UGB 161 Introduction to Marketing: Korzinka.uz Environmental Analysis

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This report provides a comprehensive marketing analysis of Korzinka.uz, a major supermarket chain in Uzbekistan. It begins with an introduction to brand positioning and its importance in marketing. The report then delves into Korzinka.uz's marketing environment, including the micro and macro environmental factors, such as competitors, suppliers, company consumer, political, technological, and economic factors. A SWOT analysis is conducted to evaluate the company's strengths, weaknesses, opportunities, and threats. The report also examines Porter's Five Forces to assess the competitive landscape and analyzes Korzinka.uz's marketing mix, including product, price, place, and promotion strategies, and customer-driven marketing strategy. Finally, the report covers customer segmentation, targeting, differentiation, and positioning, offering a complete overview of Korzinka.uz's marketing strategies and concluding with recommendations.
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UNIVERSITY OF SUNDERLAND PROGRAMME
ASSESSMENT COVER SHEET / FEEDBACK
FORM
Student Name &
ID: Rakhimova
Dilshoda
MDIS ID:
b1900671 UOS
ID: 209211416
Module
Name/Code: UGB
161
Introduction to Marketing
Center / College: MDIS in Tashkent Due Date: 07.05.2021 Hand in Date:
Assessment Title: Individual Assignment
Learning Outcomes Assessed:
Learning
Outcome
s
Assessed
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Feedback relating learning outcomes assessed and assessment
criteria given to students:
Areas for Commendation:
Areas for Improvement:
General Comments:
Assessors Signature: Overall Mark (subject to
ratification by the
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Students Signature: (you must sign this declaring that it is all your own work and
all sources of information have been referenced)
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Table of content
INTRODUCTION..............................................................................3
MARKETING ENVIRONMENT........................................................3
MICROENVIRONMENT....................................................................4
MACROENVIRONMENT..................................................................4
SWOT ANALYSIS..............................................................................5
THE POTER’S FIVE FORCES...........................................................7
MARKETING MIX.............................................................................8
PRODUCT..........................................................................................8
PRICE..................................................................................................8
PLACE..................................................................................................9
PROMOTION.......................................................................................9
CUSTOMER DRIVEN MARKETING STRATEGY.........................9
SEGMENTATION..............................................................................10
TARGETING......................................................................................10
DIFFERENTIATION AND POSITIONING........................................11
CONCLUSION...................................................................................11
RECOMMENDATION........................................................................11
REFERENCE....................................................................................12
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Introduction
Brand placement is an important part of marketing planning, according to the
definition of positioning marketing strategy. The method of creating a mental image
of a company's goods in the minds of consumers by highlighting the most important
benefits that set them apart from rival brands on the market are known as brand
positioning. Product positioning entails defining points of differentiation and
distinction that enable a company's product to reach industry expectations whilst also
providing customers with added value on key metrics including consistency,
creativity, price, leadership, and versatility, among others. When evaluating
positioning elements of their marketing campaign, marketers must keep a close eye on
competition. Customers must understand that this company's product is better than
comparable goods from other companies. To put it another way, the enterprise does
not follow or repeat what the competition is doing, but rather stand out by providing
distinctive or distinguished product features and other value added services. This
research will explore Korzinka.uz environmental analysis, customer analysis,
competitor analysis and evaluation of marketing mix.
MARKETING ENVIRONMENT (Microenvironment)
Competitors
An organization must be aware of what value-added capabilities or exclusive
marketing advantages its competitors have. How can they differentiate themselves
from the competition? A company must realize that being unaware of competitors
makes it impossible to defeat them and dominate the industry.Korzinka.uz also offers
more value and loyalty to its customers than its rivals. Among competitors such as,
Carrefour, Makro, Andalous, Magnit, Tegen and othersKorzinka.uz created good
opportunity for their consumer that is sell almost all products in lower price. Brought
wide assortment of goods, opened many branches, attracting buyer attention,
increased number of clients and improve customer satisfaction.
Suppliers
Korzinka.uz is a rapidly expanding supermarket chain with branches in Tashkent that
can be relied on as a reliable collaborator. They have an ever-increasing range of
products to offer customers and are developing new long-term partnership
partnerships as a result.Besides that, they have good relationship with a supplier. To
be mentioned that, role of suppliers essential every business sphere and help to
increase productivity. Cause of deliver products on time and it is quality as well as
services system depend on how suppliers delivered it. Another example of this,
Korzinka.uz when opened their new branches the first day suppliers delivered for free,
which who bought more than 300 thousand sums. It is evident that, through this plan
they attract more consumers and improve productivity.
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The Company
Consumer interest is boosted by ongoing efforts to increase service efficiency, an
appealing pricing policy, and a customized loyalty scheme. A Supermarket provides
to shoppers the wide range of food and non-food items. The company of Korzinka.uz
attract their customer with variety of daily promotions, discounts, and samples.
