Identifying Threats from Internal and External Environment for Wiggo Supermarket

The assignment content is about developing a business plan for Wiggo supermarket, focusing on micro and macro environmental factors that could affect the course of the supermarket's operations. Through external and internal analysis of the retail market, SMART objectives were defined to provide direction for accomplishing the study in the right manner. The research involved analyzing marketing tools and techniques, including buying behavior of English people and the marketing mix, as well as defining a budget based on estimated numbers. The content also includes references from various books and journals.

Marketing

Table of Contents
Introduction................................................................................................................................4
Task a.........................................................................................................................................4
Situational Analysis...............................................................................................................4
Marketing objectives ............................................................................................................5
Marketing Plan of Wiggo supermarkets ...............................................................................7
Marketing Budget for Wiggo supermarkets .........................................................................9
Conclusion ...............................................................................................................................10
Recommendations....................................................................................................................10
Task b.......................................................................................................................................10
References................................................................................................................................12

Executive Summary
The present report give complete scenario of marketing and related activities. It will
discuss the impact of various environmental factors that could affect the functionality of
business organisation. Also, a marketing plan will be developed for a food retailer European
company named, Wiggo Supermarkets which is going to launch its store in new international
market. Moreover, implementation of many marketing strategies will also be discussed in
order to evaluate the role of relationship marketing and sustainable marketing. Situational
analysis of Chinese market is also carry out so that it would be easy for Wiggo Supermarket
to set up its new business.

INTRODUCTION
Marketing is common term which is represented as means of communication between
an organisation and customers. It is complete process of trading several goods and products
in a relation to bring forth behavioural changes for long-term as well short-term basis.
Marketing management is a field of study of various marketing techniques and methods that
required for an enterprise or organisation. The present report analyse the marketing resources
that are available to fictitious European food retailer, named Wiggo Supermarket. Moreover,
it will also discuss about the role of relationship marketing, sustainability marketing ans e-
business.
TASK A
Situational Analysis
Situational analysis is collection of various methods which are used to analyse the
internal and external environmental factor in order to analyse the organisation's customer-
base, strengths and weaknesses and opportunities and threats that are evolving from
surroundings. Asian markets are large emerging markets which are developing with rapid rate
(Emerging Asia S.W.O.T. Report. 2011). There are various countries of Asian region like,
China, India, Indonesia, Vietnam etc. which are providing plenty of opportunities with
numerous threats in order to establish a market. Global investors should analyse the market
predictability and environmental factors that could increase the risk in upcoming years.
External Factors
Economic Dynamics: China has fastest growing economy in the world. In 2015, it had
world's second largest economy according to US dollar (Herman and Chomsky, 2010). The
country is continuing getting benefit from various international investors, traders, suppliers,
due to presence of high foreign exchange reserves and large consumer market. But it owns
large amount of debt from non-financial private sectors, its workforces are also shrinking day
by day and due to increase in the number of aged people, its economy is slowed down.
Political factors: Before investing in China, investors have to consider several
political factors like philosophy of Chinese communist and socialist, low growth, inequalities
in wealth, power and protesting against organisational culture affecting the operation of many
international business organisations (Howe and Walker, 2016).
Technological Factors: There are many technological factors which increase the
market share of Chinese products and services. Chinese products and gadgets are available at

