Strategic Insights A Comprehensive Macro-Environmental Analysis of the UK Market

Introduction

To help the firm build a new market offering, this research intends to deliver a customised macro-environmental analysis of the UK market. The research will look at the legal, economic, political, sociocultural, technical, environmental, and environmental aspects that might have an influence on the company's place in the UK market. This study gives ideas for a new market product that the firm may create to draw clients and boost market share. It also presents a thorough examination of the UK market. The report is divided into four primary parts, which are a customised shortcut-environmental (PESTEL) analysis, the development of a marketing strategy, particular recommendations for the market providing to the suggested consumer audience, and identification and justification of a new product/market offering using the Ansoff matrix.

PESTEL Analysis

Political Factors

Since the Brexit referendum in 2016, the political environment in the UK has been unstable. Trade agreements, immigration rules, and regulations have all changed as a result of the the nation's current exit from the European Union (Hodgkinson, 2019). The activities and profitability of the corporation may be impacted by governmental laws on taxation, employment, and foreign commerce.

Economic Factors

With a staggering $2.9 trillion in GDP, the UK economy is the sixth biggest in the world. The COVID-19 pandemic, which caused a recession, has, nonetheless, had an effect on the nation's economic growth (IMF, 2020). Spending by consumers has dropped as the unemployment rate has risen. The business must take into account the UK economy as well as the purchasing power of its target market.

Socio-cultural Factors

The people of the UK are varied, with a range of values, beliefs, and lifestyles. Consumers are growing more ecologically sensitive and health-conscious. Additionally, they are looking for goods and services that offer social responsibility, personalization, and convenience. These elements must be taken into account by the business while creating its product line and marketing plan.

Technological Factors

The UK is a highly technologically developed nation with high penetration of mobile phones and the internet rates. Digital channels are being used more often by consumers to conduct product searches, pricing comparisons, and buy transactions (Kampanje, 2012). The business must offer digital platforms for consumer involvement and sales and maintain a strong online presence.

Environmental Factors

Consumers are increasingly more concerned about the environment, and the UK government has developed challenging goals for the cutting of carbon emissions and also supporting the sustainable practises (Kampanje, 2014). To draw in and keep consumers, the business must take into account its influence on the environment and implement sustainable practises.

Legal Factors

The judiciary in the UK is complicated and addresses issues including intellectual property, safeguarding customers, and employment. To prevent legal problems and also preserve its reputation, business must always abide by all the applicable rules and also regulations (Barron & Barron, 2020).

Identification of New Product

We advise our firm to create and introduce a new product after performing research on the UK market and its current trends. The new product will be a collection of ecologically responsible cleaning solutions that are designed for people that value sustainability while making purchases.

With consumers becoming more ecologically aware and making purchases that represent their values, this new product fits into a rising trend. Consumers are prepared to spend extra for environmentally friendly goods, according to a new Nielsen survey, and this trend is only anticipated to accelerate in the years to come. The UK government has set a target of the achieving of net-zero carbon emissions by the year 2050, demonstrating a particular move towards the sustainability in all the sectors of the economy.

We advise our firm to create and introduce a new product after performing research on the UK market and its current trends. The new product will be a collection of ecologically responsible cleaning solutions that are designed for people that value sustainability while making purchases.

With consumers becoming more ecologically aware and making purchases that represent their values, this fresh item fits into a rising trend. Consumers are prepared to spend extra for environmentally friendly goods, according to a new Nielsen survey, and this trend is only anticipated to accelerate in the years to come. The UK government has set a target of the achieving of net-zero carbon emissions by the year 2050, demonstrating a particular move towards the sustainability in all the sectors of the economy.

We will perform market research to determine particular customer demands and preferences for sustainable cleaning goods before implementing this plan. Surveys, focus groups, and interviews will all be used in this research to learn more about customer behaviour and preferences. In order to determine the strengths and shortcomings of competing sustainable cleaning product options on the market, we will also carry out a comparative study.

In order to develop and create our sustainable cleaning solutions, we will collaborate with suppliers and manufacturers after we have determined the precise demands and preferences of our target market. Environmentally friendly packaging and ingredients will be given first priority, and we'll make sure our goods adhere to the highest sustainability requirements set by the market.

We'll utilise a focused marketing plan to contact people who care about the environment in order to draw them in. This will involve content marketing that promotes the advantages of our eco-friendly cleaning products, influencer relationships, and social media advertising. Additionally, we'll place a high priority on educating our customers about the value of sustainability and the negative effects that conventional cleaning products have on the environment.

In order to provide the best possible customer experience, we will concentrate on giving simple and convenient purchasing and shipping choices, delivering exceptional customer service, and making sure that our goods meet or exceed consumer expectations for both quality and efficacy. We'll also place a high value on accountability and openness, making sure that our clients can find out about the environmental effect and sustainability of our goods.

In conclusion, our new range of environmentally friendly cleaning products is a chance to capitalise on a developing market trend and set ourselves apart from other cleaning product businesses. We can effectively launch our new product and give clients a high-quality and environmentally friendly cleaning solution alternative by employing a product development plan, doing market research, and putting into practise a focused marketing strategy.

