Marketing Management: A Case Study on Organo Store
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This report is a case study on Organo Store, an organic food store that offers natural food items in supermarkets and online groceries. It covers marketing management, competitor analysis, impact of internal and external environmental analysis on marketing activities, marketing mix, and more.
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TABLE OF CONTENT INTRODUCTION...........................................................................................................................3 MAIN BODY...................................................................................................................................3 Company Overview.....................................................................................................................3 Competitor analysis.....................................................................................................................4 Impact of internal and external environmental analysis on marketing activities:.......................5 Marketing mix of Organo store:..................................................................................................8 Gap in market:............................................................................................................................10 STP (segmentation, targeting and positioning):.........................................................................11 CONCLUSION..............................................................................................................................12 REFERENCES................................................................................................................................1
INTRODUCTION Marketing management is a procedure of overbearing the market features with the help of setting appropriategoalsofthefirm,organizingplansinstructuredmannerandtakedecisions accordingly by executing them in order to get maximum level of turn over by fulfilling the demand and requirement of consumers (Pevzner and et.al., 2017). It completely focuses upon the physical and psychological factors that are associated with marketing. The managers are accountable for enhancing the level, coordination and timing of consumer’s desires accepted by the firm. This report will describe the concept of marketing plan that has been prepared by the establishment i.e. Organo store in order to offer their newly introduced goods and services such as organic food products or items within the market space in order to increase the profit margin in the market place. The study will highlight all the necessary features such as the market audit which is both internal and external, competitive analysis, market gap, STP as well as the marketing mix of the company. MAIN BODY Company Overview Organo Store is a modern and responsive Organic Food Store company deals in providingorganicfooditemsforthebettermentofthehealthoftheconsumers.The establishment is highly suitable to fulfil the requirements of providing natural food items in supermarkets as well as on online groceries. It is extremely perfect for eco product stores, fresh food items such as bread, bakery shops and other natural cosmetic stores. The company is highly concentrating on providing organic food items, beverages as well as other goods and services to the candidates that are highly health conscious and well aware about their day to day habits (Lim, 2020). The firm is a wholesale company from past many years and due to this, they have share huge amount of products to their consumers. Their major goals is to make health easy and use their specialist market area knowledge in order to provide support with the help of various tools and techniques to help out their clients in order to expand or grow their business area. The super market stock up to excess of approximately 900 brands, giving their consumers access to over 15000 plus health and well-being goods and services along with the benefits that enables the consumers to get benefits from the products and able to take consolidated services
offered by the super market (Spohn, 2020). They have the products that helps their consumers to become up to date as per the recent scenario. Competitor analysis Competitive analysis helps the Organo Store in doing marketing as well as strategic management in order to identify certain strengths and weaknesses of current as well as potential competitors. This analysis helps the firm to get defensive and offensive both strategies in complete context in order to identify future opportunities and potential threats for the business. This analysis will be explained with the help of Porter's five force below: Threatofnewentrants(High):Itidentifiestheeasinessandthedifficultyfor competitive firms to join the marketplace in the similar industry. According to the products that have been offered by the firm, it has been identified that people are now becoming more health conscious and thus, the industry is moving at a significant rate due to various practices that have been adopted by the government of UK regarding the health of consumers (Popescu, 2021). Hence, there is a high threat of new entrants are noticeable in the market space as various alternatives are available in order to supply similar kind of goods and services. Threat of substitutes (Medium): Substitute are the products that are alike in nature to others within the industry already produced. For Organo Store, the local specific organic produced food is attractive to industry as long as it finds the way to the market. Although, there are many establishments that are tries their best to operate their items into organic manner and hence the threat of substitute is medium as not yet all the companies gives focus on providing organic items to consumers. The firms have to perform their own services just like do plantation into green houses, etc. are some of the examples of activities performed by the firms. For instance, the Tree of Life is good example of organic goods which offers equivalent services to the Organo Store and becomes a biggest threat for the firm. Buyers power (Low): It shows the bargaining ability of consumers to control producers profitability. It illustrates the cost to the buyer of switching from one supplier to another. Buyers are in strong power when buying in large quantities or control various access points to final consumers (Kutnohorská and Krištůfková, 2019). In context of organic products, it has been identified that only few buyers are existing as of now who highly
