Marketing Plan Master Thesis

Masaryk University Faculty of Economics and Administration MASTER THESIS B.Sc Dušan Mladenović Brno, 2013 Faculty of Economics and Administration | Masaryk University Marketing plan | Yugomar d.o.o Page of 117 Faculty of Economics and Administration | Masaryk University Marketing plan | Yugomar d.o.o Masaryk University Faculty of Economics and Administration Marketing plan Master thesis Student: Advisor: 401140 Mladenović Dušan PhD Alena Klapalová Brno, 2013 Page of 117 Faculty of Economics and Administration | Masaryk University Marketing plan | Yugomar d.o.o Page 10 of 117 Faculty of Economics and Administration | Masaryk University Marketing plan | Yugomar d.o.o Masaryk University Faculty of Economics and Administration Department of Corporate Economy Academic year 2012/2013 ASSIGNMENT OF DIPLOMA THESIS For: Mladenović Dušan Field: Business Management Title: Marketing plan Principles of t h e s i s w r i t i n g: Objective of the thesis: The main objectives of the thesis are to analyse present market situation of the chosen company concerning its marketing management problem, to analyse the market and to develop marketing plan according the results of analyses Approach and methods used: Literature search on all relevant topics (marketing strategy, marketing plan, market analyses etc.), current situation and market analyses, proposals of marketing plan Methods: All relevant methods of market and marketing analysis and market research, e.g SWOT analysis, survey, interview Page 11 of 117 Faculty of Economics and Administration | Masaryk University Marketing plan | Yugomar d.o.o The extent of graphical works: according to the supervisor's guidelines the assumption is about 10 charts and graphs The thesis length without appendices: 60 – 70 pages List of specialist literature:        LEE, K a S CARTER Global marketing management 3rd ed New York: Oxford University Press, 2012 592 s ISBN 978-0-19-960970-3 CATEORA, P R a J L GRAHAM International marketing 13th ed Boston: McGraw-Hill, 2007 702 s ISBN 0-07-308006-3 ONKVISIT, S a J.J SHAW International marketing: strategy and theory 5th ed London: Routledge, 2008 710 s ISBN 978-0-415-77262-4 MULLINS, J W a O.C WALKER Marketing management: a strategic decisionmaking approach 6th ed New York: McGraw-Hill, 2008 533 s ISBN 978-0-07338116-9 FARRIS, P.W a N.T BENDLE Marketing Metrics: The Definitive Guide to Measuring Marketing Performance 2nd ed Upper Saddle River: Pearson Prentice Hall, 2010 432 s ISBN 0-13-705829-2 HOOLEY, G J a J.A SAUNDERS Marketing strategy and competitive positioning 3rd ed New York: Prentice Hall, 2004 622 s ISBN 0-273-65516-7 CRAVENS, D W Strategic marketing 9th ed Boston: McGraw-Hill, 2009 784 s Diploma thesis supervisor: Ing Alena Klapalová, Ph.D Date of diploma thesis assignment: 1/11/2012 Submission deadline for Diploma thesis and its entry in the IS MU is provided in the valid Academic Calendar Department Head Dean In Brno on 1/11/2012 Page 12 of 117 Faculty of Economics and Administration | Masaryk University Marketing plan | Yugomar d.o.o Abstract This thesis aims to develop a marketing plan for Yugomar d.o.o – a Serbian company that intends to get into Bulgarian market The thesis consists of theoretical part which gives overview of the main categories connected with marketing plan and analysis that needs to be done Practical part is continuation of the theoretical one and furthermore it gets profound into details about Bulgarian market as such, detailed inquiry and analysis done and moreover proposed marketing plan for Yugomar d.o.o which is based on the findings Considering all data gathered while conducting the market analysis Bulgaria proved to be “promising” market with much of potential growth to expect in the following years However Yugomar d.o.o has to perform necessary marketing action with utmost care in order to launch its business operations as smooth as possible Key words Marketing plan, market analysis, SWOT, PESTEL, marketing mix, Yugomar d.o.o., Bulgaria, Serbia, Master thesis Page 13 of 117 Faculty of Economics and Administration | Masaryk University Marketing plan | Yugomar d.o.o Author's statement I hereby declare that this thesis I