Marketing Strategies

Our company's advertising approach will concentrate on focusing on those customers that prioritise sustainability in their purchase decisions in light of the previous research of the UK industry and the identified possibility for a sustainable and eco-friendly product.

Segmentation

Consumers in the 25–45 age range, with a higher level of education and a medium–high income, will be our target market. These buyers are more likely to give consideration to environmental impact and sustainability while making purchases. We'll also focus on companies with sustainability objectives and programmes, especially those in the retail, hotel, and food sectors (Johne, 1984).

Targeting

Our product line will be marketed to people and companies searching for sustainable and eco-friendly substitutes. We will present our product as a premium option, highlighting its exceptional quality, robustness, and environmental advantages. Our target market will be those who are prepared to further pay more for the environmentally friendly goods that will share their beliefs (Taken Smith, 2012).

Positioning

Our product will be advertised as a greener, more sustainable option to conventional goods. By highlighting the better quality, longevity, and environmental advantages of our product, we will set ourselves apart from the competition. The following main statements will be the emphasis of our positioning (Morrison, 2022):

• Our product is a premiums offering, aimed at environmentally conscious customers who prioritise sustainability in their choices of goods. 
• Our product is made from sustainable and eco-friendly materials, reducing the impact on the environment and waste.
• Our product is of excellent quality and durable, reducing the need for frequent substitutes.
• Our product is adaptable and may be utilised in a range of contexts, including both domestic and professional settings.

Our long-term strategy goal is to become a market leader in ecologically conscious goods, with an emphasis on ongoing product innovation and an expansion of our product line to meet the rising demand for environmentally friendly alternatives. To enhance our product offers and sustainable practises, as well as to investigate new markets and collaborate with companies, we will keep investing in research and development.

Our firm must have a strong brand identity that connects with environmentally concerned consumers and companies in order to draw customers. Creating a compelling brand narrative that highlights our dedication to sustainability and our exceptional product quality will be required for this. Additionally, we will need to spend money on marketing initiatives that are specifically designed to reach our intended audience through platforms like social media, online advertising, and alliances with eco-friendly businesses and organisations (Lafrenière, 2019).

Our business must put sustainability first in all facets of its operations, from product design to packing and delivery, to improve the consumer experience. We will also put a lot of the effort into the fostering of the long-lasting connections with the clients by giving them outstanding customer service and also proactively seeking input to enhance both our product offerings and client experiences (Morrison, 2022).

Recommendations

The following are particular recommendations for the market offering for the planned target demographic in the UK based on the study done on the macroenvironment and the advertising plan that was created:

Product

A premium line of organic and sustainably derived personal care products for customers who care about the environment is the planned market proposition. There will be options for various hair and skin types in the collection, which will comprise shampoo, conditioner, body wash, and body lotion. The items will be devoid of dangerous chemicals and come in environmentally friendly packaging.

Price

Due to the high-quality organic and sustainably sourced ingredients utilised in the goods, the items will be priced at a premium level. The pricing will also take into account the going rate for comparable goods on the market.

Promotion 

The main point of the marketing communication approach will be sustainability and environmental awareness. Digital marketing initiatives that highlight the items' environmental friendliness and their sustainable production methods will be a part of this. The product line will also be promoted through influencer collaborations with well-known UK eco-conscious influencers.

Place 

Customers may buy the goods via the company's website and a small group of upscale retailers that share its principles and cater to its target market. Customers will have the opportunity to subscribe to get recurring shipments of their preferred items from the website, which will offer free delivery inside the UK (Doroodgar et al., 2013).

Customer Experience

The business will provide personalised suggestions for each consumer depending on their hair and skin type in order to improve the customer experience. On the business website, customers may complete a brief questionnaire to obtain tailored product recommendations. A dedicated customer support team, social media, and email are just a few of the methods via which the business will deliver great customer service (Lafrenière, 2019).

In conclusion, the suggested market offering is a luxury line of personal care items made from organic and sustainably derived materials that are priced at a premium level. The items will be sold through the company's website and a few high-end retail locations, and the marketing communication approach will emphasise sustainability and environmental awareness. Personalised suggestions and first-rate customer service will improve the consumer experience. The corporation can draw and keep clients in the already crowded UK market by concentrating on these factors.

Conclusion

In conclusion, the UK market offers the organisation both enormous potential and problems. The business needs to stand out from the competition and provide a special value offer for its clients if it is to flourish. The suggested approach of expanding the current product range to include organic hair care items for males is consistent with the company's key principles and advantages. The firm may become a top organic skincare and hair care brand in the UK market by using the marketing strategy of segmentation, targeting, and positioning together with particular advice for communication, distribution, and price. The customised macro-environmental research concludes that the COVID-19 epidemic and Brexit pose major difficulties to the UK market. The business does have the chance to address shifting customer demands and implement sustainable practises. The business must create a product line and marketing plan that appeals to its target market and conforms with all pertinent rules and laws. In order to draw in new clients and keep existing ones, the business must also take the UK economy into account and provide competitive pricing.

References

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Morrison, A. M. (2022). Marketing strategy: Positioning, image, branding, and alternative strategies. Hospitality and Travel Marketing, 211–238. 

Taken Smith, K. (2012). Longitudinal Study of Digital Marketing Strategies Targeting Millennials. Journal of Consumer Marketing, 29(2), 86–92.