very low price, as a results large number of customers got attracted towards its innovative and
exciting products (Marcus, 2008). But, these Chinese products are not reliable and durable,
also there is low penetration of credit card usability in payment systems as a result many
online customer facing problems.
Internal Factors:
Strengths:
 Chinese market is cheap as compared to any other market. Moreover, it has also cheap
labour rate due to which Wiggo Supermarket should establish its market in China.
 The government is also making rapid decisions for the development and improvement
of this market (Lien, Liu, Tang and Zhang, 2015).
 China is provided with ample of financial reserves.
 Employment rate is stable.
 The percentage rate of SHCOMP increased to 10 %.
Weaknesses:
 With under-capitalised banks, China is slowed down its economic rate.
 Moreover, its economic data is weakening with declining rate.
 Foreign companies and investors are facing many problems and continuing to
complain about the presence of poor intellectual property in China.
 Chinese corporate governance has weakened due to non-transparency. Chinese politicians and other communities are unable to respond to changes that are
taking place in the society at faster rate.
Target Audiences: The main target audience of Chinese Market are people who come
under the middle income level group. As, Chinese market is very cheap and always look
forward to bring innovative and exciting products, so large number of consumers will get
attracted to purchase its several products and services.
Marketing objectives
SMART planning highly influence the marketing strategies of any organisation. It is able to
make differences between effective marketing strategy and the one which failed, so that

company can make the changes by adopting new tactics and strategies. The meaning of
SMART is given below: Specific: The term 'specific' states that each organisation should have specific goal
and objectives (Marcus, 2008). The aim of the organization is to increase its business
sales by 15% within 1 year. Hence company is required to pinpoint all problems and
opportunities faced by it in the supermarket sector (De Bartolo, 2016). The marketing
plan has to be set in accordance with the above requirements. Specific goals and
objectives will help in keeping a focus in particular one direction. Measurable: The Company’s objectives should be measurable in terms of quality,
quantity and cost, so that many strategies should be implemented and market research
should be done to build a standard position in the market. For instance focus must be
given on implementing the cost improvement measures. The goals can be measured in
terms of sales, profitability, revenue and losses. Achievable: Wiggo is looking for expanding its business in many cities of UK. The
country is very favourable for the business in terms of expansion. A target is to be set
which can be achieved easily. Beyond its capabilities, it should not set its target like,
to take entry into a completely new market. Taking the business beyond the potential
is good, but not all the time. Company must look for expansion by taking into
consideration all the capabilities and the resources. Relevant: If Wiggo is conducting promotional campaigns for the advertisement of its
other products then it will not relevant. Its marketing goals should be relevant to
overall business goals. Moreover, the enterprise should target the customers who
prefer to buy products from supermarkets. The segmentation, targeting and
positioning must be done in relevant manner. Relevancy bring perfection and assures
that goals are achieved effectively.
 Time-bound: This is very important factor, as each business should have some time
limit within which it should perform all actions. Launching the products at the right
time and in right manner is also very important. For example it can launch its products
at the time of Christmas which is a festive time for the customers. Generally
customers have the tendency to buy goods and services at this time interval.
Hence it is expected that keeping SMART objectives will really help the Wiggo in achieving
the business goals and objectives.

Marketing Plan of Wiggo supermarkets
The objective behind developing marketing plan for Wiggo supermarkets is to attract
customers and increase its sale. It can be stated that the below mentioned marketing plan will
help the European supermarket (food retailer) to gain establish itself in new Chinese market.
It can be also sated that the marketing plans has been developed by taking each and very
factor into consideration. The plan is mentioned below as: Segmentation- Marketing segmentation can be defined as the process of diving entire
market into different sub segments of potential customers (Martin, 2011). For Wiggo
supermarket, the segmentation will be done on the basis of income level of customers.
It will also segment its market on the basis of their need and demand. Targeting- The targeted people for Wiggo supermarket, will be men and women
which fall under the category of middle income level. The supermarket is going to
provide wide range of products to people in Chinese market with an objective to
satisfy their needs in the best possible manner. Positioning – It can be defined as the way in which a brand or organization places
itself in marketplace. Wiggo supermarket, will be positioning itself as discounted
retailer in Chinese market (Belz and Peattie, 2009). It can be stated that the economy
of China is growing with a very good pace and the country consists of high number of
potential buyers. This positioning strategy will help in attracting people from the
target market very easy. Marketing tools and techniques – In terms of marketing tools and techniques, the
brand will be using variety of tools in order to create awareness among people in
market and create awareness among them (Malhotra, 2010). Modern marketing tools
such as social media, internet and mobile marketing will be used in new market. In
addition to this, advertisement will be carried out on newspaper and televisions.
Promotional events will be also conducted by Wiggo supermarket. Buyer behaviour- In order to achieve higher sales and profits, it will be required by
Wiggo supermarket to understand behaviour of people in Chinese market.
Furthermore, it will also required to become aware of the factors which influences
behaviour of people. Customers in the country always seeks for a supermarket which
can offer variety of products and services at discounted rates.

