Developing a Marketing Strategy and Plan for Supabarn Supermarket

This report presents a comprehensive marketing plan designed for Supabarn, an Australian supermarket chain. It begins with an executive summary outlining the company's challenges and opportunities, followed by a detailed situation analysis, including political, economic, socio-cultural, technological, and legal forces impacting the business. The report conducts a thorough competitor analysis using Porter's Five Forces, assesses the target market, and provides a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. It then proposes a marketing mix strategy, covering product, price, place, and promotion, and concludes with implementation and evaluation recommendations to guide Supabarn's expansion and enhance its market position. The report highlights the importance of adapting to changing consumer trends and the competitive landscape, offering insights into how Supabarn can effectively compete with larger supermarket chains.

Running head: MARKETING STRATEGY AND PLAN
Executive Summary
This study is aimed at designing a marketing plan for Supabarn which has come to the existence
in 1991; however, could not expand beyond Canberra and New South Wales. The paper
identifies that the company does not make significant investments over infrastructural changes.
This is why the paper recommends that Supabarn should expand to other cities in Australia. The
paper does the external market environment analysis and also the industry analysis. The paper
also highlights the customer analysis along with it SWOT analysis is also being given. These are
done to collect the information and effectively design the marketing plan for Supabarn.

1MARKETING STRATEGY AND PLAN
Table of Contents
Introduction...........................................................................................................................................2
Situation analysis...................................................................................................................................2
SWOT analysis.......................................................................................................................................6
Target market........................................................................................................................................8
Positioning.............................................................................................................................................9
Marketing mix strategy..........................................................................................................................9
Implementation and Evaluation..........................................................................................................10
References...........................................................................................................................................12

2MARKETING STRATEGY AND PLAN
Introduction
Supabarn is an Australian based supermarket chain headquartered in Canberra. The foundation
of the company was laid in the year 1991. The company is not as bigger as other supermarket
giants in Australia such as Coles and Woolworths; however, Supabarn has significant existence in
few parts of Australia (Supabarn.com.au, 2018). It is one of the brick & mortar formats of stores
that uses a more or less the same strategy for departmentalization such as administration,
liquor, service and others (Supabarn.com.au, 2018). The number of employees in this company is
more than 800 (Supabarn.com.au, 2018). The first store of Supabarn had come up in 1991 in
Canberra City which had closed its door in 2016 (Supabarn.com.au, 2018). According to the
suppliers, the marketing strategies of Supabarn is hampering its growth and causing problems
for the company in keeping a race with giant companies such as Coles and Woolworths.
Suppliers have found Supabarn as highly concerned for the quality of products and pricing
strategies; however, it has not been able to influence the family, quality and community as being
done by Coles, Woolworths and Aldi (Supabarn.com.au, 2018). Additionally, the company also
fall behind to its competitors in terms of investments in infrastructural changes and the strategic
plans for ‘out of stock’ issue.
Situation analysis
Political forces
The political factors in Australia largely influence the business of Supabarn. The duopoly of Coles
and Woolworths is vastly popular and their dominance in the supermarket industry has actually
prevented smaller retailers from being into the competition. One of such factors is the recent
announcement made by the Australian Federal Government on the competition policy. As per
the policy, the dominance of duopoly will no longer prevail and will ease out ways for others as
well (Austrade.gov.au, 2018). To support the policy, the government is also allowing the
potential retailers, the attractive land spaces for stores, approving their infrastructural
investments and supporting their market expansions. The supermarket industry which at once
was challenging for others has now gone through a radical change. Consequently, the change
can be evidently observed in the incrementing success of Aldi in the Australian supermarket
industry. The German based retailer with its innovative supply chain strategies and the cost-
effective business model is continually creating worries for giants such as Woolworths and Coles
(Alley, Bentley & James, 2014). It means that the changed political factors can be supportive to

