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Discounts2.4 Competitive Positioning and Differentiation

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  • "Discounts2.4 Competitive Positioning and Differentiation – Perceptual Map / Form Chart? Companies like Agora, Red Wave, and Evening Store have been consistently gettingstronger. This is due to the direct import of mix containers from different parts..

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  • "Discounts2.4 Competitive Positioning and Differentiation – Perceptual Map / Form Chart? Companies like Agora, Red Wave, and Evening Store have been consistently gettingstronger. This is due to the direct import of mix containers from different parts of theworld which affords them and edge over the current system.? The size of infrastructure matters because of the varieties made available to thecustomers.? Optimum staff utilization compared to STO? Poor customer care/support is in all the stores compared with the internationalstandards.? Red wave, Agora and VB Mart enjoying better margins due to direct imports andcustomer attraction to lower prices.? Neither of the supermart’s have a food line introduced specialized on healthylifestyle, hence there is a window of opportunity for STO to explore in to this newmarket. Page | 11 2.5 Company and SBU performance analysis2.5.1 Structure, Staff, subsidiariesStructure to organisation will follow a departmental structure, with the existing structure that ispresent with the STR, the author recommends the use of a department – separately new, with theSBU concept. Daft (2014) identifies SBU as a department that is specialised in one specificproduct or a service, that is accountable for revenue and both for the overall productivity that hasto be established by the organisation. It is proposed that the organic tea brand – of STRbrought in as another subsidiary. CEO Organic drinkGeneral STRSBU - Head of Procurement Finance HR departmentbusiness ProcurementHead of chains manager Sales manager QC team MarketingMarketing team manager 2.5.2 Organizational structure departmentsThe above figure does show the differences in terms of the business functions that is proposedwithin STR. The separate structure focuses on specialising staff members to meet and deliver aPage | 12 stronger performance orientation and in building a successful product that does meet theexpected requirements for a business to deliver stronger performance drive. 2.5.3 Overall number of staff overallA total team strength of 45 is proposed in order to promote and deliver the strategic purpose. Kotler and Keller (2012) proposes that it is important for an organisation to have sufficient salesand operational staff in order to better deliver the right performance criteria which could becalled out as both essential and critical for the success of the organisation. 2.5.4 Number of staff in supermartFor each of the super mart, it is recommended that at least 2 staff members are available aspromoters. This will be essential for the organisation to promote and describe the benefits of theproduct to the different stakeholders and customer segments which are most essential indelivering a stronger perspective for the business to achieve success and market presence. A totalhead count of 30 are accounted for as promotion team and as demonstration team.2.5.5 Promotions and detailing activitiesACTIVITY DESCRIPTIONAllowing the patrons of STR to try out the product. Detail out the product benefits and features of the productdetailed out to the market. Page | 13 Carrying out in-store promotions. Lucky trades and winning lucky gifts for the customerswhom are interested in the product or service. 2.6 Market Analysis – STP ModelSegmentation and TargetingSegmentation Target CustomerDemographicAgeAll agesGender Males and femalesIncome Low and middle income categoryOccupation Students, Employees, ProfessionalsSocial Status Working class and middle classPsychographic Multi-cultural, Health and Natural, Variety seekers,LifestyleFamily feedersThe segmentation and targeting for STO supermart in the above table shows that the targetcustomer segments represent individuals with average income who are cost-conscious lookingfor quality products with average price and looking for promotions and discounts. Furthermorethe health conscious customers represent the individuals who are interested in the natural, fat- free, low carb and or some other health attribute.PositioningPage | 14 STO can be positioned as increasingly middle/uppermarket in the supermart industry with wideranges of consumer goods and food items which are sold with relatively low markup. With itsmain target to meet the customer demands and expectations, the well trained staff of Supermartensures that that the customers are satisfied with the carefully conceived facilities and friendlyatmosphere.2.7 Customer Analysis – Major AnalysisWorking class customersThis category of customers are less price sensitive, however they choose supermart for thevariety and quality of items available in store, cleanliness and welcoming store atmosphere. Theytend spend less time shopping they prefer easy check out which supermart provides with itsincreased number of counters.Weekend/monthly shopping customersThese are customers, mostly family feeders, who look for quality and freshness of food. Theyalso shop groceries, meat and items in bulk hence are price sensitive. The availability ofselection and variety of items, friendly staff with clean and welcoming atmosphere keeps themcoming back every week or month.Foreign/touristForeign customers, Chinese, Thai, Indians and Sri Lankans look for the variety of items availablewith relatively low prices. The small portion of Tourist customers, selects Supermart for thevariety of local food and other items availableHealth and natural Page | 15 "

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