Implementation
A team of personnels will be developed in order to implement the above stated
marketing plan. Along with this, the team will be responsible to make sure that whether the
implemented plan is providing with desired results or not (Groover, 2007). The team will also
need to take corrective measures if desired results are not achieved.
Evaluation
After evaluating the above mentioned plan, It can be stated that there are some
changes required in the plan. Wiggo supermarket needs to invest more resources and efforts
in order to create more awareness among people in Chinese market.
It can be said that the organization will take care of ethical and corporate social
responsibilities at the time of carrying out its plan. The supermarket will not use any kind of
unfair practise to complete with other market players (Baines, Lightfoot, Benedettini and
Kay, 2009.). Along with this, it will not promote and sale products which are not safe for life
of people which are consuming it. It will ensure that some part of its overall revenue will be
used in development of society and people living in the same.
Marketing mix: It is a set of marketing practices, actions or tactics which is used by the
company in order to promote its products and brand in market. It consists of 4 P's: Product,
Price Place and Promotion (THE MARKETING PLANNING PROCESS: 5 STEPS. 2008). Product: Planning to enter into retail industry with the launch of supermarkets owners
of Wiggo has to offer wide range of products that satisfy the needs and wants of
people (Hopkinson, Hague, and Dickens, eds., 2006). However, the products should
be from households to electronics as well as grocery so that varied expectations of
customers are met under one roof. Price: Already there are large number of supermarkets that are operating in UK such
as Aldi, Lidl and Tesco etc. who are making valiant efforts to attract customers and
retain them for long periods. In this regard, Wiggo supermarket should price its range
of products by using penetration strategy this will give the new venture edge over
various competitors. Furthermore, various discounts and offers will also assist in
establishing the business in the market (Churchill and Iacobucci, 2010). Place: The Wiggo Supermarket Company is targeting huge market of UK and
European countries. Owners are planning to open supermarkets at different locations
of the selected market so as to enhance the reach of customers.

 Promotion: Looking at the present market, there are several marketing and
promotional tools available that are helping the course of companies irrespective to
their sector in creating awareness of the products and services and attract large
number of audience. Different mode of promotion can be taken into account by the
owners of Wiggo Supermarket i.e. press release, traditional marketing, social media
marketing, Print media etc.
Marketing Budget for Wiggo supermarkets
Marketing budgets are planned summary of activities and resources which is going to
be used for its marketing purpose (Herman and Chomsky,2010). The main aim of this plan is
to make estimations about future expenses and cost of transactions. It is also helpful to
coordinate all marketing activities. Moreover, a realistic budget set a standard of performance
for the company to implement marketing strategies and actions. If a company is known for its
good practices then large number of customers will be attracted towards its services and
products. At the time of carrying out its operations, the company is also required to concern
about environmental issues.
Table 1: Market Budget
Marketing Expense
Budget 2010 (£) 2011 (£) 2012 (£) 2013 (£) 2014 (£) 2015 (£)
Advertising 16000 20000 25000 29000 120000 220000
Catalogues 5000 2000 3000 1000 15000 24000
Social media 13000 15000 7000 4000 103300 100000
Promotions 1200 900 14000 1700 13000 14000
Print media 1100 1000 0 2800 21200 21000
Campaigns 300 7000 0 3010 0 5000
PR 1400 1100 700 3000 2000 2000
Magazines 900 500 200 3100 30000 31000
Service 2500 1400 500 2170 11250 10000
Other 2000 1300 2000 2340 11000 12000

