Part 1: Marketing Audit

1. Introduction

A marketing audit is a comprehensive and systematic assessment of all functions of marketing operation in an organization (Loya, 2011). The objective of the marketing audit is to evaluate the performance of its marketing measures. It sheds light on what worked, what did not, and what internal and external factors of the organization affected the results (Loya, 2011).  The marketing manager of a firm should monitor these aspects of a marketing audit: (i) presenting an overview of the company, (ii) Describing the product, (iii) setting marketing goals and objectives, (iv conducting a competitor analysis, and (v) conducting a SWOT analysis (Vaňa & Černá, 2012).

1.1 Overview of the Company

ICI Deluxe Trade Paints is Britain’s leading paint supplier. It was the first paint company to recognize the growing trend of ‘broken color’ paint techniques. It was the first company to launch a series of broken color paints to cater the burgeoning market. It launched three distinct products: Duette, Sonarta, Acrylic Scumble Glaze. 

1.2 Description of Product

ICI Deluxe Trade Paints introduced three different brands in its broken color paints portfolio: Duette, Sonarta, Acrylic Scumble Glaze.

1.2.1 Duette

The Duette is a water-based paint, it is odorless and non-yellowing. Moreover, it gives unique effects through Duette Classic and Duette Nouveau paint rollers. It has an extensive range: 52 two toned color-ways.

1.2.2 Sonarta

Sonarta is also a water-based paint, it has all the features of Duette along with the additional feature of a fleck finish.

1.2.3 Acrylic Scumble Glaze

Acrylic Scumble Glaze is also a water-based paint, this feature is unique because glazed paints are usually oil based. Acrylic Scumble Glaze provides the sophistication of a glaze paint without the disadvantages (odor and yellowing).

1.3 Marketing Goals and Objectives

The Marketing objective of ICI Deluxe is to maintain its position as the top broken paint brand and to maintain sales growth rate of Duette, Sonarta and Acrylic Scumble Glaze brands in the market.

1.4 Competitor Analysis

Analyzing the competition is a critical aspect of the marketing audit, the marketing manager must be able to differentiate between own brand and competitor brand (Loya, 2011). Analyzing the competition allows the marketing manager to assess the unique selling points of both products, it allows a comparison on all key features of products to determine the strengths and weaknesses of one’s own brand (Taghian & Shaw, 2008).

The biggest competitor of ICI Deluxe Trade paints’ broken paint range is Crown. It has recently launched a special effects range of paints called ‘coloufects’ to compete with Deluxe. Other competitors include Polyvine and Leyland which are targeting the niche of professional specifiers.

2. SWOT Analysis

SWOT analysis is a tool which evaluates the internal marketing environment and the external marketing environment of the business organization (McDonald & Wilson, 2011). It is critical aspect of the marketing audit as it looks at all angles of the marketing strategy and determines the strengths, weaknesses, opportunities, and threats . It helps the marketing manager in achieving the marketing objectives and goals while also points out the competitive advantage of the firm.

The SWOT analysis of ICI Deluxe is as follows:

2.1 Strengths

The main strength of ICI is that it is the Leading paint brand of Britain, it adds value to the broken paint range of products (Marketing Society Inc., 2013). The strong consumer base for ICI forms wide segments and hence has more stable demand. The increasing demand allows company to achieve economies of scale in production and consequently remain cost effective.

In addition the ICI Deluxe has the first mover advantage, the innovative practices that organization has incorporate within its culture lends it a sustainable competitive advantage (Marketing Society Inc., 2013). ICI being first in broken paint colors segment is able to attract consumer’s attention.

The strong organizational culture establishes unique set of advantage where it can capitalize product features of water-based paints those are low on odors and are stable towards yellowing (Marketing Society Inc., 2012).

Furthermore, the culture provides the right values like focus on quality to reduce defects and create a more stable production line.  In addition ICI due to its superior distribution networks remains competitive in market.

To add to its existing strengths ICI conducts research for prospective customers and determines future customers of the brand. The research enables defining reason why customers will choose a broken paints. Furthermore, research incorporates why consumer purchase ICI deluxe. The current target market of ICI Deluxe broken paints includes: (i) Decorators, (ii) Domestic Specifier/homeowners, (iii) Professional Specifiers and, (iv) Contractors.

2.2 Weaknesses

As explained by Nunes and Breene (2011) Organizations should reinvent timely, the satisfaction from current success should not slow down an organization to innovate. ICI Dulux is slow in innovation. The weakness comes where ICI stopped responding to the change factors in the market. The company has weakness to respond to the change.

According to Crosby (2013) quality inconsistency is a significant weakness of the brand can be some times inconsistent which leads to external failure. Furthermore the promotional activities for ICI Dulux are not very vigorous and consumer knowledge regarding the brand is low.

ICI Dulux has mass marketing strategy but this leads to company’s weakness where it fails to satisfy the need niche market that is more lucrative. Lack of emphasis on focused marketing is costing ICI Dulux its marketing success.

