Marketing Strategies for the Grocery Industry

This assignment requires a comprehensive analysis of marketing strategies used by businesses operating within the grocery industry. Students are expected to examine various aspects, including market share data, consumer preferences and trends, and successful marketing campaigns employed by prominent players. The analysis should provide insights into effective strategies for achieving success in this competitive market.

Introduction to Marketing

EXECUTIVE SUMMARY
In respect to look towards the present study, it can be stated that effectiveness increasing
to develop the target market. In this regard, marketing helps to concentrate on the systematic
work performances in the business to make effectiveness. Therefore, report summarised about
the analysis that helps to create innovations and creativity in the UK market.

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Brief overview of UK retail market and identify specific areas of product/market growth........1
Factors impact to the chosen company........................................................................................3
TASK 2............................................................................................................................................9
Consumer segment for driving growth........................................................................................9
TASK 3..........................................................................................................................................11
Knowledge and information with 7Ps marketing mix model....................................................11
Recommendations......................................................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Marketing consist important role in every business to expand and determines creative
activities in it. With respect to carry marketing functions, every business set their targets and
goals which helps to attain desired results. Further, it also helps to expand business in new and
global areas so that profits and revenue could be expanding as well. Therefore, it can be stated
that marketing considered important role in the enterprise to carry its activities and tasks in
different areas of the world. In order to carry the present report, it based on Lidl which is one of
the largest supermarket in UK and compete with different other organisation. For gaining insight
knowledge of the present report, it is carry marketing activities that develop products and
services in retail enterprise. In addition to this, it focuses on the competitor market to increase
effectiveness and develop profitability as well. Moreover, report provides methods of promotion
in different areas of the world to deals with innovative activities and targets as well. At last,
recommendations given to make effective function in the business environment.
TASK 1
Brief overview of UK retail market and identify specific areas of product/market growth
Grocery or retail business provides several types of goods and services. Therefore, they
carry their functions and operations to attract people in the business environment. In the UK,
retail market considered different competitors because same products and services are provided
to attract customers in the enterprise (Wellington, Faria and Gowing, 2014). In this market UK
considered more than 27 million customers with safe, qualitative and affordable products. In
economy, this sector considered major part to attain desired results and outcomes. Sales of the
country are growing around the £179 every year from their operations. This amount is
contributes in year of 2016. Value of food and drink considered in high perspective to attract
several people at workplace.
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Figure 1 Illustration 1: GREAT BRITAIN GROCERY SHARE DATA
Source: (Kantar World panel, 2017)
In order to look for the above graph, it can be depicts that market growth of the chosen
business increases. In the grocery market, there are around 3.7% growth considered through their
products and services. Therefore, it helps to make high sales and profits to deal with different
aspects to attain desired results. However, there is downfall is around 0.2% in the total market
share of Morrison. In ASDA sales increases continuously, with increasing its additional shoppers
and other perspective as well. Every company started to establish their local store in all over the
market so that chains and online channels are also increases for premium products and services.
Lidl has increases by 17.8% in 2016. Therefore, it can be stated that opportunities continuously
increases to make innovations and creativity in the business.
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Lidl is the one of the global enterprise which deals in super chain market in Germany.
The company taking approach to fulfil their customers demand with providing some extra
advantages. Staff members considered their activities to increase their capabilities and provide
services to customers. The company provide products on cheapest price so that they can easily
attracted customers at workplace. Vast infrastructure facility of the chosen business provides
different kinds of product range in market (Wellington, Faria and Gowing, 2014). Therefore, it
will help to earned around £4.7 from their different stores in all over the world. The enterprise
also tries to increase their factors to manage functions and attain more systematic work
performances at workplace. With the help of the innovative and creative elements, the chosen
business able to deal with their competitors easily.
In the UK, there are different competitors exist which deal in same business so that so
that there is wide competition consider which impact on the operations and functions of Lidl. In
addition to this, earned revenue of the company around £5.8 in last year which is low as compare
to other competitors.
Factors impact to the chosen company
Tesco
In the UK, there are several factors exist that create impact on Lidl. This is because,
different aspects of operations and functions of enterprises create impact on chosen industry.
