Marketing Plan

F&F Clothing
[Writer]
[Institute]
[Date]
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Table of Contents
Introduction to Report ................................................................................................................................... 3
1. Situational Analysis of F&F Clothing - Macro and Micro Environment ............................................. 3
1.1. PESTLE - External Environmental Analysis ................................................................................ 3
1.2. SWOT Analysis ............................................................................................................................ 6
2. Marketing Plan ...................................................................................................................................... 7
2.1. STP: Segmentation, Targeting and Positioning ............................................................................ 7
2.1.1. Segmentation......................................................................................................................... 7
2.1.2. Targeting ............................................................................................................................... 7
2.1.3. Positioning ............................................................................................................................ 8
2.2. Marketing Objectives .................................................................................................................... 8
2.2.1. Strategies to Meet Objectives: Ansoff Matrix ...................................................................... 8
3. Implementation through Marketing Mix Principles ............................................................................ 10
Conclusion .................................................................................................................................................. 12
References ................................................................................................................................................... 13
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Introduction to Report
This is a marketing plan for Tesco’s apparel line F&F Clothing, in which the current market
position of the company will be explained and its marketing strategy will b planned accordingly.
F&F is a known global brand operating 1,748 stores worldwide and Tesco’s brand. The brand’s
aim is helping shoppers look good and feel great. The brand understands customer and by using
their insight, it creates high quality and innovative ranges at great, affordable prices through
which customers are encouraged to not only buy but to keep coming back.

1. Situational Analysis of F&F Clothing - Macro and Micro Environment

1.1. PESTLE - External Environmental Analysis

PESTLE refers to an analytical tool that facilitates research while assisting organisations in
defining their environment, examining various external environmental factors. This tool deals
with the Political, Economic, Social, Technological, Environmental and Legal factors (Marmol,
Feys and Probert, 2015). Following is the PESTLE analysis of F&F:

PESTLE Analysis Tool (Marmol, Feys and Probert, 2015)

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Political Factors: F&F’s operations are positively affected by the free trade agreement made by
European Commission because it enables the clothing brands including F&F to import products
very easily (Erixon, 2017) and to cut even their supply costs. In the UK, F&F is now able to take
advantage of the Brexit issue because it has the ability to cover caution in case of currency bets.
As it has strong presence out of the UK market, F&F has the option to escalate its profitability by
increasing its products’ price in international markets.

On the other hand, critical and negative results emerged due to UK's referendum for Brexit has
resulted in a clear decline of companies’ sales (Davey, 2016). Owing to the comparatively high
cost structure, market share of F&F has also got into new markets (Faull, 2017). Three years ago,
slow growth rate has been experienced by F&F in some of its international market, such as in
Saudi Arabia, owing the global issues related to the turn down in profit aspect of secondary
infrastructure and new markets, but in 2017 sales grew dramatically (Geoghegan et al., 2017).
Volatility of local currency as well as geopolitical chaos can have further adverse impact on the
brand’s international operations (Davey, 2016).

Economic Factors: During the 2008-09 global financial/economic recessions, George, Matalan
and Marks & Spencer as F&F’s major competitors adopted discounted pricing strategy (Jones et
al., 2010); F&F also paid attention to provision of high quality fashion garments at affordable
price (de Kervenoael et al., 2011). This F&F’s strategic approach has resulted in higher level of
consumer confidence and trust owing to increased customer demand and improvement in the
long-term in consumer’s preference of the brand. This approach, two years ago, also assisted
F&F in retaining its market share via improved sales.

Nevertheless, the British currency has declined last year due to the issue of Brexit, leading to
fashion retailers’ declined consumer trust and confidence (Allen, 2017). Further, the best quality
products offered and high consumer satisfaction in the strategic direction resulted in the sales’
drop but for the short term.

Socio-Cultural Factors: The belief of F&F is in working with major stakeholders, which are of
course the target audience, suppliers and communities, to satisfy their needs and retain market
share (F&F, 2018, 2019). The British can spend more as they live longer. Since focus of F&F
has been on customers aged over 40, majority of whom exceed the age of 55, the clothing as
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business segment is conservative, and choice of modern-day people is changing, the brand is
engaging is enhancing the clothing line to effectively satisfy such choices. F&F has also
experienced a sharp rise in its target audience’s numbers who believed the company has the
potential to take measures for the environment. Unusual problems related to buying, for example
the aspects of pricing, quality and style, appeal consumer from all segments, while making sure
that all the determinants are well-matched in a sustainable means. This approach helps F&F in
differentiating its brand from market rivals, while assuring target audience that they can trust that
the brand does the right thing. F&F has been engaging continuously in its hard work to mitigate
recycling and reinvention processes in its operational activities. (Wrigley and Dolly, 2011)

Technological Factors: F&F’s strategic position is good and, thus, it has the strong potential to
take advantage of an altering media landscape, the social media channels and a fast growing
wave of mobile users in the UK. In the clothing segment, the overall speed with which the latest
clothing fashion trends are being transmitted to fashion designers has dramatically increased
(Gao and Su, 2016). Hence, F&F has developed a web platform. Further, owing to likely
negative effects due to the Brexit issue in 2019, F&F needs to focus on completely transform its
existing digital strategic approaches by shifting its attention to the mobile application so that it
can promptly respond to needs of target audience (F&F, 2018).

