Product
The SPAR convenient store, originally named DeSPAR, is a Dutch-originated multinational group that manages independently owned as well as operated food retail store. The organization is highly popular due to its high quality of products offered to the consumers. One of the most well-known Fast Moving Consumer Goods that are old at SPAR is Pack of oranges. In Australia, oranges are considered as staple breakfast item. At majority of houses in Australia, Orange drink during breakfast is conventional. Besides that, orange juices are also preferred at Australia due to its several numbers of health benefits. Considering the fact that oranges contains a good amount of antioxidants, health service professionals always recommend oranges to maintain a healthy and stress free life. However, artificial orange juices are not that popular in the nation due to its lack of health benefit and added preservatives that posses the potential to cause adverse effect on consumers health. Thus, it can be clearly understood that the demand for fresh oranges in Australia is high. At SPAR, orange are mostly sold in pack of 6 or pack 8 or even more. Considering the fact that oranges are organic products, consumers always prefers to buy fresh and high quality oranges. In order to ensure consumer satisfaction, the SPAR convenient stores offers consumers with fresh and good quality oranges at a highly justified price.
In order to understand the marketing strategy of SPAR, when it comes to their pack of oranges, analysis of 4P Marketing Mix has been conducted bellow
Product
The target consumer of the company, when it comes to oranges includes lower-middle class, middle class and higher middle class consumers. This is because, all the three mentioned classes consumes oranges on a regular basis at Australia. In order to cater to all of the three classes the management of SPAR Company has divided the packs of oranges into pack of three, 6, 8 or more (Fetscherin and Heinrich 2015). The chief aim of the company is to maintain its reputation by delivering the company with fresh oranges. In order to ensure that, the management regularly checks the expiry date of the oranges and oranges those are older than 4 days are offered to the consumers. Thus the quality of the oranges is indeed a chief reason behind the high popularly of the mentioned FMCG product offered by the SPAR Company. Thus as being found from the survey, The SPAR company maintains high quality of their oranges since they are aware of the fact that this is the chief reason behind the popularity of the product is its Quality.
Place
Place
SPAR being an international organization has its outlets in majority of the developed as well as underdeveloped countries. In Australia SPARs ha more than 49 outlets and every outlet sells small, medium and large pack of oranges. In order to ensure that the quality of the oranges is high, the company deals with direct farmers. This is beneficial for the company in two ways, firstly, it reduces the cost of inbound logistics for the organization and secondly, this method ensures best quality (Godey et al. 2016). In order to make it available to the office going busy consumers, SPAR sells oranges both offline as well as through online marketing platforms like Amazon, Bigbasket and Grofers. Apart from that, the company has strong distribution network and their products are easily available through several local retailers.
Price
Considering the fact that the target consumers of the mentioned product involve lower class, middle class and upper middle class organization, the management of SPUR has adopted the price range of the pack of oranges highly justifiable. For the mentioned FMCG product, the company has adopted a value bases strategy. The oranges offered by SPARS are costlier than that of the oranges available at the local market but are slightly lower than oranges available at its competitor’s organizations like Coles, Wesfarmers and Woolworths. This in turn helps the organization to gain competitive advantage (Habibi et al. 2016). The prime consumers of the oranges are the middle class population who posses the capacity to invest a little higher in order to obtain high quality product. Hence, the price strategy of the organization has been designed by the management of SPARs keeping in mind the capacity of its target consumers. In order to cater to the population with lower financial capacity, the company offers smaller packs of oranges that are of off course of lower price range.
Promotion
SPAR uses both offline as well as online promotional techniques in order to enhance the awareness of the consumers about its products. However, the company is more dependent on its offline promotional techniques that include campaigns, sponsorship of sports and health conscious activities. One of the highly successful campaigns organized by the mentioned organization includes the “Its good to be alive” campaign which was initiated at Brisbane in the year 2016. The campaign emphasizes on everyday mornings, motivating the viewers to have a healthy beginning to their day (Inoue and Kent 2014). The chief objectives of the campaign is to enhance the awareness about the quality of the foundation as well to educate people about the goodness of orange and how it can help the individuals to stay fit and healthy.
Price
The market communication mix of the pack of oranges by SPARs will be analyzed to understand the techniques used by the mentioned organization to communicate with its target consumers. The marketing communication mix is defined as the collection of methods that are use to promote the organization as well as its products to the targeted consumers (Mathras et al. 2016). In the following paragraph, six elements of marketing communication mix namely Advertising, Personal selling, Discounts and promotions, Public relation, event sponsorship and direct marketing have been analyzed.
Advertising
The company uses both online as well as offline advertising techniques in order to draw the attention of the consumers. Considering the fact that the chief target consumers for the product includes the middle class consumers, the company mainly focuses on demonstrating the quality of the product. SPAR mainly depends on offline advertising techniques like campaigns and sponsorships. In such promotional event, the benefits of oranges and how it can enhance the life span of human beings has been discussed.
Personal Selling
Personal selling is integrated with direct marketing. Being a retail organization, for oranges, the SPAR Company does not involve in personal selling. Oranges are generally sold at the outlets. However, in case of special orders from clients, the company arranges the number of required oranges that needs to be delivered directly to the consumers.
Discounts and Promotions
Consumers with family are considered to be the chief consumers of the mentioned organization. This is because individuals who live alone often prefer artificial orange juice for breakfast. Thus commercial promotions are designed by the management on that basis only. Promotion to enhance the awareness about how the quality of oranges is the best is performed. In order to enhance the consumer base and maintain the loyalty of the consumers, the company provides several discounts and offers to the consumers during the festive season (Ravensbergen, et al. 2016). For instance, during Charismas, SPAR offers the consumers with offers like buy 2 packs and get one for free offers.
