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Marketing Strategies
Chapter 1 Developing Marketing Strategies and Plans
Chapter 1 Developing Marketing Strategies and Plans
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Bob Thompson, along with his brother Sam, reopened and operated Bob’s supermarket, a family-owned independent grocery store in Hanover, Indiana (Parnell, 2014). The mission of Bob’s Supermarket is “to provide groceries, fresh foods, and ready-to-eat food that is of the highest quality and convenient at a fair price, while being a valued member of Hanover” (Parnell, 2014, p. 396). With such a strong mission, Bob’s Supermarket did not appear to focus on marketing, growth, and innovation.
The small supermarket seemed to be meeting its mission. However, its competitive advantage was dissipating when larger retailers such as Wal-Mart Supercenter and Kroger’s opened nearby. Owners of Bob’s Supermarket did not see the value in marketing; therefore
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(2014). Strategic management: Theory and practice (4th ed.). Los Angeles, CA: SAGE.
Bob’s Supermarket hit a brick wall when the economy was beginning to experience “one of the harshest recessions in 60 years” (Parnell, 2014, p. 403). The store was already challenged, because it was located in a not so prosperous, Hanover, Indiana. However, with the increase in minimum wage, Bob was facing challenges. Then to make matters worst, Wal-Mart opened a Supercenter 10 miles away.
The new additional stores caused Bob’s to see a shift in its customer mix. Bob’s competitive advantage was disappearing. The economic changes could cause the Hanover store to close like the other two stores. The brothers needed to focus on growth. Parnell describes how other retailers remained profitable during the recession. “To improve the quality of growth . . . company leaders must overturn conventional thinking about how to manage the organization, processes, and people for growth” (Parnell, 2014, p. 209).
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Customers were shopping for convenience and professionalism. Krogers is well designed, and employees wear uniforms and identification. Moreover, the social demographics has changed. Hanover households were slightly older with low to moderate incomes and outdoor lovers. Bob 's did nothing to attract this market. Lastly, “reflecting busy schedules and limited budgets, survey respondents are most concerned with the selection, convenience and price in selecting a place to shop, small town attributes such as familiarity, service, and quality are also valued, just less so” (Parnell, 2014, p.
Kmart, contrarily, entered behind Wal-Mart as the second largest retailer in the United States after Sears’ reign. They, however, suffered a similar affliction to what felled Sears when Kmart ruled discount retail so heavily that they seemed almost unstoppable. However, with lack of solid knowledge on the business’ purpose and Wal-Mart as a strong competitor, there began a steep decline, along with Sears, that led to filing for Chapter 11 bankruptcy (New York Times 2002).
The anti-Wal-Mart activists believe that the creation of giant discount stores in the rural regions of the United States will lead to their economic and cultural destruction. With economic impact studies, they show that Wal-Mart's incredible gains are in fact taken from other local merchants, whom finally run out of business. According to Sarah Anderson, an economic analyst with an anti Wal-Mart stance, the establishment of a new store near a small town destroys more jobs in independent businesses than it actually creates in hiring local workers (1994). Moreover, a Wal-Mart funded community impact study in Greenfield, Massachusetts demonstrated that the construction of a new mega store would create 274 jobs. But in long terms, the community projects to lost about the same amount in the locally owned competing businesses (Sarah Anderson, 1994). The anti Wal-Mart activists are also concerned by the return of the profits in its adoptive community. The economic spin-off of the money spent in local business is largely superior than with the discount store. But almost all the profits made in a Wal-Mart are returned...
..., John E., Strickland, A.J. Thompson, Arthur “Whole Foods Market In 2006: Mission, Core Values, and Strategy”, Crafting & Executing Strategy 15th Ed., McGraw-Hill Irwin, 2007
It reported on the top six reasons as to why Publix customers remain loyal to the brand. First off, the company has been servicing the greater Florida region for 87 years, with great success. Abc.com (2014) The states native population grew up with the Publix brand and tends to gravitate towards it, more so than the competition. Some folks have been shopping at Publix since they were children and have that sentimental connection with the brand, as it evokes memories of loved ones. Some families have frequented the establishment for generations. Secondly, the customers enjoy the level of customer service that is offered by Publix. Abc.com (2014) “The thing Publix does so well as anybody is customer service.” (Jon Springer) Abc.com(2014) Jon is the retail editor for Supermarket News. The customer service aspect of the Publix brand is the main deciding factor that draws the customers in as it builds a lasting relationship with the
In general merchandise retailing, Wal-Mart’s primary competitors are Target and Kmart. Retail superstores such as Circuit City and Bed, Bath, and Beyond, also provide retail competition. A survey found that the majority of respondents favored Wal-Mart over stores like Target and Kmart. Respondents claimed Wal-Mart offered lower prices, better variety and selection, and good quality. The needs of consumers is an important economic feature in all competitive environments. What attributes (price, variety, quality, etc.) prompt buyers to choose one retailer over another is very important in the competitive landscape.