3MARKETING STRATEGY AND PLAN
the growth of Supabarn if it works efficiently on its marketing strategies.
Economic forces
The tough economic condition in Australia has benefitted the supermarket industry. The
economic conditions have encouraged people for preferring to eat at home than by going
outside for it. Additionally, customers could not resist their temptation from purchasing at the
supermarket stores as they now have the incremented desires to cut on their household costs.
They are concerned with the rising utility bills and childcare costs. In the highlighted
circumstances, the supermarket stores as such the Coles are highly preferred for their cheaper
pricing strategies (Wardle & Chang, 2015). The rising threats from Aldi have forced the giant
supermarket brands Woolworths and Coles to consider a reduction in prices and offer customers
the competitive prices (Wardle & Chang, 2015). Supermarket giants may face the challenge in
maintaining its competency in the pricing strategies as the energy costs and the input costs are
climbing. Despite the fact, suppliers of giant supermarket brands believe that it is very difficult to
increase the prices to compensate the incremented costs as the customers of Coles will not
accept it (Zulqarnain, Zafar & Shahzad, 2015).
Socio-cultural forces
Few of the consumer trends in the Australian supermarket industry are a matter of concern for
Supabarn. Increasing demands for private label products are one of those trends. Such products
are much cheaper than the branded products. Hence, Australians have shown an inclining trend
for such products which is also justified considering the challenging economic conditions. This is
also the reason why Aldi is ahead to Coles in terms of rate of sales (Glynn & Widjaja, 2015).
Shopping online is another trend which is a threat to Supabarn as it does not have a competitive
platform like Amazon has. The platform is still underdeveloped which means it has ample of
opportunities for e-commerce service providers like Amazon (Thananuraksakul, 2018). Buying
the fresh grocery items is growing in demand due to the rising awareness of environmental
threats. The coverage on environmental facts on the various media resources like Newspapers
and the News Channels has produced the ample of accessible information resources. Hence,
customers are now getting educated on environmental facts which are why it is important that
Supabarn is able to offer customers the fresh items (Vu, Phan & Cao, 2015).
Technological forces
The Australians are yet to get the opportunity to purchase through Amazon as it is still to initiate
its business in the country. However, it is also notable that customers, once they shop through
Amazon they get to know the range of products and the shopping experience offered to them.

4MARKETING STRATEGY AND PLAN
The range of products and the shopping experience on Amazon play an utmost role in
influencing the perception of customers (Pappas et al., 2016). On the other hand, the
supermarket giants have struggled to flourish their online shopping platforms. They have failed
to improvise the online services due to low investments in the system. This means supermarket
brands are not in a place to put any competition to Amazon. Hence, there is a need for
technological advancement in the online shopping platforms, so that, Coles is equally
competitive in terms of providing the online shopping experience to customers (Pappas et al.,
2016).
Legal forces
There are certain legal restrictions which may be the factors of worry for Coles. The Federal
Government of Australia has made significant changes to the competition laws. The new
competition law is against the dominance of duopoly of Coles and Woolworths. This would
rather allow others such as Aldi to capitalize the advantages from (Austrade.gov.au, 2018).
Additionally, the quality of products is also strictly monitored as in some cases customers are
misled by premium features sold to them that never exist. In addition to it, the innovation fails
when it does not maintain the integrity issue (Austrade.gov.au, 2018). The changed legal
landscape may certainly prove to be a boost for Supabarn. The company had struggled due to
the duopoly dominance of Woolworths and Coles; however, the changed competition policies
will favor smaller retailers like Supabarn.
Competitor analysis
Bargaining power of suppliers (Moderate): Supabarn claims to work with suppliers that are
inaccessible to Coles and Woolworths. It means that the company has suppliers who provide the
company the freshly produced goods. The company claims that they are unmatchable in terms
of fresh products. However, the suppliers of supermarket giants may be inaccessible to
Supabarn. It means that smaller and larger supermarket brands have been able to fulfill their
requirements from their selected list of suppliers.
Bargaining power of customers (High): The changing trends of consumer behavior such as
shopping online and finding a one place solution for all are the threats for supermarket stores in
Australia (Nguyen, de Leeuw & Dullaert, 2018). The situation is challenging for giant companies
like Cols and Woolworths because both have struggled to innovate with their online presence.
This is even more challenging to smaller retailers such as Supabarn because the infrastructural
changes required to respond to the technological disruption may not be feasible with the
resource capabilities of
Threat of new entrants (Moderate): The threat of new entry is higher due to the amendments to
the competition laws. Such changes will not only support a few of new ventures but will also

