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GLOBAL MARKETING PLAN 1
GLOBAL MARKETING PLAN 14
Rymario Armstrong and Jennifer Lord
Park University
Cheryl Chance
GB503 Doing Business in Asia
20220331
Global Marketing Plan
Introduction
Seam Online Grocery Store is a business that ventures into the global market and offer quality products to the customers. The products that the company will be dealing with include the meat, fresh produce that comprise of the vegetables, fruits and also the canned and packaged goods. The Seam Online Store would also deal with dairy products, bakery goods and also the frozen and prepared foods depending to the geographical location. The business targets on the global market and looks forward to venture into other markets after succeeding in the local United States market (Blum, 2020). The primary target customers for the grocery store are the clients that are using the online platforms and are interested in having their products ordered online and delivered to their doorsteps. The nature of the target customers are those that developed the habit of online ordering during the period of COVID-19 and require to maintain the kind of lifestyle to save their time of visiting the stores and pick them but instead have to order and get them delivered in the doorstep (Anon & Arora, 2021). There is no requirement for online grocery shopping to be convenient, enjoyable, or populated by robots in order to be effective. Even if those are just means to a goal, an online grocery store's primary responsibility is to provide for a person's most fundamental needs. As a result, it must be dependable and speedy as well as cost-effective and scalable. As long as consumers do not have access to these basic features, online groceries will only serve as a fallback option for those who still prefer to buy in person.
Online shopping has had a profound effect on consumer behavior in the last decade. As a result, every internet company idea has been a huge success (Anon & Arora, 2021). Customers now prioritize convenience over price. Grocery shopping is a need in every family, unlike other purchases. For today and tomorrow, online grocery shopping is a successful business idea. The customers of the United States would welcome the business idea because they are interested in experiencing the online delivery of grocery products to their doorstep. The customers for the grocery business are there are ready for the virtual experience and Seam Online Grocery business is ready to give them their demands. The grocery business is worth investing because of its high demand in United States where the statistics that the grocery store is not yet saturated. In the United States market, the saturation of the grocery market is at 3-5% which is far too low in comparison to other businesses and an example is the online travel at 50% and the electronic sales business at 35% (Yang, 2018). There is a huge market share that the Seam Grocery would take advantage of because the market is no saturated making the business viable to venture. The benefit for the investors is that supporting the kind of business to succeed in the market would result to higher dividends that are achieved because the business market is valuable and would generate high revenue. There is a huge market for the grocery products in the United States and the global market (Yang, 2018). There is a significant growth rate and the Seam Grocery is looking forward to also take the advantage of the significant growth that is experienced in the market. The primary entry strategy is for the Seam Grocery putting high stock of the canned, frozen and packaged products and a average number of farm produce and offer free delivery for the first 1000 orders as a way of promoting the business.
Research Analysis
Understanding the market is an important aspect of business and there is the need to put effort in the approach towards having a good global marketing plan. A good marketing plan is needed to develop strategies to make the Seam Online Grocery Store a success (Bhalla, 2016). The data that is used for the development of the marketing plan is sourced through primary and secondary sources. The primary case in that matter is adopting the survey approach where the target market is reached out by having a team on the ground that conducts research using the questionnaires targeting the locals to get their experience and the need of having the online grocery store where they only order their products online and get them delivered in the doorstep. I would also consider the SurveyMonkey which is an internet program that is free and allow the company to develop a survey and use over the internet to reach the potential online customers that shares their views about the online grocery store. The online survey is an opportunity to reach out to a broader audience and also get to understand their views about the business idea and learn from their feedback about venturing into the grocery business. In addition, there is the secondary research where reports, journal and publications concerning the grocery business in order to understand the viability of the business idea in the market. The research using the secondary sources is an important initiative that help in understanding the grocery business nature and the possibility that it would succeed in the market. Reading the reports about other giant firms like the Bigbasket and FreshDirect among others as a way to understand the nature of market that they are venturing. The use of the primary and secondary sources is an important intervention that works towards having the data that is needed in the development of the global marketing plan for the online grocery store.
Situational Analysis
Strengths
Seam Online Grocery has multiple products that customer can select from and this include the fresh produce, dairy products, meat, and canned products, packaged and refrigerated.
Online ordering and delivery: Most of the stores that are in the United States are for the customers to go to the stores and choose for themselves but in Seam Online Grocery, customers’ orders online and delivered in their doorstep. Customers would have the opportunity to order all they need in a short period and not like travelling to the store and look for it one by one.