submit for assessment is entirely my own work and has not been taken from the work of others save to the extent that such work has been cited and acknowledged within the text of my work In Brno _ _ Dušan Mladenović Page 14 of 117 Faculty of Economics and Administration | Masaryk University Marketing plan | Yugomar d.o.o Acknowledgements Hereby, I would like to express my deepest appreciation to the people who sacrifice their own time helping me to make this work done First of all, PhD Alena Klapalová, for mentoring, and all-time long supports with abundance of invaluable advices Moreover, I would like to mention people from the management of the “Yugomar d.o.o.”, who provided me with sufficient amount of data to base my work on Furthermore, I would like to thank to my parents for supporting me and my decisions all time long during my studies Moreover the person without who this thesis would be endangered - Maja Ahmić, and all others that have contributed in any respect Page 15 of 117 Faculty of Economics and Administration | Masaryk University Marketing plan | Yugomar d.o.o Page 16 of 117 Faculty of Economics and Administration | Masaryk University Marketing plan | Yugomar d.o.o Average spending’s: Number of surveyed: Less than 20 BGN; 67 From 21 BGN till 40 BGN; 518 From 41 BGN till 100 BGN; 349 Over 101 BGN; 67 I not shop at all 135 Percentages points: 6% 46% 31% 6% 12% What type of clothes you are used to buy the most? Glasses/accessories Shoes Jeans/pants Top clothes bought Sweater Shirt Shorts 50 100 Type of cloth: Number of surveyed: T-shirts; 868 Shorts; 158 Shirt; 417 Sweater; 282 Jeans/pants; 327 Shoes; 101 Glasses/accessories 124 T-shirts Percentages points: 77% 14% 37% 25% 29% 9% 11% NOTE: People may select more than one checkbox, so percentages may add up to more than 100% Page Page109 109of of107 117 Faculty of Economics and Administration | Masaryk University Marketing plan | Yugomar d.o.o Which category you put on the first place when shopping? Huge choice Opportunity to use promo prices Politeness of staff Indoor/outdoor shop design 50 100 Category: Number of surveyed: Quality; 766 Price; 755 Proximity of shop; 34 Indoor/outdoor design of shop; 22 Politeness of staff; 146 Opportunity to use promo prices; 485 Huge choice 417 Percentages points: 68% 67% 3% 2% 13% 43% 37% NOTE: People may select more than one checkbox, so percentages may add up to more than 100% Which payment method you use the most? 1% 1% In cash 27% 71% Payment/cre dit card By cheque Page Page110 110of of 117 107 Faculty of Economics and Administration | Masaryk University Marketing plan | Yugomar d.o.o Payment method: Number of surveyed: In cash; 800 Payment/credit card; 304 By cheque; 22 I not shop at all 12 Percentages points: 71% 27% 2% 1% 10 Choosing one of the following adverbs, please asses the outdoor design and visual identity of the Yugomar d.o.o.’s competitors (e.g NewYorker, Terannova ) Unsatisfactory Nothing that could distinct them Design Avarage 50 100 I/O design: Number of surveyed: Excellent; 180 Quite good; 518 Average; 180 Nothing that could distinct them; 225 Unsatisfactory 12 Percentages points: 16% 46% 16% 20% 1% 11 Do you think that Company properly treats environment it operates in? Page 111 111 of of 117 107 Page Faculty of Economics and Administration | Masaryk University Marketing plan | Yugomar d.o.o Yes 46% 54% No Answer: Number of surveyed: Percentages points: Yes; 586 52% No 541 43% 12 Do you think that prices and products offered by Yugomar d.o.o.’s competitors (e.g NewYorker, Terannova ) are carefully adapted to the Bulgaria economic conditions and life standard? Fully adapted 23% Minor adaptatio n 13% Partly adapted 64% Answer: Number of surveyed: Fully adaptation 248 Partly adapted; 721 Minor adaptation 135 Percentages points: 22% 64% 12% 13 Do you think that according to your previous shopping experience, Company has a solid basis for competitive advantage among huge textile retailers (e.g NewYorker, Terannova…)? Page112 112of of107 117 Page Faculty of Economics and Administration | Masaryk University Marketing plan | Yugomar d.o.o No 15% Yes 23% Partly 62% Answer: Number of surveyed: Yes; 248 Partly; 676 No 169 Percentages points: 22% 60% 