Total Sales and Marketing
Expenses 49400 55400 56400 58320 346750 501000
In above table, all marketing expenses of the company occupies the rows, and
columns are occupied by months. From above table it can be stated that, the Wiggo
supermarket is making its maximum efforts to advertise and promote its products. The
complete marketing budget of last five years are given, how it invested its funds for
marketing activities. The sum of amount is increasing from 2010 to 2016 in case of
advertising due to advancement in technology and other advertising tools. It can be stated that
the above mentioned marketing budget will help the brand to attract customers and increase
its overall market share in new international market such as China.
CONCLUSION
It is concluded from above study that it is essential for an organisation to develop
marketing strategies and business plan. To increase sales revenue and profitability of the
Wiggo supermarkets, it is necessary to adopt various business models and tactics which can
evaluate the influence of internal and external environment. It can be also stated that the new
Chinese market will provide the supermarket with better opportunities in terms of growth and
development. Along with this, it will also results in enhancing sales and profitability of
Wiggo supermarkets.
RECOMMENDATIONS
There are some specific recommendations which should be considerable while
implementing several activities like design of store, logistics, website development, location
and space problems. While promoting the supermarket it is also required to focus on
sponsorships and online promotions. The Wiggo supermarket required to increase its work
force and develop effective management system. It is also required to expand its business in
various regions of UK which is favourable for it. Furthermore, it can be recommended that
before entering the new Chinese market, the organization needs to make sure that it has
adequate knowledge about the need and demand of people in that new market.
TASK B
The above report provide great experience in terms of learning abilities. From above
report, I have learned many skills and techniques. Many researches have made in order to
collect relevant data of company. All data and figures have been collected from different

authentic websites. Moreover, it also provide analytical skills in order to execute a market
budget. It provided the sense of how work is efficiently managed and established. It also
provide an immense knowledge of many marketing tools and concepts like marketing mix
and situational analysis. Further it helps me to set a base in implementation of many theories
and models on an organisation, and also provide the knowledge about communication skills
and management skills. It gave the concept of how work is done in a team. Furthermore,
carrying out study on marketing prospects I have enhanced my knowledge regarding different
tools and techniques that are essential part of marketing analysis. Firstly, carrying out
situational analysis of UK helped me to understand the retail market and provided wide range
of information regarding strength and weaknesses in order to seek external opportunities and
threat that are coming from internal and external environment. Further, with the help of this
analysis I was able to cover micro and macro environmental factors which developed
platform for me to carry out entire business plan for Wiggo supermarket. In this regard, I was
able to enhance my theoretical base related to external factors that could affect the course of
supermarket in executing its operations in such a competitive environment. Similarly, it also
created base for me to identify all the internal factors that can hamper the successful entrance
into highly intensive and competitive market of retail industry.
On the basis of information I raised through external and internal analysis of retail
market I was able to define SMART objectives that indeed provide my study a right direction
for accomplishing it in right and appropriate manner. Though I faced major concerns in
defining specific objectives that are measurable in nature because of lack of knowledge in
retail sector of UK. But with the help of mentor and other people associated with the study
helped me to gain information that was relevant to my study so that I can develop effective
and smart business plan for Wiggo supermarket to enter into retail industry of UK. I have
taken help from my mentor, colleagues and team leader for framing this project. I have also
contacted to other team mates to effectively manage the time and work within given time
limit. Moreover, internet also gave me much information about statistics of the company. All
of them help me so much and provide me support and guidance to carry out the research for
this project. All research have been done with full dedication and hard work, all information
is relevant and justifiable. Furthermore, during the study I came across different marketing
tools and techniques such as buying behaviour of English people as well as the marketing
mix that already existing companies using to establish the brand name within the target
market. On the basis of all the information I was able to define the budget on estimated

numbers so that I can provide financial information to the owners of Wiggo regarding
initiating business operations for Supermarket.

REFERENCES
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Wiley.
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