2.3 Opportunities

The brand has the opportunity to market its brand by following the philosophy of Kotler (2012) to be customer centric and by developing tailored products. ICI with integrated promotional strategy can target extended consumers can build a loyal consumer base. Moreover, it has the opportunity to pursue a differentiated marketing strategy for each segment, it can retain existing customers and acquire new ones if it made differentiated marketing strategies for each market segment. Furthermore, Direct marketing, advertising, personal selling, and sales promotion are viable option to explore and increase sales (Shimp, 2010).

2.4 Threats

The most imminent threat to Deluxe is the price war between pain companies; Deluxe is engaged in price war with its competitors as they compete for dominance in a limited market segment. Furthermore Pitas (2016)  explains that Briton might leave EU and this can be a significant threat for ICI Dulux since govt. preferences will change and rules might not favor the company. This can be damaging for the brand as well as reduce revenue streams.

Finally, Deluxe is threatened with losing its customers to competitors in other segments beside specialized groups, competitors such as Crown are launching products which are homogenous to Deluxe products and hence the opportunity cost of switch between products is low for customers (Wood Burk, 2010).

3. Conclusion

            The SWOT analysis of ICI Dulux provides a through analysis of the organization and allows it to understand its strengths and weaknesses, in order to effectively shape its strategy to target opportunities and design tactics to battle threats. Through SWOT analysis a company fully understands its dimensions and can develop strategies to shape its future towards better.  

Part 2: Marketing Strategy For Next Three Years

1. Company profile

ICI Dulux trade paints deal with a variety of range in paints, which includes both water-based, and oil-based paints. They serve with consistent quality, which is suitable for climates and every sort of surface. To satisfy the growing needs of the customer’s focus has remained on diversifying according to the specific needs of a Niche market.  Cheverton (2006, p. 72) highlights that ICI Dulux has strong brand loyalty and significantly adds to the competitive advantage of the firm. Furthermore, working on the concepts given by Kotler (2012) the brand can use marketing to further augment its position in consumers’ minds and shun the growing competition.

2. Market planning

Kotler (2012) explains marketing planning is a process of developing and implementing plans in order to first identify and then satisfy customer needs consistently while making profit. The process includes goal setting, marketing audit, internal and external analysis, forecasting results, writing plan, implementing plan, control marketing activities, and lastly budgeting.

 ICI Dulux believes that marketing processes are part of corporate strategy and devising a better strategy is mandatory for success. Henceforth ICI Dulux has formulated goals to increase sales over next three years. In order to fully understand target market ICI has conducted external and internal analysis to target the right consumers with right strategy to increase value by increasing perceived quality and usefulness of product. The concept is consistent with conceptual suggestions of Kotler and Armstrong (2010) to develop a step by step plan to approach target market and increase customer base by evaluating marketing activities and constantly improving them inline with customer needs and wants. The goal of this planning process is to increase sales and consumer base for ICI Dulux. In order to realize the goal the plan will identify the right target consumer with in the right segment and will target them by using the right medium.

2.1 Market segmentation

According to Harrison and Kjellberg (2010, p. 784) , market segmentation is considered as the process of identifying relatively homogeneous customer groups within a defined market. Cross, Belich, and Rudelius (2015) is of the view that segmentation process that encompasses formulation of subsets within a broad target market. ICI Dulux deals in B-to-C and B-to-B channel (Marketing Society Inc., 2012). Since segmentation strategy holds considerable importance ICI Dulux management will review all possible segments to choose the right one with most expected ROI.

2.1.1 Decorators

These are the artists that have skills but lack the courage to utilize these skills to make a difference. This is a relatively small segment or niche market and according to the analysis do not present much scope in growth unless consumer perspective is developed. Selecting this segment will require building up consumer acceptance. Hence it is expected that ROI on investment can be low. Keep in view significant investment and uncertain returns can make this market a bit less attractive.

2.1.2 Domestic Homeowners

These are the core customers and hold an influence on contractors and architects to use a special type of paint and decorative. The target market is very lucrative and advertising has a huge impact on these customers. Hence it is safe to presume that targeting these customers will have a high ROI.

 2.1.3 Professional

The decorative paints for this target group can be a theme for new innovation and a medium for creating enchanting designs that can enhance their abilities to add spice to their product. This customer group includes architects, interior designers, etc. furthermore, this product is a cost effective solution for design creation in comparison to other available products hence marketing can inform them of value they can get hence ROI will be positive.

2.1.4 Contractor

Contractors are potential customer on the B-2-B channel they can influence customer. The decorative products of ICI Dulux will add potential to offer value addition in services to client hence they can earn extra. Mutual gain can be leverage by marketing like personal selling.

2.2 Justification for Targeted Segment

            Ingram (2014) advocates that target market refers towards specific market size/type, which get selected by businesses based on their strategic fit between consumer needs and company offerings. Target market of Dulux includes Domestic Homeowners who are well aware of aesthetics and wish to maintain a lifestyle. Individual homeowner is the best choice since they can influence the B2B channel. The Domestic homeowners are the most lucrative target customers as it has potential to create a pull demand for ICI Dulux products. Targeting the Homeowners and then marketing them decorative paint products would add to the process for increasing sales over 3 years.

