Developing A Marketing Strategy For Non-Profit Organizations

Aim and Objectives

Discuss about the Developing A Marketing Strategy For Non-Profit Org.

Woolworths organization is a highly popular supermarket store chain owned by Woolworths Limited. The company along with another popular supermarket chain named Coles, dominates approximately 80 percent of the retail market in Australia (Murphy 2012). Being a retail company, Woolworth chiefly sells groceries that include packaged foods, fruits and vegetables. However, various households and stationary products are sold by the mentioned company. When it comes to the confectionary industry in Australia, lamingtons can be considered as one of the most popular products. A lamington can be defined as a cake which is made from butter and the outer layer of the cake is coated with chocolate. The mentioned food product is highly popular in Australia and according to the statistics of Woolworths, Lamington is one of the most selling product in Australia. Being an International company, Woolworth has expanded its market over United State, Switzerland, China and other developed country. In the year 2009, Woolworths had established an online retail website in UK which was owned by the Shop direct Group. However, in 2015, the online store got replaced by Very, an existing brand of shop Direct Company.

As mentioned earlier, the Woolworths Company does not have any online or offline retail outlets in UK. Considering the fact that the demands for confectionaries are pretty high in UK, the aim of the Woolworths Company is to launch lamingtons as a completely new confectionary product in the UK confectionary industry. Lamington, which is a traditional sponge cake exclusively manufactured in Australia is not found in UK.  According to the management of Woolswiorth, the mentioned product will gain populary in the UK confectionary market which in turn will provide the company a way to penetrate the retail market of UK. Therefore, it can be clearly understood that the objectives of the Woolworths Company includes:

1. Gaining competitive advantage by launching a brand new confectionary product in the UK market.
2. Gaining consumer loyalty and brand value in UK.
3. Penetrating the retail market of UK

In order to develop an effective marketing plan, it is highly crucial for an organization to develop a detailed understanding of the external as well as internal environment of the company. This helps the company to develop marketing strategies by understanding the specific needs of the potential consumers. In order to access the external environment of Woolworths in UK, PESTLE and Porter’s five forces analysis has been performed.

The political environment of UK is currently unstable due to the change of governing party from labors to conservatives. This unstable condition of the nation may impose negative impact on the confectionary industry. Due to strict regulations associated with export and import of products in food industry, Woolworths may face difficulties in launching its product in the Uk market. Moreover, due to increment in VAT from 17.5 percent to 20 percent, the intention of consumers to buy confectionary products has decreased to a great extent (Chen and Bell 2012).

Marketing Research

Being a developed country, the financial condition of the consumers of UK food industry is more stable compared to that of the developed or underdeveloped country. However the economical condition of the population in UK has deteriorated due to the recent recession. As a result of this, consumers are found to prefer dining at home rather than dining at expensive restaurant or food chain outlets. In spite of the fact that this situation has imposed negative impact on the food industry, retail companies like Woolworths will get benefited from it. This is because, consumers will be more inclined to explore new food products like lamingtons sold in the retail stores. 

The population of UK is an aging population. According to a survey conducted by the government of UK, the average age as well as the percentage of the retired individuals are rising. This trend has imposed a negative impact in the food and confectionary industry of UK. Due to several healthcare issues like Diabetes, elderly citizens are not able to intake a high amount of confectionary products. Moreover, due to excessive obesity related diseases, the government of UK is promoting healthy lifestyle. Consumers are found to avoid high calorie food items in order to avoid obesity. This in turn is imposing a negative impact in the confectionary industry of UK (Kotabe and Helsen 2014).  

Being a highly developed country, United Kingdom is technologically advanced.  Supermarkets in UK are able to promote their products through online marketing tools like social media platforms in order to enhance their consumer loyalty. Supermarkets in UK sell their product through online marketing. Thus the technological advancement of the nation will impose positive impact on the  new product launched by the Woolworths organization.

As discussed earlier, UK has highly strict rules and regulations when it comes to import and export. Besides that, in order to establish business in the confectionary market of UK, Woolworths has to abide by the Health and Safety legal framework, particularly when it comes to the preparation of food. According to the Food Standard agency of UK, the employees who handle food products in retail outlets, restaurants and fast food chains must go through food-hygiene Training (Cravens and Piercy 2013).

In order to eradicate environmental pollution, the government of UK has imposed several regulations as well as green initiatives. For Instance, usage of plastic packaging is banned in several parts of UK.  Moreover, restaurants, fastfood chain and retail companies in UK abide by the Corporate and Social Responsibility policies designed by them.

PESTLE Analysis of the confectionary market of UK

The competition among the retail companies in UK is high. Some of the major competitors of the Retail industry of UK include Tesco, Sainsbury, Asda and Morrison. Thus it can be understood that the retail market of UK is highly saturated. Almost all the mentioned company sells confectionary products. However, considering the fact that lamington is a totally new food product in the UK market, Woolworths will gain competitive advantage (Plan 2016).

The threat from new entrances is low when it comes to retail industry of Australia. As discussed earlier, the government of Australia has strict rules on import and export of products. The market barrier of the retail and confectionary industry in UK is high. Along with that, for creating a new supermarket chain, a high amount of capital is required.

The power of buyers in the UK market is high. Due to the availability of a huge number of retail organizations, it is easy for the consumers to shift from one retail store to another. Moreover, the switching cost is low. However, considering the fact Woolworths is launching a new product in the market, the power of consumers for lamington will be comparatively low (Kotler and Keller 2016).

The bargaining power of the suppliers is high in the retail market of UK. The suppliers of the mentioned industry include food manufactures, farmers, food processors and agricultural co-operatives. Considering the fact that majority of the suppliers of UK deliver branded food products, the power of the suppliers are high. However, since the company will manufacture the lamingtons by itself, the power of the suppliers for the company will be comparatively low.

