Marketing Plan for a Brand in Trouble: B and Q International - Assignment Example

MARKETING PLAN FOR A BRAND IN TROUBLE: B & Q International Background Information and Marketing Audit of B&Q International B&Q is a British retailer of DIY and home improvement tools and supplies which was founded in 1969 in Southampton by Richard Block and David Quayle. The store, which was originally called Block & Quayle, was later on shortened to B&Q. This first store soon spawned others across the UK. By 1979, there were twenty six outlets. By this time, the first of the co-founders had left the business: Block left in 1976 and Quayle in 1982. B&Q grew rapidly during this time through a combination of mergers, acquisitions and expansions. In 1980, B&Q bought the Scottish company Dodge City, and was itself acquired by FW Woolworth. FW Woolworth's UK subsidiary (Woolworths Ltd.) and B&Q were bought two years later by Paternoster, who are now known as Kingfisher PLC and are still B&Q's parent company. Since being bought out by Kingfisher, employees of B&Q have enjoyed a 20% discount on all products. Mid 1990's saw B&Q open a new format of store known as the B&Q Depot. This was a forerunner of a new class of store known as the B&Q Warehouse. Beckton, Enfield and Romford were amongst the first of the new Warehouse class stores to open (United Kingdom: Case Study: B&Q Direct, 2003). In the late 1990s, B&Q became active in the rest of Europe and the rest of the world. It co-operated in 1995 with parent company Kingfisher PLC to open its first overseas subsidiary in Taiwan, and in 1996 the first overseas large home improvement center in Taoyuan City, Taiwan. In 1998, it acquired NOMI, Poland's leading chain of DIY stores. Later that year, B&Q merged with France's Castorama. In 1999 B&Q opened a store in Shanghai, China and acquired the British hardware mail-order company, Screwfix. By the year 2000, B&Q had fifty of its larger Warehouse stores. This had doubled by 2003. B&Q's Direct's online transactional website, www.DIY.com, was launched in January 2001. By March 2003, it had become one of the largest stores in B&Q and its continued rapid growth will soon make it the biggest store in the group. The site sells a range of 14,000 products and is already the number one store for many heavy and bulky items and many other smaller product ranges (United Kingdom: Case Study: B&Q Direct, 2003). As well as generating considerable revenues of its own, DIY.com is part of a wider, multi-channel retail strategy that includes call centres and catalogues. All channels feed each other. For instance, 10% of those that shop in-store have researched their purchases online. A critical component in the overall success of DIY.com and the B&Q Direct call centres is their ability to process credit and debit cards efficiently and to restrict the level of card fraud. In September 2002, B&Q Direct appointed DataCash, a leading UK-based provider of outsourced payment processing and fraud prevention solutions, to handle the credit and debit card processing for both DIY.com and all its call centres (U.K. Retail Sales Plunge Most in at Least 10 Years: Update3, 2006). Before DataCash was appointed, B&Q had used a software solution provided by a US-based company to handle its card processing. B&Q had two key issues with this solution, one technical and one business, which led them to look for a new supplier (United Kingdom: Case Study: B&Q Direct, 2003). Based on the discussion, "MarketVVizard's Market Thoughts" (2005), European economies U.K. retail sales plunge most in 10 Years. Shares of companies including Plc and Kingfisher Plc declined in London after the British Retail Consortium said sales in stores open at least a year dropped 4.7 percent from a year ago, the biggest decline since comparable figures began in 1995. Domestic demand is clearly slowing a lot quicker than was anticipated even a month ago,'' said Peter Dixon, an economist at Commerzbank AG in London. After an unprecedented run of strength it's time for consumers to stop, regroup, and think about getting their finances back in order.'' British factory production fell in March, jobless claims rose and government figures showed house prices rising at the slowest pace in three years in the first quarter. Consumer spending, underpinned by rising home values, fueled 51 quarters of growth in the U.K. Kingfisher, whose B&Q stores make up Britain's biggest home-improvement chain, on joined retailers to report declining sales. The FTSE 350 General Retail Index has shed 11 percent this year, making it the third-worst performer among 34 industry groups (U.K. Retail Sales Plunge Most in at Least 10 Years: Update3, 2006). As of February 2006, B&Q in the UK had 329 stores and employed over 38,000 people. As of 2004, it is the largest DIY retailer in Europe and the third largest in the world. It is a subsidiary of the retail group Kingfisher PLC, which is listed on the London Stock Exchange. Its 2004-2005 turnover was 4.1 billion, and profit 400.5 million. B&Q advertises under the slogan "You can