2.2 Market positioning

In simplest terms positioning is the process placement of the brand in the minds of the consumer. Positioning is selecting a specific target marketing and designing the marketing principles so that organization can better interact with its target audience (Hofmann-Wellenhof, Lichtenegger, & Collins, 2012). Brand is the image that consumer associates to and imprints within his/her mind. The goal of this process is to create a unique impression on the consumer with integrated messages utilizing elements of marketing mix. 

ICI Dulux is a well-known brand in UK and has to leverage its existing brand identity to target the homeowners. The positioning strategy has to be consistent with basic aim that is to make customers’ dreams regarding their home come true. The positioning of Dulux is a brand that innovates first and provides exceptional quality to meet the need of consumers. The example can be found where brand first introduced electronic color visualization for its consumers. Hence ICI has to position it self as an innovator and market leader in the industry that is providing best product line for best value.

2.3 Targeted Strategy

According to McQuarrie (2015) target market is the subset within the a broad market that organization chooses to provide its services and accentuate the marketing activities on them. This process helps organization to develop focused marketing plan.

 In case of ICI Dulux the selected chosen target market are domestic homeowners. ICI Dulux will target the homeowners for a strategy reason since they may be not the customers in very case but certainly they are the consumers. The targeting strategy that will be used is, website marketing, personalized direct marketing, television advertising, and personalized selling.

3. Environmental Analysis

Environmental analysis is a strategic tool that evaluates the external and internal forces that impact an organization positively or negatively. 

3.1 PEST Analysis

It is a business tool for exploring the external environment and exploring how it would impact the business. The acronym stands for Political, Economic, Social, and Technology and for this project will be implemented to see how environment in UK impacts the ICI Dulux.

3.1.1 Political

In Coming year 2017 UK government will face a referendum that will decide UK’s inclusion in European market. ICI Dulux employs 3600 employees in the country and has a significant stakes that can be impacted by the political decisions (Pitas, 2016). ICI Dulux will have a negative impact if UK leaves EU and this might create some trade barrier for the organization.

ICI Dulux has to keep up the quality since consumer protection courts can make company pay for not delivering the right value. Recently when white paint gave yellow results ICI Dulux had to pay 1000 of dollars in compensation to customers. According to Cheverton (2006) ICI Dulux has developed strong orientation towards its employees by following employment laws and going beyond the simple parameter to enhance employee welfare. Furthermore, organization remains ethical by avoiding manipulation of laws and political legal aspects.

3.1.2 Economic

During the era of 2008 to 2013, the United Kingdom paints business sector was evaluated slow down up-to 2.9% CAGR with £3.6 billion to account for lowest market value in 2013. According to IBISWorld (2016) the industry total worth in 2016 is £4bn with negative 1% growth rate. Furthermore, industry accommodates 45,687 employees (IBISWorld, 2016). The paint industry in UK covers market based on private, residential, commercial, public and modern structures. The level of business activities in these areas affects vigorously on the demand of consumers for paints in the United Kingdom.

The paints business is profoundly divided with a noteworthy number of customers with small contracting firms and self employed entities which depend intensely on the household repair and maintenance work. De Mooij (2010) explain that consumer purchase power greatly depends on stability of income and its growth and UK economy recently experienced high pressure resultantly reduced wages and consequently low purchase activity.

On the other hand, in 2014 the commercial market stays low in correlation with incomes forecast to increment by only 0.2%. However, there is a bright side to target in coming years for ICI Dulux, as it has been predicted that commercial sector will show positive growth in coming years. The UK paint business sector is expected to report development of 2.6% CAGR during the period 2016 to 2018 with aggregate incomes figure to reach £4.1 billion in 2018 (IBISWorld, 2016).

3.1.3 Socio-cultural Sector

Socio culture aspects include inhabitant’s growth ratio, age distribution, career attributes, consumer behavior, religious beliefs and cultural aspects. Dulux Trade Paints has emphasized on and paid adequate attention to all socio cultural aspects of UK. Kesidou and Demirel (2012) inform that in UK consumer are adopting eco-friendly trend and focus on products that are environmentally stable. Hence in marketing value for the products ICI Dulux can promote its eco-friendly operations and measure taken to ensure environment stability to win consumers trust. 

3.1.4 Technology

The UK is a Technologically advance country where innovations are appreciated and there are a lot of early adopters (Savvas, 2014). Advanced technology integration in its system for ICI Dulux necessary for achieving success. Dulux Trade Paints have advanced technology, which helps us in achieving competitiveness. ICI Dulux incorporates advanced learning and provides room for innovation. In recent times the organization has upgraded its computer networks and related devices to enable the usage of high-end software to extend the possibilities of innovation (Savvas, 2014).  There is a certain supply chain portal installed on the company’s domain that has recently installed will provide the organization with a strategic advantage and result in cost reduction. 