5MARKETING STRATEGY AND PLAN
provide the opportunities to groom with possibilities for infrastructural development,
technological advancement, use of effective business models and others. All these facts just
support that there are supportive environments for a new entrance. However, the level of
threats from new entrants will depend on how those new ventures execute the operation and
strategies the plans. There are a number of smaller stores and bigger stores as well in Australia
and Supabarn is one of those; however, only a few of such stores had appropriately applied all
the essentials of business. Smaller stores struggle to attract a wider customer base due to the
presence of supermarket giants in the market. The market size for such stores is also very limited
in comparison with the supermarket giants. Hence, the possibilities for a new entrance are
higher; however, sustenance and success as well is quite challenging (Lal, Alvarez & Greenberg,
2014).
Threat of substitute (Moderate): The threat of substitute is high due to the varying shopping
behavior of customers. With convenience being of uttermost significance to customers who are
time-specific and want their required items on just one floor, markets keep on offering a 'one-
stop shop' for the individuals. Convenience stores, for example, 7-Eleven, are a substitute to
stores from a comfort viewpoint; however, the stock capacity and size of such stores are not as
big as Woolworth's, Coles and Aldi grocery stores. Supermarket stores particularly the
convenience stores emphasize on gaining a larger market share of convenience market format
by offering customers the private labels products, providing self-checkouts and positioning the
stores within the accessibility range. This landscape is quite clear and evident which states that
convenience stores are for money rich purchasers and those with busy schedules. However, the
concept is tempered by a fact that supermarket brands offer discounted offers that in some way
affects the footfall in convenience stores (Paul, Sankaranarayanan & Mekoth, 2016). Amazon is
set to enter in Australia which is expected to storm the Australian retail market. This is an
existing substitute for shopping platforms at the global level. Now, this will also be a part of the
Australian retail and grocery market (Paul, Sankaranarayanan & Mekoth, 2016). Hence,
customers will have an easier platform for shopping in the form of Amazon. This may potentially
impact the daily footfall in any format of supermarket stores. Customers in specific the young
population will find this much time-saving and cost-effective than the physical stores.
Industry rivalry (High): it is very intense. The competition was much narrower when the duopoly
of Woolworths and Coles had existed. It is now getting bigger due to a fact that competition laws
have been modified by the Federal Government and that the modified laws are much favorable
to smaller businesses as well. Additionally, Aldi is emerging out as a tough competitor to
Woolworths and Coles. This has also impacted the duopoly of Woolworths and Coles. Amazon is
set to enter the Australian retail market and that will also take the competition to a next level
(Herhausen et al., 2015). These very limited numbers of facts just suggest that industry rivalry in
Australian supermarket industry is getting bigger.
Customer/client analysis