do it when you B&Q it". B&Q sponsored Ellen MacArthur's round the world sailing success in trimaran B&Q. As of 2004, it is the largest DIY retailer in Europe and the third largest in the world. It is a subsidiary of the retail group Kingfisher PLC, which is listed on the London Stock Exchange. B&Q has recently been going through very turbulent times and has had a change of CEO. Ian Cheshire, the new CEO has embarked on a store closure programme and a downsizing of 16 of the less profitable warehouse stores. At the same time 400 staff were made redundant at the head office, or the Store Support Office as it is known within B&Q. The company has launched a new strategy under the title of 4-3-3. New store formats are also being experimented with.Brand B & Q is experiencing a down turn in sales (MarketVVizard's Market Thoughts, 2005). Based on the September 13, 2005 edition of the Home Channel News, "B&Q may close more than 20 stores". According to the Sunday Telegraph newspaper, Kingfisher has cited week home channel market as the reason behind sales slipping in 2005. The company may announce the closings when it reports its interim results for the second quarter on September 15, 2005. Sources told the Sunday Telegraph the stores that might be closed include 16 smaller supercentres and six warehouse stores. The result could be as many as 1,400 job losses. B&Q operates 335 stores in three formats including supercentres, mini-warehouses and warehouses. Kingfisher revealed that 400 jobs would be cut from B&Q's Southampton headquarters. The division reported a 7.7 percent decline in like-for-like sales during the first quarter of 2005. Overall, Kingfisher operates more than 550 stores in 10 European and Asian nations including France, Poland, China, Taiwan and South Korea (B&Q may close more than 20 stores, 2005). Pestle Analysis of B&Q International The PESTLE analysis has been developed by the industry to define the work priorities within an organisation (The Pestle Analysis as a Method of Prioritizing the Agency's Research Portfolio, 2001).The B&Q will adopt this analytical approach to identify the marketing priorities of the B&Q. B&Q will also bring their own expertise to this exercise and the use of the PESTLE approach should only be considered as an aid bringing a consistent approach to defining the marketing plan of this company. Below is the Pestle Analysis of the B&Q: Political Lately, the government has effort on working with its stakeholders to design and fund strategic market linkage initiatives specifically focussed on indigenous, small landowner and small business operations. Major demand centers like B&Q, appear to be supportive of such an effort. B&Q find the need for its market to develop or support this. B&Q's marketing strategy is pushing market in the direction of improving its own market, at the same time, assisting small players. These are the developments in the political environment, in addition to internal political pressures driving the market theme of B&Q. Its own marketing strategies help the B&Q to improve consumer satisfaction. The marketing strategies chosen by this company achieve or fit in with B&Q's objectives. The marketing strategies improve quality of products and benefit the B&Q's policies on consumers. The results of the work are likely to be applied to future policy initiatives. Economic The risk of not doing marketing work in B&Q is that in the absence of marketing activities, their competitive power will decrease. As a marketing strategy, the B&Q is currently critically evaluating their brand portfolios. The cost of the work is proportionate to the likely return. After critical evaluation, the B&Q learned that risks of doing the work. Increasing the number of brands in the company's portfolio will result to the larger the number of brands in the company's portfolio, the greater the overlap of brands on target segments, positioning, price, distribution channels, and product lines. The overlapping results in cannibalization of sales and duplication of effort. If managed poorly, many of the brands in the portfolio may end up competing with each other rather than with the brands of competitors. A larger brand portfolio means lower sales volumes for the individual brands as the total market divides among them. Without scale economies in product development, supply chain, and marketing, firms cannot support each brand at competitive levels. Marginal brands end up consuming a disproportionate amount of a company's time and resources, and exacerbate tensions between the narrowly focused brand and country managers. All of these are what the B&Q is avoiding, as much as possible. Societal The B&Q's marketing strategies make changes to the lives of a particular section of the society, the disadvantaged consumer. B&Q is trying to create a brand that is recognised for its customer service - and their current ad campaign which is based around there 'human' customner led approach (Developing Modern Brands is all about Sociability - but that doesn't scale well in the offline, August 