Seam Online Store offers a wide variety of products at steep savings and discounts. They also use the product bundling strategy to maximize sales and offer the best prices to clients (Lumen, 2022). As a result, customers will find them an appealing purchase option.
Convenience: It is far more convenient to shop at Seam Online Grocery Store instead of standing in mall lines or driving to retail locations. They deliver the goods directly to the customer's doorstep and provide a variety of payment methods (Lumen, 2022). As a result of their on-time delivery guarantee, they are an attractive alternative for customers, especially in large cities where life is rapid and it is difficult to reach them.
Target Customers: Seam Online Store appears to have chosen the best target market by doing the right selection process and this is about targeting cities and towns where people have more busy schedules and need support to have their products at home.
Low-fixed-cost business model: Because most of Seam Online Grocery products are perishable, they must rely on the retail outlets with which they have partnered to obtain them. Their company approach is more profitable because they do not have to spend money on inventories.
Weaknesses
Delivery time: Seam Online Store faces the challenge of delivering the products ordered within an hour or minutes because of addressing a huge volume of orders but there are small local stores that are delivering products within local areas and this is what the customers prefer especially for fresh products like vegetables and fruits (Lumen, 2022).
High variable cost: The high cost of running the delivery guys needed to have the products reach the customers, handling perishable goods and taking a lot of time and this makes the business run at a high variable cost. It takes long for the kind of business to achieve the breakeven of its investment.
Home delivery: The customer is forced to plan for delivery for their ordered goods and in case of any logistics challenge and the product delivery delays result to customer being hungry and unsatisfied with the services.
Order cancellation: The other weakness is the issue of order cancellation that causes much disappointment in the Seam Online Store and this has more impact to the tied-up stores that offer the fresh products where they go losses supplying product that a customer later cancels.
Opportunities
The retail market in India is estimated to be worth more than $550 million, with grocery accounting for 60% of this total. As a result, it's a vast market with a plethora of businesses and clients to serve. As the sixth-largest food market in the world, India has seen tremendous growth over the past few years. The e-commerce grocery market is expanding at a rate of 19 percent year-over-year. Seam Online Grocery Store is looking forward to venture into the global market (Lumen, 2022). Seam Online Store can take advantage of the fact that many cities have yet to be covered by these companies, allowing them to take advantage of the first-mover advantage. Seam Online Grocery Store has the advantage of being able to sell a variety of products by packaging them together.
Threats
Competition: A threat to the Seam Online Grocery Store is competition and this is because there are various startups that have been developed in different cities of the United States and this include the Thrive market and Fresh direct among others.
Bigger companies: This lucrative business is also seeing the entry of bigger players in terms of financial backing and physical presence. Amazon, Flipkart, and Google have also entered the market (Blum, 2020). For smaller business like the Seam Online Grocery would be challenging to survive in the kind of competitive market.
Smaller players: A number of smaller businesses have seized on this opportunity and begun offering home delivery services to their neighbors, thereby eliminating entire regions' worth of potential clients.
Challenge of customer retention: Customers are known to follow their interests and can just make the decision to shop from other firms that offer large discounts.
Market Analysis
The market for the grocery business is large because the current available market share is only 3% as compared to the other businesses globally and this shows that there is still a huge market to venture into. In the U.S, the average size of the supermarket and grocery store based on the 2022 statistics is at $765.2 billion (Petersen, 2019). The products that include the fresh produce and the U.S market for the fruits and vegetables is valued over 5.2 billion U.S dollars in 2020 (Petersen, 2019). In 2020, the market for the dairy products is about 102 billion U.S dollars and it is in an increasing trend. The market for packaged, frozen and canned products is high at a value of 20% still needed and Seam Online Grocery is there to meet the demand.
According to the management, Seam Online Grocery has a significant market share and that is 70% of the global grocery market demand. In this evaluation the management realized that there is the need of putting much effort in understanding what the market share entails in terms of the tastes and preferences of the customers that need the grocery products. In the last three years of operation, Seal Online Grocery management conduct and analysis and ranked the grocery store in position 15 within the United States and the leading firms including Amazon tops the list (Rahman & David, 2021). Since Seam is still developing, the position is significant and there has been a good progress for the three years period that should be maintained to meet the customers’ demands and achieve being the best online store within United States and the globe. In the next 3 years Seam Online Grocery would move three steps ahead in its growth and in this case it would become position 12 in the United States because the management is committed in the expansion of the business to different states and cities to ensure that customers gets delivery of their ordered grocery goods within a short time period.
