The Importance Of Marketing Strategy: An Analysis Of Giant Hypermarket

Task 1: Importance of Marketing

Task 1 The Importance of Marketing

So that all members of the Department are clear about the importance of marketing to the success of an organisation you need to ensure they understand the concept of marketing and its strategic role. Using specific organisations, analyse the relationship between their marketing strategy and their vision, mission and business strategy (AC 1.1) 

Task 2 Building a Marketing Strategy

Stage 1 – Analysis

Before building a strategy, the marketing environment must be analysed.

a) Evaluate the tools and techniques available for analysing key areas of the marketing environment (AC 1.2) and explain those which could be used to analyse the market environment in specific, identified business situations (AC 1.3)

b) You will need to know about consumer and competitor behaviours. Some of this will be provided by research. Analyse the role of market research in business decision making (AC 1.4) 

Stage 2 – Planning

Using one or more organisations and different business situations to illustrate your answers (AC2.6)

c) critically analyse the relationship between marketing strategy, strategic market analysis, marketing goals and marketing actions (AC 2.1)

d) explain how an overview of the their strategic position and an understanding of their competitors impact on marketing strategy (AC 2.2)

e) critically analyse the links between growth strategies and the main types of strategic marketing objectives (AC 2.3)

f) explain how marketing strategies l contribute to sustainable competitive advantage (AC 2.4)

g) examine the factors that will influence consumer choice and behaviour (AC 2.5) 

Stage 3 – Segmentation

h) Differentiate between market segmentation and product differentiation (AC3.1)

i) Compare and contrast different targeting approaches (AC 3.2)

j) Critically analyse the process and function of positioning (AC3.3) , applying your thoughts to a specific organisation

Task 3 – Implementation and the marketing mix

The marketing mix is the key tool used to guide implementation. With application to your selected organisation and business situations (used in the planning of your marketing strategy) you must:

a) assess the role of the marketing mix in the implementation of your marketing strategy (AC 4.1)

b) evaluate the role of product development and branding (AC 4.2)

c) critically analyse the impact costing and pricing decisions have on competitive advantage (AC 4.3)

d) critically analyse the role and purpose of marketing communication as part of the marketing mix (AC 4.4)

e) explain how retailing and channel management, as part of the marketing mix, contribute to competitive advantage(AC 4.5) 

Task 2: Building a Marketing Strategy

Task 4

Some of the members of the Marketing Department have come from the tertiary and public sectors and are less familiar with the manufacturing environment.

a) Compare and contrast marketing strategies in commercial, not for profit organisations and the public sector (AC 5.1) and analyse the use of marketing techniques in each of the sectors (AC 5.2)

b) Evaluate the impact of marketing on social and political change (AC 5.3) 

The study elucidates the concept of marketing management along with marketing strategy, planning, and implementation process. In order to establish a deep understanding about the topic, a case study has been considered in this particular study. Here, the researcher has been appointed as an employee in the Marketing Department of Giant Hypermarket. Giant Hypermarket is a well known retailer chain located in Malaysia (Giant.com.my. 2016). The other key areas that the company provides service include Singapore, Brunei, and Indonesia, and Vietnam (Giant.com.my. 2016). The Marketing Director of the organization decided to launch several new products and re-launch others as well. Series of lunch time seminars have been organized by the marketing director for all the employees of the department. Here, the researcher has been asked by the marketing director to prepare a reference file for all the staffs. This file would help the marketing director to make the staffs understand about this new marketing plan.

AC 1.1 Concept of marketing and its strategic role

Following the viewpoint of Borland and Lindgreen (2013), the growth and success of a business is highly relied on their marketing strategies and processes. Through pursuing certain process of introducing and promoting new products or services, the organizations are able to attract more customer attention. As a result, higher sales are possible that help to obtain more revenue and profit as well. The entire department of an organization has prime responsibility to adapt effective marketing process so that they can build good company reputation and deliver strong competition to the competitors. In order to support it with an example, it has been found that Tesco has adapted the internet and direct marketing strategy to achieve their vision of remaining the business reputation constant in this changing world (Palmer, Simmons and Mason 2014). On the other way, product differentiation is a key marketing strategy of Toyota that helps them to achieve stable long term growth (Hoque et al. 2013).