Public Relations
Public relation is similar to advertising. However, the oly difference is that the company does not have any control on the mentioned factor. Both negative as well as positive massage an be obtained by the consumers. The chief sources of public relation of the company include newspaper, television and social media sites. Considering the fact that the management of SPAR ensures strict invigilation on the quality of the oranges, no negative publication of the company has been evidenced till now (Vorley, Fearne and Ray 2016). This has off course enhances the reputation of the company to a great level.
Promotion
Direct Marketing
Direct marketing includes interactive communication with the consumers where the massages from the organization implore the response of e target consumer. The direct marking of SPARs when it comes to oranges, is not strong enough. This is because, the company lacks powerful online marketing (Das 2014). The chief tools for direct marketing used by the SPAR company includes Email and direct mail.
Event Sponsorship
Event sponsorship occurs with a company pays to have a presence at a sports, entertainment, nonprofit or community events. When it comes to SPAR oranges, the company chiefly focuses on health related activates in order to sponsors. The types of sponsorship done by the company include both representation during the event to hand out samples, gifts and literature, name mention during the event and ad spots connected to the event.
From the above discussion, it can be clearly understood that the packs of oranges sold by the organization are highly famous. But the fact that SPAR is not able to cater to all of its target consumers cannot be ignored. Currently, the loyal consumer base of the company includes middle class families. In order to enhance its consumers base are reach out to majority of the consumers, the following strategies has been recommended to the management of the organization.
- The company should invest more on online promotion and marketing. SPAR is found be highly investing on offline marketing. While offline marketing has the potential to enhance the local consumer base, online marketing will provide a greater pool to the management so that the company can incorporate more local as well as global consumers. For this, the management of SPAR should invest on online promotional techniques like pay per click advertisement and through social media platforms. Popular Social media platforms likes Facebook and Instagram are highly cost effective. This in turn will diminish the investment cost of the organization. Not only this, considering the fact that more than 83 percent of the Australian population is available on social media platforms, it will be easier for the management to attract the attention of a huge mass in a very little amount of time (Mortimer 2016). This technique will also makes it easier for the organization to communicate directly with the consumer. Direct communication in turn will help the management to understand the specific requirement of the company. With the help of this understanding, SPAR will be able to deliver the exact product that will enhance consumer satisfaction. Not only that, direct communication will also enhance the employee-consumer relationship and eventually the consumer base of the company.
- The company should actively take part in health related activities in order to promote its products and attract new consumers.Considering the fact that current population of Australia is getting inclined towards healthy lifestyle, it is highly crucial for the management to grab the chance and enhance its consumer base. Like its competitor Woolworths, SPAR should also sponsor health related activities like local marathon or any other ports in order to grab the attention of young athletes (Vorley, Fearne and Ray 2016). It can also organize small campaigns were a health care profession will educate people ho oranges are beneficial for human body and why regular consumption of fresh oranges are highly required.
- SPARs should enhance its distribution channel as well as supplier channel in order to meet the exceeding needs of the consumers. From the above discussion it can be clearly understood that the company has successfully enhanced its consumer base to a great level. however, since the company buys oranges directly from the farmers in order to maintain is quality, the amount of oranges sent at the outlets are limited. This can inversely affect the revenue of the company (Das 2014). Hence SPAR should be communicating with ore suppliers so that adequate amount of oranges can reach the outlet. Simultaneously, the company should also enhance its distribution channel in order to ensure that adequate oranges has been delivered to the consumers or stores within the stipulated time.
Reference List
Das, G., 2014. Linkages of retailer personality, perceived quality and purchase intention with retailer loyalty: A study of Indian non-food retailing. Journal of Retailing and Consumer Services, 21(3), pp.407-414.
Fetscherin, M. and Heinrich, D., 2015. Consumer brand relationships research: A bibliometric citation meta-analysis. Journal of Business Research, 68(2), pp.380-390.
Godey, B., Manthiou, A., Pederzoli, D., Rokka, J., Aiello, G., Donvito, R. and Singh, R., 2016. Social media marketing efforts of luxury brands: Influence on brand equity and consumer behavior. Journal of business research, 69(12), pp.5833-5841.
Habibi, M.R., Laroche, M. and Richard, M.O., 2016. Testing an extended model of consumer behavior in the context of social media-based brand communities. Computers in Human Behavior, 62, pp.292-302.
Inoue, Y. and Kent, A., 2014. A conceptual framework for understanding the effects of corporate social marketing on consumer behavior. Journal of business ethics, 121(4), pp.621-633.
Mathras, D., Cohen, A.B., Mandel, N. and Mick, D.G., 2016. The effects of religion on consumer behavior: A conceptual framework and research agenda. Journal of Consumer Psychology, 26(2), pp.298-311.
Mortimer, G., 2016. The supermarket of the future: Directions for Australia. Inside FMCG Magazine, (4).
Ravensbergen, L., Buliung, R., Wilson, K. and Faulkner, G., 2016. Socioeconomic inequalities in children’s accessibility to food retailing: Examining the roles of mobility and time. Social Science & Medicine, 153, pp.81-89.
Vorley, B., Fearne, A. and Ray, D., 2016. The Internationalization of Food Retailing: Opportunities and Threats for Small-scale Producers. In Regoverning Markets(pp. 27-42). Routledge.
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