Supermarket Retailers Meet Needs of Market | Essay
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Added on 2020-01-28
Supermarket Retailers Meet Needs of Market | Essay
Added on 2020-01-28
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Critically discuss how supermarket retailers meet the needs of the market. Evaluatefeatures of their assortment planning, own brand and supply chain operations thatcontribute to their success. Marks & Spencer is considered as the major British multinational company (MNC)retailer and thus specializes in selling food products and also provides, clothing, shoes andother accessories, home and luxury products to consumers. It is also listed on the LondonStock Exchange and thus sells branded goods to consumers while, Aldi is considered as theglobal brand for discount supermarket chains with over 10,000 stores in 18 countries. M&Shave total 852 stores throughout UK while, there are various international stores in India,Spain, Ireland, Greece, Russia and Finland. Market is considered as the place where buying and selling of products or services isbeing done. It is an ‘open’ place where businesses meet the potential customers and identifytheir needs and wants so that sales and profit margin could be raised. In the present study, it will discuss and compare the two supermarket retailers Marksand Spencer and Aldi on how well they meet the needs of the market (Alon, Jaffe andVianelli, 2012). Firms carry out market research in order to assess the wants of customers andthen aim to provide the goods accordingly so that satisfaction can be attained. This essayalso identifies that assortment planning is considered as the process of determining that whatand how much firm needs to carry within each merchandise category. However, preparing anassortment plan assists in setting trade-off between the volume and depth of products that aretailer aims to carry within the available space. Thus, it possesses varied features ofassortment planning, brand image and supply chain operations in order to contribute to firm’ssuccess (Amatulli and Guido, 2012). For instance, M&S and Aldi carryi out assortmentplanning so that they can involve products or services from different other brands as well andthus raises the brand image of firm in market by selling various brands to consumers. It isessential for a supermarket to understand the market needs and then produce the productsaccordingly. However, management needs to analyze the market conditions goods could bedelivered in the right quantity, correct quality and in timely fashion. It can be stated that there are different types of market which are present such asonline and physical that helps businesses to sell their merchandise. M&S and Aldi aim tooperate in both online and physical market in order to sell products and expand their servicesso that sales and profit margin could be attained. For instance, both M&S and Aldi aims tocarry out effective market research in order to identify the needs of market and then providethem particular goods or services so that sales margin could be increased (Ashworth, 2012). It
can be done through carrying out market survey and selecting a group of respondents frompopulation and obtaining their responses regarding their needs of particular merchandise,which supermarket retailers they choose and many more. It helps supermarket retailers Marksand Spencer and Aldi to identify the needs and wants of buyers and provides them products atcompetitive prices. Thus, it raises customer base and enhance sales of firm in market (Gilbert,2003). Assortment planning is considered as the process whereby products are selected andplanned in an appropriate manner in regard to maximize sales and profit for particular timeframe. It is essential for companies to carry out effective assortment plan in regard to identifythe products which is aimed by business to sell. For example, Aldi management identify theneeds of its customers and then provides Kellogs products in their stores as it is highlypreferred by consumers. Company aims to keep its prices low in order to attain high sales.However, it can be stated that supermarkets play a significant role in grocery and fashionshopping as almost all the shoppers tend to buy products from supermarkets (Hernon andAltman, 2010). . Such convenience stores identify the attitude and preferences of buyers andprovide them high quality products which are not sold by other similar retailers (Glanz, Baderand Iyer, 2012). It can be evaluated that through carrying out study it helps in identifying theneeds of buyers with the help of carrying out proper research and thus purchase the productsor services so that sales and profitability of firm could be attained.(Hollensen, 2015). Supply chain of company is diverse in nature and thus they need to adopt effectiveways so that they can reach customers effectively. Supermarkets are also focusing uponinfluencing the size of packing as it helps them to attract wide range of clients. Packagingneeds to be done in an effective way as it is the most influential factor in terms of improvingbusiness success. Further, it can be assessed that supermarket adopts effective tactics andaction plans in order to identify the needs and attitude of customers wants to purchaseproducts. Through comparing and contrasting, it could be identified that M&S and Aldi aimsto identify the needs and expectation of its target consumers so that it helps them to gaincompetitive edge over rivals (Kinnucan and Zhang, 2015). The target market of Aldi aremedium class buyers for whom low price products are being delivered. While M&S provideshigh price and quality products to its consumers in terms of enhancing the sales of firm.Through adopting effective retail strategy such as paying attending towards employees,promoting company through websites, blog and social media etc. it would help Marks andSpencer and Aldi to identify its specific customer segment and thus design the product orservice accordingly in order to maintain the market share similarly over a long time period. In
contrast to this, Aldi tries to maintain its cost low so that prices can be kept minimum interms of attracting large number of customers towards firm. Business also evaluates theloyalty of customers with the particular brand and then introduces different schemes andoffers that also decide the way how supermarket meet the needs of market. In order to meetthe needs of large market size, supermarket retailers decide to expand its operations throughentering into online business (Kotler and et, al., 2010). Thus, it is one of the major expansionsas currently people are moving towards digitalization i.e. using social media platforms suchas Facebook, YouTube and Google etc. and therefore, they identify the needs of market andthen provide them specific product or service through online channels so that sales and profitmargin could be raised. However, according to the convenience of consumers, businessoperates both online as well as physical stores so that sales could be increased. Thus, in orderto attain success it is essential for supermarket to identify the needs of market and thenprovide them particular products or services so that success can be attained (Terpstra, Foleyand Sarathy, 2012).Assortment planning, own brand and supply chain operation helps in contributing tothe success of supermarket as it helps in influencing large number of customers towards thefirm. Also, providing appropriate range of products or services to clients it helps in satisfyingtheir needs and making them loyal (Varley, 2014). Company identifies the need of marketthrough carrying out analysis so that needs and wants of customer could be identified whichhelps them to improve the sales of firm (Wali, Wright and Reynolds, 2014). Assortment planning is the process which determines the number of product beingplaced in merchandise category, group or department in relation to retailers so that bestresults can be attained. All such decisions help in influencing buyers to purchase products orservice and raise the profit margin of firm. Marks and Spencer and Aldi aim to carry prepareassortment plan related to shelf space, price of product, vendor classification, sub dividinginto sections etc. (Hernon and Altman, 2010). It means that carrying out appropriate planningrelated to managing shelf space so that more preferred products by consumers could beplaced on priority so that sales could be enhanced effectively. All such planning helpsconsumers to make purchase decision and therefore, it enhance the sales and profit margin.Both the businesses also aim to develop appropriate assortment planning in order to selectproduct and plan so that sales and profit could be maximize. It also considers the financialobjectives and seasonality of products so that overall success can be attained. Company needs to undertake effective decisions such as purchasing decision,distribution systems, inventory management and customer service etc. helps in identifying the
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