Strategies for the Expansion of Store Retail Wine Offers - Essay Example

STRATEGIES FOR THE EXPANSION OF STORE RETAIL WINE OFFERS Table of Contents: Summary ………………………………………………………………………..3 Contents of the Briefing Paper …………………………………………………. 4 Assessment of Suggested Strategies…………………………………………… 6 Effects of these strategies………………………………………………………. 9 Options for Action…………………………………………………………… 10 Recommendations………………………………………………………………. 10 Bibliography…………………………………………………………………….. 11 Appendix…………………………………………………………………………..13 Summary: Taurus wine is a British company that specializes in the sale of wine substances and products in the United Kingdom. This company offers a wide range of wine substances, spirits, and champagnes from the eclectic, to the classic (Taurus Wines, 2015). This means that the wine substances offered by the company, covers all types of wine lovers, i.e. from those people who love cheap wine, to others who love expensive and classic wine (Carlsen, 2007). Wine substances are sourced from the entire world, some of which are imported exclusively by the company, and other, which are very familiar to people and wine lovers. This is because of their strong brand name. Examples include Sussex and Surrey brewed beer, a selection of strong malts, which are brewed by independent distilleries. The company also sales Havana cigars, which are classic cigarettes, and people like consuming them, together with wine substances. The company prides itself with a highly efficient customer service, which is friendly and highly knowledgeable on the different types and quality of wine substances (Taurus Wines, 2015). Its customer service is therefore one of the greatest advantages that the company has over its competitors. The shop of the company is also designed to fit the 16th century architecture, therefore providing a classic feel, when an individual shops at its stores. Furthermore, the company has an ample parking ground, which would enable shoppers to park in front of the shop (Taurus Wines, 2015). Furthermore, the company is also famous for provision of party and event services. This includes cool box hire, glass loan, and supplies of ice. The company has a considerable experience in this arena, mainly because it managed to supply for approximately 500 events, every year, and this is within the last decade (Taurus Wines, 2015). Furthermore, the quality of its wine is high and well assured. This is because, its members of staff have tasted every wine, therefore, any recommendation they make, is based on experience. In a bid to increase its profitability, the company has to expand its wine offer. However, the company would face stiff competition, from wine retailers such as, AG Wines, Asset wines, Baron Wines, Bancroft wines, etc. This paper is a brief, on the best strategies that the company should use, in expanding its wine offers, when compared with its competitors. Contents of the Briefing Paper: This is a paper that contains the strategies that Taurus wine should use, while expanding its wine offer. Taurus wine is a British wine retailer, and it seeks to expand its market, so that it may increase the levels of profits that it gets. For purposes of increasing or expanding its wine offer, Taurus Wine has to develop an efficient marketing strategy that would help in promoting the sale of its wine brands. This paper recommends that before expanding its wine offer, the company has to carry out a market research. For any organization to achieve success in their marketing strategy, they will have to know the tastes of consumers, their needs, whether they are price sensitive or not. This kind of information can only be obtained by carrying out a market research. Through this activity, chances are high that the company will get the right information that can direct the strategies that it can use for purposes of expanding its wine offers, and winning against its competitors (Carlsen, 2007). However, some of the strategies that the company should use for purposes of expanding its wine offer includes, re-branding, cost leadership strategies, proper and attractive packaging of wine substances, and internet advertising. Re-branding is an important strategy that the company should use for purposes of expanding its operations. In the wine industry, people are concerned with the brand names of the wines, and this is because they equate a brand name, with the quality of wine. Branding is therefore an important strategy analyzed in this brief. Another strategy is cost leadership strategy (Stinson, 2008). This would mean that the company should sale its wine products at a slightly lower price, in comparison to its competitors. This strategy is recommended, because the average UK consumer is price sensitive. Another strategy analyzed in this brief is internet marketing or advertising. The use of the social media and the internet is advantageous for promoting the sales of its wine, because these internet tools have the capability of reaching a wide audience or a large number of potential consumers (Carlsen, 2007). The impact of this strategy on the organization is explained in this paper. Packaging is also an important and crucial strategy that the company would use, and it is explained in this paper. Almost all wine companies normally package their wine, for purposes of attracting their customers (Rao and Manikyam, 2013; Grugulis, 2011). This paper identifies the advantages of proper packaging to the company. Another important section of this paper is how these strategies would affect the organization. This section would explain how all the important stakeholders of the organization would be affected by these strategies, and the situation of events currently. Furthermore, this paper identifies the options that the organization has, in relation to the research conducted, and their feasibility. The last section in this paper is the recommendations. This section identifies the best strategies that the company should use in expanding and marketing its new wine stores. Emphasis would be laid on the use of the internet, branding, cost leadership, and packaging strategies. Assessment of the Suggested