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demand and aware about organic items. Hence, switching costs to other suppliers are low in nature. Substitutes and buyers are price sensitive. The Organo Store has to settle for prices that are not always commensurate with the investment. In organic component industry, the bargaining power of buyers includes consumers frequenting the places where clients can get organic items. Supplier power (High): This factor completely dependent upon the uniqueness of the product that has been offered by the firm. Strong bargaining power of suppliers allows selling higher priced or low quality raw material to their buyers. This directly affects the producing firms profit margin because it has to pay more for raw material. For Organo Store the bargaining power of suppliers is high as there are few suppliers of raw material are available within the market place. Power of customers (Medium): The power of customers for the Organo Store are medium as the customers for organic products are already well aware about the benefits of organic items and thus their major attention is towards their health benefits rather than prices (Nag and et.al., 2018). Hence, they will not focus on the price factor rather than providing attention towards the advantages and quality of items that they wanted to use. Thus, the firms who offer organic products has various independent customers and have easier time to charge high amount in order to increase profitability. Impact of internal and external environmental analysis on marketing activities: SWOT Analysis: Strength:strength is uniqueness of the company which make it different from other. The strength of the company lies in strong image and brand name of the company. For Organo store their strength is their natural organic products, the company serve pure organic product in betterment of the health and lifestyle of the people (GURL, 2017). The new product of the company contain natural synthetic and ingredients which directly extract from the flowers. The Organo store manufacture healthy lifestyle products that contain zero chemicals. The strength of the company lies in its innovative concept of organic products, this helps marketer of the company to highlight the uniqueness of the product in its marketing campaigns. Weakness:every business have weakness, these weaknesses slow down the process of the organization. When company unable to detect its weakness sooner or later the company have to face major issue and even have to wind up. The weakness of the Organo store is poor supply
chain, the consumer of the customer have faced many issues regarding unavailability of the product. As Organo store manufacture natural products, it takes so much time produce such goods. The company need to improve their supply chain to fulfil the demand of the customer, poor supply chain will bring down the sales of the company. If the company is not able to provide products on time, then there is no purpose of making marketing strategies. Opportunities:opportunities are chance to increase the productivity of the company, many opportunities lies in weakness of the company. When company is able to detect the weakness they also get idea to overcome the issue, these ideas are opportunities for the business. For Organo store, they have opportunities to win the market with their natural products. After the impact of COVID-19, people have become more health conscious. The company can use health as a factor to sell its organic products, the can show the details and natural ingredients used in the product to attract consumer (Sarsby, 2016). For marketer of the company, it is the best opportunities to target people who are looking for organic products online. Threats:threats are barriers in the process, and they are mainly competitors. Almost every businesshavefacedmanythreatsfromtheactivitiesofthecompetitors.Organostore's competitors have introduced new organic products which is more suitable for the health of the people and their marketing strategies have pulled half of the customer of Organo stores. The competitors also have stolen the idea of organic products from the company, they have improved the quality and selling the same product in low price range compared to the Organo store. Marketer of competitors uses various paid platform to promote their product, for organo store, they need to research the market and make campaign accordingly. PESTEL Analysis: Political factors:political factors means how government and its policy impact the smooth running of the business. Rule and regulation provide my government such as tax policy, trade restriction, tariff and many other things. For Organo store it is very essential to have political stabilitygrowthebusiness,thecompanyhavefacedmanytariffrelatedproblems.The government instructed Organo to purchase raw material from local suppliers which will increase the opportunitiesfor local vendors and suppliers as well (Hiscox, 2020). The marketing strategies of the company need to be modified according to the stability of the political environment. Organo store have to measure all political elements before making marketing strategies.
