Marketing Audit and Opportunities and Threats Analysis for Auchan

This report discusses the marketing strategies and management of Auchan, a multinational retail company. It includes a marketing audit and analysis of internal and external opportunities and threats. The report also explores the market position of the unique selling proposition and the launch of a new product.

MARKETING
MANAGEMENT

Table of Contents
INTRODUCTION.......................................................................................................................3
LO1..............................................................................................................................................4
Demonstrate skills in carrying out marketing audit and identify opportunities and threats
which will change industry.....................................................................................................4
Porter five forces .........................................................................................................................7
LO2..............................................................................................................................................8
Demonstrate marketing research skills with systematic approach of searching collecting and
interpretation data....................................................................................................................8
LO3............................................................................................................................................11
Apply findings to create position of new unique selling proposition ..................................11
CONCLUSION..........................................................................................................................14
REFERENCES..........................................................................................................................15

INTRODUCTION
Marketing management is organisational discipline which is focusing on marketing
orientation and techniques. It will employ tools for economics and also competitive strategy
for analysing business environment. It will often conduct marketing research to perform
market analysis. Auchan is French multinational company which is founded in 1961 by Gerard
France. It is a retail company which is providing services in supermarkets and convenience
stores. It is one of the largest retailers form several countries like France, Spain and china.
Auchan is holding ceetrus which is operating shopping centres and hypermarket galleries.
Company is also holding oney which is delivering financial services to customers like credits
are given to consumers (Kotler, and et.al., 2018). The report will be discussing marketing
strategies and it will provide knowledge regarding marketing management. Market position of
present unique selling proposition is discussed in report. A marketing audit is done in report
which will outline all internal and external opportunities and threats which will be affecting
company. On the basis of marketing mix strategy, new product will be launched in market by
analysing opportunities and threats.
LO1
Demonstrate skills in carrying out marketing audit and identify opportunities and threats
which will change industry
There are various factors internal and external factors which will affect company.
Marketing audit is done by company for analysing business environment. So, company is
conducting swot analysis and pest analysis which will examine internal and external
environment (Keegan 2017).
PEST analysis
Political factors
Unstable political behaviour in country is affecting company. Political stability is must
for every company to work in effective way. Trade barriers in company will affect company
sales and productivity. As the company is retail company, company is buying good and
products form various suppliers and because of trade barriers they are not able to buy products
in low cost. Increase in tax is affecting company because it is minimizing the profits for
company. There is major risk of invasion along with country can be made hostile as well. So,

many companies are not investing in Malta and also not collaborating with any company in
Malta (Shaw 2016).
Economic factors
There is change in macro economic conditions for country and so it will have negative
impact on company. Foreign companies are not investing in companies because they have fear
of losing their investment in Malta. Domestic organization are not welcoming foreign
companies in domestic market. So, these factors are having impact on company and sales and
also economy is not growing in effective way. Due to economic conditions interest rates are
increased and so, domestic companies are only investing in market (Deepak and Jeyakumar
2019).
Social factors
Auchan has initiated youth foundation program which will promote good health and
local products. Youth foundation program will result in increasing awareness regarding health
of youth. Consumers trust in retail sector is important because customers are buying products
of company. Company has to gain trust of consumers and company will gain trust of consumer
by way of delivering good quality products. There are efforts made by company for
eliminating risk and preventing social harm. Company has to be aware about the market and
need of customers which will have effect on company performance.
Technological factors
Company is implementing blockchain technology for food traceability. Companies are
using the latest technology which will increase sales and productivity. Orders are placed by
companies and organization have to track these orders and for that companies are using the
latest technology. In Malta there is introduction of register free stores. So, company is making
their stores register free and expanding their business by way of opening stores in different
areas. Due to this company will expand its business and achieve long term goals. By using
these technologies company have gained high profits (Haider, and et.al., 2017).
SWOT analysis
Strengths
Company is spreading in whole world across 12 countries. Company is operating in 12
countries which is increasing business. Organization is offering wide range of products and
services which is attracting customers towards them. It has own labelled products and it has

