3 Year Marketing and Communication Plan Navdeep Kaur Khatkar N0440138
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For that wonderful, frustrating, hilarious, serious, exhausting, rewarding process called parenting. Mothercare since 1961.
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contents INTERNAL AUDIT Introduction
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Methodology
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Brand History
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Product Portfolio
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Mothercare Market Marketing Mix
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Brand Essence
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Target Consumer Brand Health
Key Competitors Secondary Competitors PEST Analysis
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Future Vision Statement
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Marketing Strategy 1 - Rebranding
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Benefits of Rebranding
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Marketing Strategy 2 - YumYums
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UK Baby Food Market
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Marketing Strategy 3 - Baby and Body
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Marketing Strategy 4 - Mothers Meet
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Communication Plan
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Conclusion
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Budget
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Timeline
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Appendix
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Bibliography
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EXTERNAL AUDIT Competitor Analysis
SMART Objectives
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Current Marketing
Brand Values
MARKETING STRATEGY
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Macro Trends
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SWOT Analysis
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Ansoff Matrix
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Porter’s 5 Forces
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Killer Insight
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“Everything for mother and her baby under one roof.� .
Selim Zilkha, Founder of Mothercare. 5
introduction A mother’s instinct and care for her child holds great importance, which projects the high level of attention to her child’s needs. This high level of consideration translates into a global market demand where parents seek the greatest products and services to aid the upbringing of their child. It is paramount that the product and services provided by a company are to an outstanding level of quality, however the innovation of a brand allows it to stand out furthermore than competitors, therefore it is vital for Mothercare to provide an unexampled level of service to the consumer. This 3 year marketing & communication plan will improve the Mothercare brand image, furthering them as a brand and creating strong eternal relationships with their existing and future consumers.
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methodology Understanding the consumer was a vital element to construct the correct marketing and communication strategy for Mothercare’s future. Consumers are ultimately the core reason why Mothercare provide the products and services today and consumer opinions were considered carefully while undergoing this primary research process. Mothercare need to maintain and build new business to consumer relationships to be the best and the only place a mother and child will need. A set of questions were formed together to understand how brand awareness could be increased and what Mothercare need to consider for a strong marketing strategy to increase profits and sales. The questionnaire was given to a sample of 60 which was predominantly targeting women with children, expectant mothers and women with pushchairs. The questionnaire was carried out inside and outside of many stores including Mothercare and shopping centres that provided products and apparel for children and babies. The reason why mothers were the focus of this primary research is because they are Mothercare’s target consumer. This was a strong start as the feedback that was received would be reliable and relatable from current and potential target consumers and not random.
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brand history Mothercare, a British retailer that prides itself in offering products and services for pre and post pregnant women, babies and children. Mothercare first opened doors to the public in Surrey, 1961. In the beginning, Mothercare retailed maternity clothing, nursery furniture and pushchairs but as the business grew over the years, the product portfolio became very diverse catering to a wider audience. Today, while offering apparel for babies and children up to the age of 8, Mothercare focus on the needs and demands from the very moment a woman learns she is expecting all the way until she gives birth and beyond. Providing a diverse range of products from maternity clothing to car seats, toys and furniture, Mothercare have established their mark in the retail industry as a trusted and reputable brand. The brand has expanded its operations internationally in countries such as Africa, Europe, Middle East and Far East.
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product portfolio Mothercare currently operate in 60 countries with 189 Mothercare stores operating in the UK as of March 2014. Mothercare has a huge product diversification which is split in the following categories: Mothercare range which provides value to parents for everyday use, this range offers baby wipes, nappies, clothing, bathing, furniture, prams and baby safety. Baby K, Blooming Marvellous and Little bird premium ranges for the ultimate quality products. Maternity range which includes clothes and accessories up until birth. Baby and children’s range which consists of clothing up to the age of 8 and toys. Home and Travel which consists of nursery furniture, toys, baby bedding, feeding, car seats, pushchairs and prams.
Mothercare purchased Early Learning Centre for ÂŁ85million in April 2007 (Wikipedia, 2014) which now retails in many Mothercare stores.
Also in 2007 Mothercare launched Gurgle, a pregnancy and parenting social networking website (Wikipedia, 2014).
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mothercare market Fig 2
The charts on this page display Mothercare’s UK and international store sales over the past 3 years as well as UK direct internet sales since 2012. It is evident in fig 2 that international store sales have been rising over the past few years with an increase of 6.5% which indicates international strength. However, in figure 3 it is evident that UK store sales have decreased which shows a weakness in Mothercare’s UK brand positioning. This is what this marketing plan will aim to overcome, ultimately increasing brand awareness to increase UK store and continue to grow internet sales.
Source: Mothercare Annual Report 2014
Fig 3
In the UK as shown below, clothing, home and travel both add up to massive 78% in Mothercare’s 2014 sales.
Fig 1
Source: Mothercare Annual Report 2014
Fig 4
Source: Mothercare Annual Report 2014
Source: Mothercare Annual Report 2014
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Fig 5
Source: Mothercare Annual Report 2014
Fig 6 Source: Mintel 2014
With the most up to date information found, it is evident from the chart constructed by Mintel above that Mothercare are leaders in nursery and baby care equipment. With a total of 24.3% they are ahead of Babies R Us and Toys R Us by 9.6% and with Kiddicare in third place with their sales at 8.3% followed by Mamas and Papas at 8%.
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marketing mix product Mothercare aim to provide a diverse range of products, which target a wide variety of needs for mothers. They pride themselves in being a versatile brand, offering an extensive amount of products that will support the growth of a child from birth to 8 years old. This is an essential part of the Mothercare store, providing a one-stop-shop for mothers searching for everything under one roof, providing convinience and quality in equal measure.
place Their in-store experience is made to feel like a highly contributing and benefical part of the customer’s motherhood experience. The Mothercare website provides an even more convinient and time efficient service, promoting the wide range of products and services they offer. The well-trained and knowledgable staff provide a welcoming and confident service in stores located near the consumer for accessibility, with an unforgettable mother’s shopping experience. Their skill levels create intangible relationships with customers, resulting in repeated future sales.
price
Mothercare consumers all have different requirements in terms of budgets, therefore a versatile pricing strategy is important for the brand to encourage sales from a variety of consumers with different demands. They offer a Mothercare value range and also offer a range of premium brands, which offers price flexibility to every consumer. This can increase the consumer base of Mothercare, showing diversification and consumer understanding.
promotion The brand promote thoroughly through their current website and mobile app, to communicate with their consumers about products and promotions. Their award winning app is highly informative and user friendly, making it a key promotional tool as well as a selling tool to consumers. Mothercare know their target consumer and how to reach them, therefore advertisements and campaigns display focus on their care for children, as well as their diversity, value and service.
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current marketing endorsements The benefits of a celebrity endorsement can increase awareness and sales for a brand. Mothercare have teamed up with Myleene Klass to release Baby K and Jools Oliver to release Little Bird, both are premium range product lines which cater for children from 0 months to 8 years. Baby K also offers a nursery range. This marketing strategy is beneficial to the brand as these celebrities have relevance to the nature of Mothercare’s business as they both have children. Endorsements create brand exclusivity, thus generating sales and awareness for Mothercare as Baby K has won the Best Boys Fashion Award 2014.
