Greggs Marketing Essentials: Strategies, Analysis, and Recommendations

This report offers a comprehensive analysis of Greggs' marketing strategies, comparing them to competitors like Subway. It delves into the 7Ps of marketing, SWOT, PESTLE, and Porter's Five Forces analyses to understand Greggs' market position and competitive environment. The report also examines Greggs' target markets, segmentation, and positioning, along with a proposed marketing budget and implementation plan for a new product, low-calorie Vanilla Slices. The report highlights the mission, core values, and marketing objectives of Greggs. Furthermore, the report emphasizes the importance of a well-defined marketing plan to promote the new food item effectively, increase customer base, and achieve business objectives in the global market. Overall, the report provides valuable insights into Greggs' marketing practices and offers recommendations for future strategies.

Unit 2: Marketing Essentials
Marketing Concepts, Strategy and Internal Relations
Student number:
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Marketing Strategies 2
1.0. Executive summary
To commercialize the goods and services in the global market it is essential to market
them in the global market. Social media platform is widely used by the companies in order to
raise their productivity and profitability ratio. 7Ps of marketing is used in order to understand
the emerging needs of the customers. SWOT analysis is studied to examine the opportunity
and threats prevailing in the open market place so that strategies can be framed to overcome
them. Pestle analysis is measured to understand how external forces influence day to day
working of the business in the international market. Marketing plan is prepared by scanning
the dynamic environment in order to make the innovative good (Low calorie Vanilla Slices)
successful in the global market. Proper budget is prepared so that deficiency of funds does
not occur. By this organization's new food item can be promoted smoothly in the market and
huge customer base can be raised for them.
Table of Contents
1.0.EXECUTIVE SUMMARY ............................................................................................................................ 2
1.1. INTRODUCTION...............................................................................................................................................5
2.0.SITUATIONAL ANALYSIS........................................................................................................................... 5
2.1.COMPETITIVE ANALYSIS.....................................................................................................................................6
2.2.SWOT ANALYSIS ............................................................................................................................................7
2.3.P.E.S.T ANALYSIS............................................................................................................................................8

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2.4.PORTER'S FIVE FORCE ANALYSIS:........................................................................................................................9
3.0.MARKET STRATEGY .............................................................................................................................. 11
MISSION: ..........................................................................................................................................................11
CORE VALUES AND PHILOSOPHY: ...........................................................................................................................11
MARKETING OBJECTIVES: .....................................................................................................................................11
4.0.TARGET MARKETS ................................................................................................................................ 12
4.1.SEGMENTING: ..............................................................................................................................................12
4.2.TARGETING:..................................................................................................................................................13
4.3.POSITIONING: ..............................................................................................................................................13
5.0.MARKETING BUDGET............................................................................................................................ 13
6.0.MARKETING MIX .................................................................................................................................. 13
7.0.MARKETING OBJECTIVES....................................................................................................................... 19
8.0.IMPLEMENTATION PLAN....................................................................................................................... 20
9.0.CONTROL ............................................................................................................................................. 20
10.0.CONCLUSION....................................................................................................................................... 21
11.0.APPENDIX........................................................................................................................................... 23

Marketing Strategies 4
List of Figures

Marketing Strategies 5
Marketing Mix and Marketing Strategic Planning
1.1. Introduction
This report will provide detail analysis of marketing strategies and 7Ps of Greggs. The
marketing strategy of Greggs will be compared with the marketing strategy of its competitor
Subway. The primary purpose of this report is to highlight some significant tactics that are
applied by organisations such as Subway and Greggs to achieve their business objectives.
Additionally, a basic marketing plan for Greggs will be recommended that highlight specific
actions. Greggs Plc is the largest bakery store in UK. It is located near Newcastle Upon
Tyne. Various products are offered by the firm such as, Sausage rolls, Vanilla slices, Bakes,
Boughnuts, Sandwiches and many more.
2.0. Situational Analysis
Greggs Plc is located in North Tyneside near Newcastle upon Tyne. Various food
products like, sausage rolls, bakes, doughnuts, sandwiches and so on are offered by the firm.
Organization turnover in terms of operating income is $ 107.2 and net income is $84 in the
year 2018. There are 2009 stores of Greggs product in the global market.
3.0. Competitive analysis
Greggs adopts VRIO Model in order to analysis competitiveness as well as to
categorize their resources as per the priority level. The acronym VRIO is formulated by four
dimensions which are as follows:
Value: Greggs value their resources which are used to prepare the food. Management
try to utilize their resources effectively so that best outcome can be attained. By this firm is
able to compete with Subway and other rivalry prevailing in the market. Subway serve
bakery sandwiches without deep fry which are healthy for customers. Greggs is coming up