Tesco is one of the major elements in grocery store which create impact on the chosen company.
This is because, it has more than 6553 stores in all over the world who earned more than £55,917
in last year. There are several people associated who has subsidiary companies that share high
part in grocery stores. Along with this, there are different subsidiary exist in term of Tesco
mobile, Tesco bank, etc. which impact on customers. This is because Tesco continuous
expanding their market to deal with innovative characteristics and functions. It is one of the
major reason due to which Lidl gets affected. The chosen business is only consider their
operations and functions in one sector so that they are unable to contributes from the other
sources. As compare to Tesco, the selected business has only 5% contribution. Beside this, Tesco
provide online services but Lidl no consider in their operations and functions.
Sainsbury
Sainsbury is also one of the major retail sector businesses in UK. They are also providing
different kinds of products and services in more than 1415 stores in all over the world. The
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company earned around £26.445 in last year. This company also considered their operations and
functions as subsidiary to set brand image and make more revenue and profits. High grocery
products and services considered by this company. (Martin, Rosenbaum and Ham, 2015) It has
also more shares in grocery term to make high economic results in country. With the help of the
different kinds of market share, the company able to develop their effectiveness in the market.
Morrison
Further, Morrison is also deals in the grocery products and services of UK market. It is
one of the largest chains in supermarket term of the country. Therefore, they deals to make some
innovative through concentrate on their 498 stores. It has less stores because it deals in
qualitative products and services to attract more people in the business. With the help of the
offering different pricing strategy, they are able to attract more customers in the business
environment to considered innovations and development in the business (Tomczak, Reinecke
and Kuss, 2018). It gives wide competition to Lidl. It is main reason due to which Morrison
consider their maximum operations to make systematic work performances. They contribute
around 10.1% as compare to the Lidl in last year operations. Revenue of the company in last year
is around £16.317 billion.
Figure 2 PERCENTAGE GROWTH OF LONDON GROCERY MARKET
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Source: (Statistics of grocery retail market, 2017)
From the above factor analysis, it can be stated that Lidl has many competitors in UK.
They need to tale some actions to beat other competitors and earn more profitability at
workplace. In addition to this, there are several strategies considered that made to assess the
market conditions. With the help of these strategies, the company can develop their profitability
and create systematic analysis at workplace. In the year of 2017, grocery considered more share
and profits to deal with the different products and services. With the help of the market value, it
has been seen that UK grow very fast from 2007 to 2017. In this way, every company share their
profits and revenue to make high economic results at workplace (West, Ford and Ibrahim, 2015).
In the UK, Lidl considered global discount in supermarket chain so that they considered
operations in Europe and USA as well. The company has more than 10000 stores so that it
consist major profits and revenue in different areas of the world. In order to beat with the high
and fresh quality of food, the company considered their systematic operations in the UK market.
In order to beat the other competitors, the company provide cheapest online services with
effective marketing (Iacobucci, Popovich and Kardes, 2015). Therefore, all factors create major
impact to understand systematic results at workplace. In this context, following analysis consider
in the UK market:
SWOT analysis
This analysis assists to create proper understand strength, weaknesses, opportunities and
threats in the business.
Strengths: In order to make effective results, Lidl consist several operations and functions
to increase their products and services. With the help of the less price, the company able to
attract customers easily. This is because, the company has chosen affordable products to the
customers those want to purchase cheaper products. In addition to the cited firm also implement
their label to maintain exclusive range in respect to maintain security at workplace. In the
company, there are several stores through they can make association of the large number of
customers at workplace.
Weaknesses: However, there are several weaknesses exist towards the chosen business.
Lidl never take part to make high market share in the grocery products consideration. Further,
the company requires more fund to invest their money to make their consideration in global
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environment. It requires increase so that the business able to make their effective results in the
country (Tomczak, Reinecke and Kuss, 2018).
Opportunities: Furthermore, there are several opportunities in front of the chosen
business to make their products and services in high aspect. In this way, through globalisation
Lidl able to sell their products and services in different areas of the world. It is also helpful to
attain more share and profitability in the market. It helps to serve in the large market share easily.