23, 2005). The marketing strategies make a difference to the way individuals react to marketing messages. The marketing strategies reduce uncertainties in the risk assessment. Technological An interview wint David Roth, marketing director of B&Q was conducted by Elen Lewis. Lewis (2006) discovers the DIY retailer wants to 'do it all' more stylishly by broadening its product range to appeal to the public's burgeoning taste for home design The work of broadening the product range of B&Q is not very feasible in its current state. There are likely to be changes in knowledge that will mean the work could take place. The scientific background to carrying out the B&Q marketing strategies is that positioning, prospects, sales channels and marketing methods may vary from product to product (Defining Your Marketing Strategy, 1997). The marketing strategies fit for the purpose to which they are being put. Citing B&Q China general manager Mark Ladham, Xinhua said the company will adjust its marketing strategy to attach greater importance to 'soft decoration', such as furniture (UK's B&Q aims to open 100 chain stores in China by end 2010 - Xinhua, February 22, 2006). The data generated will be of suitable analytical quality to generate policy options. Legal There are legislative implications to the work. Despite boosting market efforts by B&Q, it is still experiencing a down period in the recent years. This company is quite affected by the US trade deficit with China, which is of major concern because it has contributed to both the erosion of US manufacturing jobs and the current "jobless recovery". The U.S. Congress prepared legislative measures that will direct the administration to take action - through the WTO or otherwise - to combat China's exchange rate practices" (USCC Calls for "Course Correction" in US-China Relations, July 1, 2004). In the part of B&Q, there is no legal requirement to carry out the marketing work. Environmental There are there likely to be environmental implications of carrying out marketing work of B&Q. This company, B&Q is giving support to Corporate Social Responsibility (CSR)'s movement in persuading SMEs to meet a global minimum threshold of environmental emissions. CSR can have a negative impact if it is 'imposed' upon small companies in developing countries. It can increase costs, and make it difficult for the smallest companies to compete. B&Q, in its effort to assist their SMEs marketing cooperators, for instance, provides a 'phased' approach to requirements. It has a set of minimum policies - covering certain points of non-negotiable standards such as not employing child or forced labour. Then it has a set of further standards that suppliers are required to meet within two years, and which the company will support them in meeting. There are additional aspirational standards which are open-ended, and which may engage the supplier in a process of continuous improvement Baker, 2004). Currently, the priority marketing strategy theme of B&Q is to continuously create brands that are recognised for its customer service, 'human' customner led approach (Developing Modern Brands is all about Sociability - but that doesn't scale well in the offline, August 23, 2005). SWOT Analysis of B&Q International Utilizing the data gathered in the marketing audit, SWOT Analysis was conducted. Strengths of B&Q: 1. working with a specialist partners, Xansa and Akamai (specialist marketing expert), to integrate B&Q's existing solutions with wider retail technology projects and initiatives in order to achieve multi-channel marketing and to merge their online and in-store operations 2. CIBER Novasoft was selected by B&Q International as prime implementation partner for SAP Retail at B&Q's operations in China. 3. strategic location of the business around the globe 4. with quality processes and procedures 5. has innovative product or service Weakness of B&Q: a. undifferentiated products or services (i.e. in relation to B&Q's competitors) Opportunities of B&Q: 1. has a developing market such as the Internet 2. B&Q has entered into mergers, joint ventures and strategic alliances 3. currently moving into new market segments that offer improved profits 4. has international market 5. has market vacated by some ineffective competitor Threats of B&Q: a. DC Brands International is the new competitor in the B&Q's home market. b. Price wars with competitors - Increasing competition between DIY stores has driven B&Q into a sales decline for the first time in more than two years (Times Online, 2005). c. a competitor, Home Depot opened a new computer data center in Austin, Texas, that will serve as a backup to headquarters systems. It also made several acquisitions, including Litemor, a lighting distributor in Canada, and Grand Floor Design, a flooring installation company with 11 locations in Northern California and Nevada. It also said it planned to buy Landmark Interiors, a design center in Phoenix. d. Taxation is introduced on product or service. Elsewhere, revenue growth slowed as demand in Poland weakened after