261,000 likes
58,500 followers
10,200 followers
UK social media With a network of 329,700 followers & likes on Facebook, Twitter and Instagram, Mothercare utilise these platforms to communicate with consumers by promoting information about the brand. They offer rewards and giveaways on their social platforms, alongside factual information about children which keep mothers interested with daily posts. They also offer Facebook live chat giving parents opportunities to ask for any advice about their pregnancy.
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phone app
Mothercare have an award winning smart phone app with outstanding extensive features which reach out to their consumer base. Their versatile app offers vast amounts of information, products and services which encourages mothers to use it frequently. The versatility of the app creates an intangible connection with the parents, due to its high level of capabilities making the app fun to use, interactive and allows Mothercare to communicate the brand strongly. The app includes over 40,000 baby names, pregnancy tracker, Mothercare blog, essentials check-list, to do list option, weekly pregnancy guide and Mothercare TV.
mothercare TV
Mothercare have a YouTube channel which has over 800 videos that provide information on products and ‘how to’ tutorials. The product videos show viewers a clear insight on which products will be best suited to them e.g.: Which is the best pushchair to buy? What clothing does a new-born need? A car seat buying guide, pushchair buying guide and maternity bra advice. They also feature behind the scenes and videos on fashion ranges: Little bird by Jools Oliver and Baby K by Myleene Klass. Mothercare TV also offer ‘new-born care’ video section which is devoted to new-borns and demonstrates how to dress, swaddle, bathe, cut nails, change nappies, burp and pick up a new-born and many more. These videos cater for the needs and requirements of a new parent, showing the dedication that Mothercare put into providing knowledgeable and paramount information for mothers. Mothercare TV demonstrate strong understanding, projecting their care and commitment to ensuring their consumers seek the right advice and answers to all their questions. This is a strong platform that Mothercare have for their digital marketing, as it can build intangible connections with their current and future consumers, providing more than just a product.
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brand essence SOURCE OF AUTHORITY
BRAND ATTRIBUTES Product diversity Eco friendly Trustworthy BRAND ATTRIBUTES Accessible
BRAND PERSONALITY Caring Considerate Responsible Babies and Children Expectant mothers
British SOURCE OF AUTHORITY
Diverse International Family Orientated Specialist in baby and children
BRAND PROMISE
Value Quality High customer service Convenience
mission statement “To meet the needs and aspirations of parents for their children, worldwide.” (Mothercare Annual Report, 2014)
vision statement “We aim to be the world’s leading mother and baby specialist, making life easier for families over the world by offering our customers value, choice, service and delivery both in store and online.” (Mothercare Annual Report, 2014)
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brand values VALUE Mothercare believe in providing customers with a wide range of products which are suitable and accessible for any mother, family and child from any background. There is no reason why someone cannot shop at Mothercare. Offering value for money and premium range products, there is something for everyone.
CHOICE The ultimate reason to shop at Mothercare, being spoilt for choice. With thousands of products to choose from, Mothercare have ensured that a customer walks into a store stunned and walking out of a store with what they were looking for. This is also carried throughout the online website for Mothercare, with so many options, there is a huge variety of products accessible for those who prefer to stay in or heavily pregnant and shop online.
SERVICE & DELIVERY Ensuring customers are treated with the best customer service, Mothercare ensure the experience is smooth and simple as possible by training staff to be welcoming and easy to approach. Shop layouts being easily divided, tidy and organised, Mothercare consider the safety as well as the cleanliness of each store is maintained to keep up with ultimate high standards for employees and customers. However, the online website is also clear and informative as well as being cleverly divided into sections with easy navigation and many delivery options such as click and collect and premium delivery.
ENVIRONMENT Mothercare implement 17 corporate recycling champions across stores around the UK to help reduce the environmental impact stores have. This consists of inspiring staff to recycle materials such as hangers, plastic, cardboard and paper which ultimately leads to them thinking about energy consumption and how to conserve it. Mothercare also ensure that the wood that is utilised in their products is certified legally by the Forest Stewardship Council.
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target consumer Expectant mothers After pregnancy parenting Children up to 8 years Busy lifestyle Full or part time job Searching for diverse range Needs everything in one place Organised Likes to be fuss free Caring and friendly Has a husband/boyfriend Single mum or carer
consumer profile Katherine 32 years old 10 month old baby
Wants more children Married & Housewife Prefers convenient shopping Likes variety and value Sociable mother
Health conscious Loves a one stop shop Enjoys diversity
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brand health. AWARENESS As a result from the primary research conducted, it came to show that 100% of the sample were aware of Mothercare which was all 60 persons (see appendix chart 3). This demonstrated that Mothercare were a very well established brand amongst all female respondents aged 16-41+ (see appendix chart 1). However, when respondents were asked when they had last seen a Mothercare advert, a huge 70% stated they have never seen one and 30% couldn’t remember the last time they saw a Mothercare advert, all respondents being mothers, had no connection to Mothercare advertising (see appendix chart 14). For a company that is well established in the UK and with existing consumers, it was evident that Mothercare’s current advertising was not effective to create intangible connection with consumers that would allow consumers to remember their advertising material.
USAGE As 100% of the sample were mothers and all were aware of Mothercare, 80% of them have shopped previously and currently do shop at Mothercare. The sample was then asked how often they shop there and the result was that 62% of consumers shopped at Mothercare from every week, monthly to every 3 months (see appendix chart 5). The 20% of mothers who didn’t shop at Mothercare could be affected by the no awareness of advertising campaigns mentioned above. Upon research it was found that the 20% of consumers who didn’t shop at Mothercare decreased to 13% if Mothercare were to bring out a range that caters for baby health and nutrition (see appendix chart 10). This was a very interesting insight as this can be a strategy implemented into Mothercare to create new business to consumer relationships and importantly increase sales. Mothercare are a baby and child specialist and as the interest in Mothercare increased via the health and nutrition line, Mothercare need to re-consider how effective and memorable their communication needs to be.
PERCEPTION The sample was shown the current Mothercare logo and asked what their thoughts were with a please tick all that apply option. 80% of the sample said it was ‘boring’ and 76.6% said it was ‘outdated’. It was also interesting to find out that 79.9% of the sample stated the logo was ‘recognisable’ and ‘memorable’ (see appendix chart 11). Although the logo was found to be memorable and recognisable, Mothercare need to consider consumer opinions in their current logo, they must ensure that it ticks all the boxes by standing out, being appealing and relevant to what they sell. UK store sales were down 12.3% and branding could be the reason why consumers are not attracted to Mothercare. Consumers need to feel engaged with Mothercare via a logo that is modern yet enticing which will aid in bringing in consumers and increase sales. Respondents were given an open answer question which asked them to describe Mothercare in a few words and some of the feedback was: doesn’t appeal to me, really bland, plain and simple and so old fashioned. 24
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competitor analysis Analysing competitors was important to get an insight on whether Mothercare have a competitive advantage over them or not. From the chart shown below it is evident that Mothercare have an advantage in pricing as they came in at £24.99, this is the lowest out of 9 competitors that respondents from primary research stated they also shop at (see appendix chart 12). Having a competitive advantage in terms of pricing strategy is an important factor for businesses as well as consumers as it eliminates any threat of substitution from competitors with lower prices. The product ‘Graco junior maxi car seat’ was selected as it was the most common item that was retailed by the most competitors. As George was the strongest competitor for Mothercare according to primary research, the chart below also showcases the huge price variance on the same item. George retails the car seat at £10.01 more than Mothercare, this demonstrates a fraction of Mothercare’s price value over their close competitors for such an important and essential product. £44.99 £43.99
Graco Junior Maxi Car Seat Prices do not include discounts.