build strong brand image in market. It is delivering innovative and efficient products to
customers which will satisfy customers. Products of company are changing according to the
country and culture. So, company is delivering products according to customers. It is one of
the biggest hyper markets which is operating with 260000 employees all over world (Chernev
2018).
Weakness
Brand recall is difficult due to change in name of different stores. Company is
operating in 12 countries so, company has changed their names in every country. So, company
has not built brand image in market. Organization have not targeted premium segment of
customers which will buy products. Premium level customers are neglected by company
because there is huge market for company without premium. Global penetration is restricted
and which can be compared to other leading stores in Malta. These all has decreased sales of
company along with company performance in market.
Opportunities
Company can joint venture with companies which are outside country retailers.
Foreign companies are not investing in country but company can joint venture with foreign
companies which will increase business and business opportunities as well. There are
international tie ups which will tap emerging economies which will increase business of
company. International tie ups will bring new companies in market which will increase
business on large scale (Olson, and et.al., 2018).
Threats
There are various threats which are faced by company and it will have negative impact
on company sales. Company is facing controversy regarding labour policy in some countries.
Organization is working in 12 different countries and all countries have different laws and
regulation regarding labour. Labour policy is changing and company has to work in company
as per country policy and company policy. There are restring laws for FDI investment in other
countries. Company will face problems because company is not able to increase business and
expand business. Increase in competition is threat for company because there are very strong
competitors in market which are striving to be successful in market (Moutinho and Vargas-
Sanchez 2018).

Porter five forces
Five forces of the porter is considered as a simple but at the same time powerful tool
for the understanding the competitive behavior of the business environment. Mention below
are he five forces that can makeup the competitive environment (Graham, 2016).
Power of the suppliers
Strong bargaining power of the suppliers ennobles the suppliers to sell their product at
the higher rate while maintaining the low quality. It will directly impacted on the profit of the
company while paying more regarding materials. Suppliers of the Auchan faces bargaining
power where there are fewer suppliers but at the same time lots of buyers. Suppliers are the
persons who can hold the scare resources (Shiu 2017).
Bargaining power of the buyers-
They have the power to demand the products whose quality is higher while prices is
lower from the industry as their bargaining is strong as compare to the others. Lower prices
indicates the lower revenues, also the higher prices raises the cost of the production. These can
be lowed profits regarding producers. Auchan has various independent consumers that
provides have the high prices to enhance the profitability. It can be impacted by the
purchasers that Auchan has, as well as how significant each and every consumer is. They also
focus on how much cost takes to Auchan to search out the new consumers(Schatten,Ševa. and
Tomičić,2016).
Rivalry among existing competitors
This force is considered as the major determinant about the profitability and
competitive of an industry is, within this competitive industry various competitors can offer
undifferentiated services and product that can reduces the attractiveness regarding market.
When the large number of the competitors are (there) than the equal services and products
they offer, lesser the power of firm. Oppositely when the power of the competitive is less and
the firm has the higher power to charge the higher prices as well as accomplish higher profits
as well as sales (Graham, 2016). It can be more intense when exist barriers are high as well as
growth of the industry is negative and slow.
Power of suppliers
Strong bargaining power enables suppliers to sell their goods at the higher prices and at
the same time low quality of the raw materials. It can directly impacts the profits of the buying

organization as they have to pay more regarding materials. Supplier of Auchan has the more
bargaining power when the suppliers are less but at the same time many buyers.
Threat regarding new entry
As per this force how easier or difficulty for the competitors to take entry within
marketplace. (Markets) of Auchan attracts the new entrants as they able to erodes profitability,
unless and until they have Durable and strong barriers regarding take entry (Schatten,Ševa.
and Tomičić,2016).
Threats regarding substitution
When the close substitute products exist within the markets, there is always a
likelihood the people to switch to the alternative products that posses high quality and low
prices, in response to when the prices of the products are increases. It able to reduces both
attractiveness and power of suppliers within the market (Graham, 2016).
Some opportunities and threats which will affect company performance and business
environment as well. These opportunities can be grabbed by company for increasing sales and
increasing productivity. Company is planning to launch new product and for that company has
to overcome internal and external factors which will affect company performance. Marketing
audits is conducted and in that audits internal and external factors are discussed which will
affect company. Company is panning to prepare marketing plan which will analyse the market
in more detail (Quelch 2017).
Marketing audit is conducted with comprehensiveness and in systematic way. In
comprehensiveness marketing uses are identified and analysed. In systematic marketing
sequential steps are used by company for collecting and analysing data based on company
internal and external environment. Marketing audit is important because it will help company
to identify opportunities and threats which be affect company performance in market. It will
help company to analyse marketing activities in deeper way and analyse the steps how it is
executed. The performance of audit is relied on function of management and decision which
are related to marketing activities (Kotler, and et.al., 2017).
LO2
Demonstrate marketing research skills with systematic approach of searching collecting and
interpretation data
Marketing research skill

