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This study focuses on the marketing technologies employed by Wistar Retail-Supermarket, which composes of largely old marketing strands. The use of outdated marketing tools is problematic as it is both costly and less effective. The paper aims to find out how the company can boost further its marketing strategy by finding complementary marketing technics. In the paper, it is discovered that many of the new marketing DNA approaches are needed to support the ongoing marketing practices at the company to ensure that the objectives set forth by the marketing team due in 2019 are achievable. According to the findings, combining the old mechanisms with the latest technologies can result in higher performance by elevating the firm’s brand image, acceptance, sales levels, and helping the corporation to capture larger market share in the state of Florida. Finally, a recommendation is made on adopting the new system alongside favorable aspects of the old one, which is a largely tailored and affordable marketing strategy for the company and which will cost only $64,500.
Old vs. New DNA Marketing
Adaptation is a prerequisite for survival in the marketing world. Marketing has come a long way from the times of product orientation between 1860 and 1930s when the focus was on production, efficiency, and manufacturing to the times of selling orientation during the great recession characterized by aggressive selling tactics. The most recent approaches, however, are marketing and societal orientation described by an increased focus on the customer as the center of operations and value proposition. Proponents of the old DNA approach often quote its cost-effectiveness as a defense for their actions and reasoning. This might not be the case in reality, however. The paper takes the case of the Wistar Retail Supermarket, an upcoming American retail store. The study is a research endeavor that looks at the relevance of the firm’s current marketing strand in relation to the changing business times to make a case for further adjustments to reflect the reality of the matters on the ground. The study involved direct observation as well as a one on one interaction with the management and staff representatives of Wistar Retail Supermarkets in a series of 30-minute interviews.
1.1. Company Overview
Wistar was selected as a company of choice because of its autonomy. It is an American supermarket founded in 2015 by the Raytheon family and headquartered in Orlando, Florida, next to the Camping World Stadium. The shop deals in many goods and services most of which are purchased directly from manufacturers and producers. Wistar’s operations can be termed as both wholesale as well as retail. The firm’s operation and managerial decisions are mostly overseen by friends and family. Overall, there are 15 workers. Also, most of its customers come from within the state. Despite the rapid uptake of newer and more robust marketing operations, the Raytheon’s have been reluctant to take chances citing many reasons including the challenges posed by expanded business to family tenure at the helm. Nonetheless, as agreed by marketing experts, adopting new marketing technologies is imperative for sustainable success. The discussion below looks at the company’s present marketing tools and their effectiveness and usefulness. Finally, the paper makes the argument for applying modern marketing DNA mechanism as the answer to attaining marketing goals.
1.2. Marketing Objectives
As of December 20th, 2018, Wistar’s marketing objectives were to boost brand awareness by 15%, increase sales levels by 20%, and increase market share in the state of Florida by December 20th, 2019. To attain this, the company has put in place several measures. The management has devised an “inclusive” marketing plan for this. Firstly, as part of its promotion campaign, the marketing team intends on applying visually attractive publicity campaign meant to attract the attention of passersby. Plans are in place to use a combination of vehicle-mounted public address system that will crisscross the city of Orlando and banners at the premises outlaying products on offer at the outlets. Together with the banners, a budget has been drawn for colorful posters and fliers. As part of the pricing tactics, the enterprise will be offering quantity discounts ranging from 5% to 10% on products of interest most of which will be placed next to the entrance to boost their presence and uptake.
Key Performance Indicators: To measure its progress, mixtures of Key Performance Indicators (KPI) have been prepared. Most importantly, the number of clients frequenting the organization on a single day will be monitored and numbered visually. This data will be taken in real time by taking a register of customers as they come into the premise or by reviewing the CCTV camera’s placed strategically at the entrance and exit of the shop. Secondly, data on daily sales level will also be taken and assessed via technical charts such as line graphs to understand the trend and inform the management of further actions.
