SPAR International: Marketing Plan for Oman Supermarket Growth

This report outlines a marketing plan for SPAR International's supermarket expansion in Oman, following its initial success since 2014 through a partnership with Khimji Ramdas. The plan focuses on increasing sales and strengthening the business over the next three years, leveraging Oman's high-income economy and peaceful environment. It includes a current market analysis using SWOT and Porter's Five Forces, market segmentation strategies targeting local areas, and marketing mix recommendations covering product range, pricing, promotion, and placement. The report emphasizes customer satisfaction, collaboration with local partners, and the importance of offering fresh, quality products. Evaluation and control measures are based on budget and time constraints, with key performance indicators guiding the plan's execution. The ultimate goal is to expand SPAR's supermarket presence across Oman while enhancing customer loyalty and market share.

Marketing Plan Report

Executive Summary
In the year 2014, SPAR International starts its business in Oman by conglomerating with
Khimji Ramdas who has been operating in Oman since 1870. SPAR International has opened
three stores in Muscat and all the stores are doing well. SPAR International found a lot of
opportunities in Oman for the reason that Oman citizens are accepting SPAR retail stores.
SPAR International is planning to start more supermarket stores in Oman by the end of 2018.
The objective of the report is to develop marketing strategies for SPAR International in
Oman to expanding its supermarket. The marketing strategy is to increase sales and
strengthen its business in Oman for next three years grounded on the notion of voluntary
trading. Oman has a highest income economy and most peaceful company. It gives chance to
SPAR, Oman to grow its supermarket brand stores in next three years. The given assignment
will conduct the market segment analysis to understand it in detail. Current market analysis
and marketing mix strategy of the Spar international will be explained in the below sections.
Strategies will be evaluated with the prescribed budget. It will also provide the
recommendations about how spar can develop its marketing strategies effectively and
efficiently.

Table of Contents
Introduction................................................................................................................................1
Objectives...................................................................................................................................2
Current Market Analysis............................................................................................................2
Strengths.................................................................................................................................2
Weaknesses............................................................................................................................2
Opportunities..........................................................................................................................3
Threats....................................................................................................................................3
Company Situational Analysis...................................................................................................3
Threat of New Entry...............................................................................................................3
Buyer Power...........................................................................................................................4
Threats of Substitution...........................................................................................................4
Competitive Rivalry...............................................................................................................4
Market Segmentation.................................................................................................................4
Marketing Plan Objectives.........................................................................................................5
Marketing Mix Strategy Recommendations..............................................................................5
Products range and variety.....................................................................................................5
Price........................................................................................................................................5
Promotion...............................................................................................................................6
Place.......................................................................................................................................6
Evaluation and Control..............................................................................................................6
Budget........................................................................................................................................7
References..................................................................................................................................7

Introduction
SPAR International is one of the leading voluntary food retailers in the world from 80 years.
SPAR had begun its business in Netherland in 1932, from then it has tremendously grown its
business, serving in 48 countries across 4 continents with 12700 stores. In the year 2014,
SPAR International starts its business in Oman by conglomerating with Khimji Ramdas who
has been operating in Oman since 1870. SPAR International has opened three stores in
Muscat and all the stores are doing well. SPAR International found a lot of opportunities in
Oman for the reason that Oman citizens are accepting SPAR retail stores (Zumtobel, 2018).
SPAR International is planning to start more supermarket stores in Oman by the end of 2018.
Other brands have observed the growth prospects in Oman and starting its own supermarket.
("SPAR Oman opens 25th store - SPAR International", 2018) Competitor supermarket will
decrease the profit of SPAR, Oman. So SPAR, International is passionate to increase its
trades as well as attaining market growth. The current strategy of the Spar international is to
increase the competitiveness, profitability and productivity of their retail and wholesale
partners. This marketing plan report focused on developing marketing strategies for SPAR
International in Oman to expanding its supermarket. To develop a marketing plan for SPAR
Oman, current market analysis helps to analyse the opportunities and threat present in the
market. Whereas, company situational analysis will help to know internal core strengths and
weakness and help to build marketing plans to expand market share. The conclusion will be
added in the end to find the findings of the fact.
Objectives (SMART OBJECTIVES)
Specific- To increase sales and strengthen its supermarket business in Oman for next three
years grounded on the notion of voluntary trading
Measureable- To expand market growth of the supermarket in Oman by working
incorporation with partners to enhance effectiveness, efficiency and productivity in
supermarket business over next three years
Assignable- To expand its supermarket format that is determined by dedicated self-governing
stores who gain the faith and acquaintance of their communities in upcoming three years
Relevant- To gain customers’ satisfaction offering a wide range of fresh quality foods and
provide best particular services in their supermarket in Oman
Time-based- The goal is to adopt marketing strategies for the next three years for the
development of supermarket while increasing customer contentment