Strategies: Market research is an important tool of gathering information concerning the tastes and preferences of consumers. Furthermore, this is an important method of determining the market leaders in the wine industry, their strengths and their weaker points (Pride and Ferrell, 2008). The information obtained from this research can help the company in determining the type of strategies that it can use, to increase its market share, through the expansion of its wine offer (Chadwick, 2011). However, one of the important strategies that the company should use in the expansion of its wine offer includes re-branding. Under this type of strategy, the company will have to re-brand itself, so that consumers can identify it, as a market leader (Grugulis, 2011). Furthermore, under this strategy, the company will have to look at its major weaknesses, and seek to improve on them. This is with the intention of improving the quality of service they offer, hence increase their wine sales, and offer. One important method of rebranding is the development of a new company logo. This logo should be based on the values, strategies and beliefs of the company (Pride and Ferrell, 2008). For example, as discussed earlier, the company will have to pursue a cost leadership policy, for purposes of expanding its operations (Grewal and Levy, 2010). Based on this policy, the company can develop a logo that reads like this “Getting a good drink, at a discounted price “. Through this logo, the company will be appealing to British customers, who are price sensitive, and who wish to have a high quality wine, at a discounted price. The usefulness of this strategy is depicted on the decision by Malaysia airlines to re-brand itself, for purposes of achieving a competitive advantage over its rivals, and to help in making some profits, after a series of losses (Woodside, 2010). However, this process is very expensive, and it will force the company to remove some additional expenses for purposes of implementing this strategy (Carlsen, 2007). For instance, the company will have to advertise intensively of its new brand, and techniques, and prices of its products. Furthermore, this policy will force the company to give up on its previous logo that was well known to its customers. However, after a period of time, and persistence, chances are high that this strategy will work towards the expansion of the companies wine offer (Jenster, 2008). Another strategy is extensive advertisements through the social media, and the tools of the internet. The company should use the Google marketing tool, called the Google Ad sense (Rao and Manikyam, 2013). This is an online advertisement tool, whereby the company uses online links that would direct potential customers to its websites. The company would only pay Google, once these links are clicked, and the customer manages to be directed to this website. The company should also use the social media as a forum of marketing its online stores (Hiam and Rastelli, 2007). The social media, such as Face Book, Twitter, Instagram, have a large network of followers, and the company can take advantage of these followers, to market its new stores (Safko and Brake, 2009). This is a cheaper strategy, and it would have an impact of reaching a wide number of people. Furthermore, by using the social media, the company can create its own web page, that gives it the ability to promote its products (Rao and Manikyam, 2013; Chadwick, 2011). This is a service available in Face Book, whereby companies have the opportunity of creating their own Face Book web pages, use them for marketing purposes (Grugulis, 2011). Online marketing is a very important strategy, mainly because the company can access a large number of people, for purposes of marketing its products (Safko and Brake, 2009). Most multi-national companies such as Apples, Samsung, and Coca Cola have a heavy presence in the social media (Rao and Manikyam, 2013). They use the internet for purposes of selling and marketing their products. This strategy has worked well for these companies, and they are market leaders in their industries. Based on this fact, chances are high that this strategy would work better for the company. Good and attractive packaging is another important strategy that the company should use (Singleton and Singleton, 2011). Good and attractive packaging will play a great role in increasing an interest of wine buyers, to a wine substance. However, it is important to explain that retailers do are not responsible for packaging, but the manufacturers of the wine substances or products (Carlsen, 2007; Wagner and Olsen, 2007). However, for purposes of attracting customers, the company can come up with measures of improving the packages of the wine products, in accordance to the tastes of the customers (Blythe, 2006). The company will have an opportunity of instructing its suppliers or manufacturers, to package the wine substances, in a manner that is attractive to the eyes of customers (Miller and Merrilees, 2007). This is a cheaper alternative, when compared to an initiative where the company will be involved in developing its own packages (Hall and Mitchell, 2008). Through this action, the company will be providing crucial information to wine manufacturers on the tastes and preferences of customers, in regard to the quality of wine. Cost leadership is another strategy that the company should use (Thach, 2009). This involves a situation whereby the company would sale its wine products at a discounted price. This is while maintaining the quality of the wine under consideration. Chadwick (2011) explains that shoppers in the United Kingdom are price sensitive, and retailers who offer discounted prices have an advantage over other retailers who do not offer any discounted prices. It is based on this fact, that the company should use the cost leadership strategy for purposes of marketing and promoting the new wine products on offer (Woodside, 2010, Hiam and Rastelli, 2007). Tesco has managed to be the largest retailing company in the United Kingdom, because of its cost leadership strategies (Singleton and Singleton, 2011). All products