MKG701 Marketing Plan: Strategic Analysis of Foodworks Supermarket

This report provides a comprehensive marketing plan for Foodworks Supermarket, an Australian retail chain. It includes an executive summary, a background of the case, and an overview of Foodworks' products and services. The report features a situation analysis, identifying the current market and major segments, along with a financial analysis and an internal marketing analysis using SWOT. It outlines marketing goals, objectives, and strategies, including segmentation, targeting, and positioning (STP). The report also details the implementation of the marketing plan, evaluation and controls, and an operational plan, concluding with key recommendations for Foodworks to enhance its market position and achieve sustainable growth. Desklib provides a platform for students to access this and similar solved assignments.

Running head: MARKETING MANAGEMENT
Marketing Management
Name of the Student
Name of the University
Author note

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Executive Summary
The report has helped in analysing the marketing plan of Foodworks Supermarket that is
based in Australia. Proper internal and external analysis has been done in order to analyse the
issues such as analysing the strengths and weaknesses along with external issues such as
threats and opportunities as well. Furthermore, the marketing mix has been conducted along
with STP analysis of the respective organization to gain more competitive advantage in the
market as well. Lastly, the operational plan has been done in order to understand the time
frame to complete the tasks effectively.

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Table of Contents
Introduction................................................................................................................................3
Background of the Case.............................................................................................................3
Overview of Foodworks Supermarket...................................................................................3
Products and Services............................................................................................................3
Situation Analysis..................................................................................................................4
Identification of current market and major segments........................................................4
Financial Analysis of Foodworks Supermarket.................................................................5
Internal Marketing Analysis of Foodworks Supermarket..........................................................6
Marketing Goals and Objectives................................................................................................8
Marketing Strategy...................................................................................................................10
Segmentation, Targeting and Positioning................................................................................12
Implementation of Marketing Plan..........................................................................................13
Evaluation and Controls...........................................................................................................13
Operation Plan......................................................................................................................13
Conclusion................................................................................................................................14
References................................................................................................................................15

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Introduction
The report throws light on analysis of the marketing plan of Foodworks Supermarket
that is based in Australia. Proper internal and external environment analysis is required to be
identified as to analyse the goals and objectives of the company in an appropriate manner.
Proper marketing plan is required to be identified and analysed to identify the marketing
goals along with the various objectives. The main aim and purpose of the report is to
understand the marketing strategy effectively along with outlining the controls that will be
utilized to monitor the progress and allow for the future review for the implementation
effectively.
Background of the Case
Overview of Foodworks Supermarket
Foodworks is one of the Australian supermarkets that was founded in the year 2004
and it is categorized under the retail sector (Foodworks.com.au, 2018). The respective store
operates in Western Australia and there are more than 223,000 employees who are employed
in the organization as well. The Foodworks supermarket is headquartered in Glen Iris,
Victoria, Australia.
Products and Services
Foodworks is one such supermarket that deals and offers various kind of products and
services to the customers in the market. The main mission and vision of the supermarket is to
listen to the different needs of the customers in the market and satisfy the different
requirements of the customers as well in an effective manner.
There is collection of healthy foods along with different nutritious food for their
customers as well who are their target customers in the entire competitive market. The retail
products of Foodworks include fresh food, home and beverage items along with electronic

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products (Adams, Gabler and Landers 2017). The respective supermarket can gain more
competitive advantage in the future by offering their customers with more products from
different domains along with offering them different offers and discounts as well.
Situation Analysis
Identification of current market and major segments
The major segments of Foodworks Supermarket include the different kind of
offerings that is required to be provided to the different customers (McDONALD 2016). The
current market and major segments of the company are the ones who takes care of the entire
household activities or the ones who are office goers and they can get all the daily required
products under one roof.
The main objectives of Foodworks Supermarket are as follows:
To build customer and store led team and culture
To generate sustainable sales momentum
To become the lean retailer through providing end to end process along with
excellence in the system
To evolve into the drinks business as this will assist them in gaining more customers
in the market
These are the different objectives of the respective supermarket and this can help the
respective supermarket in gaining more competitive advantage in the entire competitive
market. The main focus of the company is to analyse the both external and internal
environment in order to understand the different kinds of competition from other such
companies in the market (Hsu 2016). The strategy that can be adopted by Foodworks is to:
To develop one team
To reduce the costs and improve the entire process

