Solving Marketing Problems of a Grocery Store - Case Study Example

Task Marketing – Solving Problems Contextually, a grocery store that experiences business hitches hence has no s visiting its premises can have its problems solved by well established marketing mix (5Ps). This is a critical provision in the context of marketing and promotion of plunging business. It is vital for the tumbling grocery store (discussed in this context) to re-strategize its marketing provisions so as to realize credible customer’s influx. Case analysis of the Grocery Store Marketing Mix is combination of promotional techniques that different entities use to market their new products. Through viable and well-orchestrated marketing mix, organisations are able to identify practicable marketing rudiments to promote their commodities (Kalb 1997, p. 267). Most of the new products introduced into the market constantly face stiff competition from the related products. In this context, the “sinking” grocery store should constitute a credible marketing mix for its existing and newly introduced commodities. Basically, organisations should establish, ratify, and embrace a considerable promotional mix when marketing their products (Banhegyi 2008, p. 236). Contextually, the concerned products should be sold at a considerable price based on its quality and other pricing provisions. The grocery store sells diverse kinds of foods from various places as well as cultures, it basically sell them again to customers. Appropriate marketing will obviously help in this context. The concerned commodities should be distributed to the right places and at the right time. All these are should be done using the most appropriate method of promotion or any other viable means of advertisement. For the grocery to generate an appropriate and practical marketing mix, its products must be of high quality, nutritious, and be appealing to consumers (Lamb, Hair & McDaniel 2011, p. 78). The prices of the products must be affordable and right to the customers (value for money). The product Accordingly, the grocery store should recognize and satisfy its consumers’ demands. Additionally, the product usage, nutrition, and variety should be taken into consideration. The store should diversify its product areas ranging from fruits to fresh vegetable, snack food and sandwiches among others. The appearance and the perception of the consumers are also necessary when the grocery store is trying to introduce a new product to the market. The name, colour, and size of the product should be carefully established to ensure that it satisfies the customer’s demands. For the grocery store to obtain increased sales of its product, it (the new product) must be available in a unique version compared to similar products of other competitors. The grocery store should also evaluate the highest price that the product can be tagged. This price should not affect the trend in sales and is supposed to provide sufficient profit. The method on how to use the product should be easy to understand and must be liked by a number of consumers. Precisely, quality products are easy to promote despite the challenges. In this way, the grocery store will recapture its market essence. Place Place, in this context, involves making goods/services available in considerable quantities and at the desired locations. Clients should get products whenever they need them. Place is majorly concerned with the different ways of storing the product and the distribution channels used. Besides, it involves the distribution of goods and services to the consumers at an exact location and at a required quantity. According to Rushton (2010, p. 55), the grocery store concerned should identify the appropriate channel of distribution to ascertain that there is some efficiency in distribution. It is supposed to look into the method of sales to apply, like organising some trade fairs, directly distributing the samples or carrying out online deliveries. The grocery store should also check on what other competitors do to their products or how they manufacture the products (Rushton 2010, p. 76). This will help them produce higher quality products as compared to that of their competitor. Conversely, they are going to win the trust of the customers who will eventually buy their product. This is a critical provision when considered comprehensively in regard to marketing. For the grocery store to achieve its promotional goals (introduction of products into the market), this product should be delivered at the time when customers are willing to buy it. At this point (when consumers are willing to buy), the grocery store will realise improved sales even if the products are expensive. Moreover, continuous flow of this product, from thesuppliers, to the wholesalers and finally to the consumers must be assured. The grocery store can apply the direct mix of distribution by making sure that the goods are directly sold to the customers without the involvement of the middlemen like wholesalers and retailers. This direct distribution is applicable when the manufacturer (Grocery store in this case) can competently and economically execute its marketing strategies. Direct distribution is also necessary when aggressive and strong individual selling is needed. Besides, they should also use indirect distribution (involvement of the wholesalers and retailers) since the intermediaries are the only people who can easily and constructively interact with the customers. Through interactions, wholesalers and retailers are able to know the perception of consumers with regard to the product and send the message to the producers. Given that consumers are distributed in various locations, wholesalers and retailers will ensure that fresh products reach all the customers and the community at large. Besides, it is the intermediaries who have the information and experience on the market. The price Amongst the components of ‘marketing mix’, price determines the sales and the ultimate revenues obtainable from the product. In addition, the other remaining aspects are regarded as costs. According to Hill, Roche & Allen (2007, p. 285), the cost of a given product will definitely determine the quantity or value of sales realised. In theory, it is majorly dictated by the perception of the customer in regard to the value of the product; what is perceived as the right price. It is always vital