Comprehensive Marketing Plan for SPAR Supermarkets in Oman

This report presents a marketing plan for SPAR Supermarkets, focusing on increasing sales revenues and customer satisfaction, particularly in the Oman market. It details SPAR's corporate profile, current marketing strategies, and key objectives. The plan includes a market analysis using Porter's Five Forces, an examination of customer behavior, and a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. Market segmentation strategies, marketing objectives, and a proposed marketing mix encompassing price, promotion, product, and place are recommended. The plan also outlines evaluation and control mechanisms, along with a budget. SPAR aims to leverage its reputation for fresh products and customer value while addressing challenges such as competition and technological adoption. This document is available on Desklib, where students can find a wealth of resources, including past papers and solved assignments.

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MARKETING PLAN FOR SPAR SUPERMARKETS
Name of student
Name of institution
Name of instructor
Course code
Date

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Executive summary
SPAR supermarkets started operations more than 80 years ago and has become the world’s
largest food retailer with more than 12,000 employees across 40 countries. The supermarket plans
to open 21 additional stores in Oman by the end of 2018. SPAR supermarket has signed a deal
with Khimji Mart to convert and sell SPAR branded products. However, SPAR supermarket will
provide managerial and operational expertise to Khimji to ensure the preservation of high-quality
customer service.
SPAR supermarkets operates using neighborhood stores, neighborhood supermarkets, and local
supermarkets. However, SPAR will operate supermarkets and neighborhood stores in the Oman
market. SPAR supermarket provides value to customers by selling fresh products sourced with
quality and excellence. The outlet ensures that the customers get similar shopping standards and
the same price for products.
SPAR supermarket intends to engage market consultants to increase the customer satisfaction and
sales over the next three years. The supermarket could achieve the goal by adopting a marketing
mix that includes pricing, promotion, place and product. Additionally, the supermarket could use
segmentation such as ease of supermarket convenience approach.

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Table of Contents
Executive summary......................................................................................................................................2
1. Introduction..............................................................................................................................................4
1.1 Assignment task.................................................................................................................................4
1.2 SPAR supermarket corporate profile..................................................................................................4
1.3 The current marketing strategy...........................................................................................................4
1.4 Objectives...........................................................................................................................................4
1.5 The task approach...............................................................................................................................5
2. The market analysis..................................................................................................................................5
2.1 Porter five analysis.............................................................................................................................5
2.1.1 Bargaining power of the suppliers...............................................................................................5
2.1.2 Bargaining power of the buyers...................................................................................................5
2.1.3 The threat of new entrants...........................................................................................................6
2.1.4 Threat of competitors...................................................................................................................6
2.1.5 Threat of substitutes.....................................................................................................................6
3. Customer behavior...........................................................................................................................7
4 SWOT analysis......................................................................................................................................7
4.1 Strength..........................................................................................................................................7
4.2 Weaknesses....................................................................................................................................7
4.3 Opportunity....................................................................................................................................8
4.4 Threats............................................................................................................................................8
5. Market Segmentation...............................................................................................................................8
6. Marketing objectives................................................................................................................................9
7. Market mix recommendations..................................................................................................................9
8. Evaluation and controls..........................................................................................................................10
9. Budget....................................................................................................................................................12
9.1 Explanation.......................................................................................................................................13

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10. Conclusion............................................................................................................................................13
Bibliography...............................................................................................................................................14

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1. Introduction
1.1 Assignment task
The assignment focusses on SPAR supermarket, which operates within the Asian continent. The
report touches on the supermarket’s objective of increasing sales revenues and customer
satisfaction. Furthermore, the report identifies the strategies that SPAR supermarket will apply to
achieve the objectives. The strategies include applying a marketing mix consisting of promotion,
place, products and price.
1.2 SPAR supermarket corporate profile
SPAR supermarket operates in various countries within the Asian continent. The supermarket
started more than 80 years ago and has employed more than 12,000 employees in the 40 stores
around the globe. The supermarket has a reputation for providing great value products, which
include fresh foods.
1.3 The current marketing strategy
SPAR has the objective of increasing sales and customer satisfaction over the next three years.
As a result, the supermarket has opened up stores and signed deals with Khimji Mart to rebrand
and sell SPAR products. The move will boost the sales and customer satisfaction to the Oman
customers.
1.4 Objectives
The report aims at understanding the marketing activities undertaken by SPAR supermarket to
increase customer satisfaction and sales revenues. Additionally, the report will give
recommendations on the best market mix and approach to adopt when achieving the goals.
Furthermore, the report should help SPAR supermarket reach the objectives of increasing both
customer satisfaction and revenues.

