Critically Discussing Supermarket Retailers and Market Needs Analysis

This report critically discusses how supermarket retailers, such as Marks and Spencer and Aldi, meet market needs. It emphasizes the importance of market research in understanding customer wants and producing goods accordingly. The report analyzes assortment planning, which involves determining the product range, depth, and volume to offer. It explores the significance of own brand image and efficient supply chain operations in contributing to a retailer's success. The report highlights the role of both online and physical markets in reaching customers and expanding services. It also covers the use of effective retail strategies, including identifying target markets, evaluating customer loyalty, and expanding through online channels to meet the needs of a large market size. The report further examines the benefits of assortment planning, brand image, and supply chain operations. It discusses the importance of factors such as shelf space, product pricing, and vendor classification to influence customer purchase decisions, enhance sales, and maximize profits. The report concludes that retailers must understand customer needs, improve marketing and promotion, and provide excellent customer service to achieve success.

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Purchasing and Supply Chain

Critically discuss how supermarket retailers meet the needs of the market. Evaluate features of
their assortment planning, own brand and supply chain operations that contribute to their
success.
Market is considered as the place of gathering where buying and selling of products or
services are being done. It is a open place where businesses meet the potential customers and
identify their needs and wants so that sales and profit margin could be raised. In the present
study, it discusses the supermarket retailers such as Marks and Spencer and Aldi in order to meet
the needs of the market (Alon, Jaffe and Vianelli, 2012). Firm carry out market research in order
to assess the wants of customers and then produce the goods accordingly so that satisfaction can
be attained. Report also identifies that assortment planning is considered as the process of
determining that what and how much firm needs to carry within merchandise category. However,
preparing a assortment plan is stated as the trade-off between the volume and depth of products
that a retailer aims to carry. Thus, it possess varied features of assortment planning, brand image
and supply chain operations in order to contribute to firm’s success (Amatulli and Guido, 2012).
It can be stated that there are different types of market which are present such as online
and physical that helps businesses to sell their merchandise. Both the markets are used by firm in
order to sell products and expand their services so that sales and profit margin could be attained.
For instance, both Marks and Spencer and Aldi aims to carry out effective market research in
order to identify the needs of market and then provide them particular goods or services so that
sales margin could be increased (Ashworth, 2012). It can be done through carrying out market
survey and selecting a group of respondents from universe and obtaining their responses
regarding their needs of particular merchandise, which supermarket retailers they choose and
many more. It helps supermarket retailers Marks and Spencer and Aldi to identify the needs and
wants of buyers and provides them products at competitive prices. Thus, it raises customer base
and enhance sales of firm in market (Gilbert, 2003).
However, it can be stated that supermarket play a significant role in grocery and fashion
shopping as almost all the shoppers tend to buy products from supermarket. Therefore, it is
essential for supermarket retailers to identify the needs and wants of buyers so that appropriate
quality goods could be sold to clients and attains satisfaction. Such convenience stores identify
the attitude and preferences of buyers and provide them high quality products which are not sold
by other similar retailers (Glanz, Bader and Iyer, 2012). Thus, it is the main reason of their

success and it helps them to enhance their market share and size. However, through research it
has also been noticed that shoppers are not homogenous as they possess different needs and
attitudes to purchase products or services. Therefore, it is essential for them to provide low
prices, best quality products so that market share of Marks and Spencer and Aldi could be
enhanced (Hollensen, 2015).
Further, it can be assessed that supermarket adopts effective tactic and action plan in
order to identify the needs and attitude of customers wants to purchase products. Therefore, first
of all business needs to identify their target market upon which they are required to build a
sustainable competitive advantage so that success can be attained (Kinnucan and Zhang, 2015).
Through adopting effective retail strategy it would help Marks and Spncer and Aldi to identify
its specific customer segment and thus design the product or service accordingly in order to
maintain the market share similarly over a long time period. Business also evaluates the loyalty
of customers with the particular brand and then introduces different schemes and offers that also
decide the way how supermarket meet the needs of market. In order to meet the needs of large
market size, supermarket retailers decide to expand its operations through entering into online
business (Kotler and et, al., 2010). Thus, it is one of the major expansions as currently people are
moving towards digitalization and therefore, they identify the needs of market and then provide
them specific product or service through online channels so that sales and profit margin could be
raised. However, according to the convenience of consumers, business operates both online as
well as physical stores so that sales could be increased. However, in order to attain success it is
essential for supermarket to identify the needs of market and then provide them particular
products or services so that success can be attained (Terpstra, Foley and Sarathy, 2012).
Another concept that is suitable for satisfying the needs of market is that supermarket
retailers aim to carry out assortment planning, own brand and supply chain operations so that
they can evaluate the needs of market and fulfill the same. Marks and Spencer and Aldi aim to
carry out effective retail strategy in order to assess the expectations of customers and then
promote the products or services among them so that satisfaction could be increased (Varley,
2014). However, it is essential for retail businesses to choose potential customer base in terms of
planning the range of merchandise prefer by consumers and then carry out trading of that
products or services so that tough competition could be given to buyers. On contrary, it is
essential for supermarket retailers to maintain their own brand image among target market and