Threats: In the UK, there are several competitors exist that create negative impact to deal
with the products and services in the market to Lidl. This is because, all business provide
different kinds of products and services in this aspect. In addition to this, it also consist impact
due to price war. International expansion also done through sending more competitive products
and services in the market. It is the grocery retailer so that it create threat to the company
(Nowak, Gellin and Butler, 2015).
In order to look towards the above analysis, it can be stated that Lidl need to focus to
overcome issues to deal with several nations. With the help of innovative products and
characteristics, they are able to attract different people in the business environment. It also assists
to collaborate to make more profitability and revenue as well (Iacobucci, Popovich and Kardes,
2015). Websites of the selected business also need to consider at regular interval to attract more
people.
PESTLE analysis
 Political factors: Political factor create major impact on the business. This is because, it
comply with rules, regulations, norms, etc. Government of the country set some policies
which essentially followed by each company to produce effective results in the business.
It is the major aspect on which enterprise need to focus to increases their effectiveness.
UK government set advance program which create impact on innovations (Babin and
Zikmund, 2015). Structural changes are also needed to the chosen business which set as
norms by government.
 Economic factors: Economic element of the country also impact on the operations and
functions of the business. Buying power of customer generally create impact on the Lidl.
This is because; the chosen company need to make their cope up with GDP element of
the industry. Stable financial system is the major strength in the enterprise (West, Ford
and Ibrahim, 2015).
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 Social factors: Nowadays, concern of people related with the nature which is continuous
increasing. Eco-friendly products are most useful element that like by people. The chosen
business also need to put their efforts and satisfy needs of customers as per market
demand. Furthermore, Lidl also need to concentrate on religion and culture of the
customers and provide products accordingly. The stock need to maintain as per the same
consideration.
 Technological factors: In respect to satisfy the customer demand and requirements, Lidl
need to make concentration on the advance technology through they are able to make
systematic results at workplace. In addition to this, online services create positive impact
to attract several people at workplace (Jung, Jung and Shin, 2016). Therefore, Lidl need
to implement social media tools through they can easily attract customers. It helps to
produce systematic work performances to purchase products from the chosen business. It
is also important to gain competitive advantages in UK market.
 Environmental factors: In addition to this, the chosen business has responsibility to
maintain environment of the country. This is because, their products and services require
proper waste disposal. It is the main challenge which face by the company (Nowak,
Gellin and Butler, 2015). In order to consider recycle, Lidl able to mitigate their
effectiveness easily. In addition to this, they need to join to make clean and green
environment.
 Legal factors: In order to maintain smooth functioning, the chosen enterprise needs to
concentrate on the complying with rules and regulations. In this way, laws and other
norms need to followed that are made by government in production system. Tax law need
to consider by each individual to set appropriate pricing policy at workplace. It will
assists to attain desired results at workplace (Iacobucci, Popovich and Kardes, 2015).
In order to carry the PESLE analysis, it can be stated that as per the each person requirement,
Lidl need to concentrate on their production system. Government regulations need to followed
by the cite enterprise to make effectiveness in the business. In addition to this, BCG matrix also
implemented that assists to consider proper analysis in the business to cope up the effective
advantages. In this way, high growth consider at workplace easily.
BCG matrix
In this aspect, following are certain factors describe in the business:
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 Dogs: In element is known as the cash trap that consider in the market due to low share
and growth rate. In this context, investment need to done with little potential aspect.
Therefore, growth of Lidl considered with investment amount.
 Question mark: Question mark also consider major investment amount which assists to
make rapid growth in the business. It helps to generate cash that is very low in the market
as per their share (Martin, Rosenbaum and Ham, 2015).
 Cash cows: This element helps to generate systematic work performances with more
cash to create greater returns on business assets. It helps to make high growth in the
business environment as per the growth rate (Lidstone and MacLennan, 2017).
 Stars: It consider strong market share that is main reason behind the large generation of
cash. In Ludl, this element helps to make effective functioning with high growth rate.
Therefore, it can be stated that stars are stand point for chosen business to make effective
functioning at workplace. It assists to attain desired results and develop more effective results at
business environment.