High Price
£43.00 £42.99
£39.99 Fig 7
£39.95 £35.00 £29.99
OTHER COMPETITORS:
£24.99
Low Price
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key competitors Based on primary research conducted, the top 4 competitors that respondents shopped at for baby, child and mother apparel, toys and products are: George at ASDA, Tesco, Argos and Marks and Spencer (see appendix chart 12). The respondents were given a ‘please tick all that apply’ option so that all competitors could be considered fairly.
Brand
Brand Description
Product Diversity
Mothercare is a British retailer who specialises in baby and mother products. Established in 1961, Mothercare have built themselves as reputable, trustworthy and a caring brand. 189 stores in UK.
Mothercare offer value to premium ranges with a huge product diversification: bathing, baby and children clothing up to 8 years, accessories, nursery furniture, toys, bedding, feeding, car seats, baby safety, toiletries and pushchairs.
Created in 1990 by ASDA supermarket, George see themselves as retailers who provide affordable priced fashion apparel.
George is strong competition to Mothercare as it offers cheaper alternatives to maternity wear, branded toys and products, child and baby clothing up to 14 years, cots, bedding, car seats, prams, baby toiletries, feeding and nursery furniture.
“Mintel saying they are the fourth largest clothing retailer in the UK.“ (Wikipedia, 2014).
Tesco offer a diverse range from toys, prams, car seats, feeding, cots, bedding, nursery furniture, baby safety and baby food. F&F offer baby and children’s clothing up to 14 years, accessories and shoes as well as maternity wear. Argos have a competitive advanArgos is a British retailer that offers tage over all 4 competitors due products and merchandise via to their extensive portfolio in toys in store catalogue and and children’s entertainment. They online orders. also offer feeding, bathing, nurs“In 2012 it was estimated that 96% ery furniture, car seats and prams. of the population of the UK was However, a very limited range of within 10 miles of an Argos branch.” (Wikipedia, 2014). maternity and baby clothing. Tesco founded in 1919 is a British grocery and general merchandise retailer that retails in 12 international countries. F&F franchise was launched by Tesco which can be found in many large Tesco supermarkets.
Marks and Spencer known as M&S is a British food, apparel and home products retailer. 800 stores in UK and Ireland.
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M&S offer maternity clothing which is more premium priced than Mothercare and the rest of the key competitors. Compared to Mothercare, diversity is limited as they only offer cots, children’s and baby clothing up to 14 years and a limited toy and book range.
secondary competitors Department Stores
Catalogue ONLY Retailers
Discount Stores
Supermarkets
Understanding competitors that do not directly sell only the same products is important when developing a marketing strategy. These secondary competitors oppose potential threats to the growth and health of Mothercare as consumers may substitute Mothercare with retailers that offer just more than maternal and baby products due to convenience and time efficiently of shopping retail. The four secondary competitor categories are as follows: department stores, catalogue only retailers, discount stores and supermarkets. These all provide baby and maternal apparel and products to a certain extent with a diverse range of pricing.
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pest analysis POLITICAL Ethical trading laws, ensuring certain codes of practise within business operations to ensure ethical trading. Mothercare cater for this by sourcing products from around the world and abide certain ethical trading policies to ensure equal share amongst different suppliers. Product health & safety laws applied to child and baby products. These laws ensure firm testing on the products retailed in the child and baby sector, making sure they are safe for consumers of any age. These restrictions are beneficial to the quality of products that are in the market, ensuring safe and well made products. Mothercare fully commit to protecting its customers, therefore this is a policy they firmly follow. A highly used baby bottle which contains a controversial chemical within the plastic, has caused a lot of controversy. As the European government refused to ban this chemical, Mothercare will still continue to stop using its supply of these bottles soon, to avoid risking it with their consumers of such a young age. Environmental laws and policies within a business. Mothercare take pride in their environmentally efficient use of raw materials and utilisation of energy. They promote recycling through store sales and try to limit their use of materials as much as they can, encouraging efficiency.
ECONOMICAL Recently the UK has come out of a down-falling recession which affected the growth and survival of many businesses. Consumer confidence in spending decreased rapidly due to low levels of disposable incomes, which meant consumers were buying far less and companies were making far less. Mothercare utilised this opportunity through their value range of products, however it was difficult for some brands to operate properly in a restricted economy. International Economies Mothercare operate in over 60 countries, which are primarily in Europe. When international economies face fluctuation, it opposes a challenge on Mothercare as they must be able to be strong and healthy in other markets to replenish any loss of sales that have been caused from the struggling economic countries. International currency alterations have an effect on how competitors operate, as there can be an increase on costs. This reduces the profitability of products, which can oppose difficulty on Mothercare if their sourced products become more expensive. This can be difficult if their annual profit levels are not extremely positive. Emerging markets show opportunity for growth for businesses, as there are significantly growing demands for products and services. Therefore penetrating emerging markets are strong for brand growth, as they can open up to many sales therefore more global revenue. 29
SOCIAL Health Conscious Consumers There is a social awareness of health consciousness, where consumers including post-natal mothers are aiming to become healthy and stay fit. The social awareness of it has influenced growth in many businesses and service providers such as gyms, which cater for the needs of these consumer demands. This also effects the type of products that consumers are buying, eliminating any options of products which provide little benefits to the consumer or their child’s health, which furthermore affects consumer buying patterns. Lifestyle and Demographics in the UK The cost of living differentiates in certain areas of the UK, as location can determine the lifestyle and expenditure capabilities of the consumer. City living costs are high, in cities such as London, as opposed to suburban and country side living which is substantially less. Therefore store locations for Mothercare are essential when targeting the right consumer.