2. Situation Analysis
Industry analysis: Wistar’s is in the retail sector operating as a supermarket. According to Amadeo (2018), research conducted by the US Census Bureau covering 4900 firms indicated that the US retail market rose 0.8% in October followed by 4.7% in September 2018. The survey points an increasing trend of retailers taking their operations online to benefit from an expanded market share. This trend has driven retail sales to hit a record $5.7 trillion in 2017 from a low of $4.4 trillion in 2007. This market is projected to grow to $7.5 trillion in 2025. Even though shoppers show no interest of completely abandoning the brick-and-mortar store, they anticipate better and more convenient services. They are ready to embrace shopping approaches that present less cost to them such as buying goods online from preferred retailers and shipping them to places of convenience. Regarding e-commerce trading, Amazon and Wal-Mart will lead the way expanding rapidly into less exploited regions.
PEST Analysis: Several forces and trends are shaping the retail sector. Politically, government policies initiated by the Republican government under the “America First” policy have continued to jolt retailers. Of interest in the sector has been the gradual rise in inflation rates and prices of goods occasioned by trade wars between the US and China (Petro, 2018). Petro reports that the US has imposed 10% tariffs on Chinese goods worth $250 billion and in retaliation China imposed 10% tariffs on $110 billion worth of goods (Petro, 2018). Rising prices of imported goods due to trade tariffs are undesirable as they lower the consumers’ purchasing power. On the economic front, the stability of the US markets continues to be remarkable reflecting the strong position held by the dollar globally (Petro, 2018). As part of the social factors, there is a gradual acceptance and uptake of “organic” foods as well as a trend of preference for online shopping showing a gradual shift in purchasing behavior. Finally, regarding technology, significant breakthroughs are taking place with most transactions being done online via e-commerce platforms. Online marketing technologies and platforms are on the rise. The planned movement to 5G bandwidth, 3D marketing, and AI platforms also portrays significant shifts in the application of technology in reaching out to customers and communicating benefits. Koetsier (2018) writes that the use of AI and machines will have far-reaching consequences on marketing as it will essentially make "marketing" more human.
SWOT analysis: Wistar’s internal and external abilities are crucial in understanding its abilities and opportunities. As part of its internal strength, the company has less bureaucracy in decision making as its owned by one family. Also, its small nature makes it more flexible and able to maneuver timely in the face of opportunities and threats. Then, its history of superb performance makes it better placed to acquire financial support from financing institutions who perceive the risk of financial default to be low. Even so, the retailer has a weakness in its ability to hire qualified personnel to run the technical aspects of retail operations. Regarding the opportunities facing the retailer, there is the aspect of a booming US economy occasioned by strong macroeconomic policies and the prospects of thawing relations between the US and China, which would make it easier to access more convenient products on the international market. Nonetheless, there is the threat of losing the market present share from intense and increasing competition by global retail giants such as Wal-Mart and Alibaba who can be accessed on the e-commerce platforms from anyplace anywhere across the globe. A failure to embrace modern marketing technologies can make any retailer to lose its market share by losing its customers to the more efficient and convenient players.
3. Emergent Issues
Having seen the functioning of Wistar Retail Company and its marketing strategies, several issues can be noted. While representing a good step forward, the marketing mixes and chosen KPI for attaining 2019 goals are largely old DNA marketing, which is limited in performance and effectiveness. They are a rather old way of approaching marketing one that fails to take into consideration modern challenges and opportunities and one that intends. They neglect the immense power of internet marketing channels such as using webs, social sites, and social networks. They also fail to consider the significance of using convenient mobile applications to reach out to the target market base made up of consumers with smartphones. In particular, traditional approaches in their entirety are costly and less effective in communicating value to customers. They geographically constrain the ability Wistar to reach out to its target markets, understand them, and offer what is in their best interest. The consequences of such reluctance are the possible loss of market share at a time when the economy is booming and the failure to attain any of the stated 2019 objectives. In this regard, the following recommendations and practical measures come in handy to help the company.
4. Recommended Strategy
Adjustments have to be made on several things including the STP strategy and marketing mixes to make them more customer-centric. Also, while moving towards the use of technology is paramount, the business will have to balance this with the need for customer service alternative at the premise. The proposed changes are affordable and fit the small size of the retailer in question which lacks the abilities of retail chains.
4.1. STP Strategy
There needs to be a clear STP (segmentation, target market, positioning) strategy.