Organization of Korzinka.uz has more than decade experience in the market. Or
rather, they lead position in retail. And working with marketing department provides
new approaches for buyers. Such as, Thursday up to 10% sale for fish, Wednesday for
meat products also up to 10% discounts. Besides that, working with other department
they increase high customer confidence.
MACROENVIRONMENT
Political factor
Political trends have a major impact on marketing decisions. Laws, government
agencies, and interest groups control or limit organizations and people in a particular
community. In addition, in this regard, the length of time that these actions are in
effect, whether at the local, state, or national level, is critical. In order to make
appropriate decisions, the company's top executives must keep a close watch on
political activity. The control of import, the extent of corruption, tax reform, trade
regulations, and adjustments in various laws will all affect it. For instance, the
employee of Korzinka.uz provided free medical care, aid money, some discounts of
purchasing product. Pay taxes and legal employment as well as must pay for their
workers minimum salary which determined by the government. Apart from this, they
transfer of products from the government standard. Thus, all laws must follow the
rules.
Technological factor
Technology changes every second, and in order for a company to stay in existence in
the long term, it must work hard to keep up with the changes. The degree to which a
company focuses on innovation and R&D is critical to its growth, since it can bring
the company to the top of a technology. Example of technological factor, Korzinka.uz
supermarkets have an own website and official account in the Instagram through the
internet, they market specialist easily advertise their news for instance, some sales,
discount days, new products which could not found other markets the first, or initial
information about products. Besides that, has mobile application for use of loyalty
card.
Economic factor
The economic factor is integral part of marketing environment. Korzinka.uz creates
job opportunity, which are students also could work full-time and part-time of jobs. It
is mentioned that, their Human Resources management working effectively and
efficiently, have own study centre for an employee. Conduct different training for
improve and increase productivity. Korzinka.uz contributes to the improvement of
Tashkent's living standards by increasing the average income level. Because, till
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opened korzinka.uz in Tashkent was only 3 or 4 supermarket and location of those
was only city centre it is evident that, it was brought difficulties. Another example of
this creates job opportunity, coming today, number of employees Korzinka.uz is
4300.
SWOT ANALYSIS
The SWOT analysis is used to analyze internal and external factors, as well as current
and future opportunities. Strengths, shortcomings, openings, and risks will be
examined in this task.
Strength
To support the multi-format platform, Korzinka.uz focused on creating convenience
stores. This shop adapts to the local culture of each region zone where it resides, and
it has increased the number of stores and introduced different formats, such as smart,
discount, and others. Another example of this, online ordering, receiving orders in-
store or from a drive through and shipping purchases are both examples of good
digital platforms and consumer experiences. The expanding digital space has
improved Korzinka.uz' existing distribution networks. The lowest price is for the best
products. Korzinka.uz relies on the experience and organizational excellence of its
staff to provide the right option at the best price to its consumers. Korzinka.uz the
largest retail in Uzbekistan and has 54 branches.
Weaknesses
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There is no doubt, every sphere of business and work has weaknesses and financial
preparation is not performed correctly or effectively.
Korzinka.uz quality management department has a smaller budget than peers'.
As a result, there is a lack of continuity and a risk of product degradation in all
of the company's channels.
Lack of diversity of vegetables and fruits and it does not fresh like an open air
bazaar.
Taking too much time in the cashier at rush hour.
Some of the branches poor services, lack of some products cake, bakery, and
others.
Sometimes the price is two different dues to the negligence of the staff the
price on shelf does not match with the cash register.
Opportunities
Korzinka.uz is a well-known supermarket in the industry and has a numerous number
of loyal clients. Korzinka.uz supermarkets sell food and non-food products, to
compare another competitor assortment of household products more than others and
price is also lower. It should be admitted that, demand of korzinka.uz will increase
and it is good opportunity to them improve productivity and increase number of
clients. Another opportunity for them to expand their operations to a different location
are to launch new branches in Khorazim, Surkhandaryo and other regions.
Threats
One of the big threats might be a new supermarket of Carrefour this supermarket
opened last year in the Tashkent. To be more detailed this supermarket is international
and among the country have many branches. Korzinka.uz unaware of theirs business
strategy and do not know how opportunity they have and one unexpected advertising
or some news, or program can easily take out of Korzinka.uz clients and it might be
one of the big threats. Another threat is, since the organization operates in so many
regions, it is vulnerable to currency fluctuations, it is evident that fluctuations of
currency huge affecting cause of company buy products other countries importing,
particularly considering the unpredictable political situation in so many markets
around the world. In some global markets, a skilled labour shortage threatens
Korzinka.uz ability to maintain consistent profit growth.
Competitor Analysis
The market climate is a concept that refers to a mixture of internal and external
influences that affect the activities of a business organization, such as managers,
clients, personnel, business laws, and supply and demand (Hans, 2018, p. 48).