Economic factors:economic stability of a country is very important for every business to grow, the economic factors plays a vital role in production of the goods such factors are inflation, wage rates, foreign exchange rates, employment and unemployment rate, availability of raw material. For Organo store they have faced major issue regarding instability of the economy, high inflation rate affect the price of the product and service. Marketing for such products have now become more difficult for the company. The purchasing power of people started to decline after the impact of COVID-19. Social factors: social factor is the most important factor, the social cultural norms of the society impact the growth of the company. For Organo stores social factors which include lifestyle of the people need to addressed carefully, people have become more health conscious after the impact of COVID-19. Marketer of organo store understand these social factor carefully and set target accordingly (Persaud and Schillo, 2017). The company sales organic products so understanding the social factor will help them to make a better marketing plan and their marketing plan should target people who are health conscious mainly middle-aged people. Technological factors:technological factor include advance and latest technology used by the business to operate the company and its production. These factor impact the process of the organization operation, for organo stores, they have adopted the latest technology in production of the organic products, the company have several advance machinery and latest technology. The marketer of organo stores have used various advance technology to promote product of the company. The company understand new way of production, distribution and communication with the target market. Environmentalfactors:environmentalfactorsaremainlyconnectedwithsurrounding environment of the company and how company and its production impact the nature (Cepel, et.al., 2019). These environmental factors mainly concern with waste disposal management, environment protection, energy and resource consumption, etc. organo store keep in mind about the impact of their products on environment because the company manufacture organic products. The company fully use natural raw material in production of such organic products which impact the nature heavily. Marketer of the company need to identify various issue regarding impact of production to the nature and make marketing strategies accordingly. Legal factors:legal factors are mainly new rules and regulation of the government, these factor include change in legislation policy impacting the employment, purchasing raw material,
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importing raw material and exporting goods to other countries (Ibrahim and Harrison, 2020). For organostore,thesefactorimpactbothinternallyandexternallybecausecertainlawsof government are not favouring the company, this impact the marketing strategies of the company as well. Marketer of the company now need to focus on various legislation policy before making any new marketing strategies. Marketing analysis tools:marketing analytical tools are various platform such as website traffic, page view and click through rate help marketer to the results of marketing campaigns. Organo store use web traffic analysis, this helps marketer to understand interaction of audience with the website. Web traffic analytic is used to examine whether the online content of website is captivating the audience or driving them away to the competitors of the company, after analysis the market plan their marketing campaign. Marketingmix of Organo store: Marketing mix is a tool that business uses to promote their brand and its product through online platforms (Išoraitė, 2016). There are four elements of marketing mix such as: Product:it means goods and service provided by the company to their customer. Product is a thing that fulfils the demand and satisfy customer need. Marketer of the company use these products mix of marketing to understand the product life cycle, with product life cycle market is able to answer various market related questions such as how much a business is going to charge with the product, where products are placed and how they will promote product in the market (Mayer, Melitz and Ottaviano, 2016). The product mix contain four main dimension such as: length; length means various range of the product that company offer to the market and are available in line. Whereas breadth means range of product that a company can produce and deliver to the market. On the other hand, depth means company offer various option in one particular product such as quantities and size of the product available in the market. At last consistency means product production, distribution and usage. The Origano store serve ranges of organic products to various stores, the new product which company tend to offer is 'green daily biscuit'. This products are especially made for diet conscious people, the product contain organic ingredients which helps control blood pressure of human body. The marketer of the company need to target middle age people who look for such organic products.
Price:price is rate of product that customer pays, business provide wide range of products with wide range of price. Price is a broad term, when company tend to start production of their products, they determine the price before starting the process. Business set price according to the products for example when company is manufacturing the toothpaste, the price will be fixed but if the same company is producing clothes then the price will keep shifting. Price is the main element of the product and company should set price reasonably. Marketer of the company should tag the price real, they should not over price the product, but they also need to cover supply cost, discounts & coupons and price range of the same product provided by the competitors. Themarketerof Organoneedtodeterminethesupply cost,productioncostand discounting offer and then set price of the product accordingly. The new product of Organo 'green daily biscuit', is completely organic biscuit product that enhance the health of the consumer. The company have uses natural raw material in making of the product, the marketer need to set price range which is affordable to the customer. The company also need to negotiate with supplier of raw material to cover the cost, the product mic of the marketing mix will help Organo to sell their product to right customer at right price of the product. Organo stores uses competitive marketing strategy to compete and get ahead of its competitors. Place:place means where a company wants to sell the product and how they can deliver the product to various places. In many cases place means stores where product will be delivered and place also means the placement of the product in front of the customer but in some cases, place of the product means showing product on television or on website. Place is geographical location which company decide to sell their product, this one of the most crucial part a marketer need to handle. The marketer of Organo understands the place related components where they can complete their marketing strategy such as the distribution channels, store and storehouse and place of consumption (Mintz, et.al., 2021). They need to cover distribution and supply cost, the new product of the company need to be distributed in various part of the country. The company need to update their inventory level to store more products, it is very necessary for Organo to store enough stock to complete the demand of the customer when it required. The marketer need to take inventory decision carefully in case of organic products because these products can not be stored for longer period. Just after the production these natural products need to be consumed. Consumer can access or purchase these organic products through