Stage 1: Analysis

Some specific tools and techniques are there that helps the marketing department to analyze their business environment. Before formulating marketing plan, it is essential to analyze the present business market and proceed according to their opportunity. Ayub et al. (2013) opined that the SWOT analysis is one of effective tools that have significant role in marketing analysis. This particular technique helps to analyze the strength, weakness, opportunity, and threat of the organizations (Refer to Appendix 1). The marketing department can mitigate their weakness and threats through enhancing their strength and opportunity as well. Hastings and Domegan (2013) added another viewpoint that PESTEL Analysis is considered by the organizations to analyze the political, economical, social, technological, environmental, and legal factors that affect their businesses (Refer to Appendix 2).

Task 3: Implementation and the marketing mix

In this particular case study, both the SWOT and PESTEL Analysis process can be considered to analyze the business environment.

SWOT Analysis of Giant Hypermarket

SWOT Analysis
Strength	§  Largest supermarket chain of Malaysia §  Large number of stores in both domestic and international market §  It has own house brand
Weakness	§  High turnover rate in the operation department §  Inefficiency in bureaucracy due to having large business size
Opportunity	§  There is a scope to enhance their business through establishing new store in new location of Malaysia §  Scope of introducing new household products
Threat	§  High competition in retail industry of Malaysia

PESTEL Analysis of Giant Hypermarket

Factors	Analysis
Political	§  Currency and taxation policies are different in different countries
Economical	§  Fluctuation in exchange rate make more difficult to formulate the pricing strategies
Social	§  People have more purchasing options as large number of substitutes is available in the market
Technological	§  Modern technology has been increasing rapidly and thus they need to upgrade their existing technology
Environmental	§  Weather changes §  Environment awareness and legislations
Legal	§  Tax policies §  Employment laws §  Competition regulations

AC 1.4 Role of market research in decision making process

As per the statement of Kapferer (2012), it is essential to consider the customers’ as well as competitors’ behaviour in decision making process. The marketers should consider the entire buying process of their customers rather than only their purchase decision. In order to be more precise, the marketers should identify the need of the customers, information search process, availability of alternatives, purchase decision and post purchase evaluation. In this case study, the respective company need to address the needs, demands and expectations of the customers before launching new brands. Along with that, they need to identify the marketing strategies of and the responses of the competitors against the changing consumers’ behaviour.

AC 2.1 Relationship between marketing strategy, analysis, goals and actions

According to Christopher, Payne and Ballantyne (2013), before formulating the marketing strategies, the marketing director outlines the marketing goals and purposes. Based on the marketing goal, specific strategies are made by the marketing director and explained to the entire marketing department. Leeflang et al. (2013) added in this context that the marketing director needs to analyze the capability of the experts in terms of their knowledge and performances. Through analyzing the present market and the ability of the business, the respective company would able to address required actions which help them to attain the ultimate goal.

The strategic position of the Giant Hypermarket includes strategic objectives, customer focus, and customer loyalty. Their strategic objective is to maintain their high business growth and attract more number of customers by offering more products. In order to create a sustainable position in both the domestic and international market, they make their marketing strategies by concentrating on the customers’ choices and preferences. However, it has been found that the customers tend to break their loyalty when they are offered with better alternatives. In order to establish strategic position, the respective organization plans to offer better products. Furthermore, it has been mentioned that the organization is confronting high competition in the present market. Thus, the competitors’ strategic position needs to be considered in the making strategic position of the respective organization.

It has been mentioned that the marketing objective of Giant Hypermarket is to maintain their present growth and attract more customers through offering new commodities. In order to obtain the marketing objectives, they planned to pursue growth strategies. Here, Ansoff Matrix has been considered in order to make growth strategies (Refer to Appendix 3). Schawel and Billing (2012) opined that the Ansoff Matrix covers four specific strategies that have been demonstrated in the below table:

Ansoff matrix

Market penetration: Strategy of enhancing the existing offerings in the existing market

Market development: Strategy of enhancing own business market and offering the existing products

Product development: Strategy of offering new products in existing markets

Diversification: Strategy of offering new products in new market

Task 4: Marketing Strategies in Different Sectors

In this case study, the respective organization has decided to apply the Market Penetration and Product development growth strategy to attain the marketing objectives.