In the history of the grocery stores, there profit has been an average profit margin of 2.2% and this has been a significant value over the years. In every dollar of sale in the grocery store, there is 2.2 cents of profit is made and that is the main reason to why the grocery industry is still low in terms of competition and it becomes a threat when more grocery stores are developed. Engaging in the online grocery store is the best approach in reaching out to more clients and make it a more profitable venture (Rahman & David, 2021). The future prospects about the business is that more store would go digital and the competitive advantage would be about delivering quality customized products and on-time delivery. The technological advancement in the Seam Online Grocery is the fact that it would reduce the costs needed and expenditure resulting to more profit that is passed to customers at low prices.
Business Environment Analysis
Political/Legal/Institutional Environments
The host country being the United States have a strong political structure that is there for the purposes of supporting businesses and the Seam Online Grocery benefit from the stability that makes the business a success. The government stability makes businesses like the Seam Grocery to expand regionally and also consider entering the international market. Since the U.S is a country that has good relations with other countries makes it possible for the business to spread abroad and also make affiliations easily in those host countries (Rahman & David, 2021). A stable government like the U.S attracts investors that comes to support the Seam Online Store through funding and be able to venture into the global market. The government that is in place also require the Seam Online store to adhere to the legal provisions that include forming legal contracts when it comes to employment. There is also the requirement to follow the strict regulations pertaining the health and the safety of the employees in the workplace.
Regulatory Environment
I consider it important to learn about the home and host country of any business especially on the aspect of regulatory environment. There is the need of making sure that the regulations that are in place are favorable for the Grocery business and allow it to easily expand. The government through its regulation is also done through subsidies and in this case looking for favorable government subsidies and favorable tax rates that makes the business operate in the best way possible (Rahman & David, 2021). Joining a market with desirable tax policies is a dream of every company including the Seam Online Grocery Store because this supports the business growth and development.
Economic Environment
For businesses like Seam Online Grocery to thrive, the economy requires a reasonable inflation rate. Consumer confidence and spending habits can be positively impacted by a reasonable inflation rate, which will benefit the firm and the economy at large. Because of this, the economy will benefit and the amount of money people have to spend will increase as well. A greater inflation rate would lead to a decrease in disposable income, which might hurt enterprises and companies, as well as a decrease in consumer confidence, if inflation continues to rise (Rahman & David, 2021). Competitiveness could be enhanced through more aggressive pricing techniques, which could lead to price wars that unfairly benefit one party at the expense of the consumer.
Social and Cultural Environment
The United States market is much diverse and the people are more liberal and this makes it easier for Seam Online Grocery to thrive because the people are known to try new experiences especially in the online business operations. The culture of the people is diverse and there is the need for Seam Grocery to be more concerned in developing products that meet the customers’ demands (Anon & Arora, 2021). The social interactions of the people of the target market is the aspect that they are more in constant communication and this makes them be able to share experiences that increases business awareness especially when using social media accounts.
Demographics Environment
Seam Online Grocery benefit from a larger customer base if a larger percentage of the population is younger. Seam Online Store will benefit from the inclusion of a more educated and well-trained workforce as a result of this younger demographic (Anon & Arora, 2021). The company also rely on customers and advocates from the middle class to the upper middle class. The young demographics becomes the Seal Grocery ambassadors by sharing their experience through social media and online platforms increasing sales.
Technological Environment
The country has a strong technological infrastructure that is enough in making an online business a success with limited interruptions (Rahman & David, 2021). There is a high rate of technological development that is currently going on and more is expected in the future and this is a guarantee that the business will succeed.
Natural Environment
The environment is favorable for the online grocery business since the weather and climate is stable and there are no risks of any disturbances.
Physical Environment
There are enough infrastructure especially technological and also the logistics infrastructure that makes it possible for customers to order their grocery goods online and gets them delivered in their doorstep.
Competitor Analysis
The competitive forces that are there for the grocery business especially for the Seam Online Grocery Store include the rivalry among the existing firms and this is evident that the local grocery stores are in place delivering products within their locality fast as compared to Seam Store. There is a threat of new entrants and this is evident that the industry is easy to venture into since it require little capital for online selling and partnering with suppliers. The new entrants is a serious threat that reduces the market share. Threat of substitutes is low since the products delivered are equal in the market especially the fresh produce. The bargaining power of suppliers is high and that of customers is also high since they have multiple clients that serves their needs. The competitors’ future goals is on reducing delivery time and the current strategies is having the infrastructure in place. The assumption is that delivering quality product on time increase customer satisfaction. The strength of Seam Grocery business is that it listens to the customers by engaging in an online conversation and takes into consideration about the demands of the customers. The company also offer variety of grocery products making it competitive in the market. The management plans to improve on the infrastructure especially making the website easy, interactive and simple to use to give customers a good interaction. A best logistics approach would be adopted for easy delivery. The company monitor competition through the social media platform by taking customer feedback seriously.
