Marketing Course Work Essay Example

is the Click & Collect service, which allows customers to conveniently select products based on their needs. Tests has over 260 Grocery drive-thru locations and more than 1,750 Click & Collect collection points in the UK. It has also expanded through franchise stores, with a total of 71,365 establishments. As the market leader both domestically and globally, Tests holds the largest share in food and non-food products. With approximately 12% of retail expenditure in the UK attributed to Tests, the company has significant influence through cashier transactions representing around 30% of all food sales. This gives them strong advertising communication with consumers, access to expertise, and leverage with manufacturers. In order to provide more flexible shopping options, Tests has implemented modern strategies such as opening smaller stores like Tests Express and Tests Metro within local communities.Data has indicated that customers are increasingly preferring large hypermarkets for their shopping needs, leading to tough competition for Tests from supermarket giants like Sad and Careful, both in the UK and globally (Retail Week, 2013). These hypermarkets have selling areas greater than 60,000 sq.ft., accounting for 35% of Tests' total retail selling area in the UK and 85% globally.

In recent times, Tests has had to issue recalls for multiple products. One example was the recall of their Everyday Value burger due to contamination with horse meat (BBC News, 2013). They have also recalled numerous ice-cream cones after consumers reported finding painkiller tablets inside them. Additionally, certain batches of their Finest Belgian Chocolate Salted Caramel and Hazelnut ice cream were recalled due to incorrect packaging, where it had been mistakenly filled with Orange Blossom Honey and Almond ice cream (Mail

Online, 2013).

More recently, Tests had to recall its own No Added Sugar Double Concentrate Apple and Blackcurrant squash following customer complaints about a foul odor. The company revealed that a flavor preservative had been accidentally added causing the strong smell.According to BBC News (2015), the company decided to recall the product despite assuring that there was no risk associated with it. In order to address various opportunities in the market, the company has implemented three strategies: reducing prices for budget customers on standard whole chicken, increasing availability of organic chicken to meet consumer demands, and introducing organic Vega boxes called Soil and Seed specifically in London. These Soil and Seed boxes consist of small, medium, and large Vega salad boxes, a fruit box, and a mixed fruit Vega and salad box. The key advantage of this initiative is that Tests' brand will be certified organic by the Soil Association. However, there are also threats present in the retail industry within the UK as competitors like Sad, Kingsbury.Morrison, Allied, and Lid are investing heavily in their own businesses with a focus on organic products. This poses a challenge for Tests to relocate and keep up with these competitors. In terms of segmentation strategy, Tests' organic brand currently holds a 17% market share. They target all age groups ranging from 0 to 99 years old as well as individuals from various occupations. To gain better insights into consumer shopping behavior, Tests utilizes data from their Tests Club card program. By offering discounts to cardholders in exchange for personal information and optional household/dietary preference questions, they can effectively segment their customer base while understanding purchasing power (Allison, 2005).The

segmentation strategy employed by Tests enables the company to offer different promotions based on demographic and cryptographic profiles. By utilizing club card data, Tests effectively meets consumer demands by grouping customers with similar needs and benefits. The company employs various methods to reach these segments, ensuring accessibility and actionable segmentation.

Tests has analyzed the data and discovered that young and older families have a higher inclination to purchase organic eggs compared to other groups. They hold an average market share of 57.4% and make an average of 3.5 purchases over a three-month period (Nun Assignment, 2015). Older consumers show a preference for local produce while budget consumers tend to avoid buying organic eggs (Allison, 2005).

To cater to its diverse customer base, Tests categorizes its consumers as rich or poor based on Cellular data. This allows them to display products on their website that are suitable for each income group. Their approach involves offering daily deals on their Value range for budget-conscious consumers and promoting their Finest range to wealthier consumers who prefer organic products (Steiner, 2012). These strategies aim at cultivating customer loyalty.

In simpler terms, marketing entails placing the right product in the right place at the right time (Marc, 2014). It is the responsibility of management to identify, anticipate, and profitably satisfy customer needs (Broadcasting Pettiest, 2003).Marketing mix is the plan or action an organization uses to promote its product or brand in the market (The Economic Times, 2015). It involves exploring, creating, and delivering value to meet the needs and desires of the target market. Neil Borden introduced the theory of the "4 As" (product, price, place, and promotion), also known as marketing mix,

as a means for marketers to analyze each aspect and cater to customer needs and desires (Talus, 2014). Proper strategy and formulation of the marketing mix are essential for positioning brands in consumers' minds and making them attractive to specific market segments (Proctor, 2000).

When discussing the marketing mix, the main component is an organization's product which satisfies customers' practical needs and demands (Cobber, 2010). Products can include physical objects, services, individuals, places organizations ,and ideas (Kettle. 1998). The product life cycle consists of five stages: development introduction growth maturity decline Loretta et al., 2015).