Ansoff matrix
This tool also establishes to make effective functioning at workplace. In this way, there
are several types of strategies considered to make future growth in the business. It is also
considered expansion of market to set its grid in systematic way (Nowak, Gellin and Butler,
2015). There are four elements included that are explained under here:
Market penetration: In order to considered market penetration, Lidl need to focus on the
expansion of sales for their existing products. In this way, the company need to make their
strategy through they are able to develop effectiveness in the business (Iacobucci, Popovich and
Kardes, 2015).
Product development: In this consideration, Lidl need to implement new products which
introduced in the existing market. It is more risky because, on new products all people are not
attracted easily. Therefore, it impact negatively on the different aspects of chosen business.
Market development: Further, it is another aspect in which the cite firm introduced
existing products in the entire new place so that they can easily attract new people in the
business. In addition to this, new features also added in the products and services to attract more
people (Babin and Zikmund, 2015).
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Diversification: At last, Lidl need to make their concentration on the business with new
products which introduced in the market for increase globalisation profits and revenue. In this
regard, effectiveness of the business develop through attract several customers in it.
In order to implement the above tools, the company able to implement market
segmentation and mix to understand effectiveness (Di Benedetto and Kim, 2016). In addition to
this, risk management and contingency plan also implemented to manage several operations of
the enterprise. In the respect to implement decision making matrix, Lidl able to take appropriate
decisions in their enterprise. Hence, different tools helps to take appropriate decisions at
workplace. With the help of the different tools, it can be stated that current position of the
enterprise increases in systematic manner. Negative impact also reduced to make high growth of
the enterprise (Wellington, Faria and Gowing, 2014).
TASK 2
Consumer segment for driving growth
Market segmentation is the essential element that helps to take important consideration to
divide whole market into the smaller parts. With this regard, according to the common elements
and characteristics, goals and objectives will be attaining at workplace easily. It helps to make
likelihood regarding business goods. With respect to define the target market, communication
allow in better way with potential candidates. In the retail market, there are several elements
exist that deals to identify human needs. It is typically involved activities which taken by Lidl to
promote their outcomes to attract maximum customers. With the help of the segmentation, the
chosen business also gains competitive advantages. As results, they can easily break down their
whole market into the heterogeneous with identical characteristics (Lidstone and MacLennan,
2017). Following are certain consideration in which the chosen business able to make their
different kinds of segmentation:
Socio-demographic segmentation: As per this segmentation, Lidl increase campaign that
are mainly consider among different customers. In this way, the company can break down
different categories. Therefore, it allows creating selling point at various place of the company.
Further, all types of families and other people are targeted in different group consideration (John,
2017). For example, single mother which has one child, single father which has one child,
parents who have several children, etc. With this regard, as per the religion, age, education,
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income, and etc. characteristics the company set their objectives and goals to attract customers.
Luxuries goods help to attract standards group of people so that company also make efforts to
attract them. In addition to this, as per price level, the company try to attract customers at
workplace. Therefore, systematic work performances in the business considered to expand
creative activities. In the chosen business, online shopping is also option which increases profits
and revenue as well.
Psychographic: As per this aspect, the chosen organisation can set their targets and goals to
attract several customers at workplace (Nowak, Gellin and Butler, 2015). It will helps to focus on
the dividing the whole market as per the traits, values, attitude, interest, etc. Main advantages of
this element are that people could be engage to focus on the whole market. Lidl also focus on the
different elements of the whole market to develop their profits and revenue as well. Due to
different attitude and interest of people, segmentation consider in psychographic basis. It is the
also element that precise to match segmentation for product and services in the business. Interest
and attitude of the people helps to look towards the goods of chosen business. It develops
effectiveness that is essential element to focus on the goals and objectives (Powell, Seifert and
Brownstein, 2016). Main aim of the following tool is to design and consider exact product and
services in the business. As per the customer interest and participation, the company should
focus on the different aspects of products and services to capture large areas of the UK.
Therefore, it helps to increase appropriate implementation of attributes at workplace.
Behavioural segmentation: In this kind of segment, whole market has been dividing on
the basis of purchase behaviours. Therefore, online retailers can customise their website with
different characteristics. According to the benefits of products and services, loyalty and rate of
implementation considered at workplace (Lerman and Shefrin, 2015). On the basis of occasion,
Lidl considered their segment in the market for develop effectiveness. On the basis of customer
requirements, behavioural segmentation implements usage frequency, brand loyalty, etc. In this
segmentation, complete actions are taken to perform and show effective results at workplace.
