaign. The first benefit to our campaign is the pull method; with out strategy of marketing our products to individual that has certain needs, it will in turn make the consumer push the retailer who pushes the wholesaler, who gets the agents to purchase the product from producers. With this method, the supply is based on the demand from the consumer. It is very important for the company opening business in new market. Because communication matters, promotions are very important. In Kenya HMV should go for mass advertising, as it is a new market. HMV should give introductory promotions and early membership discounts to get a quick market share. Place: The place where it is located and people can buy products and services. And how products reach there. A good place attracts good business and quicker business growth. For HMV its better to choose a greatlybusy place like city center or market places, where people come for shopping and entertainment. Internet is another place, which provides quicker access for customers at any time.

In Kenya, high street stores will be more appropriate to make the business. And online store will help to get more customers as; technology awareness is increasing day by day in Kenya.

Process: It indicates that how HMV will deal its customers in the market and run its day-to-day business. It also refers to how it will maintain its chain with supplier and consumers. The best process of serving customers for HMV will be in stores, and keep the online store for supporting the customers and 24/7 business. Physical Evidence: The Company have lots of physical evidence in their stores, so it is vital to provide physical evidence to the customers about the products. It helps people to get hands on to electronic devices, make a trial before they buy on certain products, offering of booklets and directories etc. HMV have to open high street stores in busy places, so people can come and get their hands on the products. People: People are the most important resource for any organization. Customers, employees, management teams and everyone else that is involved in the whole process of business are considered as people. It is important for the company to have good customer services to ensure customers are always happy and make repeated business. It is alsocrucial to keep employees motivated and keep the management team active all the time and keep them continuous development process. HMV have to train its employees to deal with the new market environment and give the best service to the customers. They have to be aware of Kenyan culture and social trait.

How well did we do?

THE business is always measuring the performance of its activities after going there, because it is very important to know if the business is going on right track. What needs to be improved and how to take a leap ahead in achieving goals. HMV will be making a huge investment in Kenya. HMV have to be very careful about securing its investment and business grown. If HMV fails to achieve the goal in Kenya, it will be very

hard for HMV to grab the African market in future. HMV have to do contentious evaluation of its performance and growth. The idea of going global will provide great opportunity for the company as long as it takes all the required precaution. It is always hard to penetrate the new market but as long as all the strategies are operational and the culture in the new place is considered, it will not be that hard to get going and make good market share in Kenya HMV should be the leader in entertainment retailers in the world if, it follows all our key strategies.

Conclusion:
We have done the SWOT and PESTLE analysis to identify and understand the KENYA market. This is a great opportunity for HMV to extend its market to Africa, because there is no major competition in the market and market it growing faster. If HMV can overcome its weakness and relevant threats, HMV can achieve its goal, which is gaining market share of 20% by 2012.

Bibliography:

Marketing Management, class lecture given by Louise Hunt. P kotler, Principle of Marketing, published by Pearson. Marketing lacture Clips from iTunes Uni. Brown C, The sales promotion hand book, pp (13-15) published by Kogan Page. J. Baker M, The marketing book, 5th edition, pp (598-606), published by ButterworthHeinemann. 6. Adcock D, Halborg Al and Rossl C, Marketing principle and practice, pp(117-130), 4th edition published by Pearson Education.

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7. J. Croft M, Marketing for manager market segmentation, page-1, published by routledge. 8. J. Kimmel AMarketing communication new approaches, technologies and style, pp (1-5), published by Oxford University Press. 9. Hayes J and Dredge F, Managing customer service, pp (6-10), published by Gower Publishing, Ltd. 10. Chaffey D, Chadwick F Ellis, Johnston K and Mayer R, Internet marketing strategy, implementation and practice, 3rd edition, published by Pearson Education. 11. http://www.bplans.com/hair_replacement_and_salon_business_plan/market_analysis_su mmary_fc.cfm. date access: 17/08/2009 12. http://en.wikipedia.org/wiki/Market_segment. Date access: 17/08/09. 13. http://www.businessplans.org/Segment.html. date access: 17/08/09

References:
1. Anand, N. & Nicholson, N. (2001), Change: How to Adapt and Transform the Business (Decision Makers). London: Thomas Learning. Pp. 46, 71, 99. 2. Kotler, P. (2005), Marketing Management, International Students. Harlow: Pearson Education. Pp. 31-39, 44-56 3. Crouch, S. &Housden, M. (2003), Marketing Research for Managers. Butterworth Heinemann. Pp. 201-222 4. Lancaster, G. (2001). Marketing Management3rd Edition. Mc-Graw Hill. Pp. 34-46 5. Dibb, S. (2005). Marketing: concepts and strategies. Houghton Mifflin. Pp. 10-12 6. Behera, M. (2008), The 7Ps of Marketing Mix. [Online] Available at: http://ezinearticles.com/?The-7Ps-of-Marketing-Mix&id=1486721; Accessed on [16th Dec 2010] 7. Unknown (2010), Marketing in Changing Times. [Online] Available at: http://www.scribd.com/doc/3497149/Monitor-Making-Segmentation-Work; Accessed on [15th Dec 2010]

HMV MARKETING PLAN, PART- B

How I feel
HMV is a name of a brand that sells master copy of CDs, DVDs, magazines, gadgets, video games, games etc. HMV products are exclusive but their collection and quality exclusive as well. They start their business from 1921. HMV are still doing their business and in the leading position but nowadays their sell is going down. Customers downloading music, DVDs etc. from Internet free of cost. Undoubtedly HMV provides best quality and great collection as well but their cost of product is higher than other substitute company. As per of these concern of those things HMV should change their strategy as ongoing market environment. I feel our project went on right process even though there were some of barriers, which were dealt with strong focus and determination.

What went wrong?

KENYA is a developing country and not enough strong as UK, AMERICA and other countries. Music market of KENYA is not very strong. Their buying power for music is much more lower. As per KENYAs political factors, their government has limited technology. If we want to improve music environment of KENYA market government should help us. E.g. Government can reduce taxes from HMV. We have a new strategy for KENYA market but we are not sure that, we can apply our entire plan in the KENYA market or not. Which is a great question mark for us. When a new business comes with a new strategy in the market they face a lot of barriers. We should focus on those barriers. Our new strategy could face many problems in the new market. Problem working in a group:

We had some problems to get together with team members. This made our assignment process bit slower. But final we have overcame all the barriers and finished our assignment on time. Sometime we had problem with analyzing KENYA market environment because all of those information we collect from books, newspapers, magazine and Internet.

Possible sectors can improve

We should focus some specific sectors, which can improve making customer and buying our products. If we focus on young customers and their requirements we can improve our business. We can supply our product through online. So everybody can buy our product from home. HMV should reduce their prices as customers buying capacities. Marketing is very important in a new market environment. Huge marketing can really improve a market environment. We should make loyal customer who are really important for market environment. Loyal customers can make more customers through word of mouth. So we can take extra care for our loyal customer. Eg. Giving gift, speak on telephone; arrange party with loyal customers etc. Market segmentation also can improve our business. We can decide, where we can make more profit. So that we can provide those places our retail shops which can improve our business. SWOT analysis also can improve our business as well. We must emphasis SWOT analysis.

Overall KENYA could be a strong market for HMV if we focus on all barriers carefully deal with the threats. If we become successful in Kenya, this will open a door of opportunity for HMV for growing its business in African continent, which hold a greater opportunity in future.