Managers in the more profitable regions were achieving/surpassing their sales goals, while managers in the less active regions were unable to achieve their sales goals. These underperforming managers were penalized by a system that they neither fostered nor developed. In all likelihood, the underperforming managers were disincentivized by unrealistic budgetary goals for their region, needing further assurances from corporate that their vision could be achieved. All retail stores suffered from a lack of product, destroying the potential sales that they could have gained. The stores in less popular/populated regions may have garnered a reputation for being unreliable and continually out of stock.
Fast Company,(139), 69-70,73,16. Retrieved from Research Library. Document ID: 1870795761. Wheelen, Thomas L. & Hunger, J. David, (2010). Strategic management and business policy.
Another thing to consider is a statement made on CNNmoney.com in regards to Dollar Generals consistent store growth that they are only "cannibalizing sales at their other stores and eroding their profits"
For Oliver’s Market among the five Competitive forces, pressures associated with the threat of new entrants into the market are the strongest one. Because Wal-Mart and Target had announced plans to develop regional supercenters in the Sonoma county region. They are strong candidates for entering the market, because they possess the res...
The framework that will compare Publix Super Markets and its competitors is the Five Forces Model of Competition. The five aspects that will be discussed are the threat of new entrants into the market, the bargaining power of suppliers and buyers, threat of substitute products and rivalry among competing firms. Striving for the optimal position in each of these categories has given Publix Super Markets the reputation it has pride towards earning. It is important to every compa...
This assignment will attempt to determine why Marks & Spencer nearly collapsed and what they have achieved in terms of success and failure as part of their recovery programme.
BR was sold to Delta Foods in 1996 for US $2 billion. At this time, it was one of the largest fast-food chains in the world generating sales of US $6.8 billion. DF purchase of BR brought in a new cultural paradigm. DF is an individualistic, aggressive growth company with brands they believe are strong enough to support entry into new overseas markets without the need for local partnership. The DF strategy is one of direct acquisition and JV’s were not part of their strong suit. DF strategic implementation is based on hiring local managers directly or transferring seasoned managers from their soft drink and snack food divisions. The DF disdain for JVs is clearly reflected by their participation in only those JVs where local partnering was mandatory (e.g. China) to overcome regulatory barriers to entry. JVs had been the predominant strategy for BR which was unlike the DF outlook. Terralumen’s strategy was misaligned and out of sync with the DF strategy. This was unlike the complementarity that existed with BR’s strategy. This misalignment began to affect the JV relationship that had worked well with BR in the initial years. The failure of Terralumen and DF to recognize this fundamental cultural difference between their operational strategy styles i.e. Individualistic and Collectivism leads to their inability to proactively create steps for better alignment in the early period after acquisition, creating uncertainties and difficulties for both corporations. There is a lack of communication and virtually absence of trust between two new partners. DF appeared to be flexing its muscles in the relationship and using a more masculine approach compared to Terralumen’s more feminine approach. Both the corporations are strategically involved in a complex situation where they appear reluctant to address the issues at stake and move ahead together. The DF strategy of
In 1998, many attempts to strategize the company were employed by both Anita Roddick and Patrick Gourney. Unfortunately, the damage had already been done. Revenues continued to growth; however, pre-tax profits still declined in the years that followed. In 2001, Gourney attempted to reinvent the company and employed several strategies that continued to fail by suggesting increased investment is stores, and attempted to achieve operation efficiencies by reducing product and inventory costs.
According to its mission statement, Publix is dedicated to providing customer value. The macroenvironmental and microenvironmental factors that impact Publix will be analyzed. While the customer value funnel is top-down, the subsequent levels contain feedback loops to maintain efficiency and effectiveness. As will be seen, Publix’s response to level I factors also involves level II factors.
Sears has seen many different changes in business and has had to adjust to t...