Legal Factors: Regarding deregulation in a variety of domains, it is likely that fashion clothing
retailers will go through some constructive changes, such as in the areas of workplace
discrimination, work time monitoring, workforce health, safety and well-being, and so forth, all
based on EU legislation.

Nevertheless, if Britain will leave the EU, fashion clothing retailers including F&F will more
likely to experience some legal issues. The possibility is that retailers would not able to enter the
EU as their common market, affecting their supply chains in terms of people’s free movement,
rights related to intellectual property and international level contracts.

Environmental Factors: The key factors including the green movement and ethical concerns
associated with the cost of the brand's social environment ascertain that retailers establish
rapports and are engaged in activities of sustainable development (Zokaei, 2016). In the presence
of rigorous environmental laws and fast growing consumer business practices in the industry,
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F&F will have to thoroughly examine its products’ life cycle (starting from the product
development/production to delivery and elimination stages), and it will utterly be apparent to its
business operations practices. Hence, F&F will need to develop an ethical-based environmental
programme just like the ‘Program A’ of M&S, which will be its business backbone both inside
and outside (Zokaei, 2016).

1.2. SWOT Analysis

Strengths Weaknesses
 More emphasis on children’s wear:  More UK Reliant: More reliant on UK
Usually, supermarket retailers focus more business and thus a large proportion of
on children’s wear compared to their non- profits generate from UK
supermarket, value counterparts. F&F  Employee Turnover: High rate of employee
children’s apparel accounts for 41 per cent turnover, as many staff members left
of merchandise. following one or two months of work
 Children’s wear apparel’s price is between
£4 and £9, whereas £7.26 is the average
price.
 Frequent newness: The company offers a
wide range of new products to attract
consumers on a weekly basis, whether
through physical outlets or online.
 Right product selection: The company
offers key trend in the women’s wear by
offering competitive dress category:
camisole dresses, scuba skater dress,
tropical print florals and drop waist.
 Unique price point: Price of men’s and is
between £8 and £18 and price of kids’ wear
is between £6 and £16. (Smith, 2014)
Opportunities Threats
Internationalisation: F&F has expanded High Competition from Rivals: The
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internationally and can further expand its
business in other emerging markets due to its
experience of internationalisation.
Technology: More and more use of innovative
technologies provides a platform for clothing
to generate huge returns.
competitors including George, Matalan and
Marks & Spencer have big market share and
can further gain the market.
Material Costs: Rising material’s cost can
affect profit margin.
Brexit: UK’s potential to leave EU can further
result in a sharp decline in sales and profits.
Internationalisation: International expansion is
profitable but expensive as huge investment is
required.

2. Marketing Plan
2.1. STP: Segmentation, Targeting and Positioning
2.1.1. Segmentation

Geographic: Countries where consumer’s buying power is high along with high demand for
clothing. Thus, F&F will need to target more EU countries, Asian countries and Middle East
countries as well.

Demographic: F&F will target all, ages 0-99, as everyone needs cloths, whether they are
children, elderly, regardless of gender. The company will consider all, middle to high income
and low income. All sorts of occupation will be taken into account while developing and offering
products, whether students, business personnel, professionals, or unemployed.

Psychographic: All social classes (income groups) will be targeted by offering a wide range to
all, whether they are from upper, middle or lower classes. The company will offer a variety of
clothing products fitting to each individual’s own taste and needs. For example, stylish and hip
fashion will be for youngsters and professional wear for business class.

2.1.2. Targeting

F&F’s targeting strategy will based on the above mentioned (segmentation) components to make
sure a better direction. However, the brand will typically adopt the undifferentiated marketing
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strategic approach because the retail market is more inclined to offer clothing products that suit
all needs. It suggests that such products will be offered that everyone finds it pertinent to them.
However, regarding the geographic component, F&F will need to pay attention to the UK market
because it is its core market. Regarding demographic, the brand will have to focus more on its
daily value range because it has been established as a major profit generator in past. Regarding
psychographic, focus will be different lifestyle of people as F&F’s products fit to all tastes and
preferences.