4. Marketing Mix

            Fill (2011) discusses marketing mix as a communication that offer complete picture of communication strategy adopted by the brand.  Lovelock, Patterson, and Wirtz (2014) rebuilds on the 4ps of marketing and extends them to 7ps and discusses each of the elements usefulness for the organization. ICI Dulux will also focus on 7ps within its marketing mix to offer better services.

4.1 Product                               

ICI Dulux paint products are in huge variety and offer extensive product line (ICI Dulux Inc., 2016b). It serves by providing paints, staining and varnishing. The product line has oil and water based paints that are classified as Duette, Sonata and Acrylic. In product life cycle most of the products are in maturity stage. According to Singh, Sharma, Aggarwal, and Saxena (2012) innovates and develops new products for customer in existing marketing and for target customers outside the domain. ICI The constant innovation within the product line allows them to stand tall among competitors. These products have unique fragrance and are consistent in quality.

4.2 Pricing   

Price is the key factor, which creates difference the outcome of services for various companies. The pricing strategy used by Dulux is value based pricing. According to Hollensen and Opresnik (2014) basing the pricing model on value enables any organization to create an in built system of satisfying customers as it provides best rate for the quality of services in the long run.  Innovative nature of brand, consistent quality of services and satisfaction level achieved are multi-variant. However the value-based price relationship ensures maximum number of satisfied clients.  Price and value relation is significant and rightly priced product will achieve the maximum fanfare (Bonnemeier, Burianek, & Reichwald, 2010). Dulux Trade Paints will compete on quality of service while having price rate that offer maximum value for the client against each dollar spent on ICI Dulux in comparison to the competitors.

4.3 Promotion

Integrated market communication (IMC) process as explained by Shimp (2010) basically requires a clear message content. In this regard ICI Dulux will have to develop a clear marketing message to be communicated, which will allow consumers to relate and understand the product. It should incorporate features of Duette, Sonata and Acrylic product line while upholding quality and value creation of ICI Dulux paints. This core message will determine the core of each marketing campaign.

4.3.1 Public Relations

            This is the communication between public and organization and can executed via social media. The public relations allow developing strong bonding with public/community. According to Papasolomou and Melanthiou (2012) social media like Tweeter/Facebook are very effective tools for developing public relations. Furthermore the ICI Dulux can be part of some societal events to increase bonding. 

4.3.2 Direct Marketing

            As explained by Shimp (2010, p. 26) explains creating a momentum tailored made  marketing to homeowners and ICI Dulux can use direct marketing to engage homeowners with tailored offers. Homeowners are known positively react to personalized offers for their next project of home decor.

4.3.3 Sales Promotion

            Kliatchko (2008) explains that when organizations need extra sales and save them selves warehousing cost can use sales promotions. Similarly, ICI Dulux can offer certain price off packages to promote purchase and offer consumers better value than they can otherwise get.

4.3.4 Personal Selling

            Fill (2011) explains that personal selling can work effectively for individual homeowners and ICI Dulux can capitalize on personal selling since homeowner getting a personal advice from a salesman allows them better understanding of product and also gives necessary confidence to make a purchase.

4.3.5 Advertising

Today consumers are increasingly going digital hence ICI Dulux can target the homeowners using the power of social media (Fill, 2013). ICI Dulux on its website can integrate testimonials of achievements that homeowners made using ICI’s products. Furthermore they can hold events that can engage consumer to visit their website and can link these events on social media.

            Social media should be the advertising playground for ICI Dulux, since it is very low cost medium with high consumer engagement. The advertising can be design as teasers to entice the consumer regarding the upcoming products and promotional offers (Chen, Fay, & Wang, 2011). This will create a strong bond with consumers and will enhance sales multifold.

4.4 Place/Distribution

ICI Dulux believes in sustainable supply chain where procurement raw material to deliver to the consumer should be strategically linked for sustainability. ICI has multiple retailers and offer them their products via whole sellers (Murao & Ono, 2012). The distribution is made via independent service providers in various geographic regions. Furthermore, to extend sales ICI Dulux can established few branch offices and execute personalize selling. ICI Dulux ensures where the product is available is easily accessible and the shop has adequate parking and an ambiance conducive for paint purchase.

4.5 Process

            ICI Dulux has standard operating processes coupled with quality assurance and controls to ensure the products produced are consistent in quality and defects are no more than the acceptable quality standards. The image bellow shows the process of paint production where each process has its own requirements and for ICI Dulux these processes need to immaculate to reduce occurrence of defects (Evans & Lindsay, 2014).

4.6 Physical Evidence

            ICI maintains branch offices as regional offices and initiate supply chain from their factories in various regions to fulfill needs of adjourning areas. The Physical evidence of the product is there a factory, decorative department, and customer service office. These facilities are the evidence of organizations operations (ICI Dulux Inc., 2016a). 

4.7 People

            Armstrong and Taylor (2014) believe the competitive advantage is in ICI Dulux has a trained workforce that is fully committed to the organizational objective. People form a culture within ICI Dulux that competitors cannot simply imitate or reproduce to similarly innovate and remain cost effective like ICI has achieved. 