15% 14 If you would be the Yugomar d.o.o.’s creator of marketing policy, what are the main spheres of business you would fully pay attention to? Something else Local/regional adaptation of stores and products offered; Supports to local cultural events Introduction of so-called „Happy hour“ Sponsorships-donations to the local environments Promotion of corporate responsibility Indoor/outdoor design of stores 50 100 150 Sphere: Number of surveyed: Indoor/outdoor design of stores; 169 Promotion of corporate responsibility; 192 Sponsorships-donations to the local environments; 394 Percentages points: 15% 17% 35% Page Page 113 113 of of 117 107 Faculty of Economics and Administration | Masaryk University Marketing plan | Yugomar d.o.o Introduction of so-called „Happy hour“; 890 Supports to local cultural events; 394 Local/regional adaptation of stores and products offered; 293 Something else 124 79% 35% 26% 11% NOTE: People may select more than one checkbox, so percentages may add up to more than 100% 15 Please asses the location of Yugomar d.o.o.’s competitors (e.g NewYorker, Terannova ) stores in Bulgaria Nothing special 18% I not like it 0% Exclusive 15% Excellent 67% Answer: Number of surveyed: Excellent; 744 Exclusive; 169 Nothing special; 192 I not like it Percentages points: 16 What kind of music you listen to? 16 16 16 16 16 16 10 20 30 40 16 16 Folk Bulgarian music "MTV” music 16 Pop music Rock music 16 Electronic music 16 16 16 16 16 16 66% 15% 17% 0% 50 Page114 114of of107 117 Page Faculty of Economics and Administration | Masaryk University Marketing plan | Yugomar d.o.o Answer: Number of surveyed: Percentages points: Electronic music (techno, house ) 22 2% Rock music 90 8% Pop music 338 30% “MTV” music 406 36% Folk Bulgarian music 248 22% 17 Using to grading scale asses: overall satisfaction with Yugomar d.o.o.’s 17 competitors (e.g NewYorker, Terannova…) 17 17 17 17 17 17 17 17 17 10 20 30 40 50 17 17 17 17 Answer: Number of surveyed: Percentages points: 17 3% 34 17 10% 17 113 17 27% 304 17 33% 17 372 17 23% 259 17 17 Page115 115of of107 117 Page Faculty of Economics and Administration | Masaryk University Marketing plan | Yugomar d.o.o 18 Using to grading scale asses: Linguistic adaptation of web site and declaration of Yugomar d.o.o.’s competitors to the Bulgaria language 10 20 30 Answer: Number of surveyed: 12 90 293 440 248 40 50 60 Percentages points: 1% 8% 26% 39% 22% 19 Using to grading scale asses: Local/regional adaptation of Yugomar d.o.o.’s competitors’ products offered 20 40 60 Page Page116 116ofof107 117 Faculty of Economics and Administration | Masaryk University Marketing plan | Yugomar d.o.o Answer: Number of surveyed: 34 124 349 394 192 Percentages points: 3% 11% 31% 35% 17% 20 Using to grading scale asses: Quality/ reliability of the products offered by Yugomar d.o.o.’s competitors 10 20 30 Answer: Number of surveyed: 124 248 406 237 68 40 50 Percentages points: 11% 22% 36% 21% 6% NOTE: Starting from question No 18 till question No.23 grading scale goes as following: 1unsatasfactory; 2-satisfactory; 3-avarege; 4-very good; 5-excellent 21 Comment/idea/suggestion (only previous customers off Yugomar d.o.o.): - High prices In Chinese shops and at flea markets is usually possible to buy the same quality clothes for the lower prices; Page Page 117 117 of of 117 107 Faculty of Economics and Administration | Masaryk University Marketing plan | Yugomar d.o.o - The quality of cloths is more or less the same as the cloths being sold in Chinese shops The indoor and outdoor design seems to be exclusive but you should definitely work out quality issue; - Music is sometimes too loud A store seems to be overcrowded without signs where to find specific product; - Poor quality of the goods; - Necessity is to develop broader offer of cloths with satisfying quality; - You should definitely not offer so much “fancy” cloths By the way quality is measurable But the prices are fine; - Not so interesting brand for me I am interested what age group you try to cover? No advertising at all; - Definitely accent to be putted on the clothes quality; - A lot of adaptation in the respect of prices, clothes design and certainly not to impose trends that we