a rise in the value-added tax rate when the country joined the European Union on May 1, 2004. Marketing Planning of B&Q International Corporate planning or strategic company planning comprises the following sequential steps: (1) Mission statement or defining the B&Qcompany mission has an influence on all planning throughout the organization, for it is a statement of the company's overall business philosophy. It is normally a set of guidelines, rather than something that is stated in hard and fast quantitative terms. B&Q's commitment to developing its diversity policy is framed in its corporate vision statement: "We want to be a great company that can be trusted to respect the quality of life of all the people and communities we touch." The Christmas 2002 launch of two own-label products in the B&Q power tools range, which include the needs of older users and those with reduced grip, reflects this commitment. (2) Situational analysis means evaluating external and internal factors that will affect the planning process and asks the question 'Where are we now This means researching and analyzing all information that might have a bearing on the organization and its operations, from internal factors like individual departmental company resources, to external factors like current political events that might impinge on the activities of the company. (3) Setting of organizational objectives requires company management to put forward guidance as to how the company should fulfill its mission and this clarifies where the company wants to be. These, unlike the mission statement, should be expressed in achievable quantitative terms. (4) Choose strategies to achieve these objectives which are the concrete ideas that set about achieving company objectives and they relate to how the mission will be accomplished. Strategies on how to improve the following will be developed: product, price, place, promotion, people, budget and constraints and limitations. According to Leventhal (2005), in these times of constantly shrinking budgets and increased competition, a market-driven strategy allows a company to truly understand its market and the customers that are the basis for this market. This effort allows for a more effective integration of all activities that may impact customer value, which in turn affects both return-on-investment and profitability. This e-book takes a look at how blue chip organizations have implemented differing, yet effective marketing strategies (Leventhal, 2005). Marketing Plan of B&Q International Findings from a marketing audit which have been undertaken were demonstrated below. The following marketing plan for recommendations for B&Q which would help bring about a a sound marketing plan and create trust and commitment with current customers and establish new ones through increase awareness. Constraints and limitations to the project will be identified and the potential costing and timing of the plan given. 1. Product The product range offered by B&Q needs to be expanded in order to keep the customers satisfied. Research indicated a lack of range and depth. The following improvements are suggested. DIY products- An increase in the range and number of DIY products should be taken, the selection of these products should be done in accordance with the modern trends and fashions so therefore it is recommended that purchasing a modern books by someone with a good reputation, so therefore the company will get products which there will be some demand for, a common trend is high demand for products.. Home improvement ant products - Increase in home improvement products will be used as an outdoor room requires sold. These will be in the form of a modest selection of BBQ's,. These will allow the purchasing officer to new place to buy the items they need in accordance with the B&Q quality structure. A supplier can be found for these in current trade circles which B&Q use. Credit card facilities should be accepted. As they bare a cost (the reason they have no been introduced to date) there could be a small transactional cost of approximately 1.50 to cover the fees, or a minimum amount of a 25 purchase would mean cards are only accepted when sufficient products have been sold. Feedback and complaint procedures should be introduced, this will enable the views and opinions of all customers to be voiced, as well as negative experiences to come to the attention of the company so they can modify the service to make the negative experiences a positive one. This procedure will help to solve any potential problems that a customer may face with the company and hopefully increase there trust of the company as they know there is commitment from Greenheart to a continual improvement of service. Plants which carry a high purchase cost can be guaranteed to last 5 years as a minimum if they are a hardy plant which a customer would expect to last a long time, this way if the customer suffers a loss of plant , they will get a replacement, a very good public relations tool. 2. Price This study has identified that B&Q have a very good pricing policy, they are dramatically cheaper than competitors and provide fantastic value considering the high quality of the products. They are able to do this because they have no facilities which have high running expenses and as I believe these are not needed to introduce a relationship strategy on a small budget I for see no changed needing to be made to the pricing system at the centre. 