2.1.3. Positioning

F&F has already successfully positioned its brand at the peak level and in perception of the target
audience as the brand offers a wide range of clothing products for all at very affordable price,
which is its strength. However, F&F will use a variety of positioning strategies as well so that it
can appeal more customers from different segments. Functional positioning will be used by
increasing product range and quality of their functionalities. Symbolic positioning will be used,
as it is subjective, by understanding and meeting customers’ values, aims and aspirations. Price
positioning has already been employing very well by F&F and it will also be applied more
efficiently in relation to an extensive array of its own brand products. Multi-segment positioning
will be used as an alternative positioning type by targeting a variety of segments simultaneously
with a wide range of clothing products. (Chitty et al., 2011)

2.2. Marketing Objectives

F&F has two marketing objective, which are:

 Objective 1: To penetrate in the UK clothing market to gain more market share based on
its existing market and existing product range; and
 Objective 2: To develop more new clothing products for all with the latest fashion trends.

2.2.1. Strategies to Meet Objectives: Ansoff Matrix

To meet these two objectives, we can use Ansoff matrix as a strategic marketing tool, and
particularly its strategies for existing markets including the market penetration and new products
strategies (Stone, 2001).
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Ansoff’s Matrix (Stone, 2001)

For first objective, market penetration strategy will be used by F&F to revise its strategic
direction. Once the strategic direction is set through this strategy, the brand will make effort to
gain more market share by building on its existing market, that is UK, and with its existing range
of products. As this strategy is based on the company’s existing strategic approaches and
expertise, F&F will not need to focus on the unexplored products and markets. At the end, this
strategy will provide the brand with a lowest possible risk as basically the scope of brand
remains unaffected. (Stone, 2001)

For the second objective, product development or product line extension strategy will be used
through which F&F will have to produce either new clothing products or modified one in the UK
as its existing market. This strategy may involve higher risk and the reason is its diversification
at the varying degrees. However, F&F, while producing new products, will need to adopt the
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same core technology so that it can mitigate the risk emerging from developing new and
innovative technologies. (Stone, 2001)

3. Implementation through Marketing Mix Principles

Marketing Mix Principles (Ryan, 2016)

Products: First of all, F&F will extend its fashion clothing products by introducing more
products both in its physical stores and online. To effectively produce and make available a wide
range of products, effective customer service is essential. The target audience of F&F strongly
believes that a good customer service is and should be the foundation of any fashion clothing
retailer. On the other hand, it is the fact that this aspect of any good brand can really be
expensive if it is operated through incompetent people. F&F will have to pay strong attention to
this area by keeping employee costs low while adding value to customer service. F&F could
launch a loyalty programme just like its parent brand Tesco. Tiers, consumer cards and point
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earning deals can be included in such a programme, through which the company can protect
consumer privacy by keeping their data/information as well as their shopping habits confidential.

Price: It is suggested by Superior Value that customers recognise that F&F offers products with
unique quality at highly affordable price and with effective service, and this perfect mixture is
the ultimate desire of the modern-day customers and to make sure achievement of more market
share.

Through loyalty programme, F&F can encourage its target audience very easily. The programme
will contain four tiers, which will be based on spending behaviours and habits of customers.
Once the top tier is reached by the customer, he or she will get a new card indicating directly his
or her F&F status. To ascertain if tiers should be moved by the customer, the consumer’s tier will
be re-evaluated by the management based on six month periods. One the customers met the level
of spending, this spending habit will need to be retained by the management to maintain this to
remain there.

Promotion: Engagement of consumers is essential. For this, the marketing management of F&F
will have to use social media platform and create a new page with the title of ‘Community
Forum’. At the start, the new page will be promoted on different social media platforms
representing the brand and then on its official blog. Through this open forum, customers can
discuss F&F and the fashion clothing products offered.

Place and Process: All the stores in the UK market will be targeted by introducing a wide range
of clothing products there. At last 3 months will be required by the overall marketing campaign.
All the strategic approaches enforced can remain long-lasting fixtures in this marketing.

Physical Evidence: The physical evidence will be the page of Community Forum. By adopting
this digital approach, F&F will easily engage customers with the brand by making them loyal.

People: To successfully social media marketing campaign, F&F will have to internally recruit
some competent people, potentially have the IT skills, so that they can run this marketing
campaign very well.
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Conclusion
This marketing will potentially be very effective for F&F to meet its objectives. By using the
Ansoff’s market penetration strategy, F&F can easily penetrate in the UK clothing market and
gain more market share on the basis of its existing market and existing product range. F&F will
also need to adopt the Ansoff’s product development strategy through which the brand can
effectively extent its product range by developing more new clothing products for all with the
latest fashion trends. F&F will also need to go with the recommended marketing mix approach to
effectively implement this marketing plan and make sure success in the UK market.
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References
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marketing communications. Cengage Learning.

Davey, J. (2016). M&S reports worst clothing sales fall for a decade. [online] U.K. Available at:
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de Kervenoael, R., Canning, C., Palmer, M. and Hallsworth, A. (2011). Challenging market
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Erixon, F. (2017). Britain and the EU probably will reach a trade deal. Here’s why | The
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