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To refresh the stores
To update the different product offerings
Foodworks Supermarket is required to work hard as to satisfy the different
requirements of the customers. With the current offerings that is provided by them to the
customers, this is essential in nature to improve their offerings and be competent in nature as
well.
Figure 1: Strategy adopted by Foodworks
(Source: Armstrong et al. 2014)
Financial Analysis of Foodworks Supermarket
Marketing Goals, Objectives and Strategies
Foodworks Supermarket is one of the supermarket that has to be properly analyse the
marketing goals, strategies and goals in an effective manner. It is essential in nature to
understand the different kinds of goals and strategies of the other companies as to understand
the threats and weaknesses of the company in the early stage. It has been noticed that proper
ascertainment is required to be done as to perform the internal analysis that is the SWOT
analysis as this will help in solving the issues and converting the threats into the opportunities
as well (Armstrong et al. 2014).

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Marketing Objectives and Goals
To identify the different characteristics of the entire industry wherein Foodworks
operate
To analyse of the business model and critical examination of the different kinds of
features of the products sold by them
To understand the important competencies that can be used by Foodworks that can
help them in increasing their strategic value to ensure the sustained growth
Brief Summary on External Environment
It is essential in nature to conduct the external environment analysis of Foodworks
Supermarket that is based in Australia. This is essential in nature to understand the influence
of the same on the profitability along with achieving the business strategies. The external
environment significantly impacts the business performance of the company and the
accomplishment of the strategic goals are being affected as well (Sheth and Sisodia 2015).
With proper Porter’s Five Forces Model analysis, the different analysis of the
suppliers along with analysis of the competitors has to be done effectively to solve the issues
and this will provide with different strategies to solve such issues appropriately as well. The
Porter’s Five Forces Analysis can assist in understand the different other supermarkets in the
entire industry and solve their issues to gain sustainable competitive advantage in the market
(Strauss and Frost 2016).
Internal Marketing Analysis of Foodworks Supermarket
Proper SWOT analysis is required to be identified as this helps in examining the key
business structure along with the operations of the company as well. SWOT analysis is one
the strategic planning tool that can be utilized by the organization and the managers to create
and perform situational analysis of the company effectively.

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Proper SWOT analysis of Foodworks is required to be done in order to understand
their strengths, weaknesses, opportunities along with threats in an effectual manner. This is
essential in nature as to protect their market share and to be aware of the different threats that
can affect their brand image as well in the entire competitive market. SWOT analysis will
help the respective supermarket in identifying the external and internal factors that will create
huge effect on the entire future performance of the company (Armstrong et al. 2014). The
different threats and opportunities deal with the factors external to the company that includes
the different environmental factors.
Strengths
It helps in providing fresh quality products to the customers
It serves the different products to the customers at affordable prices along with good
quality of the food items as well (Moutinho and Vargas-Sanchez 2018)
Friendly and helpful kind of staffs
Regular kind of upgradation of the store along with proper offerings is maintained
Weaknesses
The product mix is relatively lesser than the other kind of bigger brands
The geographic reach is low in comparison to the other international markets
Opportunities
To properly tap the potential of the market in online shopping business
Proper and accurate kind of tie-ups with other major players as to boost the business
in an effective manner (Pride and Ferrell 2016)
Reaching out to the different new customers in the market through proper advertising
and inclusion of new locations

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Threats
There is increase in competition in the entire market from the unorganized and
experienced players
The cost of operations is high and there is increase in the costs of the inventory
management as well
From the entire SWOT analysis, there are different kind of issues that has been
identified that there are different threats from the other competitors in the market.
Furthermore, it has been noticed that the company needs to use the threats and weaknesses as
their strengths and opportunities that will assist them in gaining competitive advantage in the
entire economy. The SWOT analysis helps in understanding that the company needs to
promote different loyalty programs as this will work on fresh and better variety of the
products in the entire market as well.
Furthermore, it has been noticed that the cost of operations is high and there are
different other competing brands, therefore Foodworks Supermarket has to indulge more into
the e-commerce strategy as this will help in improving the brand image and compete with
other similar brands in the entire competitive economy as well. Lastly, the company named
Foodworks Organization has to provide with better quality offerings by investing more into
online programs and this will assist them in increasing the overall brand awareness
effectively as well.
Marketing Goals and Objectives
Proper marketing goals and objectives is required to be analysed in an effective
manner as this will help in identifying the different kinds of strategies that is required to be
adopted by the company named Foodworks in a proper and appropriate manner (Gronroosn
2016). Proper profitability along with different promotional objectives has to be ascertained