3. Place Although the distribution strategy is minimal and the place is limited to just the centre, I do not believe any changes would benefit the centre other than the before mentioned addition of labels on all plants sold which will increase brand awareness on those people who buy goods from B&Q's suppliers. In future expansion maybe required to meet demand but for the present future I believe that the distribution strategy can be mainly left as it is. Changing the strategy is mainly to costly for the company at the present time. 4. Promotion With regard to promotion Greenheart should implement many changes to their strategy; A customer loyalty scheme should be introduced with something similar to the following approach which will be discussed. One named card is given to a customer when they purchase 10 worth of goods, which is stamped thereafter the next 9 times they spend 10 in the shop when the card is full it can be redeemed in return for a 5 free voucher which can be spent on any purchase in store. This equates to a 5% discount on 100 of purchases which is not a significant loss but will create return purchases and customer satisfaction by receiving a perceived "freebie". Loyalty programs are an important part of any long-term relationship approach. Direct mail in the form of leaflet dropping in the local Stafford area should be carried out, with a promotion attached for the new customers to redeem, depending on its success, this approach can be expanded to the whole of Stafford; The leaflet should contain information on the company, its goals, its products and services but primary importance should be given to portraying the benefits - the service care, customer loyalty scheme etc - the promotional gift attached should equate to a small discount off any good purchased when handing in the form, which could contain personal information to help Greenheart to understand what type of customer it is attracting. This leaflet will not only increase the number of new customers, hopefully, but also increase brand awareness amongst local residents. Local newspaper advertising will be used to advertise the company, containing very similar approach to the leaflet, standardising the promotional campaign will create familiarisation by those people who see both forms of promotions. Newspapers can be expensive, but as this is a local paper the cost is much cheaper and avoids promoting to readers not in the catchment area of the centre. Sponsorship should be undertaken in the local area. By contacting the local council Greenheart can agree to sponsor a roundabout or equivalent focal landmark and can agree to bed it with plants in return for publicity, this will increase customer awareness and give positive feedback of the company. Other potential areas for sponsorship are schools, hospitals and other public services where positive PR can be gained for a small cost. 5. People The staff is the most important tool in introducing a relationship approach, if they are grumpy to customers or do not give useful information, customers may go elsewhere no matter how good the rest of the service is. Staff should have on-the-job training and an on going education about DIY products which are on sale he nursery on their suitability in different garden sizes, soil types and climate etc. A book can be used as backup but to put across a good image staff should be knowledgeable. As well as this information it is essential that staff treats the customers with respect, and not treats them as if they are stupid for not knowing the brand names. Providing information which helps customers will provide a competitive advantage for B&Q who will have customers who come back to the centre to get advice on what products they want to buy. 6. Budget Budget to enforce this marketing plan is estimated at 1M. This budget will be optimized. Marketing strategies to be adapted to get the B&Q message out to customers on a regular basis will be carefully executed and sales revenue will be watched. The target customers need to hear the marketing messages at least 7 times to influence a buying decision. Marketing & sales strategies will be within the abovementioned budget to allow repetition of the message to make an impact. Marketing impact can be greatly improved by using multiple marketing channels. Prospects will likely become buyers if they: read about the company in the newspaper, attend a seminar, take home a brochure, and visit the B&Q business website. The above budget will be stretched to reach the target market in multiple channels which will result to higher impact of the marketing message. Referrals will be maximized. The most cost-effective