According to the results of Porter's five forces study, Korzinka.uz operates in a highly
competitive world and must devise new tactics to maintain its market share in the
retail sector. Furthermore, the results indicate that Korzinka.uz market share is under
pressure from competition from both conventional competitors and discount stores.
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Porter’s Five Forces
The Porter’s five force analysis of Korzinka.uz strategic planners will make strategic
decisions based on the model's intelligence analysis.
Analysis of Rivalry Competition
In the food retail industry, especially in Uzbekistan, the retailer's primary market,
there is fierce competition. Korzinka.uz competes fiercely with its biggest
competitors, including Makro, Andalus, Magnit's, and Carrefour, in terms of brands,
sales, and promotions. Customers can easily move from Korzinka.uz to other brands
in other supermarkets because Korzinka.uz rivals sell related goods such as
electronics, clothes, food items, and so on at a comparatively small rate, which
reduces product transfer costs. Product substitution has a big impact on Korzinka.uz
revenues.
Analysis Bargaining Power of Supplier
Suppliers have a lot of negotiating leverage in the industry. Porter's five Powers of
Korzinka.uz; As a result of the abundance of distributors in the store retail industry,
Korzinka.uz suppliers do not have any bargaining power. Korzinka.uz can quickly
move or it can replace sellers that don't comply with its terms, and it can buy products
for the cheapest price, which has affected the profit margins of manufacturers.
Analysis of Threat to Entry
The challenge of new entrants illustrates how new market participants pose a threat to
established market participants. If the market is profitable and the barriers to entry are
low, it will draw more competitors and therefore the danger of new entrants will be
strong. Such as, Korzinka.uz entry into the sector necessitates a significant financial
and resource expenditure. If product differentiation is strong and consumers put a
high value on the unique experience, this force loses its impact. If customers have a
high psychological switching expense and current companies have built a loyal
customer base, the danger would be minimal.
Analysis Bargaining Power of Buyer
Buyer bargaining power refers to the demand that consumers apply to businesses in
order to obtain high-quality goods at reasonable cost and superior customer service.
This force has a strong impact on Korzinka.uz ability to meet market goals. Strong
bargaining power reduces profits and increases competition in the market.
Analysis of Threat of Substitution
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Korzinka.uz and other existing players face a difficult business market due to the
availability of replacement goods or services. Customers may use alternate
products/services from other sectors to satisfy their needs, indicating a high
replacement challenge. The severity of this threat to Korzinka.uz is determined by a
number of factors.
Another industry has a cheaper alternative good or service
Changing from industry to alternative goods has low psychological costs.
Substitute products have the same, if not better, consistency and efficiency as
Korzinka.uz products.
Marketing Mix
In 1960, E. Jerome McCarthy suggested the Marketing Mix idea. "The marketing mix
is the collection of controllable, tactical marketing tools that the company mixes to
deliver the result it desires in the target market," writes Kotler (2018)."The four Ps of
this principle are Product, Price, Location, and Promotion." Korzinka.uz techniques
are best described by this definition. As a low-price pioneer, they have been active for
several years in winning and retaining loyal customers.
Product
The following is an explanation of Korzinka.uz product approach and mix:
Karzinka.uz is a well-known retailer in Uzbekistan. Korzinka.uz shops and facilities
are the company's marketing blend product approach. Its stores are present in
Tashkent in different formats to meet the needs of its customers:
Each of the company's five subsidiaries sells the products as a separate
product line. The company name is used to advertise all of its products.
Offers a diverse product selection, enabling customers to choose the product
that best suits their needs.
Offers a wide range of specialized items and various features that competitors
don't. As a consequence, the items are considered exclusive.
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Price
Pricing strategies come in a variety of shapes and sizes, each of which is tied to a
broader market plan. Carrefour, Makro, Magnit, and local competitors open bazaar are
the most important Korzinka.uz competitors. Korzinka.uz is a hypermarket that offers
consumers low-cost goods. Korzinka.uz guarantees that its consumers enjoy
purchasing goods at cheaper prices and with higher levels of satisfaction than peers.
For instance, every different holiday they decrease products price, such as 8 of March
Women’s day they sell cosmetic products at lower cost, and improve customer
satisfaction. Apart from this, since Korzinka.uz has a variety of product lines and
product categories, psychological pricing has proven to be effective. Korzinka.uz
effectively brings more value to its offerings from the perspective of consumers by
using psychological pricing. Such as, they set price with discounts 19.990sum rather
than 20.000sum it evident that those types of price attract more consumers.
Place
According to Kotler (2018), "location involves business operations that make the
product accessible to the target consumers."Two distribution platforms are used to sell
the company's goods. The first is from its online store, which it offers directly to its
customers. The second point to consider is where it is sold at various locations. In
comparison to the standard formatKorzinka.uz using attractive and modern styles with
various banners in each store to make all of locations look welcoming.