The above mentioned marketing strategy would help to obtain sustainable competitive advantages. The respective organization is going to adapt the product development growth strategy where they would launch new brands. The new products would provide better quality than the products available in the market. Thus, it is expected that it would help them to obtain competitive advantages over its major competitors. Along with that, they would consider the market penetration growth strategy where they re-launch the existing offerings. Through adapting innovative techniques in promoting the existing products, they would able to grab more customer attention.  

As stated by Tingchi Liu et al. (2013), four major factors are there that influence the purchasing decision of the consumers. These factors include cultural factors, social factors, personal factors, and psychological factors. The culture, sub culture and social classes of the consumers affect the decision of the consumers in buying a commodity. Along with that the social factors such as the choices of families and other members groups influence one’s choices and preferences. Besides, the personal factor is the most influential factors that help the individuals to decide which commodity they would purchase. In order to be more precise, based on the age, personality, occupation, and self concept, the individuals make their purchasing decision. Along with that the psychological factors such as the attitudes, beliefs, and leanings affect the choices of the consumers.

It has been mentioned that the new marketing strategy of Giant Hypermarket is set to achieve the goal to maintain their present high growth in the Malaysian market. Market penetration and product development growth strategy would be considered that help them to obtain sustainable competitive advantages. Apart from this, the influential factors of the consumers’ purchasing decision would be highly considered in offering the new products.

Another well established super market chain of Malaysia, Cold Storage has incorporated both the market development and product development strategy in order to achieve their mission (Rambeli et al. 2015). These strategies helped them to achieve their prime objective of attracting the customers by offering better quality range of their commodities. Jasons Food Hall is another company that has applied product development strategy in order to attain their prime goal of enhancing the customer satisfaction (Rambeli et al. 2015). Through analyzing different situations of different organizations, it has been found that product development is an effective strategy that most of the organizations has adapted.  

Conclusion

AC 3.1 Market segmentation and Product differentiation

As per the statement of Wedel and Kamakura (2012), the market segmentation is an effective marketing strategy which defines the process of segmenting the broad target market into subsets of small groups having similar needs and choices. Makadok and Ross (2013) represented a different viewpoint that the product differentiation is the most effective marketing strategy that helps the businesses to generate more profit. Unlike the market segmentation, this market strategy helps to distinguish their products from the available products. In this case study, the organization would consider the product differentiation strategy to promote their new brands.

As per the viewpoint of Hollensen (2015), four specific targeting approaches are there that include differentiated, undifferentiated, niche and micromarketing. These approaches are compared in the below table:

Targeting Approaches
Differentiated Approach	This approach is considered to produce numerous products with several marketing mixes. Though adopting this target approach, the organizations are able to provide high satisfaction to the smaller segments.
Undifferentiated Approach	Unlike the differentiated approach, it defines the strategy of producing one product with single marketing mix. In this case, the market segment differences are ignored and the firms go with one single product.
Niche Approach	The niche marketing is termed as concentrated marketing or focused marketing where a specific product is focused. Thus, the firms choose smaller market segment from where it can obtain maximum profit.
Micromarketing Approach	This marketing approach is the narrowest targeting approach that considered by the smaller business that concentrate only on growing own brand.

In this case, the Giant Hypermarket has considered the Differentiated Approach in their new marketing strategy where they would produce as well as offer several products.

The respective organization decided to pursue five specific steps of product positioning that are demonstrated in this section. As stated by Gbadamosi, Bathgate and Nwankwo (2013), before launching new product. It is important to know the target audience well. Afterward, the marketers should identify the product features and predict whether their customers would be satisfied or not. Here, the marketing director of the respective organization would have USPs (Unique Selling Propositions) that help them to differentiate their product from the existing products. Lastly, it is essential to promote the product by pursuing innovative techniques so that they would able to attract more customer attention. 

AC 4.1 Role of Marketing Mix in marketing strategy implementation

According to Goi (2015), the Marketing Mix is an effective business tool that helps to determine product offer. In this case, the respective organization has considered 4Ps marketing mix strategy.

4Ps of Marketing Mix	Marketing Strategy
Price	The price of the new products that the organization is going to launch would be offered at lower possible price in order to attract more number of customers.
Product	The new products would be numerous numbers of household products. Giant Hypermarket is going to manufacture own brands that provide unique quality.
Promotion	It has been decided that the products would be widely promoted in the social media sites as nowadays people contribute their maximum time in those sites.
Place	In the local store of Malaysia, they offer their products at half of the prices on the very first day they launch that products.