5. Budgets

            Lamberti and Noci (2010) the promotions activities are vital for organization to market it product and reach out for consumers while augmenting its consumer base. There are many effective marketing strategies and to priorities marketing activities budgeting is important considering the ROI (Lamberti & Noci, 2010). Direct mail supplements are consistent with marketing messages and strengthen position in consumers’ mind. Cost will include printing, hiring extended workforce and planning the activities ahead while maintaining a significant project execution plan. Furthermore the budget will cater for the monitoring and control processes.

Budget of 3 years 2016-18	JAN	FEB	MAR	APRIL	MAY	JUNE	JULY	AUG	SEPT	OCT	NOV	DEC	TOTAL 2016	TOTAL 2017	TOTAL 2018
Staff
Salaries	$7,500	$7,500	$7,500	$7,500	$7,500	$7,500	$7,500	$7,500	$9,000	$9,000	$9,000	$9,000	$96,000	$115,200	$138,240
Benefits	$1,000	$1,000	$1,000	$1,000	$1,000	$1,000	$1,000	$1,000	$1,400	$1,400	$1,400	$1,400	$13,600	$16,320	$19,584
Staff Subtotal	$8,500	$8,500	$8,500	$8,500	$8,500	$8,500	$8,500	$8,500	$10,400	$10,400	$10,400	$10,400	$109,600	$131,520	$157,824
	JAN	FEB	MAR	APRIL	MAY	JUNE	JULY	AUG	SEPT	OCT	NOV	DEC	TOTAL 2016	TOTAL 2017	TOTAL 2018
Brand
Letterhead	$475												$475	$570	$684
Envelopes	$150												$150	$180	$216
Business Cards	$400												$400	$480	$576
Presentation Folders	$600												$600	$720	$864
Brand Sub total	$1,625	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$1,625	$1,950	$2,340
	JAN	FEB	MAR	APRIL	MAY	JUNE	JULY	AUG	SEPT	OCT	NOV	DEC	TOTAL 2016	TOTAL 2017	TOTAL 2018
Marketing Materials
Brochures/Datasheets Printing		$837											$837	$1,004	$1,205
Content Development (Whitepapers/Brochures)	$1,500		$1,000		$1,000		$1,000		$1,000		$1,000		$6,500	$7,800	$9,360
White Papers		$50		$50		$50		$50		$50		$50	$300	$360	$432
Collateral Design	$2,500												$2,500	$3,000	$3,600
Marketing Materials Subtotal	$4,000	$887	$1,000	$50	$1,000	$50	$1,000	$50	$1,000	$50	$1,000	$50	$10,137	$12,164	$14,597
	JAN	FEB	MAR	APRIL	MAY	JUNE	JULY	AUG	SEPT	OCT	NOV	DEC	TOTAL 2016	TOTAL 2017	TOTAL 2018
Website
Hosting	$60	$60	$60	$60	$60	$60	$60	$60	$60	$60	$60	$60	$720	$864	$1,037
Design/Development	$5,000												$5,000	$6,000	$7,200
Enewsletter Distribution			$299			$299			$299			$299	$1,196	$1,435	$1,722
Search Engine Submission		$8	$8	$8	$8	$8	$8	$8	$8	$8	$8	$8	$88	$106	$127
Website Subtotal	$5,060	$68	$367	$68	$68	$367	$68	$68	$367	$68	$68	$367	$7,004	$8,405	$10,086
	JAN	FEB	MAR	APRIL	MAY	JUNE	JULY	AUG	SEPT	OCT	NOV	DEC	TOTAL 2016	TOTAL 2017	TOTAL 2018
Public Relations
Press Releases		$250		$250		$250		$250		$250		$250	$1,500	$1,800	$2,160
Media Relations	$500		$500		$500		$500		$500		$500		$3,000	$3,600	$4,320
Wire Fees		$175		$175		$175		$175		$175		$175	$1,050	$1,260	$1,512
Press Kits	$675						$675						$1,350	$1,620	$1,944
Public Relation Subtotal	$1,175	$425	$500	$425	$500	$425	$1,175	$425	$500	$425	$500	$425	$6,900	$8,280	$9,936
	JAN	FEB	MAR	APRIL	MAY	JUNE	JULY	AUG	SEPT	OCT	NOV	DEC	TOTAL 2016	TOTAL 2017	TOTAL 2018
Promotion
Advertising	$500		$3,000	$1,737	$3,000	$1,737	$4,650	$1,650	$1,737	$1,737	$1,737		$21,485	$25,782	$30,938
Events			$1,100			$590							$1,690	$2,028	$2,434
Promo Items													$0	$0	$0
Direct Mail (print and email)				$144	$439	$258		$144	$439	$258		$144	$1,826	$2,191	$2,629
Webinar							$420				$420		$840	$1,008	$1,210
Telemarketing				$2,000		$2,000		$2,000		$2,000		$2,000	$10,000	$12,000	$14,400
Prospect Lists													$0	$0	$0
Google Adwords			$300	$300	$300	$300	$300	$300	$300	$300	$300	$300	$3,000	$3,600	$4,320
Promotion Subtotal	$500	$0	$4,400	$4,181	$3,739	$4,885	$5,370	$4,094	$2,476	$4,295	$2,457	$2,444	$38,841	$46,609	$55,931
	JAN	FEB	MAR	APRIL	MAY	JUNE	JULY	AUG	SEPT	OCT	NOV	DEC	TOTAL 2016	TOTAL 2017	TOTAL 2018
Total	$20,860	$9,880	$14,767	$13,224	$13,807	$14,227	$16,113	$13,137	$14,743	$15,238	$14,425	$13,686
											Annual Total	$174,107	$208,928	$250,714

