Supermarkets are becoming more competitive due to the increased amount of buying needs of customers. They try their best to attract customers by researching market demand, re-creating their marketing strategy and identifying their marketing positioning to satisfy their customers. A marketer has to consider every single problem related to the market which is a complicated task. Understanding customer behavior is extremely challenging as it influences the marketing strategy that needs to be implemented. Thus, organizations try to understand more about their customers in order to meet their organizational target. For the supermarkets, customer is their biggest revenue spinner and it is vital for them to improve their product base and services. In the supermarket business, most of them are willing to cover every needs of customer or in other words they try to offer low price products, middling and expensive products which match different customer groups. Waitrose focuses on the high quality products, which means the price is quite expensive to be compared with other competitors.
[...] Porter's 5 forces According to Jobber, by understanding its competitors, a firm can better predict their reaction to any marketing initiative that the firm might make, and exploit any weaknesses they might process. Competitor analysis is thus crucial for the successful implementation of a marketing strategy. The threat of new entrants News entrants can increase the level of competition in a sector and it can also discourage new entrants when the level of competition is already fierce. UK food retailers market share 2007 Sales Food retail No retail % Share (excl. [...]
[...] (See Jobber's promotion from part p498 to p533) Waitrose is using direct marketing to promote its brand and products. According to the same book reference, ‘direct marketing is a technique of communication and sales which consists of spreading a personalised message toward a target of people or firms, in order to obtain an immediate and measurable reaction' (Jobber p.499). This method is based on databases and its objective is to attract new consumers thanks to an adapted offer. Then, the company has to create loyalty. [...]
[...] Marketing-Oriented Pricing[12]: Figure cited from David Jobber fig 12.3 ‘Market Oriented Pricing' Marketing Strategy: Pricing new products: Waitrose's immediate competitors, Sainsbury's and Marks & Spencer's are being targeted with the pricing strategy widely known as 'Price Commitment' labels found on the shelves, where the effort is to change customer's perceptions and lift sales. The approach slightly varies for the new product launch to the existing products. Conditions for charging a low price: The price reduction on the products within the stores is carried out taking into account the customer's point of view on where the product is assessed based on quality, expiration date, damaged products etc. [...]
[...] Recommendations: After defining the strengths and weaknesses of Waitrose, our group has picked out some suggestions on how Waitrose may improve for further development: In general, the Waitrose strategy seems profitable, we strongly advice it to follow its marketing-oriented philosophy and improve its marketing mix according the demand and market competitors. Waitrose houses two warehouses, therefore we advice it to open more warehouses in order to facilitate delivery and to improve distribution efficiency. In the same way, the opening of new warehouses will definitely create an opportunity to open more stores and then, to increase its market shares. [...]
[...] In this assignment, it will show how Waitrose plans its marketing in order to meet its organizational goals; how market influences its strategy and positioning; how competitive advantages effect its organization. Organization orientation Orientation of an organization is the paramount in a business because it is the starting point of a company, then the philosophy it will adopt to achieve its goals. It allows the organization to focus on the orientation; it believes it has the best way to succeed. [...]
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