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1.5 The task approach
I completed the task by undertaking deep research on SPAR supermarket from primary and
secondary sources. The primary sources included visiting various SPAR outlets to identify the
operations and marketing approaches. On the other hand, the secondary sources include previous
researches and online sources.
2. The market analysis
2.1 Porter five analysis
2.1.1 Bargaining power of the suppliers
SPAR supermarkets realizes that the ability of the suppliers to increase the prices at will could
result in a reduction of the margins. The supermarket has developed a strategy, which enables
buying from many suppliers. The multi-sourcing of supplies from many suppliers allows SPAR
supermarkets to compare prices and buy the resources that result in high margins (University,
2013).
2.1.2 Bargaining power of the buyers
SPAR supermarkets ensures that the customers have the least bargaining power by providing new
products and increasing the market share (Anon., 2018). The supermarket has developed a
reputation of developing new product combinations with discounts. The discounted products
increase customer loyalty thus maintain a large market share.
2.1.3 The threat of new entrants
SPAR supermarkets operates in the retail sector, which often experiences new players (Rebecca,
2018). The new entrants come with new products and technology which threatens SPAR
supermarkets operations. Moreover, the new players reduce the market share enjoyed by the
supermarket. Therefore, SPAR supermarkets responds to the threat by offering improved services
such as fresh goods at affordable prices.

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2.1.4 Threat of competitors
The retail industry experiences stiff competition due to a large number of players (Olsen, 2018).
SPAR supermarkets faces the competition from other big industry players such as Walmart who
have more resources to serve the customers better. The competition results in a reduction of the
market size, which requires SPAR supermarkets to offer better services that meet customer
expectations.
2.1.5 Threat of substitutes
SPAR supermarkets faces the threat of substitution since other retailers sell similar products
(Pasteur, 2018). Therefore, the customers end up choosing competitor products leaving SPAR
supermarkets with few sales. The supermarket should respond by providing superior products
that the competitors cannot match.
PORTER ANALYSIS EXPLANATION
Bargaining power of suppliers The supermarket has established multiple
sourcing points to reduce the power of
suppliers
Bargaining power of buyers The supermarket develops new product
combinations to reduce the customer
bargaining power.
Threat of new entrants New players who introduce new technology
Threat of competitors Large well established retail outlets
Threat of substitutes Similar retailers of fresh products

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3. Customer behavior
The customers who buy SPAR supermarkets products portray a liking for fresh products that sell
at affordable prices. The customers heavily consume fresh foods such as vegetables and animal
products. Therefore, the supermarket should adequately stock the products to prevent shortages.
Furthermore, the customers like spending less, which calls for the supermarket to offer products
at high-discounts (Mary, 2018).
4 SWOT analysis
4.1 Strength
The supermarket’s strength lies in the ability to satisfy customers with fresh products at
affordable prices (Pasteur, 2018). The supermarket has opened several branches around the globe,
which increase the revenues and customer reach. The high-revenues enable the supermarket to
invest in new technology and employ experienced employees who increase the customer
satisfaction.
4.2 Weaknesses
The supermarket has not properly adopted new technology in delivering customer services
(Pasteur, 2018). Therefore, the supermarket fails to meet customer expectations, which has
resulted in losing market share to the competitors. Additionally, the supermarket has failed to
engage in research and development, which has caused lagging behind in terms of new
inventions.
4.3 Opportunity
The supermarket has the opportunity of exploiting the new arising market of fresh food shoppers
(Sidorchuk, 2015). The current health trends require people to consume fresh foods. Therefore,

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more customers shop for fresh vegetables and animal products. Consequently, SPAR
supermarkets has the opportunity of increasing the sales units and revenues.
4.4 Threats
The retail market poses several threats to the supermarket such as a high number of new entrants
(Gretzky, 2018). The entrants take up the market share by using new technology and supplying
new products. Therefore, SPAR supermarkets could face a reduction in the number of customers
due to the many players in the industry.
SWOT ANALYSIS EXPLANATION
Strength Ability to satisfy customers with fresh
products
Weaknesses Failure to adopt new technology
Opportunity Emerging markets for fresh products.
Threats High number of entrants.
5. Market Segmentation
SPAR supermarkets has currently segmented the market according to the income earned (Cole-
Ingait, 2018). The customer income levels rank from low, middle and high-income earners. The
middle and high income earning customers have a higher concern for eating and staying healthy.
Therefore, most of the customers in this group by the fresh foods from the supermarket.
However, the market has other segmentations that the supermarket could use to improve
customer satisfaction and increase the sales revenues (Perks, 2017). The supermarket could use

