Marketing Plan Report: Fresh Choice Supermarket, Course 2930

This report presents a comprehensive marketing plan for Fresh Choice Supermarket, a New Zealand-based grocery chain owned by Woolworths. The report begins with an executive summary outlining the company's focus on offering quality products at low prices and its objective to expand throughout New Zealand. The analysis delves into Fresh Choice's marketing objectives, target market (average-income families), and situational analysis, including market position and competition within the highly competitive New Zealand supermarket industry. The report examines the company's current marketing strategies, including pricing and promotion, and assesses their impact on profitability and market share. The report also analyzes the external macro-environment, including political and social factors, and highlights Fresh Choice's community involvement. Strategic options are discussed, including distinctive competencies, marketing objectives, and competitive advantages. The report concludes with forecasts, resource requirements, and recommendations for performance evaluation and monitoring, emphasizing the need for increased store presence and effective promotional strategies to enhance market share and customer base. The report follows the guidelines of the NZ Diploma in Business (Level 7) Marketing, Management & Strategy course (Course 2930) and includes an analysis of the company’s competitive advantages.

DEVELOP AND COORDINATE MARKETING STRATEGIES
Course name NZ Diploma in Business (level 7)
Title: Marketing, Management & Strategy
Course: 2930
Candidate: Rudraksh Shastri
ID number: 193008A
Tutor: Mabruk
Last date:
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1.

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Executive summary
This report is presenting a detailed marketing plan for Fresh choice supermarket by explaining its
marketing objective and how these objectives are related with the different aspects of the product
that is target market, pricing, distribution, demand, and promotion. From the analysis, it has been
identified that Fresh Choice Supermarket operates its business in New Zealand and is owned by
Woolworths. The focus of the company is to offer quality products to the customers at low
prices. The objective of the company is to expand the business and offer products at every door
of New Zealand and it will be achieved by increasing the intensity of the promotions over social
media and other platforms like television, radio, print media, etc. The report analysis has also
highlighted that the supermarket industry of New Zealand is very competitive and to deal with
this intense competition, company is focusing on offering quality products to the customers at
low prices. Along with this, the company is also using promotional strategy effectively to
increase the brand recognition in the market. Further, the competitor analysis has highlighted that
the product quality offered by Fresh Choice Supermarket is good in comparison to its
competitors like Count Down and New World. In addition to this, the report has also conducted
an external analysis of the market and it has been identified that the political environment is
stable which helps business in operating effectively in the market. As there are number of issues
in the society that are increasing in number, in order to address those issues, Fresh Choice
Supermarket is involved in different community services in the form of offering grants for the
development of needy people. In the end, it can be said that to increase the market share and
customer base company has to work on increasing number of stores in the market.

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Table of Contents
1.0 Introduction...........................................................................................................................................3
1.1 Product description……………………………………………………………………………………………………………………………3
2.0 Objectives.............................................................................................................................................3
2.1 Marketing objective...............................................................................................................................3
3.0 Target market........................................................................................................................................4
3.1 Market character....................................................................................................................................4
3.2 Market targets........................................................................................................................................5
4.0 Situational analysis................................................................................................................................5
4.1 Marketing Strategy................................................................................................................................5
4.2 Marketing activities, share and growth..................................................................................................6
4.3 Marketing strategies, marketing performance and marketing objectives...............................................6
4.4 Market position and competition...........................................................................................................6
4.5 Competition in the market/industry.......................................................................................................7
4.6 External macro-environment.................................................................................................................7
4.6 Marketing resources..............................................................................................................................8
5.0 Strategic options....................................................................................................................................9

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5.1 Distinctive competencies, marketing objectives, competitive advantages, and strategic fulfillment......9
5.2 Marketing objective Ranking………………………………………………………………………………………………………10
6.0 Marketing and positioning Strategies…………………………………………………………………………………………10
6.1 Strategic marketing mix (4Ps)……………………………………………………………………………………………………… 10
6.2 Risks and returns of marketing strategies…………………………………………………………………………………10
6.3 Desired market position……………………………………………………………………………………………………………11
6.4 Generic marketing strategies…………………………………………………………………………………………………….11
6.5 Target Market Strategies…………………………………………………………………………………………………………..11
7.0 Forecasts…………………………………………………………………………………………………………………………………..11
7.1 Resource requirements for the marketing plan implementation………………………………………………12
8.0 Performance evaluation and monitoring……………………………………………………………………………….….12
8.1 Recommendations………………………………………………………………………………………………………………..….12