TECHNOLOGICAL Social Media Developments & Smart Phones Social Media has developed outstandingly. There is a huge consumer base that operate their daily life through social media such as Facebook & Twitter, which allows expressed views and opinions to be shared instantly, as well as instant forms of communication of information. It has become so highly populated that it has now become a key form of marketing, communication and advertising for companies. For the expressive opinions and communication of parenthood, social media has become a key platform for mothers and fathers to communicate, which Mothercare have utilised by creating a social media landscape. E-commerce E-commerce has formed a market platform for businesses to generate millions if not, billions of pounds in sales. The instant convenience of internet shopping makes it so much easier and time effective. Price comparison capabilities has also driven this technological factor as consumers can search instantly for the best priced products and services through a computer or smart phone. Mothercare cater for this through their extensive product and service website, which has seen growth of 6.5% (Mothercare Annual Report, 2013). Technological Impact on Retail The advancements in technology are always differentiating businesses, giving them unique selling points and exclusivity. It has provided growing opportunity for small businesses however it gives opportunities for Mothercare to develop their brand portfolio, in-store experience and online experience. Such as newly developed baby products e.g. baby monitors, which increase sales. Furthermore, enhancing in-store experiences through technological features such as customer product scanners and self-service check outs making shopping faster and more effective. 30
macro trends
WORLD WIDE BUSINESS INTEGRATION Globalisation is a key driving factor the rapid growth of a business. With the ability to reach out to a much wider network of consumers, businesses are able to communicate their brand much more effectively as well as gain access to key information which can be utilised in the brand’s business strategy. This is effective for Mothercare as they have can communicate their marketing strategy and advertisement to a large base of current and future consumers, furthermore they can access a vast amount of information which can form newly developed products and services to the brand’s portfolio. This can create brand awareness for Mothercare and increase their global strength, with the ability to relay information about the brand itself but gain new insights for research and development.
CONNECTED WORLD The key to a well-structured business is communication. Whether it is between employees or between the brand and the consumer, communication is the key driving factor for a brand. Being connected with the consumer easily, allows communication to happen more frequently. It allows a business to provide frequent updates about products, campaigns, services and promotions which can reach out to a wide spread of consumers. With an outstanding growth in the usage of digital technology such as smart phones, tablets and laptops, consumers have the ability to communicate with brands instantly and effectively. Advertisement has now become a digital phenomenon, as there is a large user network meaning adverts can generate high awareness. Mothercare have catered for this fast evolving form of digital communication, which has created some beneficial attributes for the brand such as their phone app. An application where the consumers can communicate with the brand well, gaining insightful information about the products and services they provide. This creates strong relationships between the consumer and the brand, which results in brand loyalty and sales. Mothercare have social media, digital video websites and forums which they can use as an effective tool to market and connect with their target consumer.
UNSTABLE ECONOMY Many countries recently have faced unstable economies, which has resulted in disposable income levels decreasing and consumer spending abilities to change highly. This furthermore decreased the brand strength and health of many companies, resulting in low sales and being forced out of the market. Consumers have become more reserved with their spending, delegating more time into deciding what they are going to purchase to make it the most cost effective option. Spending trends and attitudes deplete, and consumers look for better priced options which weaken brands that offer slightly higher priced options. Mothercare cater for two different pricing strategies which is beneficial to their consumer base, because if consumer spending confidence is low for a percentage of Mothercare consumers, there are pricing options suited for them. On the other hand, the other consumers are have not been effected by the unstable economy, may still seek for higher priced products which Mothercare also continue to offer. This variation of price is effective, as they will gain sales from consumers that are searching for various ranges of product prices. 32
swot analysis STRENGTHS Iconic brand with British heritage born in 1961 which today is reputable and recognisable all around the world including the UK. Global retailer providing products and apparel in 60 countries. Over 5850 employees (Wikipedia, 2012). 92 Mothercare stores are located in town centres which are easily accessible to consumers via personal and public transport. Specialist in baby and mother care products which are suitable and accessible to families, mothers, babies and children. Franchise option is available for growth of business globally. Mothercare portray themselves as a brand who really understand their target consumer’s lifestyle and demands through their adverts, website and in store layout. Collaborations with celebrity mothers such as Myleene Klass and Jools Oliver to build relationships with consumers which demonstrate mutual understanding of motherhood. Mothercare provide a diverse range of products from value to premium lines which are accessible to everyone no matter what the consumer budget is. As a brand, Mothercare are eco-friendly who encourage their staff and consumers to recycle materials and fabric in store and in their personal life outside. Mothercare consider comfort of their target consumer with many delivery options on their website such as premium delivery and click and collect. Mothercare’s international store sales were up 6.5% (Mothercare Annual Report, 2014). Mothercare being an international brand, their growth and sales don’t rely on a specific country, therefore if sales are down in 1 country it may not affect the overall store sales worldwide. UK direct internet sales were up 5% (Mothercare Annual Report, 2014).
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WEAKNESSES UK store sales for Mothercare were down 12.3% (Mothercare Annual Report, 2014). Apparel only goes up until the age of 8 which some may consider as a limitation. 35 loss making stores were closed down (Mothercare Annual Report, 2014). 97 Mothercare stores are located out of town, in riverside parks etc. which is more than their in town locations of 92. These out of town locations can be harder to access and get to in comparison to competitor brand locations. Due to high level of competition, profit margins are limited. Mothercare are not an exclusive retailer for the brands they sell which limits consumer loyalty and brand exclusivity. Mothercare logo is deemed to be boring, out dated and doesn’t stand out. (Primary research conducted).
OPPORTUNITIES Online personal training subscription for pre and post pregnant women which would help them to gain confidence and stay fit and healthy during and after having a baby (see appendix charts 8 & 9). Mothercare could change their logo to something that is more modern, bold and bright. A logo which is remembered and represents Mothercare strongly without being plain, simple or boring (see appendix chart 11). A club which provides mothers and babies to meet up locally with socialising opportunities as well as activities that aid in baby and child development. More options for their current clothing size that only goes up until 8 years, consider changing it up to 10 years of age to provide consumers with wider options. Organic baby food range – opens up doors to a completely new product line which can be exciting and interesting. Introducing a baby food product line to Mothercare would allow Mothercare to demonstrate their ability in providing ultimately all a mother would need for her child (see appendix chart 10). Consider new payment types - introduce credit options for consumers.
THREATS High level of competition rising in the UK, especially with brands offering cheaper alternatives for the same products and apparel as Mothercare which potentially can lead to loss of consumers. Consumer spending confidence has been knocked due to the economic downfall and damage in markets. 34
ansoff matrix EXISTING MARKETS
EXISTING PRODUCTS
NEW PRODUCTS
• Where countries have constantly seen high sales with Mothercare stores, they can introduce new stores to meet the increased demand. • Mothercare need to create a strong buzz and awareness for their brand by utilising memorable and bold marketing and advertising methods that will keep consumers connected.
• Introduce baby food product line which caters for baby nutrition, this can enhance product diversity, bring in new consumers and increase sales. (see appendix chart 10). • Online gym subscription which can aid the health and fitness of current Mothercare consumers. This can cater for extended needs of pre and post natal mothers as well as provide exclusivity as no close competitors offer this. • Rebrand the Mothercare logo to bright, bold and relevant. Rebranding can create brand differentiation and modernity.
NEW MARKETS
(see appendix chart 11).
• To increase awareness internationally, Mothercare can introduce themselves into emerging markets where they has been significant growth in demand for baby, child and mother products.
• Online gym subscription as mentioned above, this can entice new consumers as well as raise brand awareness and WOM advertisement.
• Introduce Mothercare into a country where population/baby growth rates are high.
• A club which provides mothers and babies to meet up locally with socialising opportunities as well as activities that aid in baby and child development. This can also aid in consumer awareness and build consumer loyalty due to exclusivity. (Applies to existing markets as well).