carry out effective supply chain operations so that it can help in contributing to firm’s success
(Wali, Wright and Reynolds, 2014).
Assortment planning is the process which determines the number of product being placed
in merchandise category, group or department in relation to retailers so that best results can be
attained. It is essential for Marks and Spencer and Aldi to identify that how much should be
carried out in a merchandise category. For instance, planning of keeping stock helps in assessing
the in-depth and breadth of products that a retailers wishes to carry so that sales can be enlarged
(Zimmermann, 2013). It is essential for supermarket retailers to develop appropriate assortment
plan so that products or services could be placed accordingly. All such decisions helps in
influencing buyers to purchase products or service and raise the profit margin of firm. Marks and
Spencer and Aldi aim to carry prepare assortment plan related to shelf space, price of product,
vendor classification, sub dividing into sections etc (Hernon and Altman, 2010). All such
planning helps consumers to make purchase decision and therefore, it enhance the sales and
profit margin. Both the businesses also aim to develop appropriate assortment planning in order
to select product and plan so that sales and profit could be maximize. It also considers the
financial objectives and seasonality of products so that overall success can be attained.
However, Marks and Spencer and Aldi aims to obtain effective output of assortment
planning that involves initial purchase quantities and the receipt of flow across time so that best
allocation of resources could be done (Hernon and Whitman, 2001). It also depends upon
identifying the product category and maintaining the stock of the same as per the needs of
customers in order to attain success. Main purpose of M&S and Aldi to carry out assortment
planning is to identify the objective of developing product mix so that main goal of determining
inventory level could be maintained. Further, it is essential for M&S and Aldi to carry out
effective brand image and supply chain operations in relation to improve business performance.
Therefore, it is essential for firm to prepare appropriate planning and improve supply chain
operations in market so that overall success can be attained (Räisänen, 2003). Main feature of
assortment planning is that it simplifies the buying activities and manages the sells s that better
results can be attained. Assortment plan also involves list of product types stocked at any one
time such as price level, styling, color, packaging etc. It is also essential for M&S and Aldi to
plan its store size, shelf and stairs so that appropriate place could be provided to place the
product and thus raise the performance of firm in market.

Also, it is essential for supermarket retailers to identify the needs of target market and
thus provide them particular products or services in terms of enhancing the sales and profitability
of firm. Through assessing the buying decisions it helps in influencing customers to purchase the
specific brand and thus influence buyers to make purchase decision and supply chain in order to
attain overall success (Scheer and Nüttgens, 2000). For instance, it is essential for M&S and Aldi
to assess its own brand and therefore it helps in providing quality products at competitive prices
so that best results can be attained. Through identifying the needs and wants of market and meet
the same helps in fulfilling the objectives. Retail organization uses effective marketing strategies
which help in identifying the needs of customers and then provide them best quality merchandise
so that their needs could be met effectively. However, it is essential for enterprise to promote
their business through using digital technology such as social media so that large base of buyers
could be attracted. Therefore, it is essential for firm to enhance the market size and raise their
performance in terms of meeting the needs of buyers (Burt, 2002).
However, stated that M&S and Aldi requires assessing the needs of market and carrying
out effective tactic so that expectations could be fulfilled. Therefore, it is essential for
supermarket to provide free samples and promotion which results in identifying the usefulness of
product and therefore, makes it available for consumers to purchase the same. Also, supermarket
retailer aims to develop its own supply chain operations and reach the potential clients at a faster
rate. Thus, it helps them to assess the main areas which affect the success rate such as higher
profitability and sales (Alon, Jaffe and Vianelli, 2012).
It can be evaluated that assortment planning, own brand and supply chain operations
helps in contributing to their success. Business is required to identify the purchasing decision,
distribution system, inventory management and customer service etc. All such factors are
significant and helps retail supermarket to attain desired success. Marketing team of firm needs
to assess the buying decision of firm and then prepare the product accordingly which helps them
to satisfy their needs and attain high profit margin (Amatulli and Guido, 2012). All these factors
helps retail supermarket to identify the purchase decision making of customers so that
appropriate quality merchandise could be delivered to them in order to satisfy their needs. Also,
it is essential for firm to improve its customer service and thus render best quality goods to
sustain them within firm for long term. Through market research it helps in evaluating the needs

of the market and produce similar retail products that is different from competitors and thus
contribute to their success.
It can be concluded from the study that supermarket retailers are required to identify the
needs of target market and then prepare the products and services so that best results can be
attained. However, it is essential for firm to improve marketing and promotion activities and
carry out effective customer service to attain overall success. Also, assortment planning is one of
the crucial decision that needs to be taken by the management of Marks and Spencer and Aldi in
regard to plan the product, price, and space for the merchandise so that sales and profit margin
could be raised. Further, carrying out effective market research and assessing the needs and
wants of customers helps in influencing them to purchase the goods and expand the business
operations in market. Also enhancing the brand image and supply chain operations assists in
influencing business functions so that performance of firm could be improved in market. Hence,
retailers carry out effective market tactics and strategies so that they can meet the needs of target
market and contribute to their success.

REFERENCES
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