Market research is done by way of searching, collecting data and interpretation data.
These all will need research skills and which will accomplish the work given. Researcher will
have ability to cope with fast work and complete the work on time. Accuracy will be
maintained by employers and employees which are conducting research. Good communication
skills will make employee work in effective way. Communication can be done in two types
which are written and verbal communication. In written communication researcher will
conduct market research and analyse what factors will have impact on company performance.
Employees also need to have good organization skills which will improve performance
of company. Organization skills include planing of work and controlling the work in effective
way. Employee must have ability to mange time, workload and resources. It will help
employee to improve performance and mange the stress level. In case of business systems are
not organized in effective way it will have negative effect on employee performance.
Employees are not able to manage work and manage the resources which will schedule
projects in effective way (Wood and Jobber 2016).
Employee which is conducting research must have strong attention and must able to
notice patterns and statistics. Strong and attentive mind will have impact on employee
performance along with it will reduce stress of employer. Employee must be able to notice
patterns and statistics which will help them to improve performance and work in effective
way. Market research will include the internal factors and external factors which will affect
company image. So, individual must be able to manage work and must have positive
behaviour which will improve performance of employee.
Role of marketing plan in marketing management
Marketing plan is including full process which will help company to analyse market
environment. The process includes mission and vision objectives, situation analysis and then
internal and external factors are evaluated. After these corporate strategy is prepared and then
marketing strategy is prepared. Then it will include target market and then implementation and
evaluation. These full process is conducted in systematic way which will analyse business
environment. Marketing plan need to be implemented in effective way which will decide
about marketing activities (Magalhães, and et.al., 2020).
Through effective marketing plan it will promote successful marketing operations.
Planning helps company to coordinate with other activities which are running in an

organization. It will be forcing management to work in effective way and in systematic way.
Resources are not misused, and they are used in for identifying market opportunities.
Marketing plan will help company to work in effective way and praise performance of
employee. In the strengths are identified, weakness and threats are identified and opportunities
are identified and grabbed. Effective planning will have low risk of failure while completing
work.
The main purpose of plan is to decide how will the products and services are going to
be delivered to customers. In these most of the employees are focusing on the need of
consumers and focusing on which consumers will buy products at large cost. Company is
using various strategies which will help them to do that but these can be analysed by of
marketing plan (Post 2019). Marketing plan is making sales easier along with that productivity
is also in creased. Specific issues which will have negative impact on company are identified.
Marketing plan will help company to identify issues and do work in effective way.
Strategies of marketing
Company is focusing on the marketing strategies which will help them to work in
effective way. Most effective strategies of marketing is search engine marketing which can be
used by company. In this company is preparing web page which will contain all the
information regarding company and products. Customers will see company details and see
features of products. It will also provide ratings and reviews of customers which have used
this product. Customers can also pay by way of online banking and order products at home.
Company is using social media as marketing tools which will help company to
improve image of company in effective way. Companies are placing their advertisements on
social media which will help company to advertise about the products on social media along
with features and prices. It can attract customers along with other people will be aware about
the products and features of products. Organization can also attract customers by way of email
marketing and content marketing. In these advertisements are placed on internet websites and
via marketing is done by emails as well (Dib 2018).
Nowadays technology is increased and company is Increasing business by way of
mobile application which will be made by company. It will attract customers and consumers
can order products online by way of mobile application. In these customers have option of
paying cash or paying via online banking. The products are delivered at home and without any

charges. Technology has increased business of company along with productivity is increased
as well.
LO3
Apply findings to create position of new unique selling proposition
Company is launching new product in market which will attract customers by its
features. Company is launching new products like omni pork which will include pea, Shiitake
and mushroom and rice. It will offer high quality of vegan and protein which will contain all
amino acids. These proteins and amino acids are must for body and it is a hundred percent
juicy and plant based product.
Vision : To provide better health to customer
Mission : To improve purchasing power of consumers and improve quality of life.
Unique selling proposition
Unique selling proposition is marketing concept which will state about unique selling
point of company. It is theory which will state about unique features of company (Deshpande,
and et.al., 2017). Company is using the unique selling proposition for selling products in
market and advertisement are also placed by following these unique selling proposition. USP
is creating brand image of company in market. These approach is used by company when
products need advertising for increasing sales. It will help customers to identify differences
between brand and category along with it will help consumers to form positive attitude
towards brand and company.
Unique selling proposition of Auchan is “ provide low price and large product
selection for better quality of life”.
Marketing position
In marketing position company is analysing its position in market. Market positioning
refers to the consumer perception and how consumers will establish image of company in their
mind. Position of brand is related to the strategic process which will include marketing of
brand or product. Company has created strong position in market which will require marketing
initiatives. In repositioning brand of product will alter place of mind consumer. It will try to
change consumers perception or brand which will affect consumers perception towards
company (da Silva and Las Casas 2017).
STP analysis