References
Anon, P., & Arora, U. (2021). Effect of Gender, Age, and Marital Status of Grocery Consumers on Their Perceived Retail Store Image: A Study of Organized Grocery Market in India. Indian Journal of Marketing, 51(4), 58. https://doi.org/10.17010/ijom/2021/v51/i4/158471
Bhalla, M. (2016). Online Grocery Store – Why the Business Idea Is Catching the Eyes of Most Entrepreneurs. Entrepreneur. Retrieved 30 March 2022, from https://www.entrepreneur.com/article/284325.
Blum, A. (2020). I Miss the Grocery Store the Most. Gastronomica, 20(3), 95-96. https://doi.org/10.1525/gfc.2020.20.3.95
Lumen. (2022). Situation Analysis | Retail Management. Courses.lumenlearning.com. Retrieved 30 March 2022, from https://courses.lumenlearning.com/wm-retailmanagement/chapter/situation-analysis/.
Petersen, L. (2019). Difference between a Grocery Store and Convenience Store. Small Business – Chron.com. Retrieved 30 March 2022, from https://smallbusiness.chron.com/difference-between-grocery-store-convenience-store-19023.html.
Rahman, M., & David, J. (2021). PESTEL analysis of the grocery and supermarket (retail) industry. howandwhat. Retrieved 30 March 2022, from https://howandwhat.net/pestel-analysis-grocery-supermarket-retail-industry/.
Yang, N. (2018). An Empirically Tractable Dynamic Oligopoly Model: Application to Store Entry and Exit in Dutch Grocery Retail. Marketing Science, 37(6), 1029-1049. https://doi.org/10.1287/mksc.2018.1117
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SEAM ONLINE GROCERY GLOBALIZATION MARKETING PLAN 1
SEAM ONLINE GROCERY GLOBALIZATION MARKETING STRATEGY 13
Rymario Armstrong and Jennifer Lord
Park University
Cheryl Chance
GB503 Doing Business in Asia
20220422
Table of Contents Executive Summary 3 SWOT Analysis 4 Recommended Marketing Strategy 6 Marketing Mix Strategies and Tactics 7 Planning Budget 9 Implementation and Control 10 Monitoring and Evaluation 11 Implementation of Recommendations 11 References 13
Executive Summary
Seam Online Grocery looks to be able to execute the proposed strategy in its operations. The Seam Online Grocery Company now uses traditional marketing strategies. Seam Online Grocery's marketing strategy should include an e-marketing strategy, according to the suggestion.
Three objectives and goals are included in the proposed e-marketing strategy. The primary goal of the company is to boost sales volume. The company's second goal is to grow its market share in the industry to 20% in two years. Finally, Seam Online Grocery intends to expand its international reach.
The estimated cost of the e-marketing plan is $25 million. The company's annual sales revenue is predicted to increase as a result of the plan's objectives and targets. The company's annual earnings is likely to rise as well. The approach will allow the company to not only be profitable, but also to improve its image and brand recognition. The proposed plan has a high success rate since it will advertise the company and its products extensively not just in the United States but throughout the world, thereby increasing the company's success rate.
SWOT Analysis
Strengths
Seam Online Grocery offers a wide range of products, including fresh produce, dairy products, meat, and canned, bottled, and refrigerated items. Seam Online Store has a broad selection of products with substantial discounts and savings. They also use the product bundling approach to boost sales and offer the best prices to customers. As a result, buyers will see them as a realistic buying option. Furthermore, Seam Online Store appears to have identified the right target market by following the proper selection process, which includes focusing on places and cities where people have more hectic schedules and require aid in having their goods delivered to their houses. Finally, because the bulk of Seam Online Grocery's products are perishable, they are required to ship them immediately.
Weaknesses
Because of the large amount of orders, Seam Online Store faces the issue of delivering products within an hour or minutes, but there are tiny local businesses that supply products within local areas, which is what customers prefer, especially for fresh products like vegetables and fruits. The high cost of running the delivery personnel required to get the supplies to the clients, handling perishable goods and taking a long time, results in a significant variable cost for the business. It takes a long time for this type of business to break even on its investment. Another flaw with the Seam Online Store is the issue of order cancellation, which generates a lot of disappointment.