• Introducing a range of products such as clothing that cater for a higher age, this can expand consumer base of Mothercase as they are expanding their portfolio to consumers of a different demographic such as 13/14 year olds.
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(see appendix charts 8 & 9)
porter’s 5 forces 1.
THREAT OF SUBSTITUTES For Mothercare entering the baby food market can show certain difficulty, as the threat of substitutes is high. The baby food sector has been established properly for decades and there are now great ranges of alternative products that vary in price which can give consumers a high amount of options to choose from. This may bring some difficulty to Mothercare penetrating this, however fortunately they have an excellent reputation in the baby products sector which can influence sales, and gain an instant consumer base with brand trust.
THREAT OF ENTRY COMPETITORS The threat of entry competitors is low. As it requires an established expertise, research and development sources and strong investment to enter this market, if a company hasn’t at least two of the above then the likeliness of entry or success is low. New entrant competitors can only compete at this level if they offered something highly exclusive or far cheaper.
COMPETITOR RIVALRY There are several brands that are highly established currently in the market, such as Heinz, Organix and Cow & Gate with considerably high market share and awareness. However, as Mothercare provide expertise knowledge in all most every sector of parenthood, they provide a unique reputation to consumers. Therefore the level of competitor rivalry may be low given their excellent brand history and reputation when it comes to mother, child and baby products. They can utilise their brand loyal consumers to penetrate this market without worry of competition.
POWER OF BUYER The power of buyer in retail will always remain high, because as soon as one product enters the market, it becomes saturated quickly or there are many pricing options for it. The slightest differentiation in brand, design, quality and price can fluctuate a buyer’s opinion, therefore the buyer’s power is high. Therefore brands that provide the best pricing and nicest products in equal measure, tend to do better. This is something Mothercare will consider highly when it comes to product and pricing strategy, as it can reduce buyer power.
POWER OF SUPPLIER Given the level of suppliers, the power of supplier is very low. Due to a saturated market of suppliers, brands have opportunity to seek the best source of product for the best price. Due to no shortage in produce which contributes to the baby food market, there is still ability to hold a certain power against suppliers as there are many forms of substitute.
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killer insight “I feel it is important to keep fit and healthy during and after my pregnancy, however being a mother, I don’t find time to go the gym due to work and family commitments.
My child’s health and nutrition is essential, therefore it is important I buy my child’s food and health products from somewhere reputable and trustworthy. If Mothercare introduced something that caters for this, I would definitely be inclined to purchase.
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marketing strategies
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SMART objectives To increase UK direct internet sales by £15m per year taking them to £179.1m by December 2017. (£134.1m, 2014). To gain a network of 30,000 subscribers to Mothercare’s online fitness programme by December 2017. To increase UK store sales by £34m per year, resulting in a total revenue of £400.5m in December 2017. (£298.5m, 2014).
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future vision statement Mothercare aim to be a pioneering brand as baby and mother specialists, providing the greatest amount of diversity, value and quality in equal measure. We aim to provide exclusive ranges of products and services creating strong consumer relationships and brand loyalty while catering for all the needs of mothers and their children.
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rebranding 1961 - 1985
WHY REBRAND MOTHERCARE? Insights from primary research lead to find out that over 77% of the sample found the Mothercare logo to be boring and out-dated. However 80% of the sample found the Mothercare ‘M’ initial was still recognisable and memorable (see appendix chart 11). Respondents also said that logo was old fashioned, pointless, bland, plain and simple. It became paramount that rebranding needed to be introduced in order for Mothercare to be appealing, relevant and more established with their consumers.
1985 - 1994
The logo had to create a modern yet insightful appearance which would still represent Mothercare as a baby and child specialist whilst remaining recognisable and memorable including the ‘M’ initial. This part of the logo holds a lot of history with previous Mothercare logos and really defines the modern transformation whilst keeping roots integral.
1994 - 2009
When designing the logo, a buggy icon was implemented to represent Mothercare as a mother and child specialist which instantly creates a relation in who they are and what they offer. The pastel teal was chosen as it is appealing and unisex, which also represents the Mothercare brand colours used in previous logos.
2009 - now
new logo
Fig 8
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benefits of rebranding WHAT ARE THE BENEFITS? After applying the logo to a Mothercare store, immediately the difference is that the new logo looks fresh, inviting and applicable to what Mothercare have to offer. There are many benefits of rebranding that include creating brand awareness through the boldness of the logo and how much it stands out. The specifically chosen teal shade in colour psychology defines trustworthiness, reliability, emotional stability, balance and uplifting tranquillity. The colour’s calming and refreshing attributes create a bright and enticing look which compliments the recently re vamped stores that cater for the current target market. Overall, the benefit of rebranding is mainly to reflect a change in business operation that can lead to inviting new consumers and strengthening existing business to consumer relationships. The unique features of the logo form a distinctive brand differentiation as no other competitors provide a logo which is similar or that has a deep meaning behind it.
Fig 9
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Fig 10
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yumyums WHY INTRODUCE A BABY FOOD PRODUCT LINE? Primary research indicated that 87% would be interested and inclined to purchase baby nutrition and health product line by Mothercare (see appendix chart 10). It was essential and viable to introduce a new product line of organic baby food which will be named Yumyums. This would be exclusive to Mothercare which will extend product diversity and increase sales massively as it would be a trustworthy product from a reputable brand. An organic baby food range with no artificial colours or flavourings, mothers can trust that Yumyums is a carefully manufactured product line. Yumyums compliments what Mothercare have to offer in terms of product diversity, Baby and Body and Mothers Meet marketing strategies which will be introduced next.
AIDING SMART OBJECTIVES Over March 2013 to 2014, Mothercare saw a £6.4m increase of internet sales with their current marketing strategies and product portfolio. Introducing Yumyums and the upcoming marketing strategies, they can aid in reaching the SMART objective “to increase UK direct internet sales by £15m per year taking them to £179.1m by December 2017” from £134.1m. The SMART objective “to increase UK store sales by £34m per year, resulting in a total revenue of £400.5m in December 2017” can be achieved as Yumyums will be retailed online and in store. As 2014 UK store sales decreased by £42m since 2013, Yumyums and the upcoming strategies will aid in restoring and surpassing these figures over a 3 year period through strong and effective communication. Free small tasters and samples will also be provided throughout the upcoming marketing strategies, in store and sent with online orders to increase awareness leading to a great path in growing sales.
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UK baby food market REASONS TO INTRODUCE A BABY FOOD RANGE
“The value of the baby food, drink and milk market reached an estimated £653 million in 2013, representing a solid growth of 42% since 2008.” Source: Mintel 2014
“7 in 10 parents whose youngest child is 6-12 months old use manufactured baby food.”
