Marketing Strategy Evaluation of Co-Operative Food

Running head: MARKETING STRATEGY EVALUATION OF CO-OPERATIVE FOOD
Marketing Strategy Evaluation of Co-Operative Food
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1MARKETING STRATEGY EVALUATION OF CO-OPERATIVE FOOD
Executive Summary
Co-operative Foods is observed to face issue in sustaining its market share and growth through
facing decline in its sales in UK due to economic downturn. Focussed on such situation, Co-
operative Foods has decided to expand its business in prospective markets to attain strong
business growth. The objective of the report is to analyse the link between business environment,
innovation strategy, capabilities and value creation through analysing the case of Co-operative
Foods expansion in international market like Texas. From the report it is deduced that Co-
operative Foods is expected to attain competitive edge tough expanding in Texas market through
sophisticated labour in related and supporting industries. A wide range of its non-food ranges
such as insurance, digital services, entertainment services, apparel, health and beauty products
are in great demand in Texas.

2MARKETING STRATEGY EVALUATION OF CO-OPERATIVE FOOD
Table of Contents
Introduction......................................................................................................................................4
Task 1...............................................................................................................................................4
Diagram of SOSTAC...................................................................................................................4
1.1. PEST Analysis of Texas...................................................................................................5
Hofstedes Analysis of USA Culture........................................................................................6
1.2. SMART Analysis..................................................................................................................7
1.3. Porter’s Generic Strategies, cost differentiation...................................................................9
1.3.1. Ansoff Matrix- New Product Development................................................................10
1.4. Tactics.................................................................................................................................12
1.4.1. Product- Boston Matrix...............................................................................................12
1.4.2. Price.............................................................................................................................14
1.4.3. Place.............................................................................................................................14
1.5. Action.................................................................................................................................14
1.6. Control................................................................................................................................14
Task 2.............................................................................................................................................16
2.1. Diagram of SOSTAC UK...................................................................................................16
2.1.1. Hofstede’s Cultural Model of UK...............................................................................16
2.2. Porter’s Diamond Model Analysis.....................................................................................17

3MARKETING STRATEGY EVALUATION OF CO-OPERATIVE FOOD
2.3. Revenue of Co-Operative Food in UK...............................................................................19
2.4. Ansoff Generic Strategy.....................................................................................................20
2.5. Tactics.................................................................................................................................22
2.5.1. Marketing Mix of Co-Operative Food in UK Indicating its Market Position.............22
Task 3.............................................................................................................................................23
3.1. Country Choice Justification based on PEST.....................................................................23
3.2. Advantages and Disadvantages of Standardisation or Adaptation.....................................23
3.3. GLOCAL Diagram.............................................................................................................24
3.4. 3Ps Strategy........................................................................................................................25
Conclusion.....................................................................................................................................26
References......................................................................................................................................28

4MARKETING STRATEGY EVALUATION OF CO-OPERATIVE FOOD
Introduction
Business expansion plan is considered to be an effective strategic competitive strategy
that is implemented by most global organisations in staying ahead of their competitors and to
attain long term success in the industry (Bentham 2018). The objective of the report is to analyse
the link between business environment, innovation strategy, capabilities and value creation
through analysing the case of Co-operative Food expansion in international market like in Texas,
America. For analysing the strategic business growth position of the company, SOSTAC model
implementation will be considered in the report.
Task 1
Diagram of SOSTAC
SOSTAC can be referred as a marketing model that includes six major aspects of
successful marketing such as situation, objectives, strategy, tactics, action and control (Chaffey
and Ellis-Chadwick 2019).

5MARKETING STRATEGY EVALUATION OF CO-OPERATIVE FOOD
Figure 1: SOSTAC Model
(Source: Blythe and Martin 2019)
1.1. PEST Analysis of Texas
Political  Foreign direct investment restriction in
Texas retail sector
 Strong local partners along with
political contracts
 Government laws and polices exist in
Texas regarding maintenance of “Retail
Technology Standards” for creating
open environment for retailers and
technology vendors (Dobson 2018).
Economic  Currency instability and recession can

6MARKETING STRATEGY EVALUATION OF CO-OPERATIVE FOOD
impact retail business of Co-operative
Foods in Texas
 In 2018, an increase in retail sales was
observed by 2.2% with observing
departmental stores sales increase by
50% (Forssell and Lankoski 2018).
Social  Organic products sold by the global
supermarkets in Texas are less
preferred.
 The Texan population prefers
purchasing from online stores (Blythe
and Martin 2019)
Technological  3D printing facilitates people to print
small plastic packaging materials
 Online retail in Texas have high
prospects that has grown over 300% in
years from 2000 to 2018 (Hood, Clarke
and Clarke 2016)
Hofstedes Analysis of USA Culture
Hofstede’s cultural model has proposed six major dimensions along with cultural values
that can be analysed in evaluating and comparing national culture followed in different countries.
It has also facilitated in comparing cultures in UK and America that required an emphasis on

7MARKETING STRATEGY EVALUATION OF CO-OPERATIVE FOOD
consumers ‘behaviour in both countries. In analyzing the power distance aspect it is gathered that
the consumers of UK believe that the power is unequally distributed in companies in comparison
to US consumers. Individualism aspect indicates that US consumers have a high individualist
culture than consumers of UK as these people prefer looking after themselves from their early
age (Ike 2017). Moreover, UK has low score in uncertainty avoidance as the consumers in the
nation believe that they are comfortable with ambiguous situations in the society. Moreover, they
do not follow many rules in comparison to US societies. Therefore, it can be stated that US
consumers are curious than the people of UK and support high level of innovation and creativity
through showing heavy consumerism towards them.
Figure 2: Hofstede’s Cultural Dimensions Comparison of UK and US
(Source: Kaul 2017)