6MARKETING STRATEGY AND PLAN
Smaller stores such as Supabarn are known for attracting customers for its cost-effective offers.
Despite the limited range of products in smaller stores, the concept is favorable to many due to
cheaper products in stores. However, the discounted offers by supermarket giants in specific
Woolworths and Coles have provided a much-organized option to customers. Customers have
the option to select from a range of products in such stores and that to on a much competitive
price. Hence, a tremendous inclination to the concept was its consequence. The behavior was
revolutionized again in the last five years with a cost-effective business model of Aldi. Customers
had the option to get fresh grocery items at a much competitive price. The upcoming entrance of
Amazon in Australia is expected to redefine the experience of shopping. Online shopping is
favorable to customers in particular to Millennials who are the strong users of the internet.
Hence, in a likewise manner, the concept of online purchasing is appealing for a selected range
of customers in Australia (Gorodnichenko & Talavera, 2017). Such disruptions in the form of an
ever-changing style of shopping have kept on piling issues to smaller stores in terms of its
capability to attract a large population of customers. This is indeed necessary for Supabarn that it
attempts to make the strategic changes in its stores to make it much appealing for the target
customers. Additionally, such changes need to be promoted with the effective facilitation of
innovative promotional strategies.
SWOT analysis
Strengths
 Supabarn is able to work with local
producers and the farmers. The fact
which is very rare for giant
supermarket brands like Coles and
Woolworths
 The mentioned facts enhance the
possibility to get the fresh vegetables
and fruits
 Fruits and vegetables may not look
very attractive and can appear ugly as
well; however, these are much
cheaper and tastier
 It also reduces the time span which is
consumed in the transportation of
goods from farmers to the retailers
 As Supabarn offers fresh and quality
fruits and vegetables, customers have
very positive views for the company
Weaknesses
 It has been a long time since the
company had come into the existence;
however, it has not performed fairly in
regards to market expansion
 It is only limited to just a few stores in
Canberra and New South Wales
 The stated concern can be understood
from the success of Aldi which it is
having in Australia. Aldi had entered
the Australian market quite later than
Supabarn despite which Aldi was able
to expand to a much wider market.
Aldi is still expanding. The scale of
operation for Aldi is also much larger
than Supabarn (Theaustralian.com.au,
2018)
 It may be that Supabarn had some
different strategy and that had only

7MARKETING STRATEGY AND PLAN
 Customers find the difference between
shopping in Supabarn which is also the
unique selling point for the company
 The difference is not in the
infrastructural or technological
advancement, it is rather in the
customer service standard and the
quality of products
encouraged the company to remain
confined to just the two centers;
however, there are ample of scopes in
the Australian supermarket industry
and is booming as well
(Ibisworld.com.au, 2018)
Opportunities
 As already stated, Supabarn has ample
of opportunities in the Australian
supermarket industry due to a fact
that the industry is booming and is also
expected to touch new heights
(Ibisworld.com.au, 2018)
 Customers have variety of demands
like they do not just want to shop but,
in fact, want to experience it. This
means that there is a necessity for
infrastructural improvement, the area
where Supabarn had not made
significant investment
 Expansion will be a good idea for the
company provided that, it considers
the infrastructural development to
attract more customers
Threats
 The supermarket giant will always
remain the threats for Supabarn. This
is expected to grow bigger, if Supabarn
plans to expand to other cities of
Australia as well
 Consumer behaviour is always a threat
 A booming online shopping and a
future entry of Amazon in the country
are just an indication of changing
buying behaviour of customers (BBC
News, 2018)
 Supply chain management will also be
the challenge, if Supabarn considers
expanding to other Australian cities.
The challenge will be to maintain the
same USP which is working closely to
farmers and thereby reducing the
transportation duration
Objectives
Mission Statement: “To work closely with local producers & farmers to offer customers the fresh
products and also to support the surrounding community by means of charity works”
Marketing objectives:
 To expand to more cities in Australia

8MARKETING STRATEGY AND PLAN
 To make sufficient infrastructural spending on stores and related operations
 To promote and facilitate the effective marketing strategies
Ensure the marketing objectives are:
To use effective marketing and promotion strategies to produce a lasting
impact on the target audience
To take the benefits from already established reputation of Supabarn in
Canberra and New South Wales
To commence marketing strategies targeted on one location at one time
and observing the responses
To use the feasible marketing & promotion strategies such as point
sales, online advertisement and TV advertisement
To ensure that the marketing plans are effectively commenced within
the agreed time-period with different marketing channels
Target market
Target market for Supabarn will be the kind of customers who are already a part of this group.
The list of target customers will include few modifications also as it is being advised to enter the
other cities in Australia. The focus will be on youth population in specific. They are expectedly
the future customers (Díaz, Gómez & Molina, 2017). Hence, they must be targeted with the
expansion. This is necessary as well because of a fact that Amazon is set to enter Australia and it
is very difficult to compete with the concept. Therefore, it is advisable that the store layout and
the infrastructure are equipped with technologies, so that, youth customers feel valued to visit
the stores. The wait time at the cash counters need to be reduced with effective replacement
such as the suitable technologies. It is advisable also to integrate a few of stores with online
shopping format, so that, customers can shop from home and also by being in stores. They can
either call for a home delivery or pick their orders personally by visiting to stores. The concept
can be a good response to Amazon for a fact that transportation cost on return or undelivered
items will be saved. Customers can return goods by visiting to stores only. Moreover, customers
will be able to observe the goods and make the purchase once they are satisfied only.
Specific
Measurable
Actionable
Reasonable
Timetabled

