University Convenience Store - Essay Example

? CONVENIENCE STORE Contents Marketing Strategy 3 SWOT Analysis 3 Market-Product Grid 4 Product (features) 5 Pricing 5 Placement 6 Other factors 7 Reference 7 Bibliography 8 Marketing Strategy The strategies that are being used will make the convenience store aware of its strength and avail the opportunity. SWOT analysis has been used in order to overcome the weakness through strength and using the opportunity to overcome the threats (Fine, 2009). SWOT Analysis Strength: Strength refers to the internal analysis of the organization. Strength can be used to overcome the weakness experienced by firm. The location of the convenience stores in the university of New Brunswick Saint John campus is the biggest strength. The location of the store is easily traceable and hence approached by the students. Also the availability of wide range of products both for national and international students adds on to the strength. Weaknesses: The strength of its competitors might result in the greatest weakness for the convenience store. This is because of the fact that the competitor’s of the convenience store, the university cafeteria, the Chinese golden leaf market, the circle K market at Irving gas station, and Saputo Inc have already made its presence in the university making it difficult for the convenience store to acquire the position. Opportunity: The steady growth rate for convenience stores act as an opportunity for the university. Also with the introduction of new products catering mostly the international students, the convenience stores have the opportunity to grow in the near future. Threats: Major threat lies from the competitors of the convenience stores which are located in the university. The major competitors include the university cafeteria, the Chinese golden leaf market, the circle K market at Irving gas station, and Saputo Inc. The University’s Cafeteria had a proper location and has helped to served it to be the main attraction. Market-Product Grid The market product grid is a useful tool used in targeting the customers; it is an instrument which addresses specifically the segmentation and targeting aspect. The market product grid which was depicted by Eric Berkowitz, Roger Kerin, William Rudelius and Steven Hartley consists of a matrix where markets represent vertical axis and products on the horizontal axis (Fortenberry & Fortenberry, 2009, p. 102). The Market-Product grid of the convenience stores is as follows, Market-Product Grid for Convenience store Markets/products Grocery items Stationary Items Toiletry Items Others Students 1 3 2 2 Other staffs and outsiders 3 2 3 2 3- Large market; 2-medium market; 1-small market; 0-nil The above grid shows the market product grid for the convenience store. It can be seen that the market for the convenience stores has been divided into two parts one is for the students and the other for the other members residing near the university. Accordingly the demand for the products have been categorized where 3 represents large market, 2 represents medium market, 1 small market and 0 nil. In case of university convenience store, the demand for stationery items seems to higher in demand each representing 3; grocery items represented 1 in case of students but 3 in case of other staffs and other member’s residing on or near the university. The demand for toiletry seems to be high in case on non students and medium for student’s category. However this can be concluded that the demand for the convenience store, both for the markets seems to be high throughout the year resulting in higher profits and more customers. Product (features) The opening of convenience store in the university campus will be of a great deal because the campus is located in the out strikes of the city and there is no convenient availability of groceries and other products available to students. The store will be of a great convenience to the student community as there is a high need of such store in the area. The store will provide a hassle free experience of shopping (Targeting Convenience Store Customers, 2011). The convenient store will provide utensils like books, pencils, pens and so on, to students in the campus making things available at an ease. Opening up of the convenience store will be highly beneficial to the area and students (City of Saint John Citizen Survey - Fall 2010, 2010). The store also aims to offer sports items for the athletics, participating in sports activities inside the campus (Tourte & Faber, 2011). The convenience store will prove to be highly beneficial to the customers with its added features offering all kinds of products required by the students. Pricing Price is an important element in the marketing mix and it is essential to set an effective price in order to attract the customers. The Convenience stores need to set up the price in a way so that the target customers are attracted towards it. It is important to choose the right kind of pricing strategy. The convenience store will keep its price at par or slightly lower than its competitors as the target market group is mainly the students of the university. If the competitors are charging $10 for a pen than the convenience store would charge $8 for the same pen. Apart from it, the pricing strategy that the convenience store can initially adopt is that of product bundle where the store would combine products and offer it at a reduced rate. For example bundling of pen, pencil and a compass box, would attract customers. The pricing strategy tends to promote sale of product which customers might not buy otherwise but with combined price it attracts the customers to buy them (Kotler, 2008, p. 290). At a later stage the convenience store can opt for competitors based pricing, pricing at par with the competitors or adopting the same price rate as the competitors does. But in order to differentiate low cost differentiation strategy can be adopted by the store. Placement Marketing channels plays a very important role in the delivery of the items into respective stores. Thus the decision to adopt the level of channel of distribution is equally relevant and important. Convenience stores deals with variety of items which are used regularly by the customers and thus the availability of the items in the store are essential. Therefore to cater the needs and convenience the channel of distribution adopted will be of three level of distribution channel consisting of the manufacturer, wholesalers and retailers (Rolnicki, 1998, p. 170). The manufacturer will transport the items to the different wholesalers, as convenience stores deals with FMCG goods, the demand will be naturally high and thus the role of the wholesalers are crucial. Wholesales are scattered all over the place and these wholesalers finally makes the items available in the shelf of the stores where the role of the retailer comes into the picture then the retailers than sell the product to the respective or the target customers. Other factors In addition to price bundling strategy adopted by the university convenience store, other offers in relation to its promotional activity are also to be taken into consideration. It is important for the store to offer special offset or programs to generate awareness and capture the market share. Customers usually gets attracted and excited to known about any kinds of offers being given. In case of the convenience stores, the students will be attracted by the offers provided by the store. The convenience stores can offer discount on selected items or on purchase of certain amount, 5% discount will be availed by the customers. It can also offer discount on the purchase of the fourth item within the same price range and so on. This way the sale of the products in the convenience stores will be enhanced. In additions to discounts on items, the convenience store can also conduct special programs for students such as lucky draw where the winner would receive coupons and thus can purchase products at the given rate. Reference City of Saint John Citizen Survey - Fall 2010. (2010). Retrieved June 17, 2012, from http://www.saintjohn.ca/site/media/SaintJohn/IpsosReid-Dec2010-Final%20Report_English.pdf Fine, L. G. (2009). The SWOT Analysis: Using Your Strength to Overcome Weaknesses, Using Opportunities to Overcome Threats. CreateSpace. Fortenberry, J. L., and Fortenberry, J. L. (2009). Health Care Marketing: Tools and Techniques. USA: Jones & Bartlett Publishers. Kotler, P. (2008). Principles of Marketing. Pearson Education India. Rolnicki, K. (1998). Managing Channels of Distribution. AMACOM Div American Mgmt Assn. Targeting Convenience Store Customers. (2011). Retrieved May 31, 2012, from http://www.csdecisions.com/2011/05/31/targeting-convenience-store-customers/ Tourte, L. & Faber, B. A. (2011). Small Farm Handbook. California: ANR Publications Bibliography Ferrell,O. C., & Hartline, M. (2010). Marketing Strategy. USA: Cengage Learning. Fortenberry, J. L. (2012). Nonprofit Marketing. USA: Jones & Bartlett Publishers. Martyn, H. (1972). Multinational Business Management. USA: Ardent Media. Read More