Source: Mintel 2014
“A positive sign for demand of baby food and drink going forward is that the number of births in the UK is anticipated to rise each year between 2013 and 2018. A total increase of 10% in the population of 0-2-year-olds is forecast over the period.” Source: Mintel 2014
UP TO DATE MARKET SHARES OF FUTURE BABY FOOD RETAIL COMPETITORS
Fig 11 Source: Mintel 2014
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UP TO DATE MARKET SHARES OF FUTURE BABY FOOD BRAND COMPETITORS
Fig 12 Source: Mintel 2014
POPULATION FORECASTS UNTIL 2018
Fig 13 Source: Mintel 2014
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baby & body
WHAT IS THE STRATEGY? Mothercare will implement an online fitness subscription that will cost consumers £10 a month, which will be a rolling contract meaning consumers can cancel at any time providing flexibility. Baby and Body would be the name of the programme which will offer new weekly work out videos and live fitness chat options. It will offer videos on how to exercise and keep in shape along with various levels of exercise and comfort levels suited for beginners and advanced. Along with baby yoga tutorials allowing mothers to bond with their baby whilst keeping active and healthy themselves. It will provide subscribers with nutritional meal plans and recipes along with the feature of it being compatible on any smart phone, tablet and PC. Upon sign up, the programme will offer a 10% off Mothercare online or in store voucher OR a free 30 day trial of the online fitness programme to create instant awareness upon implementing the strategy – consumers can choose which one they prefer.
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LOGO FOR ONLINE FITNESS PROGRAMME
Fig 14
PURPOSE OF STRATEGY In primary research it was evident that 90% of the women said staying fit is important during and after pregnancy, however 70% stated they don’t find time to go the gym (see appendix charts 8 & 9). Therefore, Baby and Body will cater for this issue ensuring that expectant mothers and after birth mothers are getting the essential support they would need for a boost of confidence with weight loss or simply maintaining a fit and healthy lifestyle. The name of the online fitness strategy ‘Baby and Body’ is extremely well suited to the purpose of this strategy as this is who the programme will be aimed at, pre and post pregnant women and babies. This programme tackles the issue of mothers not finding time for the gym, as they can partake workouts in their own time and comfort of their own home. This marketing strategy is unique, as no other close competitor provides any service that is similar which gives Mothercare a unique selling point. Another key purpose of this strategy is utilising this fitness programme as a marketing tool to promote Mothercare’s new baby food product line that will generate awareness therefore strategy will complement the strength and growth of other key strategies.
GOALS While helping mothers to maintain a fit and healthy lifestyle, the ultimate goal is to increase consumer network and revenue which will aid in achieving the SMART objectives. One SMART objective is to gain a network of 30,000 subscribers to Mothercare’s online fitness by December 2017. With the correct communication strategies, this number can be reached. Gaining 30,000 subscribers that pay £10 per month over 3 years will amount to £3,600,000 profit. Furthermore, the effect of this strategy will encourage in store and online sales due to brand loyalty which will be created through the intangible connection formed between Mothercare and the subscribers.
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mothers meet WHAT IS THE STRATEGY? The fourth marketing strategy is ‘Mothers Meet’ hosted by Mothercare. Mothers Meet is the name of the strategy that will encourage the nature of this club, it will be for mothers and children aged 0-3 years. This is a mother and child socialising club, which will take place twice a month in local community centres and church halls over the UK. The reasons why these locations are most suitable are because they’re locally available during weekdays where mothers will have time during the day while partners could be at work and older children at school. The locality of community centres and church halls will be a great cost effective and time efficient way for consumers to join the club, allowing them to attend with friends and families, who also may be expecting or have babies. Mothers Meet will be exclusively accessible to Baby and Body subscribers only. This club will include the following: talks about the online fitness programme, mother to mother interaction, discussions about progress and socialise, how to bond with their baby, puppet shows, glowing bouncy balls, lights, songs, musical rainbows and much more relevant fun activities.
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“
Retailers need a USP to stand out in such a competitive market and as Mothercare can’t compete on price it needs to focus on excelling in customer service. Mothercare has staff expertise but hasn’t used it enough. New parents want advice, they don’t go to a store just to buy, they want interaction.
”
Source: Mintel 2014
PURPOSE OF STRATEGY The aim of this club is to create mother-to-mother interaction, giving them an opportunity to talk about their experience of motherhood and fitness progress. The meet will include various interactive mother and child activities which will aid in baby and child development. The benefits of this strategy are to create awareness between Mothercare consumers and a lot of word of mouth advertisement. Mothercare will infuse positivity and interaction between their consumer bases, creating mass awareness, which can create many future sales and brand loyalty. As well as generate in store and online growth the Mothers Meet club will create a buzz between current and future consumers. Another key purpose of this strategy is to form positive relationships between the brand and the consumer, forming an intangible connection by catering for the needs and demands of a mother through out of store services as well as products.
GOALS Forming a brand image of baby and mother specialist that not only provide products but attend to the complete and full reality of parenthood, through providing external services such as the Mother’s Meet club. The goal of this is to project to the consumer that Mothercare go beyond the consumer’s expectations and what other competitors provide. To project the dedication of Mothercare to providing an unexampled customer service that will benefit and aid every mother throughout all stages of pregnancy and raising their child, which will result in forming a strong relationship and brand loyalty with exclusive services. A key goal of this strategy is to create a popular service which becomes regularly used, which Mothercare can then use as a promotional tool to increase the awareness of the Mothercare baby food range. Allowing attendees to try out free baby food products, which is an exclusive benefit for attending.
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communication plan The following forms of advertising methods were found most effective during primary research with the sample of Mothercare’s target consumer (see appendix chart 13). Therefore Mothercare will utilise this insight to communication the brands marketing strategy through the most powerful forms of advertising that will leave an unforgettable effect on the consumer.
FREEBIES - TASTY INCENTIVES To communicate Mothercare’s Yumyums strategy to consumers, the brand will provide free tasters in store, at Mothers Meet clubs and sent with any purchase made online. The purpose of these product incentives are to create a wide spread awareness and work as a communication hook to create a customer base to acquire many mothers to try the products cost free. It also forms positive brand association as freebies work as an attracting form of generating future sales as well as creating word of mouth advertising between consumers.
THROUGHOUT ONLINE FITNESS PROGRAMME Yumyums will be communicated through other new key elements of the marketing plan, allowing strategies to complement each other in growth. Yumyums will be advertised strongly through the new online fitness programme before videos start, as it will be a subscription that Mothers will be targeted to use daily, thus a strong foot fall of viewers. This is to create a nutritional awareness to those mothers who are also seeking to be healthy, which can influence Yumyums product sales to increase through online communication. Self-advertising also can work out to be cost effective, which increases profitability.
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YUMYUMS & BABY AND BODY PREGNANCY, BABY & CHILD MAGAZINES During pregnancy mothers aim to seek the best advice to ensure their maternal experience and knowledge is up to date. Therefore Yumyums and the Baby and Body fitness programme will be published in well-established UK magazines such as ‘Gurgle’ which is Mothercare’s own magazine, ‘Mother and Baby’, ‘Prima Baby and Pregnancy’, ‘Pregnancy and Birth’ and ‘Parenting’ magazines. This will open the Yumyums product range and the Mothercare fitness programme to a national mother’s awareness creating an immediate and thought provoking buzz as it is something that is completely new and exclusive to a reputable and trustworthy brand, Mothercare.