When it comes to retail industry in UK, the threat from the substitute is low. Major substitute of the retail industry in UK are restaurants, electrical equipment stores and others. The treat of the substitute is even lower when it comes to lamingtons (Armstrong et al. 2015). Since Woolworths will be the first company to launch lamingtons in UK, the treat of substitute for the mentioned company will be lower.

This strategy will help to identify the most profitable consumer segment where the selling operation can generate the maximum ROI or Return On Investment for a particular product (Murphy 2012). The STP strategy of Woolworth will include the segmentation of the consumers within UK market, targeting the proper consumers of a particular segment or a set group of segments, and positioning the market in a efficient way that can help to gain the attraction of the targeted consumers. 

SWOT Analysis

UK is a country of divers population where people from all part of the globe come and utilise the market. Within several industries, retailer industry should segment the consumers into several feasible groups. Being a retailer company Woolworth should divide the consumers by their financial and demographic differences. The financial segmentation includes 4 basic groups namely, consumers of low financial background, low to medium financial background, medium to high financial background and high financial background. This segmentation is done considering the annual spending of the consumers. Apart from the consumers are also segmented by demographic division involving age and gender. Age divisions includes three basics segments 15 to 25; 25 to 40; 40 to 60 and above 60.   

Targeting a particular group of consumer will help to make proper strategic plan for introducing the selected product in most attractive way. In this case, the selected product is a specific type of cake that can attract all consumers of all segments (Kotabe and Helsen 2014). However, Woolworth can build a strategic supply chain that regulated by the selection of the flavour. Therefore for targeting strategy Woolworth focusing mainly on the age group of 15 to 40. At the same time, the financial target group for this product is the consumer group of medium to high financial background.

In this case, the positioning strategy of the Woolworth is pre-determined. However, before implement the strategic marketing plan the company has to ensure the efficiency of local supply chain, distribution network, warehouse and other logistical components of the business (Chen and Bell 2012). Apart from that the cake will be produced by the retailer company that requires additional time and recourse management plan while having an affordable budget.

 Considering the fact that lamington cakes are completely new products to the consumer of UK, Woolworths must offer its products in a familiar but unique packaging to attract the consumers. The packaging of the product will be made of paper in order to demonstrate that the company is environment friendly. The logo of the company should be on the top of the packaging (Piercy and Morgan 2012). Like any other cakes sold in the market of UK, the mentioned cake will be available in five flavors that include strawberry, chocolate, vanilla, rose and cheese flavor.

Apart from selling the cake through their own retail stores, the company can introduce the cake in restaurants and get merged with fast food centers in UK. Most restaurants in UK allow customers to drive through service with facilities such as indoor and outdoor seating and counter service (Pope, Isely and Asamoa?Tutu 2012). 

Porter’s 5 forces Analysis of the confectionary market of UK

The price of the lamington cake should be kept between higher to moderate price range. Being a completely new company, the company should incorporate discounts and offers to attract the consumers as well as to enhance the consumer base.

The company should promote its product through both online as well as offline marketing. Considering the fact that the country is highly advanced in technology, Woolworths can promote its product through popular social media platforms. This will not only help the company to directly communicate with the consumers but will also help the company to advertise its products (Hair et al. 2012). By directly communicating with the consumers, the company will be able to understand their specific requirements which in turn, will help them to enhance the quality of their products. When it comes to offline promotion, the company can perform celebrity endorsement.

Figure 1: Gantt chart

Conclusion:

From the above analysis it can be said that, Being a retail company, Woolworth chiefly sells groceries that include packaged foods, fruits and vegetables. However, various households and stationary products are sold by the mentioned company. The Lamington has been defined as a cake which is made from butter and the outer layer of the cake is coated with chocolate. At the same time, the mentioned product will gain popularly in the UK confectionary market which in turn will provide the company a way to penetrate the retail market of UK. It has been identified that due to strict regulations associated with export and import of products in food industry, Woolworths may face difficulties in launching its product in the Uk market. On the other hand, Consumers are found to avoid high calorie food items in order to avoid obesity. Additionally, the technological advancement of the nation will impose positive impact on the new product launched by the Woolworths organization. At the same time, considering the fact that lamington is a totally new food product in the UK market, Woolworths will gain competitive advantage. Before implement the strategic marketing plan the company has to ensure the efficiency of local supply chain, distribution network, warehouse and other logistical components of the business.

Reference List

Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction. Pearson Education.

Chen, J. and Bell, P.C., 2012. Implementing market segmentation using full-refund and no-refund customer returns policies in a dual-channel supply chain structure. International Journal of Production Economics, 136(1), pp.56-66.

Cravens, D.W. and Piercy, N., 2013. Strategic marketing (Vol. 8). Boston, MA: McGraw-Hill Irwin.

Hair, J.F., Celsi, M.W., Ortinau, D.J. and Bush, R.P., 2012. Essentials of marketing research. McGraw-Hill/Higher Education.

Jain, S.C. and Haley, G.T., 2012. Marketing planning and strategy. South-Western Publishing Company.

Kotabe, M. and Helsen, K., 2014. Global marketing management.

Kotler, P. and Keller, K.L., 2016. Marketing Manaaemen.

Murphy, P.E., 2012. Marketing, Ethics of. Wiley Encyclopedia of Management.

Piercy, N. and Morgan, N., 2012. Internal marketing: making marketing happen. Marketing Intelligence & Planning, 8(1), pp.4-6.

Plan, E.M., 2016. Marketing & Management.

Pope, J.A., Isely, E.S. and Asamoa?Tutu, F., 2012. Developing a marketing strategy for nonprofit organizations: An exploratory study. Journal of Nonprofit & public sector marketing, 21(2), pp.184-201.

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