Marketing management Sample Homework

Executive Summary

Marketing management is an effective and important aspect when it comes to the international organisations content. The reported emphasis has conducted various analysis following the strategic marketing tools such as segmentation, marketing mix, situation analysis so that the marketing objective of the company SPAR can be obtained duly. A set of recommendations has been proposed in the paper that relates with the marketing situation of the company as it will widen the opportunities of business performance and sustainable organisational success through customer experience.

Introduction and objectives

Emerging business means and competition increases business opportunities and poses threats to widen the business dynamics. The following paper intends to attain the effective marketing plan and strategies that would help the considered organisation SPAR in accomplishing the business objectives. It has been evident that the company aims to open new stores by the end of 2018. Here in this regards, analysing the marketing situation, segmentation, objectives and thereby marketing mix concept would be initially important, as these strategic tools will help the company in accomplishing objectives taken into account.

SPAR, World’s largest voluntary food retailer has the following objectives to perform using the given emphasis

  • To expand the business considering the marketing situation and strategy
  • To meet customer’s wants and need to meet effective customer experience
  • To maintain the food market chain with effective business strategies and sustainable manner

Current market and company situational analysis

In accordance with the given case scenario it has been evident the company intends to open new stores in the current market so that the customers in the local and regional area can avail the products in the effective manner and competitive advantage can be attained (Sutherland, 2014). In this case analysing the current situation with porter’s five forces will help the company in understanding the current marketing position and further opportunities in expanding the business and retaining customer experience duly (Heding, et al. 2015). Porter’s five forces model has five independent forces that have significant role-play in analysing the marketing situation.

Threats of new entrants: SPAR have significant global presence with 12120 stores over 40 countries that includes, Russia, China, UK, Qatar, Austria and more. Thus, in this aspect, threats of new entrants will have low impact on the company as the company already has significant brand value.

Threats of substitution: SPAR focuses on meeting customers rapidly changing needs and expectation from the food retail industry as sustainability and organic concept has captured the market in the significant manner. In this aspect, SPAR have taken initiative to operate the food products involving the organic, fresh and quality foods. Thus, to pose threat to SPAR the substitution needs to create effective value proposition and brand value.

Bargaining power of supplier: Bargaining power of supplier tends to increase when the company operates the supply through outsourcing. As the company have global presence and effective brand vale bargaining power of the suppliers are low.

Bargaining power of customer: It is aforementioned that his company operates over 12120 stores and holds a huge customer base. It signifies the leads the company have to operate with in the competitive market. Thus, the potential of customer is not limited, low or high it is moderate as it varies according to the social trends.

Existing market rivalry: Retail industry has the significant and intense competition in the market. Global presence of the company has the ability to pose threat to the company in the effective manner. Thus, keeping the advantages under consideration, safeguarding the c company can help to address the potential risks in the effective manner.

In accordance with the given emphasis, it can be stated that this company holds significant brand value and is operating in the effective manner. However, in this era to sustain this competitive advantage, it would be important to safeguard the operatives with systematic strategies such as effective value proposition and building effective relation with multiple suppliers can help the company in minimizing the power of supplier (Jackson, 2015). To minimize the threat of other forces it would be important to perform in the ethical manner as well as supplying sustainable and quality food products to the customer.

Consumer behaviour:

Consumer behaviour has the most significant role-play behind the success of any organisation. Various factors present influence consumer buying behaviour in the significant manner. The factors mainly involves social and current purchasing trend in the food retail industry, social media habit, word of mouth and more. These factors influence the stages of consumers purchasing behaviour in the significant manner. Thus, in order to sustain the customer experience incorporating current trends and the aforementioned strategies will be important.

SWOT analysis of SPAR

SWOT analysis of SPAR

Figure 1: SWOT analysis of SPAR

(Source: Self-created)

Market Segmentation of SPAR

Marketing segmentation is an effective tool that helps in identifying the potential customers based on the different characteristics. Four types of marketing segmentation are present that involves demographic, behavioural, psychographic and geographic segmentation (Calder, et al. 2017). The company has global presence and has to operate focusing on all of the segmentation categories as geographic segmentation deals with different customers from different region. Behavioural and psychographic segmentation configures the attitude social and emotive cognition and other beliefs related to the purchase. In accordance with the recent researches, it has been evident that the company mainly follows the behavioural segmentation as it focuses on the current trends of purchasing (Štofová and Szaryszová, 2017). SPAR have categorised the segmentation as per the taste seekers value for many buyers and brand loyalists. Thus, the primary customers are the taste seekers for this company and the secondary concerned customers are the rest two categorised.

Figure 2: Marketing segmentation of SPAR

(Source: Self-created)

Marketing Plan Objectives

As has been documented, SPAR’s main objective revolves around effective business expansion, building customer relation, effective customer experience and sustainable business performance. Biggest advantage of the SMART approach in planning the business objectives is it helps in accomplishing the organisational prerequisites in time, cost and labour effective manner (Regli, 2016). Thus, if these objectives are put into the SMART rule the figure will look like the given table:

SMART Acronyms

Rationale

Specific

Specifying the objectives helps in monitoring the growth in the accomplishment of objectives.