SOCIAL MEDIA AND MOTHERCARE TV ON YOUTUBE Social media and YouTube advertising has seen huge developments, and due to its large network reach, its effectiveness can be extremely cost effective, but result in generating a titanic amount of new product and brand awareness. These two methods will be utilised for Baby and Body and Yumyums because the majority of followers on Mothercare’s social media and YouTube are highly likely to be mothers therefore this is an essential communication tool which can provide clear and concise information and promotion for free. With over 300,000 views on Mothercare TV videos and over 16000 subscribers, the network reach is vast. As this is cost effective it will be utilised daily to connect with consumers internationally.
TV Television adverts are a dynamic advertising tool to a mass population as views can reach up to as much as 12.3 million in the UK at certain times (source: ITV sample spot costs). Consumers can relate to audio and video content emotionally and understand clearly the message a brand is delivering. Mothercare will promote both strategies, Baby and Body and Yumyums twice a week on a popular home and family channel such as BBC or ITV. This will create a high awareness in a short amount of time of 30 seconds that will create a quick and effective means of communication. These adverts will be aired during the evening time when families are more prone to be at home watching a TV show together after work and dinner.
LEAFLETS, POSTERS AND BILLBOARDS Baby and Body and Yumyums will also be communicated to consumers heavily in store via leaflets and posters. Leaflets will be handed out at till points and throughout the store as well as be sent with online orders to consumers. Posters will be placed around the store to inform current consumers of the new and exciting releases. When a consumer walks into Mothercare they are likely to be influenced by maternal and child related advertisements that are quick and informative as they are in store to purchase products which equally relate to this category of goods. Mothercare billboards in populated cities will furthermore generate strategy communication as they are large and bold statements that show brand power which can boost future sales. 54
conclusion As Mothercare aim to be a pioneering brand as baby and mother specialists, these marketing strategies can push them in the direction of a prosper future whilst providing exclusive products and services creating strong consumer relationships and brand loyalty with consumers. Creating intangible connections with new and existing consumers, Mothercare will always cater for all the growing demands and needs of mothers and their children.
To increase UK direct internet sales by £15m per year taking them to £179.1m by December 2017. (£134.1m, 2014). To gain a network of 30,000 subscribers to Mothercare’s online fitness programme by December 2017. To increase UK store sales by £34m per year, resulting in a total revenue of £400.5m in December 2017. (£298.5m, 2014). The SMART objectives above will be achieved via the following marketing strategies: Rebrand Mothercare logo to become more appealing, modern, bright and relevant to what they retail in order to increase sales and connect with consumers. Introducing Baby & Body online fitness programme to increase the diversity of Mothercare services and make the brand more unique against competitors. Host Mothers Meet club to go beyond the consumer’s expectations and what other competitors provide. This will give Mothercare the exclusivity they need whilst increasing brand awareness. Launch a baby food product line to extend product diversity, increase sales and gain new consumers.
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budget Budget is based on 7.5% Mothercare’s 2014 company profit of £45.3m (as shown on fig 5, page 14 of this report). This allows the budget to be a total of £3,397,500. COMMUNICATION TOOL
COMMUNICATION DESCRIPTION
COST (£)
Magazine publishing
4 different magazines x 12 insertions that are full colour page means change can be made per month per magazine (1 year) £1155 x 48 = £55,440
£55,440
TV advertising
Two 30 second adverts per week (evenings during soap show intervals). £24,667 x 2 adverts x 52 weeks = £2,565,368 £150,000 additional production costs and advert changes
£2,715,368
Leaflets for online orders
Leaflets for warehouse over 9 months = 300,000 leaflets. 30 packs of 10,000 leaflets = £2227.80 (£74.26 per 10,000)
Leaflets for in store
189 stores in UK x 9000 leaflets per store for 9 months = 1.7 million leaflets 171 packs of 1000 leaflets = £12698.46 (£74.26 per 10,000)
£12698.46
In store posters
189 stores in UK x 45 A2 posters per store = 8505 posters 17 packs of 500 leaflets = £22,950 (£1350 per pack of 500)
£22,950
£2227.80
45 posters per store includes 5 posters per monthly change
Billboards
Billboards 15 main cities x 4 weeks per billboard = £13,800 120 billboard prints @ £157 each = £28260
TOTAL COMMUNICATION COST inc VAT
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£42,060 £2,850,744.26
BUDGET ALLOWANCE
£3,397,500
BUDGET REMAINING
£546,755.74
timeline 2015 STRATEGY/COMMUNICATION
3
6
2016
9
12
3
6
9
2017 12
Rebrand Mothercare logo Launch Yumyums range online and in store Yumyums free tasters provided in store, with online orders and at Mothers Meet
COMMUNICATION
Launch Baby & Body online Promote Yumyums through Baby & Body
COMMUNICATION
Launch Mothers Meet to Baby & Body subscribers Publish Yumyums, Baby & Body and Mothers Meet in established magazines
COMMUNICATION
Social media advertising and on Mothercare’s Youtube channel
COMMUNICATION
TV advertising for Yumyums and Baby & Body Leaflets in store, sent with online orders and in store posters
COMMUNICATION COMMUNICATION
COMMUNICATION
Billboard advertising
2015
2016
58
2017
3
6
9
12
Chart 1
appendix Chart 2
Chart 3
Chart 4
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Chart 5
Chart 6
Chart 7
60
Chart 8
Chart 9
Chart 10
61
Chart 11
Chart 12
62
Chart 13
Chart 14
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Lastly, what are your thoughts on Mothercare, please describe in a few words: 1. Really like it 2. Shop there for my children 3. Tidy and neat store Chart 15 4. Doesn’t appeal to me 5. Boring if I’m honest 6. Don’t go regularly 7. Happy regular customer 8. Lovely store 9. Logo is SO old fashioned!!! 10. Pricier than some but worth it 11. I love it 12. The logo is really pointless 13. Wouldn’t say it’s the most popular 14. I buy all my baby products from Mothercare 15. Doesn’t stand out like other stores 16. Can’t relate to it 17. Should advertise more 18. Logo is really bland! 19. Mothercare value range is really good 20. Fantastic app boring logo 21. Seems to be stuck in the background 30. Health and nutrition is a great idea 22. Noticed things are cheaper 31. Store layouts are well organised 23. Staff are always helpful 24. It’s nice, I can find everything in there 32. Not fashionable 33. I love the app, it is really informative 25. The app is so convenient 34. Logo is plain and simple 26. Went there first time, impressive. 35. Never noticed any adverts 27. Dedicated to babies, great for me 36. Colourful clothing for children 28. Easy to find things in store 37. Children should relate to the logo 29. Mothercare seems lost 38. Hate the bags, they look really old fashioned 39. Mothercare is knowledgeable 40. Pregnancy styles are old fashioned 41. Really understand what I need 42. Why is the logo navy? 43. Great products great prices 44. High quality at affordable prices 45. Wish they would do something interesting 46. Never shopped there because it’s too expensive 47. Don’t like clothing styles 48. Cool brand 49. Loads of products for my baby 50. Prefer cheaper alternatives 51. They need something new going on 52. Decent for children 53. Logo should be brighter if it’s a children’s brand 54. Affordable but bland stores 55. Nothing fun or exciting about it 56. My favourite store! 57. It seems like a store for older women 58. Nutrition range would be really interesting 59. Bog standard to me. 60. Used to shop there, stopped appealing to me 64