Promotion
Korzinka.uz frequently emphasizes the importance of advertising techniques and
policies. It promotes its goods through various stages, such as cooperation with
different TV channels advertise their news and low price. Besides that, use from
social media and different program also advertising their products it is clear that, use
of the internet advertising more beneficial and cheaper. Apart from this, Korzinka.uz
also attends a number of trade shows and events during the year in order to facilitate
business and private selling of a large sales team in order to increase its presence in
retail stores.
Customer-driven Marketing Strategy
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This is a campaign approach that responds to the needs and desires of consumers. A
customer-driven marketing campaign is divided into four stages. Market
segmentation, market targeting, market differentiation, and business positioning are
examples of these strategies. Korzinka's ability to develop effective marketing
combination strategies is based on its knowledge of its target market. If the
organization knows the desires, preferences, and attitudes of its clients, the plans
would be more accurate. The thorough examination leads to the discovery of various
consumer profiles or divisions.
Segmentation
According to D. Chandra Bose's research, market segmentation "Principle of
Management and Administration," is characterized as segmentation of a business
based on the typical characteristics of consumers. Marketing segmentation is the
practice of dividing customers into classes based on shared habits and preferences.
Demographic segmentation it's the most basic and broad segmentation type. It divides
people into broad categories based on their age, gender, religious, geographic area,
and profession. For instance, of religion Korzinka.uz did not sell haram food or non
halal food such as, pork, wine, and others. Cause of Uzbekistan is Muslim country,
and they know if they sell haram food they lose most of the clients.
Behavioural segmentation is divided into classes depending on their experience,
beliefs, preferences, or responses to a commodity in behavioural segmentation. If
Korzinka.uz chooses for behavioural segmentation, customers can be divided into
groups depending on their buying preferences, such as frequency of use, incentives
sought, use occasions, and brand loyalty. They concentrate on the, "A day out"
category, which refers to people who love shopping and are willing to spend more
time searching in a store.
Targeting
In reference to Micheal Armstrong's book "A Handbook of Management
Techniques." Market targeting is the method of formulating market coverage
strategies segments the market that offers the best prospects for the enterprise,
according to "A Detailed Guide to Achieving Management Success & Better Decision
Making."The economic competitiveness and growth potential of defined segments can
be evaluated to target them. Korzinka.uz will choose one or more segments based on
the characteristics of the segments as well as the company's capital, skills, and growth
goals.
Differentiation and Positioning
Its time for the company to choose a value proposition by differentiating and
positioning their brands after segmenting the market and deciding which segment they
want to represent. Apart from that, their offerings must be distinguished from those of
other supermarkets, both in terms of consistency and price. Korzinka.uz also needs to
put their business well in the eyes of consumers so that they remember Korzinka.uz
and the qualities it provides. Brand placement involves dealing with individual
components of the advertisement mix in order to effectively reach the intended
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customer demographic. Korzinka.uz uses a number of positioning strategies to attract
the target audience. By differentiating products, services, quality, picture, individuals,
or creativity, Korzinka.uz will gain a competitive advantage.
Conclusion
This report has analyzed micro environment, macro environment, SWOT analysis,
customer analysis and other aspects. Executives must decide whether to compete on
low-cost features or more expensive features that differentiate their enterprise from
competitors as a source of competitive advantage. Furthermore, concentrating on a
limited or large segment helps companies to have a greater view of their customers.
As a result of these choices, Korzinka.uz will follow cost leadership distinction,
concentrated cost leadership, or concentrated differentiation strategies. Another
suitable option market strategy is highest quality, which happens as businesses offer
relatively low prices while maintaining essential value-added functionality of their
goods or services. By not offering innovative features or affordable pricing, every
company will become "stuck in the centre."
Recommendation
Korzinka.uz has a huge market potential in the supermarket industry. Korzinka.uz can
increase revenue and compete effectively with its rivals by making wise decisions and
using practical marketing methods. For Korzinka.uz here are a few ideas.
Korzinka.uz could improve the environment of their store by redesigning the
architecture and, if necessary, separating the products into categories.
Adding additional benefits, such as a coupon, a discount, or advertisement,
will improve the value of money and, as a result, increase customer loyalty.
More product assortment will improve Korzinka.uz positive reputation and
increase the quality of its branches.
Provide excellent employee care, with clear explanations to customers.
Provide with new technology for instance, cashier service itself when a store
many customer it time consuming customer do not spent more time near
cashier.
Reference
1. BAINES, P., FILL, C. AND PAGE, K.Essentials of marketingBaines, P., Fill, C. and
Page, K., 2013. Essentials of marketing. 1st ed. Oxford: Oxford Univ. Press, pp.201,
234
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