Opportunities
Groceries will account for 60% of the retail industry, which is anticipated to be valued over $550 million. As a result, it's a large market to serve, with a large number of enterprises and customers. In recent years, India, the world's sixth-largest food market, has undergone tremendous growth. The e-commerce grocery market is increasing at a 19 percent annual rate. Seam Online Grocery Store is looking forward to expanding internationally. Seam Online Store can take use of the first-mover advantage because these providers have yet to serve numerous cities. Seam Online Grocery Store has the advantage of being able to sell a vast choice of products.
Threats
The Seam Online Grocery Store is concerned about competition, as a number of startups have appeared in various parts of the United States, like the Thrive Market and Fresh Direct, among others. Bigger firms are entering this lucrative industry, both in terms of financial backing and physical presence. Amazon, Flipkart, and Google are just a few of the businesses that have entered the market. In such a competitive sector, it would be impossible for a smaller company like Seam Online Grocery to exist. Furthermore, many smaller businesses have seized this opportunity and begun providing home delivery services to their neighbors, thereby eliminating entire regions' worth of potential clients.
Market Analysis
Seam Online Grocery, according to management, has a considerable market share, accounting for 70% of global grocery demand. During this examination, management learned that a significant amount of effort is required to fully comprehend what market share signifies in terms of the tastes and preferences of the customers who require grocery products. Seal Online Grocery management conducted and study during the last three years of operation and put the grocery store in position 15 in the United States, with the leading corporations including Amazon at the top of the list (Rahman & David, 2021). Since Seam is still growing, its position is important, and it has made tremendous success over the last three years, which should be maintained in order to meet customer needs and become the finest online shop in the United States and the world. Seam Online Grocery will advance three steps in its growth over the next three years, moving to position 12 in the United States, because the management is committed to expanding the business to different states and cities to ensure that customers receive their ordered grocery goods in a timely manner.
Recommended Marketing Strategy
An organization must first create an e-marketing goal, identify its target market, choose what it will share, where it will share, and when it will share, and then decide what it will share (Lucà, 2016).
E-marketing goals
The six primary e-marketing goals that are known are boosting brand visibility, improving income, increasing brand engagement, giving social customer services, listening to public discussions about the brand, and creating new leads for a company (Flew, 2017). In terms of e-marketing, our organization's main objectives are to improve brand awareness, increase revenue, and generate new leads.
Identification of target market
The six primary e-marketing goals that are known are growing brand visibility, raising income, enhancing brand engagement, providing social customer services, listening to public discussions about the brand, and creating new leads for a company (Flew, 2017). In terms of e-marketing, our organization's primary objectives are to improve brand awareness, increase revenue, and generate new leads.
Marketing objective and goals for Seam Online Grocery
Seam Online Grocery's marketing goals and ambitions are divided into three categories. The primary goal of the company is to boost sales volume. By implementing an efficient e-marketing campaign over the next two years, the company can increase its sales volume and profit. If the corporation sells more products and draws new customers, this will happen.
The company's second goal is to increase its market share in the industry. The e-marketing strategy intends to increase the company's market share by 5% over the next two years. According to the strategy, Seam Online Grocery aims to achieve a 20% market share in the business by 2024.
The ultimate marketing goal for Seam Online Grocery is global recognition. The goal is to raise brand recognition for the company. North America, LAMEA, Asia Pacific, and Europe are the four major global retail and food markets. The corporation is failing in the LEMEA and Asia Pacific markets due to competition from local brands. Through the planned e-marketing plan, Seam Online Grocery will increase its impact in LEMEA by focusing on Africa. The goal for the next two years is to make Seam Online Grocery more popular in Africa than it is now. The company's sales on the African continent are expected to improve as a result of the planned approach.
Marketing Mix Strategies and Tactics
The marketing strategy developed by Seam Online Grocery will primarily focus on four aspects. The first variable is the product. The strategy will aim to make all of the company's products well-known not just in the United Kingdom, but all around the world. The second variable is the cost. One of Seam Online Grocery's shortcomings is that its products are more expensive than competitors'. This explains why the company is having trouble marketing in Africa and the LEMEA region's other third-world countries. All firm items should be discounted by 10%, according to the recommended strategy.
The third variable is the location or distribution variable. The majority of Seam Online Groce
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