to obtain information regarding the cost of the product from the customers. This will provide a clear picture of how they value the concerned product. Contextually, grocery store will also know the correct price consumers are willing to pay on the product. It should also consider offering discounts to their customers or wholesalers in their market. The prices of this new commodities in the store are supposed to be set after various aspects have been considered. Actually, the price should be recognised by both the retailers and the consumers. Gathering vital information on the perceived price from the customers will eventually help in setting up an accepted cost of the produce (Hill, Roche & Allen 2007, p. 292). It should not be higher than that of other related manufactured products from the competitors. When the charges are high, the consumers will tend to go for the other cheaper similar products. Consequently, the grocery store will not realise good sales from the new product. The prices of products should also not be too low as this will make the grocery store make loses instead of profits. Therefore, the difference in price as compared to other similar products should be slight so long as the grocery store can make more sales and realise huge profits from this new product (Hill, Roche & Allen 2007, p. 311). This is a considerable marketing provision when considered critically and comprehensively. Promotion Promotion (marketing communications) incorporates the communication of information between marketers and potential buyers in order to influence attitudes and behaviours. Grocery store should establish both direct and indirect communication with its clients, distributors, and other potential stakeholders. Through communication, the grocery store is able to retrieve vital information from the consumers on which product to stock. This will help in identifying the areas of weaknesses for modification. To achieve excellent business activity, the grocery store should be creative when carrying out some promotional events. In most cases, the costs involved in advertisements are slightly more than that used in production. However, when there is an excellent advertisement or promotion, the grocery store will definitely realise increased sales and thus the costs involved in promotions and advertisements will be spread over the huge turnover (Oguinn, Allen & Semenik 2012, p. 265). Promotion incorporates advertisement provisions that the grocery store can use to attract and retain customers. Another aspect of promotion is the sales promotion where various strategies are established to augment the sale of Grocery store products. Public relations equally contribute to the promotion of products. As a promotional mix, public relations ensure that the grocery store keeps in touch with its stakeholders. Grocery store can also establish direct and online marketing strategies. This will ensure that the grocery store attains its marketing objectives among other promotional provisions. Concurrently, personal selling is equally important in this context. The grocery store should check on the best means of advertisement, which will reach numerous consumers. Besides, they must also take into consideration the methods used by their competitors when carrying out their advertisements. Through this, the grocery store will maximise on the advertisement errors of the competitor and produce more modified method of promotion and advertisement. With appropriate promotion, the consumer demand is likely to change to the positive side. The demand will be driven by the value of the brand rather than the price. Thus, customers will buy the product whether it is cheap or expensive. Additionally, Promotion is majorly carried out to make the demand less elastic (Oguinn, Allen & Semenik 2012, p. 284). It is also being done to increase the demand whether the product is charged at a lower price or at a higher price. Besides, tools like advertising and personal selling can be used in promotion. Sales promotion and direct marketing are also some of the promotional tools utilized by the marketers. With an excellent promotional service, the entity will obtain desirable outlets and the customers will immediately start buying the product. Additionally, advertisements assist consumers in making the right decisions when it comes to buying the product. There will also be a reasonable and productive relationship or contact between the grocery store and its customers. By doing sales promotion, the customer’s perception will be changed and they will tend to like the brand whether cheap or expensive. Thus, the grocery store is going to realise a huge sale turnout and consequently huge profits. People People are very critical in this context. The grocery store management must establish its potential customers so as to realize a successful marketing mix. All promotional mixes should be directed to the correct target market in order to avoid irrelevancy. ‘People’ relates to the business potentialities. In case people are receptive to the marketing mix employed by the grocery store, it will be possible to realize considerable sales. Grocery store, being one of the fresh food suppliers to the community, should apply a viable marketing mix in order to remain buoyant in the market. In regard to people, this will greatly help the grocery store check on its current marketing situation thus develop possible ways of improving it. According to Carter, Cook & Dorsey (2009, p.101), it is clearly evident that the grocery store will be able to evaluate (critically) their position regarding their marketing prowess. Works Cited Banhegyi, S 2008, Business management, Pearson Prentice Hall, Cape Town. Carter, G, Cook, K & Dorsey, D 2009, Career paths: charting courses to success for organizations and their employees, Wiley-Blackwell, Malden, MA. Hill, N, Roche, G & Allen, R 2007, Customer satisfaction: the customer experience through the customers eyes, Cogent Press, London, UK. Kalb, I 1997, Fundamentals of high-technology marketing: what marketers need to know, K&A Press, Los Angeles, CA. Lamb, C, Hair, J & McDaniel, C 2011, MKTG5: student edition, Cengage Learning, Mason, OH. Oguinn, T, Allen, C & Semenik, R 2012, Advertising and integrated brand promotion, Cengage Learning, Mason, OH. Rushton, A 2010, The handbook of logistics and distribution management, KOGAN Page, London, UK. Read More