Segmentation: regarding geographic segmentation, Wistar needs to ensure that it has good coverage of the region around Orlando and Florida in general by creating a strong presence. The region should be divided into particular sections with people in need of particular products. There should be geographically demarcated regions of Miami metropolitan areas made of 6.06 million people, the Tampa Bay Area (3.02 million), Orlando metropolitan region (2.44 million), Jacksonville metropolitan region (1.47 million) and the rest of Florida (8 million) (Winter & Sundqvist, 2016). Segmentation should also be done along the demographics of the region to ensure optimal coverage of the target market. The market should also be classified based on social demographics such as women, men, married couples, and children.
The targeting strategy
should aim at low prices or low cost of resolving the needs of the middle class and poor resident of the state. This target market is desirable and it composes of a group that is gradually growing and experiencing positive economic transition. Besides, the limited financial outlay and coverage would make it very challenging to cater for the wants of the wealthy individuals many of who desire high-end products. In particular, targeting is critical as it helps the company to focus its limited resources on the most appropriate section of the customer base resulting in a more effective marketing plan.
Positioning: there needs to be a clear picture of what to expect from the perspective of clients. This aspect will form the basis of attaining the brand enhancement objective due in 2019. Many customers would like the company to offer a broad range of affordable commodities such as children toys and basic house goods many of which are needed to make the lives of the low-income earners more comfortable. The retailer should focus more on the affordability of its merchandise in the place of quality. Consumer buying from Wistar would benefit from affordable prices, which would expand their perceived wealth by freeing up more of their disposable incomes to be used for making other purchases.
4.2. Marketing Mixes
Modern Marketing DNA requires a newer look at the marketing mixes by ensuring that they are people-centered and that they place the customer at the center of all engagements.
An appropriate range of goods is essential. At present, the Wistars offers a wide range of products in its premise including both economic commodities and high-end electronic luxurious products such as the latest Apple and Huawei smartphones and electronics. This approach is counterproductive due to an apparent failure to segment the market and conducts proper positioning. Adjustments are needed to ensure that affordable commodities are dealt with in support of the low-income target market. These products should be made widely available on online e-commerce platforms including company-owned website as well as rented space on major e-commerce platforms such as Wal-mart and Alibaba. The products should have a clear description of the benefits people stand to gain when they make the purchase.
Proper placement of commodities is essential to ensure convenience in accessing the preferred merchandise. At the time of the research, the retailer relied solely on a brick-and-mortar approach where clients have to walk to the retail outlet to make a purchase. Even so, to increase expediency, making the products available on an e-commerce platform and signing delivery service contracts with courier service is critical. Instead of having to wait until opening hours, then traveling long distances to shop, clients across the state of Florida can frequent the website, scan available alternatives, and make purchases.
Affordable pricing is desirable. This strategy has to go beyond the present pricing approach focused on quantity discounts alone to look at the cost of accessing the desired commodity as viewed against the value that buyers gain. As Winter and Sundqvist (2016) put it, the management of any firm can add value to the products by making it less costly to access them through cutting-edge customer service, online availability, and door to door delivery. Additionally, the firm might need to adjust into making large quantity purchase to benefit from quantity discounts from the side of the suppliers, wholesalers, and producers of goods and services.
A proper benefit communication strategy is paramount to increasing sales. The reliance on posters, banner, public address systems and fliers is inadequate. Introducing an online marketing and sales platform offers immense opportunities. Wistar can buy sales leads from companies with close coverage in Florida such as Hoovers
or Insideview (Fulham, 2016). Wistar can also develop a proper SEO (search engine optimization) tools such as Screaming Frog for its website by hiring bloggers and developing a strong presence on social media networks. This move will steer the company onto the first page of Google driving even larger traffic to its website. Finally, it can lobby to be listed on directories such as Captera, GeApp or G2Crowd for ease of access by other smaller retailers in the state who might want to buy merchandise in larger quantities for resale to their target bases. Generating online sales leads regarding the low-income buyers is crucial to the long-term success of the retailer as it guarantees that the company keeps pace with changing tastes and preferences in the community. This will ultimately increase sales helping the company to attain its 2019 sales objectives. Daft (2013) is a researcher who advocates strongly for the idea of working with the community to enhance acceptance to elevate brand positioning. Consequently, apart from online mechanisms, the retailer will need to train its employees to serve as the PR officers by encouraging them to serve as company ambassadors every time they come in contact with the community. Additionally, the business needs to support local community tournaments through sponsorships of teams and talented sportsmen.