6. Evaluation and Control

6.1 Evaluation

Marketing evaluation process is a unique activity that determines effectiveness in terms of quantitative and qualitative matrices associated with marketing strategy and its implementation (Huang & Shah, 2012). Quantifiable parameters that determine effectiveness of the implemented strategy can be the percentage increase in sales and revenues. 12 % of the market share has been increased due to implemented strategies is an example of quantifiable evaluation parameter. Similarly, there are qualitative standards that are used to evaluate how satisfied are the customers. The evaluation process informs the management of critical information for achieving success. The organizations like ICI Dulux can better plan their subsequent activities in a much more desirable manner.

6.2 Control

            (Kotler, 2012) informs that marketing controls are important part of the evaluation the control standards defined in the planning stage are benchmark to the performance evaluation of the marketing plan. The control process is to measure the actual performance against the planned performance. The control processes can be performed any time during the execution of the marketing activities. The control process is executed to ensure the actual execution is going according to the plan, in this regard marketing audits ensures if the process has followed as planned and will record if deviations exists (Kotler, 2012). The benefit of marketing controls is that manager is immediately informed if execution is going astray and help to apply corrective measure beforehand in order to bring marketing project back on track (Lamberti & Noci, 2010). In addition to marketing audits the feedback system is also a strong marketing control and ensures effectiveness of marketing activities. 

7. Conclusion

The report discusses the possibilities of expanding sales and revenues for ICI Dulux and reports that by targeting homeowners, ICI Dulux can develop on its consumer base by effectively utilizing promotional mix strategies. It is discussed that segmenting homeowners as primary customers and targeting them by tailoring the product line according to their developing needs and want extends significant advantage. Furthermore, targeting strategy is recommended to complement with promotional mix. The recommended processes are that ICI Dulux should formulate a content strategy and then design integrated marketing communication process where ICI will emphasize on personal selling to the consumer this will increase the sales since the homeowners want personalized services. Furthermore, the process is recommended to develop via direct marketing and advertising. If ICI Dulux uses the promotional mix elements in an integrated fashion then the organization will achieve maximum benefit out of it.

Part # 3

1. Introduction

In current business environment almost all the activities are a tug of war that requires making decision either to outsource or run activities in-house. These decisions are not very straightforward in contemporary circumstances and require critical evaluation of cost benefit analysis to determine the decision (McGovern & Quelch, 2005). As marketing manager within fashion industry, I will review the possibilities of outsourcing marketing activities by evaluating a business case and comparing its benefits to keep the activity in house.

2. Marketing Activities

2.1 Promotional Mix

2.1.1 Public Relations

            In fashion industry having to maintain public relations can be very hectic and time-consuming activity. A fashion brand has to remain focused on the business strategy and innovates continuously in order to produce maximum results (Easey, 2009). In my opinion since the specialists in this field can better manage the activity hence this process on terms of cost benefits should be outsourced to 3^rd party and should be closely monitored with the help of reports and software.

2.1.2 Sales Promotion

            This is the exclusive authority of the fashion brand when to offer a sales promotion and on what products to offer (Barnes & Lea-Greenwood, 2010). This decision should be retained in-house to better decide according to the organizational objectives. This activity can be better managed in-house when sales promotions are done through a dynamic process.

2.1.3 Advertising

            This should be maintained in-house, as this process needs to be executed on digital and traditional mediums. This process involves critical decisions making and has a critical impact on the fashion brand (Easey, 2009). Budgeting and in-house retention of advertising experience will produce advertising material in line with the companies future goals and objectives this will significantly improve the process (Jackson & Shaw, 2008). Transparency and performance parameters are key to success in this case.

2.1.4 Direct Marketing

            This activity requires specialized knowledge and expertise and can be executed in-house but can go expensive. Direct Marketing holds a significant importance in the process and outsourcing the process to the specialist can yet again be very effective in terms of cost and speed of the process (Barnes & Lea-Greenwood, 2010).