Tests offers a wide range of organic products and services that have been continuously expanding in recent years. The company aims to achieve a competitive advantage by providing a satisfactory balance of quality and price for its organic products and services in both UK global markets Division.,(2014). Notably Tests has recently obtained a new type of packaging for their organic avocados tomatoes other vegetablesThe packaging used is made of a natural material that can absorb ethylene, the hormone responsible for fruit and vegetable ripening. This not only helps to increase freshness, but also prevents the formation of mold (Division, 2014). According to Scribed (2012), this new packaging material is not only much more efficient and safe compared to other materials, but it also addresses the issue of food wastage and saves the organic industry millions of pounds each year. Recently, the company changed their packaging to cater to the preferences of organic consumers by focusing on working with nature and highlighting the benefits of purchasing their products. Their market penetration in both the UK and globally has been successful thus far. The

new packaging is created using a strip coating technique with a natural product as its base material. The company has not pursued new market development or product diversification; instead, they have focused on growing their existing products. Pricing plays a crucial role in marketing as it determines how much money is required for a product or service. In recent tests, their own label organic brand experienced a decline in sales value from ?50-60 million to ?368 million within one year."According to Beanies et al. (2008), there is a significant price difference between conventional and organic products across various types of products, resulting in conflicting messages for consumers. For instance, standard garlic is more expensive than organic garlic, while organic pineapple costs 250% more than standard pineapple. However, Watson (2010) states that in other cases, the prices are equal.

Promotion plays a vital role in marketing as it enhances product recognition and sales in the market. Marketing (2015) explains that advertising is a type of communication involving paid methods such as radio commercials, internet advertisements, television advertisements, and print media. Successful promotion affects customer attraction towards purchasing, promotes new or improved products, and fosters loyalty (exemplar, 2015).

By promoting high-quality products or services, organizations can retain existing customers and encourage them to spend more money. Ultimately, promotions help build a loyal customer base for increased sales and profits (Settle 2015). Tests utilizes radio campaigns and television commercials to promote its products to customers while offering appealing product and price promotions.

Tests focuses on advertising the quality of their products at lower prices to attract more consumersTests consistently promotes their innovative communication strategies to connect their products with the needs

of customers (Tests, date not provided). Their tests always satisfy customers by offering reasonably priced, high-quality products and exceptional customer service. Additionally, they encourage customers to make online purchases worth ?75 or more in order to receive a ?10 discount. Moreover, Tests utilizes their Club Card as a promotional tool to gain a competitive advantage and gather valuable data on customer behavior, which enhances the value of their brand.

In terms of marketing mix, place refers to the distribution channel through which products are delivered to end users including wholesalers, retailers, traders, and intermediaries. Having the right placement increases the likelihood of higher sales, profits, market share, and adaptability to market changes. Tests sells its organic products through both online and offline channels. The online sales channel known as Tests Direct is integrated into the company's official website - wry.Tests.Com. With dominance over the online grocery market and an income exceeding ?2.5 billion pounds (double that of competitors) (Davis, 2013), Tests intends to sell and deliver organic vegetable boxes through online channels in order to establish a strong presence in this lucrative market.Tests collaborates with CIO Organic Root Crop for leading the service of organic vegetables, and Lancashire Field Products handles the packaging of the products. Customers can purchase these organic vegetable boxes from Tests.Com or Slandered.O.UK, and they have a wide selection of organic fruits, salads, and vegetables to choose from. They can conveniently place their orders online and have them delivered alongside their regular general products from the comfort of their own homes (Lawson, 2012). This shows that online sales are growing significantly, providing a lucrative opportunity for Tests to expand further.

Nowadays, many people

do not have time to go shopping outside, so Tests developed this online shopping system, making it the largest online supermarket (Ivory research, 2015). In the offline sale Handel, there are four different store formats: Tests Metro, Tests Express, Tests Superstore,and Tests Compact. However, only three of these stores provide organic products -Tests Metro ,Tests Express,and Test Superstore (Division ,2014).

Tests Express has over 960 stores with a retail area of up to 3 ,000 sq.Ft., offering organic foods in convenient locations.These stores sell a range of up to 7 ,000 products including fresh produce ,organic vegetables ,organic eggs,and more .Tests Metro has over 170stores with a retail area around sq.Ft located in town and city centers.The text states that Walter offers a wide range of organic products, including sandwiches and ready-to-eat meals. It operates 2,979 stores in the UK and 3,376 outlets worldwide. Walter is Tests' biggest global competitor and currently the largest retailer globally with eight times the annual sales of Deco's. Walter has 8,838 supermarkets, almost double the number of Tests superstores. Due to direct purchases from producers and economies of scale, Walter can sell its own brands and organic products at lower prices compared to others. However, in the UK market, Walter has acquired Sad and increased pressure on Tests. Sad has been challenging Tests' leadership position in the retail market in recent years, consistently growing its market share.

Additionally, Careful (the second-largest grocery retailer apart from Walter) can also impact Deco's sales. Careful was the first grocery retailer in Europe to introduce hypermarkets and frequently introduces new store formats that can affect Deco's position. Careful also offers organic products and collaborates with

World Wide Fund for biodiversity preservation and waste reduction to ensure their quality.

As a result, Tests also face a direct risk from other green approaches.According to reports, Tests will be closing 43 unprofitable stores in the UK and has already canceled plans for 49 new stores due to declining sales and profits (BBC News, 2015). Furthermore, Tests has been consistently losing market share, dropping from 30.2 percent last year to 28.8 percent in 2014. This decline can be attributed to the rise of budget grocers Allied and Lid. Market share for Allied increased by nearly a third to 4.8 percent, while Lid's market share jumped 18.3 percent.

Allied and Lid offer a diverse range of budget-friendly organic products which pose a significant challenge to Tests (Aniline, 2014). To enhance their business and reach higher levels of success, Tests should focus on improving the quality of their products as well as ensuring that their suppliers deliver high-quality items. Collaborating with the Food Standards Agency of I-J would aid in ensuring product quality and building customer trust.

Additionally, it is important for Tests to establish reasonable and consistent pricing for their organic products compared to their regular offerings.