websites, official website is a place where organo store put their product in front and customer can purchase from their. Promotion:promotion is the last element of the marketing mix and hence the most important one as well. Promotion means activity that show details of the product to the customer through various platforms, promotion of the product is very important for the company to increase the sells (Pogorelova, et.al., 2016). A well-designed and perfect product which have reasonable price and fulfils the demand is still not successful when there is no promotion of the product. A marketer uses various tools to promote their product such as: advertising, it is most famous method to show the details of the product to the customer. Advertising is paid form of promotion, company pay to these advertising platform to present the product in front of the customer. The marketer of Organo store have to use such platform to increase the sales of the product, the company also go for personal selling method because they are selling organic product and almost everybody consume organic product. They can show the benefits of the '365 everyday' product to their desire audience and can increase the sales. Organo store need to highlight the details and benefit of consuming natural products, they have to target the health factor of the consumer and make them habitual of organic products. Promoting the highlights of the product will help them to reach more audience and sell their products to the consumer. Gap in market: Health conscious:organo store deliver various organic product in betterment for health of the people, as the latest product of the company mainly aim to control blood pressure. These new products which is 'green daily biscuit' manufactured by organo store are best for diet and health conscious people. There are many other brand which sells product with same concept but the ingredients used by the company is much more healthy than other products. Many people have faced blood pressure and sugar related problem in young age, they have to control their diet to maintain the blood level of the body for such diet conscious people these biscuits are made. The ingredients used in this biscuit is completely natural and organic, this biscuit includes high rich wheats and new flavours. Healthy lifestyle:people these days are more active regarding their health and safety, they have started rejecting unhealthy food products. Organo store have identified the gap in market and come up with the new idea of 'green daily tea' product, this tea product help body to control
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metabolism and reduce the excess fat of the body. The company have understood that people want something new that keeps them healthy and fit, so the company started to target young generation which is more concern with their health. People who go for gym have issue of drinking milk tea which is not fit according to their diet plan, they are now consuming green tea which helps them to stay active throughout the day. STP (segmentation, targeting and positioning): Segmentation:it helps business to identify niches that find new customer and deliver more effective message, the need of every segment is same and marketer should emphasize benefits and details of the product rather than adopting one segment for every customer type (Andaleeb, 2016). Segmentation can be done through various ways such as demographic, marketer have to breakdown market and customer segment in age, gender, income level, education level, etc. organo store have to segmented almost every age group because they are manufacturing organic product which is mostly liked by every generation. The company have an opportunity to satisfy the need of the customer who most likely to have similar taste in similar market. Targeting:after successful segmentation the other step include targeting, it is a process of picking up right market to be targeted. Target market have groups of buyer, the company manufacture goods for them, set price and promotion is made. The target market should be large enough to segment the audience, organo store need to set target their segment according to the size of the market. The company aims their marketing strategies by measuring difference between each segment, organo have various group of buyers with same demographic. The company aim to target mostly middle age people because they are potential customer of the company, and they more likely to buy the product. Positioning:positioning is the last element of the process and hence the most important one as well. It is the process which decide how market will think about the product, a successful positioning show customer how the product of the company can solve the problem and why this particular company provide better and effective solution than competitors. The product team of organo store need to understand each segment to find their products are appealing or not. Team need to show the benefits of the product to their specific target audience, the marketer of the organo store research and determine which group of buyer to target based on their response towards the product.
CONCLUSION In this report we have discussed marketing management, it refers to management of marketing strategies to increase the sales of the product. This report provide company's overview and examine the marketing audit which include analysis of internal and external environment, internal analysis of the company help us to examine strength and weakness of the company and various opportunities and threats that revolve around the business. External environment helps us to understand how political and other factor impact the decision-making of marketing strategies. Later we have analysed the marketing mix which show the details of product which include specification such as size and shape, quantity and inventory availability the product of organo store solve many health related issues faced by the people for example new product of company help control blood pressure of human body. Whereas the price mix show us various different ranges of price available to the market. Place play vital role in selling of the goods, place are of tow types, first; where company will supply their product and second where customer will going to purchase the product. Later we have identified the gap in market and set marketing strategies accordingly. At last this report provide details of segmentation, targeting and positioning of the product.
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