Measurable

The growth and movement progress of the business practices are important to measure so that the effectiveness of undertaken approaches can be determined to confirm the suitability of the business practices.

Attainable

It confirms whether the set objectives are attainable or not. This can be determined through the growth and measure of the objectives.

Realistic

Planning the objectives need to be created concerning the fact that they are able to meet the real world situation and address the problems. Thus the criteria’s are crucial to be realistic.

Timely

Planning the objectives in accordance with the time specifications helps in saving the time and labour of the employees as well.

Table 1: SMART rule in planning the objectives

(Source: Self-created)

Marketing mix strategy recommendations

Marketing mix is an effective tool that helps the company in understanding the current business potential and further business approaches so that the objectives can be met in the successful manner (Chernev, 2018).

Product: SPAR have differentiated and wide product range that involves organic foods, excellent quality and fresh products. This signifies a prominent strength of the company that will help the company in further business expansion and penetration products to support the sustainability of the business.

Price: This company follows economic, moderate and premium pricing strategy as the market segmentation approach of the company also associated with the cost and quality factor prominently.

Place: The company have significant business process and placement strategy due to the global presence. The expanded business features, convenience stores across the globe and modern shopping practices differentiates the company with volumes place strategy in this regards.

Promotion: SPAR follows the traditional promotional methods that helps the company in effective customer retention and purchasing convenience by the customers. Apart from that, the online advertising, company website has also the significant role-play in the business operations. It’s promotional planning involves Christmas competition, Summer campaigns, special event campaigns and more (Bull, et al. 2016).

Recommendation

In accordance with the given emphasis of marketing mix of SPAR, few suggestions can be proposed so that the company can attain further improvement opportunities and safeguard the company from further potential risks that may hinder the organisational success. In the foremost step, it can be recommended to impose effective supervision and concern to the company's service operations and sell new products including the old ones in the new stores as iot will helps in attracting new customers (Burns, et al. 2014). Apart from that, shiftiest in the value proposition can help the company in operating in the new business stores. Additionally, incorporating EDLP display in the promotional activities can help the company in further business improvements and generating leads. Merging the corporate relation and building effective relation with the rivalry’s can help in mitigating the intense threat of customer rivalry.

Evaluation and Control

Planning the objectives are not enough in accomplishing the organisational prerequisites as evaluation and controlling of the planning is crucial as well in this regards. Proper execution of the planning considering the key performance indicators of the company would be crucial, as it will help in analysing and evaluating the progress of undertaken business approaches (Vargo, et al. 2015). Thus, effective incorporation and selection of the KPI’s will be necessary, as sales KPI, performance KPI are the crucial factors in measuring the growth of the business objectives.

Estimated Budget

Construction cost

70,000 OMR

POS/ Office electronics and equipments

40,000 OMR

Operations cost

35,000 OMR

Rental deposit and insurance

25,000 OMR

Advertising and marketing costs

55,000 OMR

Suppliers and staffs

45,000 OMR

Others

30,000 OMR

Total

300,000 OMR

Table 2: Estimated Budget

(Source: Self-created)

Conclusion

In accordance with the reported emphasis, it has been evident that the renowned voluntary food retail industry SPAR would need to plan the business objectives following the SMART approach so that the planning measurements and progress can be attained in the profound manner. Additionally, segmenting the targets in associated with the current and modern business economic approach would be crucial.

Reference list

Bull, J.W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C., Lambini, C.K., Rawlins, M., Baral, H., Zähringer, J. and Carter-Silk, E., 2016. Strengths, weaknesses, opportunities and threats: a swot analysis of the ecosystem services framework. Ecosyst. Serv. 17, 99–111.

Burns, A.C., Bush, R.F. and Sinha, N., 2014. Marketing research (Vol. 7). Harlow: Pearson.

Calder, B.J., Malthouse, E.C. and Maslowska, E., 2016. Brand marketing, big data and social innovation as future research directions for engagement. Journal of Marketing Management, 32(5-6), pp.579-585.

Chernev, A., 2018. Strategic marketing management. Cerebellum Press.

Heding, T., Knudtzen, C.F. and Bjerre, M., 2015. Brand management: Research, theory and practice. Routledge.

Jackson, J., 2015. Does Marketing Management and Education Need a Delicate Balance Between Evolutionary and Spiritual Leadership to Provide Added Value?. In Creating and Delivering Value in Marketing (pp. 259-263). Springer, Cham.

Regli, T., 2016. Digital and Marketing Asset Management: The Real Story about DAM Technology and Practices (Vol. 1). Rosenfeld Media.

Štofová, L. and Szaryszová, P. eds., 2017. New Trends in Process Control and Production Management: Proceedings of the International Conference on Marketing Management, Trade, Financial and Social Aspects of Business (MTS 2017), May 18-20, 2017, Košice, Slovak Republic and Tarnobrzeg, Poland. CRC Press.

Sutherland, E., 2014. Lobbying and litigation in telecommunications markets–reapplying Porter’s five forces. info, 16(5), pp.1-18.

Vargo, S.L., Wieland, H. and Akaka, M.A., 2015. Innovation through institutionalization: A service ecosystems perspective. Industrial Marketing Management, 44, pp.63-72.

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