Keiser and Garner (2012) discussed that the firms’ prime objective of branding is to make it easy for the customers to remain loyal to specific brands through relating the brand name with the products. Here, the marketing director of Giant Hypermarket decided to manufacture their own brand products as they have a strong brand name in the Malaysia market. Through developing products of better quality and branding those commodities, they would be able to deliver strong competition to its major competitors. Moreover, branding help them to enhance business credibility that they have been creating through providing top-notch customer service.

Boone and Kurtz (2013) stated that the costing and pricing decision crucially affect the competitive advantages of the businesses. In this case study, the major goal of this marketing plan has financial aspects which defines that their prime target is to enhance the revenue and profit as well. Thus, it is important to obtain sustainable competitive advantages in order to enhance the selling products. They could restrict the manufacturing cost through incorporating innovative ideas and techniques. The lower production cost helps them to offer the products at lower possible prices. Armstrong et al. (2014) mentioned that people always tend to purchase those products that are of higher quality and sold in lower prices.

According to Yeshin (2012), marketing mix strategy is more than the pricing and promoting the products and making it accessible to the target market. The marketers need communicate with their customers to build a healthy customer relationship. Through communicating with the customers, they are able to influence the purchase decision of the consumers. Yeshin (2012) added that the communication mix has an important role in the implementation process of marketing plan. The prime role in the communication mix include advertising, sales promotion, public relations, and personal selling and direct marketing. The prime purpose of adapting the communication mix strategy is to promote the products and the brands to the target market.

Following the statement of Luqmani, Quraeshi and Gambino (2015), retailing is the distribution channel function that helps the firms to enhance the selling commodities. The retailing process is considered by the respective organization where they decided to manufacture their new branding products and sell them directly to the customers. Wilson and Gilligan (2012) added that the channel management process is the distribution network through which the manufacturers’ production flows to the market. After manufacturing and promoting the products, it is important to make the commodities available at the market for the consumption of the consumers. Both the channel management process is one of the effective tools that are considered in the marketing mix strategy. In such case, if the customers find the products they want are available with the required quantity, they would not tend to shift their choices. This would help the respective company to obtain sustainable competitive advantages.

AC 5.1 Marketing strategies in commercial viewpoint

As mentioned by Andreasen (2012), the commercial marketing strategy is the technique that in incorporated to market the commodities manufactured by the firms. Here, the respective company would consider the non-traditional marketing strategy where they promote their products through online advertising, text messaging and e-mailing. The reason behind not incorporating the traditional marketing strategy is this method is comparatively more expensive. Furthermore, it is important to implement innovative ideas and techniques in marketing the new brands so that it can stand over its major competitors. The unique marketing strategy would help the respective organization to obtain the optimum outcome of their marketing plan.

Andreasen (2012) opined that the profit making organizations employ specific marketing techniques by concentrating on profit maximization process. In this case study, the Giant Hypermarket is the profit making organization that considered the marketing strategies which help them to generate more profit. Unlike the profit making organizations, the non-profit making organizations build marketing techniques for wellbeing of the target market. Public relation is the large part of the non-profit making organizations as non-profits are beneficial for the community as well as the individual groups of people. Thus, it has been found that the marketing strategies differ from firm to firm and sector to sector as well.

In this context, Philo and Miller (2014) stated that the marketing tools and techniques have huge impact on the social and political changes. Through adapting specific techniques, the marketers are able to influence the purchase decision of the individuals and the community as well. The organizations have a scope of making differences in the choices and preferences of the customers. The legislations and regulations of Malaysia affect the marketing process of the Giant Marketing. Thus, the marketing director of the respective organization would consider both the social and political factors in their new marketing process. 

Conclusion

The study concludes that the Giant Hypermarket is going to launch new household products as well as re-launch the existing products. As the organization is a profit making business, it has considered several marketing strategy in marketing planning that would help them to enhance their revenue and profit as well. Furthermore, they have decided to implement the 4Ps marketing mix and communication mix marketing strategy in the project implementation process. This would help them to obtain their prime objective of enhancing the profit and attaining the sustainable competitive advantages.  

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