3. Advantages and Disadvantages of Outsourcing

3.1 Benefits of Outsourcing

When outsourcing the promotional activities the following benefits needs to be considered. First consideration is the speed, when marketing activities time is a very important consideration since marketing the product at the right time is the key to success. Mostly organizations have limited resources and cannot process multiple promotional mix elements at a time (Kotabe, Mol, & Murray, 2008). Due to this many bottlenecks appear and overall productivity is hampered. Outsourcing the process to 3^rd party can provide significant advantage.

The second reason to ponder is requirement for specialization, to fully engage a consumer fashion brand might need to engage some celebrities within and design a script that is engaging for the consumers (Toften & Hammervoll, 2009). In order to do a firm need expertise and might not possess hence in this regard outsourcing to a specialized company can produce better results and in time coordination.

Third benefits of outsourcing is to easily locate domain experts like in fashion industry might want to fully utilize social media to execute marketing activities to increase consumer base and execute data analytics (Leeflang, Verhoef, Dahlström, & Freundt, 2014). Here finding a domain expert can be expensive and outsourcing the activities to 3^rd party can be very beneficial. Since high quality services can be procure for a relative less cost.

Fourth reason is the connections/relationship, not all fashion brands have in-house expertise and industry connections to execute PR programs and in my opinion outsourcing these processes is acceptable.

Fifth reason is creativity, fashion brand might need a change in order to bring something new and would need to step out of their existing culture to innovation to a new class hence engaging a 3^rd party can be very helpful in bring about the breakthrough (Mohr, Sengupta, & Slater, 2009).

Sixth reason is to outsource marketing activities can be to resolve branding troubles. In this case it can be wise decision to engage new business to describe the problem in another dimension so that new direction can be devised to gain better results.

3.2 Disadvantage of Outsourcing

There are many advantages to consider outsourcing in comparison to in-house execution but on the other hand there are some downsides to it that can undermine the efforts. Some disadvantages are listed below.   

Relying too much on outsourcing can create a misplace sense of urgency and the process might result in a premature engagement. Fashion brands might outsource an activity even before they are ready to do so hence there is a need for creating a balance in responsibilities being fulfilled in house before going for outsourcing.

When fashion brands need to be in control of overall process and want to perform micro management. In case of outsourcing minute-to-minute updates are not a possibility hence the brand would be dealing only with what is delivered without having control of how process was taken up to produce the output.

4. Conclusion

            Outsourcing has its benefits and can be applied in certain situations to gain specific advantage. The report discusses the benefits and shortcoming of outsourcing and in-house retention of marketing activities regarding fashion industry. In my opinion based on analysis sales promotion, advertising and personal selling should be retained in house by a fashion brand while public relations and direct marketing should be outsourced. 

References

Armstrong, M., & Taylor, S. X. (2014). Armstrong’s handbook of human resource management practice: Kogan Page Publishers.

Barnes, L., & Lea-Greenwood, G. (2010). Fast fashion in the retail store environment. International Journal of Retail & Distribution Management, 38(10), 760-772 %@ 0959-0552.

Bonnemeier, S., Burianek, F., & Reichwald, R. (2010). Revenue models for integrated customer solutions: Concept and organizational implementation. Journal of Revenue & Pricing Management, 9(3), 228-238 %@ 1476-6930.

Chen, Y., Fay, S., & Wang, Q. (2011). The role of marketing in social media: How online consumer reviews evolve. Journal of Interactive Marketing, 25(2), 85-94 %@ 1094-9968.

Cheverton, P. (2006). Understanding brands (Vol. 58 %@ 074944861X): Kogan Page Publishers.

Crosby, P. B. (2013). Quality is Free-if you understand it. Philip Crosby Associates II, Winter Park.

Cross, J. C., Belich, T. J., & Rudelius, W. (2015). How marketing managers use market segmentation: an exploratory study. Paper presented at the Proceedings of the 1990 Academy of Marketing Science (AMS) Annual Conference.

De Mooij, M. (2010). Consumer Behavior and Culture: Consequences for Global Marketing and Advertising: Consequences for Global Marketing and Advertising: Sage.

Easey, M. (2009). Fashion marketing: John Wiley & Sons.

Evans, J., & Lindsay, W. (2014). An introduction to Six Sigma and process improvement: Cengage Learning.

Fill, C. (2011). Essentials of marketing communications: Pearson Higher Ed.

Fill, C. (2013). Marketing communications: brands, experiences and participation: Pearson Higher Ed.

Harrison, D., & Kjellberg, H. (2010). Segmenting a market in the making: Industrial market segmentation as construction. Industrial Marketing Management, 39(5), 784-792 %@ 0019-8501.

Hofmann-Wellenhof, B., Lichtenegger, H., & Collins, J. (2012). Global positioning system: theory and practice: Springer Science & Business Media.

Hollensen, S., & Opresnik, M. O. (2014). Marketing: A relationship perspective: Vahlen.

Huang, B., & Shah, S. L. (2012). Performance assessment of control loops: theory and applications: Springer Science & Business Media.