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the ease of supermarket convenience approach to segment the market. The approach focusses on
the customers who like shopping in supermarkets not far from the place of residences. The
customers also like supermarkets with proper arrangement and facilities that allow quick and easy
shopping. Therefore, SPAR supermarket should open up more stores for customers to shop.
Additionally, the stores should ensure that the shelves accommodate adequate fresh food to meet
the customer demand (Cole-Ingait, 2018).
6. Marketing objectives
SPAR supermarkets’ marketing goals include achieving better customer satisfaction and
increasing the sales for the next three years. The supermarket will achieve the objectives by
engaging in marketing activities such as media advertisements and posters. Furthermore, the
supermarket intends to increase the sales and customer satisfaction by opening up new stores and
increasing the capacity of the existing stores (Wasmuht, 2018).
7. Market mix recommendations
SPAR supermarkets should consider a market mix that include price, promotion, products and
place (Whalley, 2010). The price aspect will include selling fresh products at competitively low
prices. The pricing will include giving discounts to the customers and offering more quantity
produce at affordable prices. Furthermore, the pricing approach will include gathering market
information on the prices charged by other sellers. The supermarket will sell at lower prices,
which attract more customers and result in added sales. Additionally, the customers will buy
products affordably leading to an overall satisfaction (Olsen, 2018).
SPAR supermarket should focus on a product range of fresh foods that include both farm and
animal products. The combination will enable the supermarket to avail more products under the
same roof (Mary, 2018). The supermarket should ensure that all the stores have adequate capacity

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of products to satisfy the customers. The suppliers will have to meet the product quality standards
set by the supermarket management. The fresh food products will satisfy the customers and
equally advance the goal of leading the market with fresh foods (Gretzky, 2018).
Furthermore the place market mix should include opening more regional and neighborhood stores
to allow the customers to access the products quickly (University, 2013). The supermarket should
target large markets such as Europe, Asia and also consider Africa with large untapped market.
The opening of many retail outlets will assist the supermarket to satisfy more customers and
increase the sales revenues.
Moreover, the promotion aspect will include engaging in marketing activities in social media and
television (Mette, 2014). The social media adverts reach a huge market within a short time thus
becoming the best marketing option. The promotion should focus on increasing customer
awareness about the products offered at the supermarket.
8. Evaluation and controls
The supermarket will evaluate the success of the project by checking various factors such as
revenues, sales, market position and market share (University, 2013). The use of key performance
indicators will assist in evaluating the success of the project. Additionally, the supermarket will
appoint a team of internal and external experts to assist in the evaluation practice. The
supermarket will evaluate using the finances by checking whether the profits have increased. The
activities undertaken by supermarket aim at increasing the sale units and revenue. Therefore, the
supermarket should check whether the profits have increased during the period. Additionally, the
supermarket should compare the current period revenues to the previous year revenues to
establish whether an incremental pattern exists (Pyle, 2018). The increased revenues show an
increase in the number of customers visiting the supermarket to buy products.

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Furthermore, the supermarket will check whether the sale units have increased over the period
(Cole-Ingait, 2018). An increase sales shows the success of the marketing activities. SPAR
supermarkets should record more sales after engaging in the marketing activities. Therefore, the
evaluating team should check the previous year sales and compare to the current sales to establish
an incremental pattern. The increase in sales identifies customer satisfaction which results in
repeated buys.
On the other hand, SPAR supermarkets should have a higher market position in the market
(Sidorchuk, 2015). A high position in the market means the supermarket having more loyal
customers compared to the competitors. The high position will enable the supermarket to develop
new customers and retain the existing. The evaluation happens by collecting data from the
customers on issues such as the best supermarket for fresh produce.
The evaluating team should also check for increases in the market share during the period (Perks,
2017). An increase in the market share includes having more customers and selling more
products. Therefore, the evaluation can happen by checking the sales data. An incremental
pattern shows the successful achievement of the set objectives. The supermarket should directly
contact the customers to identify the top choice shopping supermarket for fresh produce
(Rebecca, 2018). A vote by a large number shows that the supermarket has succeeded in meeting
the set objectives.
9. Budget
MARKETING MIX COST (000) $
Promotion