method of reaching new customers is by referrals from satisfied customers. A satisfied customer telling others about your business is more effective than any fancy ad campaign. Customer referrals will be monitored on a weekly basis (Zahorsky, 2006). WORD COUNT excluding figures, references and appendices = 4,181 References Baker, Mallen. Finding the formula for responsible small companies: An Article from Business Respect, Issue Number 74, dated 23 May 2004. Corporate Social Responsibility. News and Resources. http://www.mallenbaker.net/csr/CSRfiles/page.phpStory_ID=1280 Benady, David. Home truths about global marketing: last week's Marketing Week Brands Summit provided an inside view of how top companies talk to different markets around the world. (News Analysis). Marketing Week, February 2003. http://www.findarticles.com/p/articles/mi_go1550/is_200302/ai_n7384180 B&Q may close more than 20 stores. Home Channel News, September 13, 2005. Defining Your Marketing Strategy. 1997. http://www.techmktpartner.com/market_strat_def.htm Developing Modern Brands is all about Sociability - but that doesn't scale well in the offline world. August 23, 2005http://www.technogoggles.com/technogoggles/marketing Donovan, Richard, Z. 2006. Sustainable Forestry: Perspectives on Sustainable Forestry and Certification Observations on Equity After Ten Years of SmartWood Certification. Rainforest Alliance. http://www.rainforest-alliance.org/programs/forestry/perspectives/observations.html Fleming, Sam. U.K. Retail Sales Plunge Most in at Least 10 Years (Update3). Top Worldwide, May 10, 2006. http://www.bloomberg.com/apps/newspid=10000087&sid=a.wISF1cWzGs Kelly, F. J. and B. Silverstein (2005). The breakaway brand : how great brands stand out. New York, McGraw-Hill. Knapp, D. E. and BrandStrategy Inc. (2000). The Brandmindset. New York, McGraw-Hill. Koehn, N. F. (2001). Brand new : how entrepreneurs earned consumers' trust from Wedgwood to Dell. Boston, Mass., Harvard: Business School Press. Leventhal, Richard C. The Importance of Marketing, April 29, 2005. Emerald Group Publishing Limited. Published. Lewis, Elen. B&Q doing it for themselves: Elen Lewis interviews David Roth, marketing director of B&Q and discovers the DIY retailer wants to 'do it all' more stylishly by broadening its product range to appeal to the public's burgeoning taste for home design. Brand Strategy, December, 2003. http://www.findarticles.com/p/articles/mi_go2028/is_200312/ai_n6602807 MarketVVizard Email Print. U.K. Retail Sales Plunge Most in 10 Years. Discussion: MarketVVizard's Market Thoughts, May 10, 2005. http://www.suite101.com/discussion.cfm/investing/86836/1092611. Mathieson, R. (2005). Branding unbound : the future of advertising, sales, and the brand experience in the wireless age. New York, AMACOM. Ries, A. and L. Ries (1998). The 22 immutable laws of branding : how to build a product or service into a world-class brand. New York, HarperBusiness. SWOT Analysis. Constant Contact. 2006. http://www.marketingteacher.com/Lessons/lesson_swot.htm The Pestle Analysis as a Method of Prioritizing the Agency's Research Portfolio. January 18, 2001. Paper RRG 010. Agenda Item 7. http://archive.food.gov.uk. UK's B&Q aims to open 100 chain stores in China by end 2010 - Xinhua. February 22, 2006. AFX News Limited. Forbes.com. http://www.forbes.com/home/feeds/afx/2006/02/22/afx2543890.html United Kingdom: Case Study: B&Q Direct, May 7, 2003. http://www.mondaq.com/content/pr_article.asppr_id=889&print=1. USCC Calls for "Course Correction" in US-China Relations. Hong Kong.China.Hawaii Chamber of Commerce Trade Issues, July 1, 2004. http://www.hkchcc.org/trade_issues1.htm Verdin, Mike. B&Q falls victim to price war. Times Online, February 17, 2005. http://business.timesonline.co.uk/article/0,,9074-1488035,00.html Zahorsky, Darrell. 2006. Small Business Information: Low-Budget High-Impact Marketing Plan. Your Guide to Small Business Information. About, Inc.: The New York Times Company. http://sbinformation.about.com/cs/marketplansample/a/impactplan.htm Appendix Appendix 1 The Pestle Analysis as a Method of Prioritizing the B&Q Marketing Plan Issue 1. One of the key tasks of the review is to prioritise the B&Q marketing strategies to ensure that it supports effectively the B& Q's overall strategy. Any prioritisation system used needs to be systematic, open and logical. The B&Q considered several prioritisation systems including issuing a 'wish list' of marketing strategies. Using a PESTLE framework for the analysis appears to be more systematic yet flexible enough to meet requirements. The PESTLE analysis has been developed by industry to define the work priorities within an organisation. With some amendments, the B&Q would like to adopt this analytical approach in developing the marketing strategies of the B&Q. B&Q staff will also bring their own expertise to this exercise. The use of the PESTLE approach should only be considered as an aid. The PESTLE approach brings a consistent approach to defining the marketing plan in a particular theme (The Pestle