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by the company in an effective manner as this will help the companies in managing their
brand image and share in the entire competitive market. Furthermore, the objectives of the
growth have to be ascertained appropriately to increase the entire size of the business as well
in the competitive market and this will become the objective for survival as well.
The marketing goals and objectives of Foodworks Supermarket are divided into SMART
objectives that is required to be achieved by them appropriately are as follows:
To provide the customers with cheaper products in the market to gain competitive
advantage in the market
To provide best possible services in an effective manner to the different target
customers (Armstrong et al. 2015)
Keep the entire environment within the company that is conflict free
To provide the different customers with high quality products and services for
creating value and this will help in measuring the current business trends as well
To create promotional objectives for the company in order to improve their
profitability in the market and gain more customers effectively (Krishnan and Malick
2015)
From the above objectives, it can be analysed that the different objectives are
achievable in nature and it is specific in nature. The objectives are specific in nature and it is
realistic as well. The different objectives that has been adopted can be achieved by the
respective supermarket within the specific deadline and this will assist them in maintaining
proper value in the entire competitive economy as well (Baker 2014).
SMART
Specific: Building sales and making profit in the entire retail sector in the future as
this will assist them in gaining competitive advantage and increase their brand image as well.

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Measurable: Building the loyalty among the different customers in the entire
organization that will assist them in managing and trying to fulfil the different expectations of
the customers effectively in the near future
Achievable: The pricing strategy will be made in such a manner that this will help
them in providing different offers and discounts to the customers and make them their target
customers in the competitive market as well
Realistic: The Foodworks Supermarket has to compete with different utilisation of
the resources and this will help them in fulfilling their objectives in an effective and
appropriate manner as well. Proper availability of the different resources is essential in nature
as to make more money in the present that can assist them in competing with Walmart or
Woolworths that are the largest supermarket stores in the world.
Timed: Foodworks Supermarket will achieve the different kind of objectives for
fulfilling the demands of the customers and increasing the different segments along with
offerings discounts to the customers within a specific deadline such as about 2.5 years and
this will be specific in nature as well.
Marketing Strategy
Proper marketing strategy is essential to be adopted by organizations such as the 4Ps
of marketing as to analyse the right strategy of marketing and the implementation is done
through effective kind of tactics as well (Holliman and Rowley 2014). The entire marketing
mix has to be analysed in such a manner that this is accordance to the needs of the customers
and this is convenient in nature wherein the demand is high and this includes the different
inclusion of all the components as this will improve the entire objective in an effective
manner as well (Kotler, 2015).

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Similarly, the marketing mix is essential to be performed for Foodworks as to
elaborate on pricing, product, promotion and place strategies effectively.
Product: Foodworks will be focusing more on providing high quality products to
their customers in the market that are easily accessible in nature. It will position themselves
as wholesome and healthy product segment and this will assist them in clearly identifying the
different needs of the customers. Furthermore, the respective supermarket will be offering
high quality foods that are cost effective in nature as well (Kotler, 2015). Foodworks will be
ensuring that the strong system of quality is present in providing and delivering the customers
with such products as this will ensure that the great value is delivered to the customers
appropriately.
Price: The pricing strategy that will be adopted by Foodworks will help them in
monitoring and changing the different services periodically. The supermarket will create
distinctive kind of approaches in broadening the customer base as this will help in resulting in
high revenue that can be earned by them effectively. The innovative kind of pricing strategy
is essential in nature to attract more customers in the market and this will help them in
retaining the customers as well (McDonald and Wilson 2016). The company can offer
different kind of offers along with discounts and the entire focus is creating great value to
their customers effectively.
Place: The different stores of Foodworks Supermarket has to be located in various
locations in such a manner that this will assist them in managing their presence throughout
the country. The central location is essential in nature for the company as to be easily
accessible for the customers effectively. It is necessary for Foodworks Supermarket in
ensuring that they have launched online stores and this is becoming convenient for the
customers as well.