Hence, the company can easily target new people at workplace with several elements. Along
with this, people are also conscious about the brand and its quality so that it is important to look
towards the competition that exists in the market. As per the behavioural characteristics,
customer’s requirements could be fulfilling easily. In this way, effectiveness of the products and
services develop to attract towards the business environment. Furthermore, brand command is
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also helpful to make sure that high degree f loyalty consider that helps to attain desired results at
workplace (Lindgreen, Campelo and Angell, 2016).
TASK 3
Knowledge and information with 7Ps marketing mix model
Knowledge and information are two major elements of one coin. It helps to increase target
market towards Lidl with implement new products and services in it. With the help of the
systematic work performances, unique features and characteristics develop at workplace.
Following are certain aspects which determine description in the business environment of chosen
enterprise:
 Product description: In this regard, effective results will be expanding at workplace with
different products and services. Lidl started their operations and functions 1973 with
more than 500 products in small stores. Therefore, it is essential to far reaching with
expansion in different areas of the world (Martin, Rosenbaum and Ham, 2015).
Nowadays, it deals with many stores and many products in all over the world market.
With the help of the creative elements. It is important to make concentration on the
relationship with stakeholders. It is more important to concentrate on the origin of new
goods that helps to attract customers in the business. In order to deal with the products
and services, the chosen business need to concentrate on the new elements that helps to
attract people in the business. Therefore, it helps to make innovative and some unique
characteristics. Products are also carried to make effective results at workplace (Armenia,
Pompei and Nonino, 2018).
 Brand image: The chosen company using competitive pricing. Therefore, they charge
fewer prices as per the other competitor. It will help to concentrate on the systematic
work performances at workplace. New product range also implemented to increase the
brand image of Lidl. Diversified activities assist to concentrate on the discounting
activities that help to make some innovations in the business environment. Desired results
also attained through implement creative characteristics at workplace. In respect to look
towards the analysis of 2017, it has been seen that the chosen company has wide
concentration on fashion industry. It will help to determines characteristics at workplace
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in the business (Fritz, Sohn and Seegebarth, 2017). Dynamic strategy also helps to take
place in the global environment which influence through social media.
 Pricing objectives strategy: In addition to this, the chosen business also able to attain
competitive advantages with different pricing. With this regard, discount, allowances,
payment terms, etc. aspects considered that assists to look towards the market
development. In this regard, Lidl able to increase their effective results with high revenue
and profitability as well. In the systematic manner, this element also consider more
effective program at workplace (West, Ford and Ibrahim, 2015).
 Retailing and distribution objectives and strategies: In order to develop effective results,
retail and distribution activities help to make innovations in the business. Online and
offline selling products and services by Lidl also helps to make systematic work
performances. With the price, effectiveness will be increasing that make concentrate on
the development objectives which enhances the business revenue and profits (Homburg,
Vomberg and Grimm, 2015).
 Integrated marketing communication: Further, integrated marketing communication
helps to create systematic strategy. It helps to develop target market that is useful element
to make consistency in the enterprise. There are different characteristics which help to
increase communication system at workplace. It will help to concentrate on the
innovations and target market that make systematic work performances in the business
environment. Promotional mix elements also increase effectiveness in the campaign
message. In the marketing environment, different changes occurs which assists to
integrate communication in successful way (Monteiro, Babor and Brookes, 2017).
Furthermore, Lidl can create widespread of the information in business regarding
communication. Therefore, it will assist to integrate different elements and advertise the
products in different areas of the world. In order to make changes in external
environment, systematic work performances developed at workplace.
 7ps of marketing mix: In order to develop effective results, it is important to Lidl to
concentrate on their marketing strategy. With the help of this analysis, innovative
characteristics implemented in the business environment (Möller and Parvinen, 2015).