Current Market Analysis
Oman is an Arab state in southwest Asia. Officially Oman is termed as Sultanate of Oman
situated on the Arabian Peninsula at southeast coast. Strategically Oman is very significant
in Arabian Peninsula. Globally, Oman is a highest improving nation in the last 40 years. It is
classified as 45 supreme peaceful nations and has highest income frugality (Javidan, 2014).
The market analysis of Oman can be well understood with the help of SWOT Analysis.
SWOT helps to identify opportunities and threats present in the market. It helps to determine
strengths and weaknesses present in the organization (Sidorchuk, 2015). With the help of
SWOT Analysis, SPAR, Oman can expand its supermarket business, increase sales, and gain
customer satisfaction (Thehartford.com, 2018).
Figure No. 1 SWOT of Oman
Source: Lakhni. K, (2011), SWOT of Oman, Retrieved from
https://www.slideshare.net/kiren82/sultanate-of-oman
Strengths
SPAR, Oman has gain customer acceptance since 2014 when it started business with Khimji
Ramdas by corporation. Good returns on capital expenditure, strong dealer community,

reliable supply chain, enhanced level of activities through technology, strong global brand
portfolio. The SPAR core strength is stable business, wide range of fresh products from local
and international market, growth opportunities in retail chains, and customer acceptance
(Schröder, 2012).
Weaknesses
SPAR, Oman has not capable to confront the encounters exist by the new-fangled entrants in
supermarket segment. Thus face a decrease in market share by the niche supermarkets.
SPAR, Oman has inefficient feedback mechanism from ground sales. SPAR, Oman does not
have a wide range of product which gives competitive edge to the new entrants in the
business of supermarket. Financial Planning is not done appropriately (Vabø & Hansen,
2014).
Opportunities
Oman has a highest income economy and most peaceful company. It gives chance to SPAR,
Oman to grow its supermarket. New market has been opened by Oman government to
encourage trade and commerce. Government spending has boosted the Oman economy,
hence purchasing power of Oman citizens are also increasing. It gives opportunity to the
SPAR, International to gain customers (Thompson, 2004).
Threats
New Entrants are a biggest threat for the SPAR, International to expand its supermarket. The
competitors are coming up with wide range of products, become threat for SPAR to invest
more to increase product range. There is a shortage of skilled workforce in comparison to
niche competitors.
Company Situational Analysis
SPAR, Oman company situation Analysis will be done with the help of Porter Model. SPAR,
International has conducting its business by voluntary trading and has a competitive edge in
food retailer business.

Figure No. 2 Porter’s Five Forces Model
Source: Matt, (2012), Porter’s Five Forces Model, Retrieved from
https://www.slideshare.net/mattbentley34/morrisons-analysis-of-preseen-case-study
Threat of New Entry
New entrants in supermarket business put pressure on SPAR, Oman to reduce cost of
products, and increase range of products. New entrants will offer range of services to attract
customers which could decrease number of customers. SPAR, International has to come up
with effective marketing ideas to gain competitive advantage.
Bargaining Power of Suppliers
SPAR, International offers a wide range of fresh food products which are acquired from
home country as well as foreign countries. Suppliers can become dominant and raise price of
raw materials. It will reduce the margins of SPAR, Oman.
Buyer Power

Buyers in Oman want to buy best products at least cost in the supermarkets. It can reduce the
profit of SPAR, Oman in the long run. In the business of supermarket, several activities are
taking place and wide range of products is kept. All need to be priced well to gain margins.
More Powerful base of buyers’ bargain which will reduce the SPAR margins in the long run.
Threats of Substitution
The competitor products can be threat to SPAR, Oman. But SPAR, international is dealing
with fresh food products which cannot be easily substituted, but supermarket services can
pose risk to SPAR, International.
Competitive Rivalry
The existing competitors in supermarket in Oman knew well about the customer’s choice and
preference. They better understand the culture and offers products and services according to
the need of the Oman people. It can decrease overall profitability of the SPAR, Oman
(Szymoniuk, 2017).
Market Segmentation
Market Segmentation is a process to distribute potential customers or market into segments or
groups based on the characteristics such as geographical, psychological, demographic, and
behavioural (Seaton & Laskey, 1999). SPAR, International has started its business in Oman
in food retailing. It desires to increase its business starting more supermarkets in next three
years. Due to high income economy, purchasing power of customers is also high.
SPAR, International will target local area and open neighbourhood supermarket in next three
years ("Understanding your external and internal context for better planning and decision-
making", 2018).
Neighbourhood Segmentation
Local Distribution Channel Segmentation
Rate of usage or Customer Loyalty Segmentation
Ease of Convenience Supermarket Segmentation