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with low calorie Vanilla Slices so that healthy food can be offered to them in the era where
people are suffering from issues related to obesity and other health problems.
Rare: The resources which are used to prepare low calorie Vanilla Slices by Greggs
are rare in nature. In order to gain competitive advantages against subway it is essential to
come up with innovative idea continuously. Greggs creative food item is of low calorie which
helps to reduce fats from the body and make people fit and healthy.
Inimitable: In the open market place resources can be imitable because of the
combination of three aspects such as, unique historical conditions, social complexity and
ambiguity. In order to compete with Subway Greggs need to set the nominal prices for low
calorie Vanilla Slices so that they can be expensive to substitute. By this Greggs is able to
gain huge profit which is a positive mark for the business.
Organized: To prepare low calorie Vanilla Slices Greggs uses the resources in
organized manner so that they turn out to be profitable for the firm. Subway uses their
resource in systematic manner so that less deep fry sandwiches can be served to the
customers in the set time frame. Whereas, Greggs utilize the ingredients as per the
requirement so that low calorie Vanilla Slices can be offered to customers so that they can
remain fit and healthy.
3.1. SWOT analysis
Strengths Weaknesses
 Provide full range of baked products.
 Modern equipment are used in order
to meet the demand doubled
overnight.
 Pre-order and collect breakfast
 The attrition rate of Greggs
 Lack of knowledge of foreign
markets.

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service.
 Huge charity work with local schools.
Opportunity Threats
 Leading bakery chain of UK
 Online channels can raise new
customers.
 New trends in customer behaviour
helps to diversify the products.
 Expansion in international market.
 Create better relations with the
supplier.
 New technologies adoption
 Government policies.
 Substitute products
 Intense competition
3.2. P.E.S.T.E.L Analysis
Elements Bullet Point of Pestle analysis
Political factor Create impact on long term sustainability
and profitability.
Economical factor Economic status of the country can be
determined by studying economical factor.
Social factor Helps in examining the demographic trends,
power structure.
Technological factor Raises the importance of the technological
factors at the process of strategic making.
Environmental factor Benefits from the renewable technologies and

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help to foster the business.
Legal factor Provide potential threats to the firms
purchasing power of buyers.
3.3. Porter's Five Force Analysis:
Bargaining power of suppliers: The power of degree is high when suppliers size is
less in number. They charge high prices for the goods and exploit the customers. The raw
materiel which are needed by Greggs to prepare low calorie Vanilla Slices are limited in
nature. The power of supplier is intense when:
 Suppliers are large in number
 Cost of switching raw materiel is more
Bargaining Power of buyers: Here, customers can push the seller to sell high quality
goods at low price. By this Greggs is able to sell low calorie Vanilla Slices at nominal price.
The bargaining power of buyer is high when:
 Many substitute are available
 Switching rate to other suppliers are low
Threat of new entry: Greggs faces threat when more form are entering into the same
market with similar product. Through innovation in food high barriers can be formulated by
firm which will deter new entrants. The power is intense when:
 Less funds are needed to enter
 Goods are mostly similar in nature