IBISWorld. (2016). Painting in the UK: Market Research Report.   Retrieved from http://www.ibisworld.co.uk/market-research/painting.html

ICI Dulux Inc. (2016a). Decorating advice.   Retrieved from https://www.dulux.co.uk/en/decorating-tips-and-advice

ICI Dulux Inc. (2016b). Our Products Retrieved from https://www.dulux.co.uk/en/products

Ingram, D. (2014). Target Market Vs. Target Audience. Houston Chronicle.

Jackson, T., & Shaw, D. (2008). Mastering fashion marketing: Palgrave Macmillan.

Kesidou, E., & Demirel, P. (2012). On the drivers of eco-innovations: Empirical evidence from the UK. Research Policy, 41(5), 862-870 %@ 0048-7333.

Kliatchko, J. (2008). Revisiting the IMC construct: A revised definition and four pillars. International Journal of Advertising, 27(1), 133-160 %@ 0265-0487.

Kotabe, M., Mol, M. J., & Murray, J. Y. (2008). Outsourcing, performance, and the role of e-commerce: A dynamic perspective. Industrial Marketing Management, 37(1), 37-45 %@ 0019-8501.

Kotler, P. (2012). Kotler on marketing: Simon and Schuster.

Kotler, P., & Armstrong, G. (2010). Principles of marketing: Pearson Education.

Lamberti, L., & Noci, G. (2010). Marketing strategy and marketing performance measurement system: Exploring the relationship. European Management Journal, 28(2), 139-152 %@ 0263-2373.

Leeflang, P. S. H., Verhoef, P. C., Dahlström, P., & Freundt, T. (2014). Challenges and solutions for marketing in a digital era. European Management Journal, 32(1), 1-12 %@ 0263-2373.

Lovelock, C., Patterson, P. G., & Wirtz, J. (2014). Services marketing: Pearson Australia.

Loya, A. (2011). Marketing audit-an important tool to determine strengths and weaknesses of the companies. MARKETING, 1(2), 92-108.

Marketing Society Inc. (2012). Marketing Excellence 2: ICI Dulux benefiting from a full marketing makeover  Retrieved from https://www.marketingsociety.com/sites/default/files/thelibrary/marketing-excellence-2-ici-paints-case-study.pdf

Marketing Society Inc. (2013). Marketing Excellence British Airways Reigniting The Brand Confidence Retrieved from https://www.marketingsociety.com/sites/default/files/6288 MS case studies BritishAirways_v6.pdf

McDonald, M., & Wilson, H. (2011). Marketing plans: How to prepare them, how to use them: John Wiley & Sons.

McGovern, G., & Quelch, J. (2005). Outsourcing marketing. Harvard Business Review, 83(3), 22-26.

McQuarrie, E. F. X. (2015). The market research toolbox: a concise guide for beginners: Sage Publications.

Mohr, J. J., Sengupta, S., & Slater, S. F. (2009). Marketing of high-technology products and innovations: Pearson Prentice Hall.

Murao, S., & Ono, K. (2012). Current Status and Future of Lead-Based Paints and Pigments in Asia and the Pacific. Interim Report. United Nations Environmental Programme Regional Office for Asia and the Pacific (UNEP-ROAP) and National Institute of Advanced Industrial Science and Technology (AIST). Tsukuba, Japan.

Nunes, P., & Breene, T. (2011). Reinvent your business before it’s too late. Harvard Business Review, 89(1/2), 80-87.

Papasolomou, I., & Melanthiou, Y. (2012). Social media: Marketing public relations’ new best friend. Journal of Promotion Management, 18(3), 319-328 %@ 1049-6491.

Pitas, C. (2016). Dulux paint maker Akzo urges Britain to stay and improve EU.   Retrieved from http://www.reuters.com/article/britain-eu-akzonobel-idUSL8N12S3KP20151028

Savvas, A. (2014). Dulux paints glowing picture of IT upgrade.   Retrieved from http://www.computerworlduk.com/news/it-vendors/dulux-paints-glowing-picture-of-it-upgrade-3509103/

Shimp, T. A. (2010). Integrated Marketing Communication in Adver-tising and Promotion 8e. International Edition. Printed in China.

Singh, S., Sharma, N., Aggarwal, R., & Saxena, A. (2012). Akzo Nobel Launches New Global Identity of ‘Dulux’in India-Will It Pay Off? LBS Journal of Management & Research, 10(1), 64-76.

Taghian, M., & Shaw, R. N. (2008). The marketing audit and organizational performance: an empirical profiling. Journal of marketing Theory and Practice, 16(4), 341-350 %@ 1069-6679.

Toften, K., & Hammervoll, T. (2009). Niche firms and marketing strategy: An exploratory study of internationally oriented niche firms. European Journal of Marketing, 43(11/12), 1378-1391 %@ 0309-0566.

Vaňa, K., & Černá, Ľ. (2012). The marketing audit as a method of the evaluation of the marketing plan. Research Papers Faculty of Materials Science and Technology Slovak University of Technology, 20(Special Number), 131-136 %@ 1338-0532.

Wood Burk, M. (2010). Essential guide to marketing planning 2nd edition: Pearson Prentice Hall. New Jersey, United States.