People are extremely significant marketing aspect of any company. Being an entity coexisting in American society with people of different background, the firm needs a comprehensive people-oriented policy that encourages a caring and considerate attitude. The ongoing pre-occupation with sales and profit centers of the business is misguided. Regarding customer service for clients, the front sales team will need training on how to be more considerate of consumer needs by being courteous and ready to be of service to buyers. The management should promote a culture of teamwork and participative decision-making to foster an innate commitment to good service. The approach should be replicated also on online platforms. The different needs of people such as the less tech-savvy should be considered by creating systems that are easy to operate. In the community, the business needs to participate in community challenges by, for instance, supporting access to clean water services.
4.2.6. Processes and Physical Evidence
Finally, the processes meant to facilitate trading and transmission of goods to the consumer have to have acceptable levels of efficiency and convenience. Clients often want to understand more than just the products on offer. They also want to associate with the business by understanding and being able to participate in shaping its form of operations. Appropriate mechanism help to boost the Wistar brand by making it stand out as a credible business. To further enhance credibility and proper brand perception, the company will have to ensure that the physical outlay of its premises, processes, products (packaging), and personnel align with the marketed brand. Failure to match promotional messages with appropriate physical evidence is counterproductive. The premise and the type of packaging used must be made convenient and visually attractive. The manner in which employees also dress or carry themselves around while dealing with the customer is crucial to the brand image.
New marketing DNA budget:
Banners/fliers/PA System hire/posters
Development of a new website with e-commerce abilities
Retraining employees and sales team
Purchase of sales leads
Enlisting on online directories
Outsourcing IT specialists @
Implementation between January 1st and December 31st, 2019
Development of a new website with e-commerce abilities
Hosting and maintenance
Retraining employees and sales team
Purchase of sales leads
Enlisting on online directories
Outsourcing IT specialists @
Controls (metrics/KPI’s): to track the effectiveness of the plan, the following metrics and KPIs will be used:
a) Sales growth
Annual and Monthly sales figures
Sales figures by geographic segmentation
Sales figures by demographics: women, men, married couples, and children
b) Branding performance
Repetition of customer sales: the higher the level of repetition the higher the perceived brand value.
Percentage of positive feedbacks
c) Data use efficiency
Cost per lead-the lower the cost the better.
SEO traffic- the higher the figure the effective the SEO strategy.
The study shows that Wistar needs complementary modern marketing DNA technologies as the existing ones are inadequate ineffectiveness and coverage. The corporate entity needs to compound the advantages of the old method with those of the new marketing DNA. The strategy developed is cost effective as it requires only $64500. The advantage of offering tangible and humane customer service as attributed to the traditional model can be complemented with the benefit of increased coverage offered by technology. There is a need for an online marketing strategy founded on an effective virtual trading website that offers a wider range of options of reaching out to and interacting with a wider target market base. If well implemented, the adjustments will make it much easier to attain the set 2019 objectives. Additionally, these measures can support further expansion into a retail chain.
Amadeo, K. (2018). US Retail sales report, current statistics, and recent trends. The Balance.
Retrieved on 12th December 2018 from https://www.thebalance.com/u-s-retail-sales-statistics-and-trends-3305717
Daft, R. (2013), Management, The Dryden Press, New York.
Fulham, L. (2016). Top ten tips on how to generate sales leads. B2B Marketing. Retrieved on 7th
December 2018 from https://www.b2bmarketing.net/en-gb/resources/blog/10-top-tips-how-generate-sales-leads
Koetsier, J. (2018). Technologies for marketing in 2018: 350 CMOs, CEOs, experts Speak.
Retrieved on 6th December 2018 from https://www.forbes.com/sites/johnkoetsier/2017/12/15/top-10-most-transformative-technologies-for-marketing-in-2018-350-cmos-ceos-experts-speak/#5bfa48d1564d
Petro, G. (July 22, 2018). The trade war and retail: is your holiday season at risk? Forbes.
Retrieved on 6th Dec 2018 from https://www.forbes.com/sites/gregpetro/2018/07/22/the-trade-war-are-retailers-and-brands-holiday-season-at-risk/#7b399c325172
Winter, S. & Sundqvist, S (2016) IMC strategies in new high technology product launches.
Marketing Intelligence & Planning, 27(2): p. 191-215.
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