Marketing Plan Objectives
The SPAR, Oman wants to gain high level of customers’ satisfaction and focuses on one
region one market concept.
With the strong knowledge of distribution network and local market, SPAR, Oman plan to
reach breath and length of Oman through super market chains.
SPAR, Oman knows the importance of local traders and competitors. Their marketing plan is
to conglomerate with other partners and serve across various parts of Oman (SPAR,
International, 2018).
SPAR marketing objective is to gain advantage of partner technical expertise, retailing
services, supermarket design and layout, employee strengths, and merchandise operations.
SPAR marketing plan is to offer wide range of fresh products while promoting local products
(Fraedrich & Alyazji , 2018).
Marketing Mix Strategy Recommendations
Marketing mix is a strategy to persuade customers to buy product or services (Pulido Polo,
2018). SPAR, Oman has to open more supermarkets in the next three years. It has a following
marketing mix strategy.
Products range and variety
Range of products itself imply that customers get more choice to select product according to
their need. In the supermarket, SPAR, Oman can offer a wide category of food products and
other products related to food of key brands will attract the customers. Services are also
important part in marketing mix. SPAR, Oman should focus on excellent quality of service to
increase value proposition (Allah Pitchay, 2012).
Price
Supermarket store has a various level of activities which all need to be priced well so that the
cost of the product does not increase too much. While pricing the product, competitors
pricing strategy also affect the pricing policy. SPAR should focus on quality of products and
charge reasonable price of the products according to the current market price of products.
Promotion

SPAR, Oman believes in trademarks, logo and banners which are displayed in different parts
of the state. First hand customer experience in the supermarket works as a promotional tool to
convince others to purchase the products. SPAR, Oman will use various promotional tools
like TV commercials, social media platform, brochures, public relations, and radio
etc(SPAR Annual Report, 2015).
Place
SPAR, Oman from the starting wants to reach every corner of Oman State through
neighbourhood supermarkets so that locals do not have to go far to purchase SPAR products.
Other than that, supermarket layout and design also matters. SPAR, Oman wants to open
spacious supermarkets with effective visual merchandising (Panda, 2013).
Evaluation and Control
The marketing plan is evaluated by both budget and time constraints. The marketing
strategies are planned effectively to gain customer satisfaction, increase sales and expand
market share in next three years. The key performer indicators are on the basis of
significance, critical, priority, and synthetic. Marketing Strategy for SPAR, Oman to start
more supermarkets begins with
Planning Team to layout activities according to priority
Resource Team to help in procuring resources and regular meet with suppliers
Process Team to assist in activities in sync so that the project does not delay
Performance Indicators Team will help to evaluate performance of the team and give
feedback
Budget
SPAR, International is accepted by the Oman Citizens and a sale propagates 50 % every year
(Spar-international.com, 2018).
For this SPAR plans to invest little by little in marketing mix to analyse and assess the
estimated budget for promotion, price, products and place.
The overall budget for marketing mix as estimated by SPAR for supermarket will be approx.
€25000 for one year and total budget for next three years will be €75000.
Table. 1

Budget Price per year
Promotion €5000
Place €7500
Price €5000
Product €7500
Promotion budget will spend on hiring marketing agency for TV and Radio commercials,
local newspaper, making billboards & pamphlets, feedback campaign, events for public
relation and various social media platforms.
Place budget will spend on creating display for merchandises in supermarket, distribution of
the products, procurement services,
Price allocation will be utilized for buying products, salary distribution, and payment of
marketing agency, display, and cost of various promotions and events.
Product budget will be spending on farm fresh fruits & vegetables, seafood, food-to-go, and
butchery in the supermarket.

Conclusion:
The assignment discussed about developing marketing strategies for SPAR International in
Oman to expanding its supermarket. It has been identified that the SPAR core strength is
stable business, wide range of fresh products from local and international market, growth
opportunities in retail chains, and customer acceptance. Suppliers can become dominant and
raise price of raw materials. All need to be priced well to gain margins. More Powerful base
of buyers’ bargain which will reduce the SPAR margins in the long run. It also helps in
understanding various strategies which helps SPAR in achieving organizational goals. First
hand customer experience in the supermarket works as a promotional tool to convince others
to purchase the products.