Ocado Group SWOT analysis and Marketing Mix

This article provides a SWOT analysis and marketing mix of Ocado Group, a well-known online grocery company. It discusses the strengths, weaknesses, opportunities, and threats of the company, as well as its product, price, place, and promotion strategies. The article concludes with recommendations for the company to improve its customer experience and expand its business.

Ocado Group SWOT
analysis and Marketing
Mix

Table of Contents
SWOT Analysis.......................................................................................................................................3
Marketing Mix of Ocado.........................................................................................................................3
Recommendations...................................................................................................................................5
Conclusion...................................................................................................................................................6
References...................................................................................................................................................7

SWOT Analysis
Strengths Weaknesses
 It is a strong technology platform and
proprietary software.
 The company has partnership with
well-known brands such as Morrison’s,
Waitrose and more (Tonelli and
Cristoni, 2018).
 Ocado runs the operations based on
credit that negatively affects the overall
brand image of the entity.
 Company has exposure of relatively
small market in terms of grocery
market of UK.
Opportunities Threats
 The entity has opportunity to expand
business in European markets which
will help in inflating the existing sales
& profit margin.
 Investment in technology to improve
the capabilities of the business entity to
earn profit in the future period of time
(Li and et. al., 2016).
 There is extensive competition with the
online retailers such as Amazon and
more. This will affect the overall
presence of the organization in market.
 Brexit can cause deep economic
recession which will affect the
spending of consumers on the product
offering.
Marketing Mix of Ocado
Marketing mix is one of the highly used marketing strategies which refer the combination
of different elements to get sustainable competitive advantage. The main aim of marketing mix is
to prepare suitable strategies to ensure long-term success in the current business environment. In
this context the elements of marketing mix are given below:
Product: Ocado Group is known for groceries and food business in UK. In current time,
the online sits of the company has nearly 55,000 products which enable them in order to meet
with the demand of the customers efficiently. The organization maintains quality in product by
effective application of value chain. In addition, the entity gets raw material from well-known
suppliers and further process it well to produce high quality goods in an efficient manner. The

products of the organization can be used easily and the customers can also avail the services
24*7 through the customer service of the entity (Mintz and et. al., 2021). In addition to this,
Ocado maintains broad product portfolio to fulfill the requirements of different customers
significantly. Here, the broad product portfolio add value for the company. Apart from this, the
entity offers product at different size so that they can fulfill the need of the buyers efficiently.
Price: It is one of the most crucial elements of marketing mix wherein the company
charges a particular price from the customers. Here, the price depends on the value the product is
offering to the customers. Ocado is using different pricing strategy for different products. The
organization uses premium pricing for some of its products which helps the organization in
creating a favorable perception in the mind of customers regarding products of the entity
(Solimun and Fernandes, 2018). Additionally, the entity also uses psychological pricing for some
of its product. This pricing strategy is useful in gaining the attention of more number of buyers
significantly.
Place: This element is associated with offering the product or services of the entity from
a particular place. It includes the supply chain and distribution management system so that the
company can meet with the requirements of buyers in rightful manner. In context of Ocado, the
organization has presence across the globe. They operate the business through wide online
presence. The wide online presence allows the entity to interact with the audience and receive
their feedbacks in order to make further improvement (Kumar, Shankar and Aljohani, 2020).
Additionally, the license stores of Ocado provides the opportunity to the buyers to make suitable
choice from the variety of products. It offers products via e-commerce retailers such as Amazon,
EBay and more. Here, the online retailing helps the entity in enhancing the overall sales and
profit margin in an efficient manner.
Promotion: Promotion is the final element of marketing mix wherein products or
services are promoted using different online & offline mediums. The main aim of promotion is to
enhance the sales & revenue of the business entity significantly (Hanaysha, Al Shaikh and
Alzoubi, 2021). In context of Ocado, they use remarkable promotional strategies which allow the
company to interact with the existing & potential audience efficiently. The entity uses 360
degree approach in its marketing strategy and also implements necessary tactics of digital
marketing. For this purpose, the organization has presence at different social media platforms

which make them enable to meet with the requirements of target audiences in the best possible
way.
Recommendations
 It is suggested that Ocado is required to enhance its presence in the retail market of UK.
For this purpose, they can open more number of stored at different locations of the
country. Expansion will help the entity in enhancing the existing sales & profit margin.
Further, it will make them enable to target more number of people in an efficient manner.
Apart from this, they can also expand the business in international market. It will allow
the company to target the international audience as well. By enhancing the international
presence, it is possible to target global audience significantly which further inflate the
revenue of the entity in significant manner.
 In current time, customers are considered a crucial part of business. In this context Ocado
Group needs to analyze the requirements of the buyers so that they can improve their
strategies accordingly. In this context, the organization is required to adjust their existing
working practices according to the market trend. It will help the entity in improving the
customers experience and further allow the organization to earn high amount of sales &
revenue in significant manner.

Conclusion
It is concluded after analyzing the above scenario that Ocado is a renowned online
grocery company. The company has significant market presence although, it is lacking in terms
of expansion. Additionally, there is discussion regarding marketing mix of the organization.
Further, it is analyzed that organization is required to improve the customer experience and
expand the business to earn significant amount of profit margin.

References
Books and journals
Hanaysha, J.R., Al Shaikh, M.E. and Alzoubi, H.M., 2021. Importance of Marketing Mix
Elements in Determining Consumer Purchase Decision in the Retail
Market. International Journal of Service Science, Management, Engineering, and
Technology (IJSSMET), 12(6), pp.56-72.
Kumar, A., Shankar, R. and Aljohani, N.R., 2020. A big data driven framework for demand-
driven forecasting with effects of marketing-mix variables. Industrial marketing
management, 90, pp.493-507.
Li and et. al., 2016. SWOT analysis and Internet of Things-enabled platform for prefabrication
housing production in Hong Kong. Habitat International, 57, pp.74-87.
Mintz and et. al., 2021. The right metrics for marketing-mix decisions. International Journal of
Research in Marketing, 38(1), pp.32-49.
Solimun, S. and Fernandes, A.A.R., 2018. The mediation effect of customer satisfaction in the
relationship between service quality, service orientation, and marketing mix strategy to
customer loyalty. Journal of Management Development.
Tonelli, M. and Cristoni, N., 2018. Strategic management and the circular economy. Routledge.