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Threat of substitute: Subway is the competitor for Greggs because they sell bakery
sandwiches which are less deep fired. Greggs also deals in bakery food items so slight
changes in the prices or taste of the food can bring huge loss to the firm because customers
can easily switch to subway products. By this profit margin decreases.
Competitive Rivalry: Greggs frame unique tactics in order to deal with rivalry
prevailing in the global market. By this set objectives can be attained easily. The power of
rivalry among competitors are high when there are too many competitors present in the
market, exit barrier is more and low customer loyalty.
4.0. Market Strategy
Mission:
The Mission of Greggs is to provide health food to the customers over the years. In
order to attain this statement employees are trained properly so that they can perform their
job role effectively.
Core values and philosophy:
Greggs core value is to provide high quality packed food to the customers. To meet
this firm is scanning the dynamic environment so that designed core value can be attained
easily.
Marketing Objectives:
 Social media platform is used by Greggs so that sales ratio of low calorie Vanilla
Slices can be raised rapidly in the global market. By doing so huge profit can be
maximized for further growth and development of the bakery business.
5.0. Target markets
STP is involved in target market which are explained as under:

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5.1. Segmenting:
In order top compete with the rivalry Gregg need to segment their products. By
segmenting the food item bakery business can be flourished easily in the competitive market
place. By this tough bench mark can be created for rivalry. Customers will be benefited by
this food item as it will help them to remain healthy.
5.2. Targeting:
Gregg's innovative low calorie Vanilla Slices is targeting those customers who are
health conscious and wants to remain fit in the hectic life schedule. As Vanilla Slices has low
calorie so it does not raises fat in the body and can be easily digested. Example: Firm merge
retailer in its bakery outlets into single brand. This is the best tool to promote bakery food
item in the market.
5.3. Positioning:
The food item of Greggs want to position their image in the mind of the customer. By
this they can be bind for longer time duration towards low calorie Vanilla Slice. By this set
objectives of the company can be accomplished easily. Example: The innovative products is
positioned in the eyes of the customers through adds. It is done for longer time duration.
6.0. Marketing budget
Firm require 60,000 pounds during the first year of operation. It will be spend on
promotion and production. Low calorie Vanilla Slice is innovative food-item of Greggs they
are going to spend 20,000 on production process and in order to commercialize this creative
food they are going to spend 15000. For catalogue an amount of 5000 is spend and left over
20,000 are spend on tools and equipments needed to prepare Vanilla Slice.
7.0. Marketing Mix
What are the 7Ps of Subway

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Marketing mix is defined as set strategies used by firm in order to commercialize their
goods and services in the global market. By effectively using it in the working premises
Greggs is able to accomplish set goals and objectives in the specified time duration. Through
this organisation is able to gain competitive advantages against rivalry. 7Ps of marketing mix
in context of Greggs are illustrated as under:
Figure 1: 7Ps of Marketing Mix
Product
The products of Greggs are, sausage rolls, sandwiches and bakes. The innovative
food is low calories Vanilla Slices (Grecia & Qondado, 2019). The products is unique

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because of its taste and texture as compare to rivalry bakery. Innovative food is prepared by
understanding the customers preferences so that sales ratio can be raised tremendously. By
this overall productivity and profitability ratio raises to large extent in the global market.
Subway is famous for its foot-long and submarine shaped sandwiches. Sandwiches of
Subway are highly customised which come with two bread sizes, including full (foot long)
and six-inch (half) (Bhasin, 2019).
Price
The price of the Gregg’s products fluctuate depending upon store location. For
instance, a sausage roll cost 1.15 pounds to take away at Victoria Station (Manchester) and
the amount of pepperoni pizza is 2.10 pounds. On the other hand, 0,95 pence is the price of
sausage roll nearby Arndale shopping centre and cross street branches, and pepperoni pizza
costs 1.75 pounds at the city stores. (Nguyen et al., 2018) Due to a large information share
online by competitors, the price strategy used by Greggs is following a competitive based
pricing.
The price of Subway goods varies from countries to countries and restaurants to
restaurants. Comparing to the amount of McDonalds and KFC products, amount of Subway
products is premium. The 6-inch meatball marinara sandwich cost 2.99 pounds in the U.K.
But in Subway same food is rated as 5.99 pounds.
Place
Stores of Greggs can be found in retail parks, industrial estates etc. Greggs is focusing
to open store on non-street location customer might have a desire for baked goods on the go
(Nguyen et al., 2018). By this sell ratio of the bakery food can be raised.