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1.0 Introduction
The company that has been selected is Fresh Choice Supermarket which was established in the
year 1995. Headquarter of the Fresh Choice Supermarket is located in Christchurch. It is actually
a chain of local stores which is involved in operating the business all over in the New Zealand
just like other supermarkets (Freshchoice, 2020). This chain of supermarket is owned by
Woolworths which is one of the biggest distributions and retail company of New Zealand. As of
November 2018, Fresh Choice Supermarket operates around 30 stores across New Zealand. This
organization is in engaged in the business of offering fresh and quality food in low price to their
customers. The company is involved in offering range of high-quality products to its customers
at reasonable prices. Some of the products that are offered by the company includes vegetables,
milk products, and other grocery items for its target market. The motive of the company is to
service its customers with quick and friendly services that can meet all their needs and
expectations. The supermarket has successfully covered the market because the owners of the
company hold good knowledge of the local market.
1.1 Product description
This organization is in engaged in the business of offering fresh and quality food in low price to
their customers. It includes fresh vegetables, fruits, and milk products which are well preserved
for the consumption of the potential customers.
2.0 Objectives
2.1 Marketing Objectives
Marketing objectives Explanation
1. Increase number of stores in order to increase customer
reach
Objective is linked with potential
customer.
2. Adopt new marketing strategy to increase market share. For this, the company will make use of
promotional strategies
3. Focus on average income family along with single
parent.
Target audience market
4. Promote healthy habits through healthy products Customer health safety.

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Time scaled - With in framework of one-year, Fresh choice is planning to increase their customer
base in order to remain sustainable in grocery industry of New Zealand.
2.2 Strategic Goals
Strategic goals are the goals that are designed for identifying the planned accomplishment of the
strategy of the business. The time businesses create strategic goals, they get to know about the
desired outcomes of the business efforts. These types of goals are mostly designed at the time
when a business is framing a new strategy. In other words, strategic goals are the non-financial
and financial objectives and outcomes a company desires to attain over a particular time period,
generally the next two to five years (Morgan, Whitler, Feng & Chari, 2018).
The strategic goals The marketing
objectives
How the marketing objectives can help to
achieve the strategic goal
Fresh choice
grocery chain has
one main objective
of reaching their
product at every
door of New
Zealand
Fresh choice wants
to increase their
customer base
along with business
expansion.
Therefore, in order to remain sustainable
in the market, Fresh choice organization
is going to focus on their promotional
strategies which will include both online
as well as offline marketing. This can be
possible if they can make their presence
nearby to the target audience. Fresh
choice grocery chain does not need to
open 140 stores, but they are in need of
opening new stores nearby their potential
market which is average income family
along with bachelors.
3.0 Target market
For Fresh choice grocery target market will be average income family which forms half of the
New Zealand population. By focusing on this section of population, Fresh Choice grocery will be
able to expand their business market with the help of pricing strategy which will be the major
point of attraction for average income family.

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3.1 Market character
Current fresh choice grocery is operating in monopolistic market in which there are numerous
competitors because of which competition is very high in the market. Somewhere they are
service similar kind of products in the market. In order to expand, Fresh choice grocery has the
opportunity to expand their business across New Zealand by adopting unique market strategy
which will not be easy for competitors to copy (Cochoy, 2010). Due to large population of
average income family, Fresh choice grocery has opportunity to capture this market with by
selling their quality product with in low pricing because other grocery stores are charging high as
compared to Fresh choice.
The industry Current Demand Future demand
Fresh choice grocery
chain
At present, Fresh choice
grocery is not able to capture
market as compared to other
grocery stores due to their
limited stores.
In future, grocery business is going
to flourish because demand of
product will increase because
population of New Zealand is going
to increase. In order to meet future
demand of quality food in low
price, Fresh choice grocery store is
going to play on pricing and
promotion strategy.
3.2 Market targets
In past Fresh Choice grocery performance was not good and therefore they have to change their
market target by focusing on promoting healthy food product in affordable price. Create unique
image in the minds of potential customers by introducing pricing strategy (Hsu, Huang &
Swanson, 2010). In addition, Fresh choice grocery will try to bring stores near to target audience
by increasing number of stores in order to bring rapid growth in sales.
The marketing objectives/target 2020 2021 2022
Increase number of stores in next three years in
order to increase market share
50 70 100
4.0 Situational analysis
Current market performance is good because this supermarket store is able to maintain their
position in the grocery market despite of such huge competition from topmost brands. This