BIBLIOGRAPHY WEBSITE SOURCES Retail Week [Chapman, M] [23rd September 2014] http://www.retail-week.com/companies/mothercare/analysis-the-six-key-elements-of-mothercares-strategic-plan/5064471.article [Accessed January 2nd 2015] Mothercare [Unknown Author] [January 2015] http://www.mothercareplc.com/download/Annual_Report2014.pdf [Accessed January 6th 2015] Mintel [Unknown Author] [February 2014] http://academic.mintel.com/display/710644/ [Accessed January 2nd 2015] Mintel [Unknown Author] [Unknown date] http://academic.mintel.com/display/699705/?highlight [Accessed January 3rd 2015] Mintel [Unknown Author] [April 2014] http://academic.mintel.com/display/679836/ [Accessed January 3rd 2015] Mintel [Unknown Author] [22nd January 2014] http://academic.mintel.com/display/693609/?highlight [Accessed January 4th 2015] Mintel [Unknown Author] [6th October 2014] http://academic.mintel.com/display/718620/?highlight [Accessed January 4th 2015]
BOOKS EASEY, M. [2009] Fashion Marketing, 3rd Edition. John Wiley & Sons, UK. LEA GREENWOOD, G. [2013] Fashion Marketing Communications. Wiley, UK KOTLER, P & ARMSTRONG, G. [2011] Principles of Marketing. Pearson Education. EVANS, M, FOXALL, G & JAMAL, A. [2009] Consumer Behaviour, John Wiley & Sons, UK. SOLOMON, M R & RABOLT, N J. [2003] Consumer Behaviour in Fashion. Prentice Hall. JOURNALS O’REILLY, D & DODDY, K. [2009] The Influence of Product Displays on Consumer Behaviour in The Fashion Industry [Online] Available at: http://gse.publisher.ingentaconnect.com/content/apbj/ fmt/2009/00000004/00000001/art00015;jsessionid=20e6sbl9cs7w8.alexandra VIGNALI, G & VIGNALI C. [2009] The PEST Analysis. [Online] Available at: http://gse.publisher. ingentaconnect.com/content/apbj/fmt/2009/00000004/00000001/art00011;jsessionid=20e6sbl9cs7w8.alexandra
CITATIONS “Mothercare purchased Early Learning Centre for £85million in April 2007” Mothercare. [Wikipedia, 2014] Available at: http://en.wikipedia.org/wiki/Mothercare “In 2007 Mothercare launched Gurgle, a pregnancy and parenting social networking website.” Mothercare. [Wikipedia, 2014] Available at: http://en.wikipedia.org/wiki/Mothercare “To meet the needs and aspirations of parents for their children, worldwide.” [Mothercare Annual Report, 2014] Available at: http://www.mothercareplc.com/download/Annual_Report2014.pdf
“We aim to be the world’s leading mother and baby specialist, making life easier for families over the world by offering our customers value, choice, service and delivery both in store and online.” [Mothercare Annual Report, 2014] Available at: http://www.mothercareplc.com/download/Annual_Report2014.pdf
“The value of the baby food, drink and milk market reached an estimated £653 million in 2013, representing a solid growth of 42% since 2008.” Baby Food and Drink - UK [Mintel] [April 2014] Available at: http://academic.mintel.com/display/679836/ “7 in 10 parents whose youngest child is 6-12 months old use manufactured baby food.” Baby Food and Drink - UK [Mintel] [April 2014] Available at: http://academic.mintel.com/display/679836/ “A positive sign for demand of baby food and drink going forward is that the number of births in the UK is anticipated to rise each year between 2013 and 2018. A total increase of 10% in the population of 0-2-year-olds is forecast over the period.” Baby Food and Drink - UK [Mintel] [April 2014] Available at: http://academic.mintel.com/display/679836/ “Retailers need a USP to stand out in such a competitive market and as Mothercare can’t compete on price it needs to focus on excelling in customer service. Mothercare has staff expertise but hasn’t used it enough. New parents want advice, they don’t go to a store just to buy, they want interaction.” Mothercare UK like-for-likes edge up over Christmas [Mintel] [15/01/2015] Available at: http:// academic.mintel.com/sinatra/oxygen_academic/display/id=727381?highlight THE FOLLOWING CITATION HAS BEEN REFERENCED FROM EXECUTIVE SUMMARY “You can buy Mothercare-type products elsewhere, so why go to Mothercare, they’re a specialist retailer that’s not specialist anymore” [Siddiqi, I] [24/02/2014] Can Mothercare be reborn? Available at: http://www.bbc.co.uk/news/business-26324991
references Fig 1. Mothercare plc Annual report and accounts 2014. [Mothercare] [2014] Available at: http://www.mothercareplc.com/download/ Annual_Report2014.pdf [Accessed on 9/01/2015]
Fig 2. Mothercare plc Annual report and accounts 2014. [Mothercare] [2014] Available at: http://www.mothercareplc.com/ download/Annual_Report2014.pdf [Accessed on 9/01/2015]
Fig 3. Mothercare plc Annual report and accounts 2014. [Mothercare] [2014] Available at: http://www.mothercareplc.com/ download/Annual_Report2014.pdf [Accessed on 9/01/2015]
Fig 4 Mothercare plc Annual report and accounts 2014. [Mothercare] [2014] Available at: http://www.mothercareplc.com/ download/Annual_Report2014.pdf [Accessed on 10/01/2015]
Fig 5. Mothercare plc Annual report and accounts 2014. [Mothercare] [2014] Available at: http://www.mothercareplc.com/download/Annual_Report2014.pdf [Accessed on 11/01/2015]
Fig 6. All change in the baby equipment sector [Mintel] [23/07/2014] Availble at: http://academic.mintel. com/display/710644/ [Accessed on 07/01/2015]
£44.99 £43.99
Graco Junior Maxi Car Seat Prices do not include discounts.
High Price
£43.00 £42.99
Fig 7. KHATKAR, N. Created on 13/1/2015.
£39.99 £39.95 £35.00 £29.99 £24.99
Low Price
Fig 8. KHATKAR, N. Created on 15/1/2015.
Fig 9. KHATKAR, N. Created on 15/1/2015.
Fig 10. KHATKAR, N. Created on 16/1/2015.
UP TO DATE MARKET SHARES OF FUTURE BABY FOOD RETAIL COMPETITORS
Fig 11 Source: Mintel 2014
Fig 11. Food and Drink Retailing - UK [Mintel] [2014] Available at: http://academic.mintel.com/display/699705/?highlight [Accessed on 17/01/2015]
Fig 12. Baby Food and Drink - UK - [Mintel] [April 2014] Available at: http://academic.mintel.com/display/679836/ [Accessed on 18/01/2015]
Fig 13. Baby Food and Drink - UK - [Mintel] [April 2014] Available at: http://academic.mintel.com/display/679836/ [Accessed on 18/01/2015]
Fig 14. KHATKAR, N. Created on 20/1/2015.
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