9MARKETING STRATEGY AND PLAN
Positioning
“To the lovers and aspirants of fresh foods and vegetables, Supabarn is the one destination,
come and experience the difference”
Marketing mix strategy
Product
There will be no such change product wise. However, it is advisable to include the private label
brands also (Kelting, Duhachek & Whitler, 2017). This is now in huge demands. The reason for
the demands is a fact that customers have a variety of options for a single category of product
and that in a different price range. Therefore, customers can pick up the one of their choices
only. Some customers may go with the cheaper one while others with the branded products of
Supabarn. The real benefit of this strategy will be the availability of a wider option which
customers would have in the new stores of Supabarn. This will also allow few reasons for
customers to give preferences to Supabarn over Woolworths and Coles and other supermarket
giants.
Price
The products which Supabarn was offering initially in Canberra and New South Wales should be
continued with its existing strategy for pricing. The recommended private label brands must be
priced in a way that it is as per the standard of supermarket giants such as Woolworths, Coles
and Aldi.
Distribution (place)
The place as already suggested will be the new stores in other cities of Australia. There will be a
few changes in the format of stores. Few modifications will be required while opening new
stores in other cities. Modifications will include like stocking a very limited range of products, so
that, comparatively smaller stores are needed to be introduced. The range of products will be
vegetables, fruits and the private label brands. However, the stocking format will not be in the
line of Woolworths and Coles as both of the brands have bigger stores than the others like Aldi.
A reduced size of the store will help to cut down on the entire cost of production. Additionally,
less number of workers will be required which is another point of saving.

10MARKETING STRATEGY AND PLAN
Promotion
Promotions must be appealing. This can be done through point sales, TV advertisement and
online advertisement. A press release can also be used provided that, good contents are
ensured.
FOR SERVICES ONLY
People
Stores will need people such as floor support executives, sales executives, front office executives,
clerks at the cash counters, operation manager, human resource and the admin executives.
Process
Services will be delivered as per the format of brick & mortar which means customers will get
the products by being personally in physical stores. Moreover, if the suggested online shopping
service is considered, customers will also be able to make the choices and select the products by
being in their homes. The purchased items will be delivered to customers at their homes or they
can also visit stores to collect their items.
Physical evidence
The physical evidence will include the receipts generated at the cash counters and also the
confirmation message while booking through the recommended online platform.
Implementation and Evaluation
The implementation stage will include the execution of different marketing activities like running
ads, TV advertisement, making arrangements for point sales, recruiting or deploying dedicative
team for marketing and also engaging with online channels to commence the online
advertisement (French & Russell-Bennett, 2015).
Evaluation stage is all about analyzing the responses after the implementation of the marketing
plans both with respect to qualitative and quantitative metrics. Quantitative metrics will include
such as analyzing the sales lead numbers, number of customers and the revenue. Qualitative
metrics will be like customer satisfaction (French & Russell-Bennett, 2015).
Recommendations were for new stores in other cities of Australia. This should be considered in
order to make a larger impact on the booming supermarket industry in Australia. The suggested

11MARKETING STRATEGY AND PLAN
marketing strategies are just an indication; Supabarn can edit the plans accordingly to make a
much better impact on it.