Segmentation
Company is planning to launch new product in market which will attract customers.
Market is segmented on basis of demographic, geographic and psycho graphic factors. In
demographic market is divided on basis of age, gender and education. In geographic Market is
segmented on basis of country, regional and city. Psycho graphic market is segmented on basis
of personalty and risk aversion as well. Company is launching new product which will need to
segment the market and work in effective way. Market segmented is middle class customers
which will buy products for staying healthy.
Targeting
In targeting target markets is analysed, as company is launching new product of omni
pork which is healthy and will include proteins and amino acids. It will make person healthy
for living better quality of life. Target market for these are young people which wants to stay
healthy and stay fit. Young people want to consume more proteins which will help them to
work in effective way. Old aged people also wants to stay healthy, and so they can also
consume these products. People, not have to consume non veg products and can use types of
products and gain proteins as well (Paley 2017).
Positioning
Company can position the products in supermarkets which will attract customers
towards them. Products can be consumed at every age groups and people want to consume
vegetarian products. Products can be placed on store and in on line store as well. People can
buy the products form any place. Online selling is the latest trend which will attract customers
towards company. So, company can sell products in online stores and in retail stores as well.
Product need to be placed in right place which will decide the position of products in market.
It will state market position and company position in market as well.
7 Ps of marketing
Product
Product is omni pork which is consisted of protein, non GMO soy and shiitake along
with all these will also include mushroom and rice. Products are offering high quality of
proteins and essential amino acids which will help customers to stay fit. It is tender and a
hundred percent plant based product. These products will attract customers and company sales

and productivity will be increased. So, company will increase sales and distribute products in
supermarkets for there customers will buy the products (Alzahrani, and et.al., 2017).
Place
Place is where products are placed by company. Organization is selling products in
market by way of stores and super market. Company itself is big retail organization and have
own super market. These products will be sold at company super market. Place of company
must be suitable for customers because consumers are visiting place and buying products.
Places must be near customers so, they will visit store instantly. Company is also operating
with online application and websites. So, these products can be sold online and which will
attract customers in effective way. Mobile application will be used by company for increasing
sales and delivering products at home.
Price
Company has targeted Market which is middle class so, price of products is according
to customers. Price is changing the behaviour of customers because price is major factor
which will have effect on consumer decision. Price will include cost of ingredients and also
profits ratio of company is included in price of products. As company is launching these
products so, company has kept price of product average which can fit the budget of customers.
In case of low prices and offer and discounts customers will buy products and try this product
(Maldonado, and et.al., 2020).
Promotion
As it is a new product it will need promotion because customers need to be aware
about the product. In promotion advertisements are made relating to products along with
special features of products. So, company can invest in promotion which will increase sales of
company. Products are new for market so, trial products will be made and distributed among
customers which will try these products and given their feed backs regarding products. Once
customers are attracted towards products they will buy products even at high prices.
Promotion can be done by company in social media websites as well.
Packaging
Packaging of product is important because it is playing vital role in attracting
customers. Packaging is attracting customers and packaging will include all features and retail
regarding products. As it is food products company must see that packaging is proper

otherwise it can harm health of consumers. Health of consumers will be affected by improper
packaging so, packaging must be attractive as well as proper. Packaging must be done in that
way, in which food is not spoiled after long period.
Positioning
In positioning, position of company and products is analysed. Products must make
position in consumer heart and mind. So, customers will buy products and it will increase
sales of company. People must be aware about product and even if, some customers have
negative reviews regarding products. So, company have to address reviews and improvise
products according to customers which will attract customers. Consumer reviews and feed
backs are deciding the position of company and product in market.
People
People which are buying products are customers, consumers preferences are changing,
and they are attracted toward any type of new and innovative products. So, company can
attract customers in easy way but company have to make initiatives for making these
consumers loyal towards company. So, company is using sales and marketing strategies for
attracting consumers. Most important company has to make product but according to
customers demand and company must try that marketing of products is done among those
customers which can buy products and which have need of products.
CONCLUSION
From the above report it has been concluded that marketing management is used by
company for attracting customers. Company wants to increase sales and attract customers so,
company is taking effective measures for attracting customers. Marketing of products is done
by company by way of analysing internal and external market which factors can affect
company. Report have included swot analysis, pest analysis and competitive forces model
which have stated about the opportunities and threats which affecting company. So, company
is taking effective measures which will for launching new product in market. Company is
following seven p of marketing and also segmentation, targeting and positioning model is used
by company for analysing market behaviour towards company. Company has increased sales
by using the latest technology which have attracted customers like online ordering and home
delivery as well. Organization is using unique selling proposition which will indicate unique
features of company which will help them to build strong brand image in market. By using

these marketing strategies company have increased sales and productivity as well. Report is
providing knowledge regarding marketing management techniques and tools.

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