are not familiar with; - Let there be much more Yugomar d.o.o stores in our beautiful Bulgaria; - Please try to avoid design based on a dragons and tribal Finally when I find something suitable for me, when I turn around it I find some f… dragon on it After that I immediately hit Terranova; - Everything perfect; - Promo activities and introducing of “Happy hour”; - Considering the fact that living standards are not the same in Belgrade and Niš, you should adjust prices to the locals st NOTE: Please bear in mind that answers on 21 question should be based on previous shopping experience elsewhere in Serbia Page118 118of of117 107 Page Faculty of Economics and Administration | Masaryk University Marketing plan | Yugomar d.o.o Intentionally left blank Page 119 of 117 Page 119 of 107 Faculty of Economics and Administration | Masaryk University Marketing plan | Yugomar d.o.o Appendix C: Interview with Mr Zoran Mitrović (owner of Yugomar d.o.o.) The interview has been conducted 28.03.2013 in the Yugomar d.o.o headquarters at Nikole Kopernika street 28, Niš, Serbia What is the vision of the company? Z.M – My vision of the Company is to get abroad and to be successful on the neighboring Balkan markets (FYR Macedonia, Bulgaria, Bosnia and Herzegovina…) Can you describe the strategy of the company? Z.M – Currently on the basis of the positive result in the previous couple of years Company is implanting the fast follower expanding strategy Since we are present in almost every bigger city in Serbia we decided firstly to get onto BiH market, which was completely disaster in both financial and psychological way Now based on that bitter experience, we have plans to launch our retail operations on Bulgarian market Can you describe the skills of the employees? Skills refer to the level of skills the employees have to carry out the company’s strategy and which skills the employees have that are the excellent? Z.M – This is one of the questions that I am going to answer with a doze of reserve According to my findings there is abundance of product control and administrative skills Please you should understand that I am considering the interest of the Company while answering What are the shared values of the company? Z.M – Definitely some of the main values are overall tolerance, open-mind, creativity etc…It is imposable for me to list them down right now This is something that individual get to know over time while being employed in Yugomar d.o.o But worth mentioning is that on the job interview we are searching for the candidates who are going in line with them Page120 120of of107 117 Page Faculty of Economics and Administration | Masaryk University Marketing plan | Yugomar d.o.o How you hire and train employees and how does the company assign them to the right job? Z.M – For the recruitment we mostly use portals like infostud.com or najstudent.com Astonishing number of application we are receiving through these web-sites It is always indicated what kind of vacancies we are offering currently If the candidate passes testing and interview with the HR representative, internal training is provided by the older employees The trial period is three months Why, when and by whom is Yugomar d.o.o founded? Z.M - As you probably know Yugomar was founded in late 1994 as a limited enterprise It was one of the worst times for the Serbian economy and I decided because of the previous expertise in this job to found small firm which will primarily employ the members of my close family To be honest I did not think that it is possible to grow this fast How many people are employed by Yugomar d.o.o at the moment? Z.M – Currently according to the internal documentation 250 workers on different position and cities are employed Could you please send me a recent Annual Report of Yugomar d.o.o., which is to be used for the financial analysis for my master thesis? Z.M – I am really sorry, but according to the internal regulations the only way for such a document to be sent out of the company is on the explicit demand of State and Tax institutions I would like to underline that I perfectly understand the situation you are in and that you are experiencing lack of information but this is because of