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supermarket still considers as one of the choices for buyers for food products
(Jayasankaraprasad, 2011). But still it remains behind from other supermarket chains such as
count down, New world and Four square. At present, fresh choice is having 30 stores which are
not enough to compete with those supermarket chains which are having more than 140 stores.
Because of this, fresh choice is not able to reach to every door of their target audience.
4.1 Marketing Strategy
At present Fresh choice supermarket is using pricing market strategy in order to compete in this
business environment (Martínez-Ruiz, Jiménez-Zarco & Izquierdo-Yusta, 2010). This strategy
helps Fresh choice supermarket to capture some share of the market because it is connecting
their product with the average income pattern of the families. This pattern actually provokes
average income family to buy their products due to low price along with better quality.
Type of
strategies
Organisation’s strategies Impact on profitability
Pricing Fresh choice supermarket is offering their quality food
products in low price in order to meet needs of average
income families in their areas.
This strategy has helped
Fresh choice organization to
give competition to other big
supermarket in terms of
profit.
Product Combo product service is offered to customers where they
can group products.
It helps in increasing
customer satisfaction which
is connected with profit.
Place Stores will be open near to the target audience It will ensure large sales.
Promotion Digital marketing and advocacy marketing will be used Increase brand awareness
among customers.
4.2 Marketing activities, share and growth

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Marketing
activity
Market share Market growth
Offering fresh
fruits
Offering Fresh fruits will help to generate
good income from families which are focus
towards health and self-esteem.
Promote quality product in low
price will automatically increase
sales (Helgesen & Nesset, 2010).
Offer Combo
pack
This activity will increase the market share
because customers have option to develop
food basket of their own.
It will increase popularity of this
combo package scheme.
Community
service
Community services help them to form better
image in the society.
In recent years, this organization
has engaged with community
service in the form of giving back
to community.
4.3 Marketing strategies, marketing performance and marketing objectives
Type strategy organization’s
strategies
Impact on marketing
performance
Extent to which
objectives have been
met
Pricing strategy Selling product in low
price
This strategy helps in
building strong
customer base
Business expansion
Promotion Strategy Offering discount on
combo package
Develop strong
relationship
Customer satisfaction

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4.4 Market position and competition.
By offering quality food product in fewer prices, Fresh choice supermarket is able to attract
customers from all segments; it may be average income people, single parents, and bachelors. It
has really created sensation in grocery market of New Zealand (Dereli, 2015). When compare to
other supermarket, first choice supermarket is operating on safe side but not as market leader.
First choice supermarket has to put more efforts in order to gain higher position in this dynamic
business environment.
From almost three years, it has been found that grocery market is flourishing more in areas such
as Auckland and Canterbury as compared to others. Therefore, it will be better opportunity for
Fresh choice supermarket to spread their business in these areas. Fresh fruits and meet products
are the most selling products in Fresh choice supermarket. These products have helped Fresh
choice supermarket to remain sustainable in the grocery business market.
4.5 Competition in the market/industry
In New Zealand, grocery business is growing very rapidly, and it has increased the level of
competition within this industry. There are some key players in this business which is actually
running this business and displays very tight competition to Fresh choice supermarket. Count
down, New world and Four square are the key players which dominate this grocery business
through their market share as well as revenue generation (Gandal & Halaburda, 2016). These
three players together cover almost half of the grocery market share and therefore it is difficult
for small as well new entry to fight with these competitors. Their one of the biggest strengths is
their large number of grocery stores which makes easy for them to reach their customers.
Another biggest strength is their effective supply chain operation which helps them in
eliminating overhead cost. But at the same time, it has been found that these stores are having
quality issues because of which some customers are not satisfied with their product along with
high price.
Parameters Your organization Count Down New world
Presence Fresh choice is
having 30 stores
Having more than 140
stores in NZ
More than 150 stores in
NZ
Quality Better quality
products
Complaints against
quality products
Good quality products
but price is high
Supply chain Good Better better

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One of the best options for Fresh choice is to open their new stores in areas in order to reach
potential customer which is not possible with 30 limited stores. Another option is to maintain
quality of product in order to create a positive impression in the minds of the potential customers
in which Count down supermarket is struggling.
4.6 External macro-environment.
Both political as well as economical factor of New Zealand is moderate which is better new for
Fresh choice supermarket. New Zealand country is highly socialized country and engagement of
Fresh choice with community service is good for its growth. New Zealand is one of the advance
countries in technology which is helpful to this business (Pîndiche & Ionita, 2013). Environment
protection issue is actually great concern for New Zealand and focusing on environment
protection can help Fresh Choice growth opportunity. Free trade policy will help Fresh choice to
expand their business faster. External environmental factors of New Zealand are completely in
favour of Fresh choice supermarket strategy and therefore, it offers important opportunity for
Fresh Choice to gain better position in the grocery market.
Factors Specific qualities associated
with your organization
Potential impact on the
organization’s marketing strategy
Political Excellent culture Stable
Economical Better revenue Growing
Social Focus on community service Develop better image
Technology Use of cloud system Growing
Environment Single plastic use Positive image
Legal Free trade Help in expansion of business
4.6 Marketing resources
Type of Situation in the organization and the impact on the strategic marketing