found in Tesco’s stores are offered at a discounted price. The effects of these strategies: The strategies identified will have an impact in improving the wine offer by the company. However, there are a number of effects that these strategies will have on the company (Woodside, 2010). One effect is an increased cost of production, mainly because of engaging in promotional activities, such as advertisements, re-branding of the company, and packaging the bottles of the wine substances (Blythe, 2006; Miller and Merrilees, 2007). Reddy and Appannaiah (2010) explain that any increases in the capital expenditure of a company, will have an effect of reducing the profits of the company in the short run. However, in the long run, this would amount to an increased profitability. Implementation of these strategies will have an impact in changing the situation and working of the organization (Miller and Merrilees, 2007). This is because currently, the company only relies on the mainstream media for marketing. However, the introduction of online marketing will force the company to rely on the social media for purposes of advertising and marketing its products (Grewal and Levy, 2010). This is advantageous to the company, mostly because it would access millions of people; hence improve on its sales (Jenster, 2008). This is the major aim of the organization. Options for action: Taurus wine has the capability of implementing the strategies outlined. This is mainly because; the company does not need high capital to implement these strategies. The company also has the capability of recruiting new employees, who are talented, and have the capability of meeting its objectives. Furthermore, for purposes of raising funds, the company should consider listing itself on the stock exchange (Marciniak and Bruce, 2007; Stinson, 2008). This is an effective strategy of raising funds, for the expansion initiatives of the company. The company can also borrow money through banks. Because of its stability, chances are high that the company will manage to acquire the funds, and hence fund its wine offer expansion initiatives. Based on these facts, the implementation of the above mentioned strategies are feasible. Recommendations and Conclusion: In conclusion, proper market research, re-branding strategies, packaging, social media advertisement and cost leadership approach are the most efficient ways of expanding the wine offer initiatives of the company. Through market research, the company will get information about the needs of its consumers, and the abilities of its competitors. Through re-branding strategies, the company will seek to appeal to the mass market of wine, by depicting it a price sensitive company. Furthermore, the social media is an important tool of advertisement and marketing, and this is because it has the capability of reaching a wide range of people. The cost leadership strategy of the company, would enable it sale its wine substances at a price that is lower to its competitors. This would help in increasing its market share, because the average UK consumer is price sensitive. Bibliography: Top of Form Bottom of Form Blythe, J. (2006). Marketing. London: SAGE Publications. Top of Form Bottom of Form Carlsen, J. (2007). Global wine tourism research, management and marketing. Wallingford: CABI Pub. Top of Form Bottom of Form Chadwick, F. (2011). Retail marketing. Milton Keynes: Open University. Grewal, D., & Levy, M. (2010). Marketing (2nd ed.). Boston: McGraw-Hill Irwin. Grugulis, I. (2011). Retail Work. Basingstoke: Palgrave Macmillan. Top of Form Bottom of Form Top of Form Bottom of Form Hall, C., & Mitchell, R. (2008). Wine marketing: A practical guide. Amsterdam: Elsevier. Hiam, A., & Rastelli, L. (2007). Marketing. Hoboken, NJ: John Wiley. Jenster, P. (2008). The business of wine a global perspective. Copenhagen: Copenhagen Business School Press ;. Marciniak, R., & Bruce, M. (2007). Stratergy planning processes in e-commerce: A Study of the UK fashion retail sector. Manchester: University of Manchester. Top of Form Bottom of Form Top of Form Bottom of Form Top of Form Bottom of Form Miller, D., & Merrilees, W. (2007). Retail marketing. Prahran, Vic.: Tilde Pub. Top of Form Bottom of Form Top of Form Bottom of Form Pride, W., & Ferrell, O. (2008). Marketing (14th ed.). Boston: Houghton Mifflin. Top of Form Bottom of Form Top of Form Bottom of Form Rao, K., & Manikyam, K. (2013). Retail marketing. New Delhi: Discovery Pub. House. Reddy, P., & Appannaiah, H. (2010). Business management (Rev. ed.). Mumbai [India: Himalaya Pub. House. Safko, L., & Brake, D. (2009). The social media bible: Tactics, tools, and strategies for business success. Hoboken, N.J.: John Wiley & Sons. Singleton, S., & Singleton, S. (2011). Beswick and Wine: Buying and selling private companies and businesses (8th ed.). Haywards Heath, West Sussex: Bloomsbury Professional. Stinson, P. (2008). Sales, marketing, business and finance. New York: Ferguson Pub. Taurus Wines. (n.d.). Taurus Wines; Wine and Champagne for parties. Retrieved January 21, 2015, from https://www.tauruswines.co.uk/eshop/index.php Top of Form Bottom of Form Top of Form Bottom of Form Thach, L. (2009). Wine 2.0—The Next Phase of Wine Marketing? Exploring US Winery Adoption of Wine 2.0 Components. Journal of Wine Research, 143-157. Top of Form Bottom of Form Wagner, P., & Olsen, J. (2007). Wine marketing & sales: Success strategies for a saturated market. San Francisco: Wine Appreciation Guild. Woodside, A. (2010). Advances in business marketing and purchasing. Bingley, UK: Emerald. Appendix: Wine: Alcoholic beverage made from fermented grapes. Marketing: It refers to a method whereby companies are able to interact with their customers, for purposes of creating a relationship which is advantageous to both parties. Currently, marketing is popular within the social media. Social Media: This is an online platform that allows people to share, create and exchange ideas, information and videos. Tesco: A leading chain of retail stores in the United Kingdom. Instagram: A social media platform or tool. Face Book: A social media platform or tool. Read More