the situation a few years back which I will not describe hereby What forms of international partnerships in Bulgaria is possible for Yugomar d.o.o having in mind Company’s interests and current trends on the local market? Z.M – The fully owned and controlled branch of Yugomar d.o.o is what we are striving to in this particular moment That is our middle-term goal and we are doing our best in order to gain as much relevant and precise data as possible Recently Bulgarian department has been established with Bulgarian citizens as employees We think that Company should act very carefully and efficient, that is why this entry model has been picked up Page Page121 121of of107 117 Faculty of Economics and Administration | Masaryk University Marketing plan | Yugomar d.o.o 10 Could you please tell me something more about reaching Bosnian and Herzegovinian market? Z.M – That was a bitter pill for the whole Company and especially for me I am not going to get into details but the point is that we decided to launch BiH branch very quickly without profound research of the local market and the costs that might be imposed As a result just six months after the initial opening of the store in Banja Luka, it has been closed We completely neglected local customs and economic situation – and that caused withdrawing the bank loan just to pay off all debts that arose One of the worst business experiences I ever have had BUT this does not mean that we are not interested in this market 11 Do you think that franchise agreements are something to be considered when going abroad? Z.M – So far, we did not think that this type of market entry is suitable for the Company But in the future maybe we will decide to implement it in order to penetrate the local markets as fast as possible 12 According to you and your researches what are the biggest advantage of Yugomar d.o.o on Bulgarian market? Z.M – Primarily low prices and relatively high quality and modern design of the clothes are to be mentioned Furthermore the proximity of the market (geographical and cultural) should help us to position the Company on the local market on best possible way 13 What are the biggest threats on the other side? Z.M – Biggest threats according to me is NewYorker and on the other side flea markets They sell more or less similar clothes for the lower prices Without to sound arrogant but the quality of the clothes is incomparable Legislation might arise as a challenge but definitely not a threat, since we are young, flexible and changeable company 14 Is Yugomar d.o.o aware of the importance of the social responsibility activities? Z.M – Yes we are perfectly aware of this rising trend and we are contributing monthly to the local institutions in accordance with our financial possibilities (e.g kindergarten, houses for abandoned children etc…) Page122 122of of107 117 Page Faculty of Economics and Administration | Masaryk University Marketing plan | Yugomar d.o.o 15 How many employees are currently working on research of Bulgarian market? Z.M – Currently just few of them are employed I think five employees are tackling those operations, two of which are from ethnic Bulgarians (Sofia and Plovdiv) 16 What kind of advertising did Company used and are using on the Serbian market? Z.M – Mainly low-cost ways of advertising are used This means portals, Facebook, Twitter, student parties etc… We are primarily trying to attract youngsters and we are striving to advertise on the places they are hanging the most None of the specialized advertising agencies is employed for that purpose so far Everything is done by marketing department 17 Do you think that some other low-cost advertising methods exist, and if yes which ones? Z.M – Of course that more of them exist, and it is a pity that Company did not employ some of them so far I firstly think of viral and guerilla tools which should attract exactly the marketing segment we are trying to reach That is why we dedicated a considerable amount of time to think out how to present the company on funny and effective way to the market NOTE: Please bear in mind that Z.M stands for Zoran Mitrović Everything stated is based on the own translation by Dušan Mladenović Page 123 of 117 107