Analysis as a Method of Prioritizing the Agency's Research Portfolio, 2001). Background Prioritization systems 2. The B&Q marketing strategies that should be prioritized need to reflect the priorities of the company. The B&Q has looked at some basic ways for prioritising marketing strategies and the relationship between the current marketing programme and the short to medium term targets of the B&Q. In general, however, the B&Q finds marketing to enable officials to develop and support long-term future policies. From the different systems considered by the B&Q; it has opted to use a PESTLE framework as a consistent approach to describing the marketing work of the B&Q. 3. The B&Q's marketing strategies are carried out over an extended time scale and is affected by a wide range of issues. Any prioritization exercise, therefore, needs to be aware of the external environment in which the B&Q operates and take into account all relevant factors. Initially, the B&Q needs to look at the context of the market and the factors that influence the direction of the marketing strategies. PESTLE analysis does this. The allocation of resources (budget) to the marketing strategies needs to be carried out and should take into account the fact that marketing strategies in some themes is inherently more expensive to carry out than in others theme (The Pestle Analysis as a Method of Prioritizing the Agency's Research Portfolio, 2001). PESTLE analysis - influences on marketing strategies 4. The PESTLE analysis is a logical framework for assessing the various influences on marketing strategies (PESTLE: Policy, Economic, Societal, Technological, Legal and Environmental) theme. (The Pestle Analysis as a Method of Prioritizing the Agency's Research Portfolio, 2001). There will be any numbers of factors that need to be considered within these headings. The B&Q has highlighted these points. These factors should not be considered as exclusive. 5. The PESTLE framework will be used to describe the marketing strategies. These marketing strategies have been chosen on scientific grounds but also take into account, to some extent, the management structure of the B&Q. This is to allow the respective Heads of Division to define the marketing strategies and survey programmes they will ultimately manage. The descriptions of the marketing strategies will give the B&Q an indication of the current general direction of the theme and its priorities for the marketing plan. Heads of Division are currently analysing their marketing strategies according to the PESTLE criteria for discussion theme (The Pestle Analysis as a Method of Prioritizing the Agency's Research Portfolio, 2001). 6. The Heads of Divisions will also need to consider suggestions from the consultation exercise. If a marketing area is suggested in the consultation exercise that is not being addressed by a current marketing programme, a theme will need to be identified from within the B&Q. Submissions from Heads of Division will also need to include information on how the marketing strategies will be directed towards future short-term targets such as agreements or longer-term objectives as set out in marketing plans theme (The Pestle Analysis as a Method of Prioritizing the Agency's Research Portfolio, 2001). Resource allocation 7. The resource allocation need not match the prioritisation scheme. There may be many reasons for this, e.g. a market area may be under-developed; marketing strategies in a high priority market area may not need a great deal of resources; the work might be too fundamental, the B&Q might not be able to identify organisations with the capability to carry out the marketing activities, the marketing strategies might be beyond the budget of the B&Q, there might not be the technology to carry out the work etc. Resource allocation should, therefore, be carried out as a separate exercise and should be based on factors such as existing budgets, the economic factors addressed in the submission and the technical feasibility of the marketing strategies. The prioritization exercise will also have an input into the resource allocation but should not be seen as the only input theme (The Pestle Analysis as a Method of Prioritizing the Agency's Research Portfolio, 2001). 8. As part of this exercise, the B&Q should explore options such as alliances with other marketing organisations, encouraging collaboration or developing market areas from scratch as means of optimising the allocation of resources. Market Review Group action required 9. The Group is recommended to: endorse the use of the PESTLE analysis as a tool for prioritising the B&Q's marketing strategies; and endorse the prioritization of the marketing strategies along themes. Appendix 2 SWOT Analysis SWOT analysis as a tool for auditing the B&Q and its environment will be utilized. It is the first stage of planning and helps marketers to focus on key issues. Strengths and weaknesses are internal factors. Opportunities and threats are external factors (Constant Contact: SWOT Analysis. Constant Contact. 2006). Read More