Therefore, different types of information help to describe innovations and creativity in
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Lidl. There are following elements included that helps to make concentration on the
systematic work performances:
o Product: In the chosen business, there are several kinds of products and services
classified with different useful elements such as quality, brand name, services,
etc. In respect to look towards the competition, it has been seen that brand name
developed through cheapest supermarket. On the other hand, other competitors
implement high price with ascertain values at workplace (Babin and Zikmund,
2015). It will helps to reduce negative impact from the business operations and
functions.
o Price: With this regard, Lidl attain pricing strategy to attract their customers with
competitive pricing. In this way, main advantage of the company is to get value at
workplace. Therefore, they provide their products and services at low from other
competitors.
o Place: There are several areas where the chosen business operates their functions.
In this aspect, in UK and Europe, the chosen business considers to make
systematic work performances (Jung, Jung and Shin, 2016).
o Promotion: In order to look towards the promotional tools, there are several areas
where the business considered their functions. In this way, systematic work
performances developed in all over the market. There are advertisement, personal
selling, sales promotion, etc. elements are implemented to increase effectiveness
and attain desired results as well. With the help of the promotional tools,
creativity will be increases at workplace.
o People: In the chosen business, there are employees who take part to attain
creativity at workplace. In this way, advantages are taken on the basis of
incredible aspect (Eagle and Dahl, 2015). Training standards helps to make
innovations and outcomes at workplace to measure customer’s requirements.
o Process: In the Lidl there are several people take part to make effective results. In
this regard, the company need to take advantages to develop their target market
and attain effectiveness as well. It will help to concentrate on the items that are
scanned and develop on the low cost (Iacobucci, Popovich and Kardes, 2015).
13

o Physical evidence: This element determines innovative results and outcomes to
deal with the systematic work performances. In this way, furnishing, colour, etc.
elements are mainly implemented in the Lidl to make sure that effectiveness
increases easily. Along with this, brand consideration also developed in stores.
Recommendations
In respect to look towards the above analysis, it can be stated that the chosen business need
to concentrate on the above recommendation that provided to make systematic work
performances at workplace (Tomczak, Reinecke and Kuss, 2018). In this way, Lidl can get better
position in the market and increases their profitability as well:
Expansion of the operations in global environment: In order to look towards the business
expansion, it is important to look towards the global areas. In this way, the chosen business
needs to concentrate on those areas where they have not expanded yet. Development activities
help to make targets and outcomes in new areas so that effectiveness increases for enhance profit
and revenue as well.
Adding unique and qualitative elements in the products and services: In respect to look
towards the innovative and unique characteristics, Lidl can target new people in the business. In
this way, the company attain advantages to make creativity at workplace. In different regions,
customer’s targets through them can develop positive impact as well (Sheth, and Sisodia, 2015).
With the help of the concentration on the development activities, it is essential to concentrate on
the new target market. Activities are also design to make proper concentration on the targets.
Concentration to attract new people: At last, it could be recommended that Lidl also need
to make their operations to increase their customer base. In this way, they can set activities and
tasks to apply their effectiveness in the business. They need to design their own website so that it
helps to make sure that target market develops in the business environment. Effectiveness of the
business increases through determines effectiveness at workplace (Armstrong, Kotler and
Brennan, 2015).
CONCLUSION
From the above report, it can be concluded that marketing play important role in the
business success. This is because; it helps to concentrate on the target market through business
expansion. In addition to this, it is also helps to target new people in the business environment.
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Present report considers outcomes of Lidl which is one of the largest supermarkets in the UK.
However, the company face different issues and problems because high competition in the
market. Furthermore, it summarised about the competitive market which create major impact on
the business outcomes. In order to deal with innovations and targets, it is important to look
towards the some advantages that are taken from the business analysis. With the help of some
innovations and creativity, the company able to attract more people in the business. Therefore, it
is essential to look towards the systematic work performances in business unit. Moreover, it
summarised about the PESTLE and SWOT analysis that assists to make proper concentration on
the some different advantages at workplace.
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Online
Great Britain grocery share data, 2018. [Online] Available
through:<https://uk.kantar.com/consumer/shoppers/2017/may-kantar-worldpanel-uk-
grocery-share/>
17

Percentage growth of London grocery market, 2018. [Online] Available
through:<https://www.statista.com/statistics/295669/grocery-retail-market-value-by-
in-the-united-kingdom-uk/>
18