Operational Management -Project- Mega Image Supervisor: Student: Ph !icolae "iorel #o$ma #osmin Summary 1. Company Overview 1.1. Product portfolio 1.2. Main competitors 1.3. Organizational structure 1.4. Te company!s mission 2. Mar"eting environment analysis 2.1. Macro analysis 2.1.1. #conomic $actors 2.1.2. Customer %eaviour in times of economic crisis 2.1.3 &emograpic $actors 2.1.4. 'ocio(cultural factors 2.1.). Political and legal factors 2.1.*. Tecnological $actors 2.2. Microenvironment analysis 2.2.1. 'uppliers 2.2.2. Customers 2.2.3 Competitors 2.2.4. 'trengts+ 2.2.). ,ea"nesses+ 2.3. Capacity -nalysis 2.3.1. -%ility trade 2.3.2. $inancial -%ility 2.3.3 Organizational capacity 2.4. Cause(effect analysis 2 2.). $uture actions to correct wea"nesses 3. ',OT -nalysis 4. .dentifying strategic mar"eting o%/ectives 4.1. Te company0s 1uantitative o%/ectives refer to 4.2. 2ualitative o%/ectives+ ). .dentify mar"eting strategy 3 %& #ompany Overvie' Mega .mage is a supermar"et cain wit a strong presence %ot internationally and nationally. -s part of te 3elgian group &elaize 4roup5 Mega .mage is a dynamic company tat is in te process of e6pansion. .ts main activity is retail trade in specialized stores supermar"ets type wit predominant sale of food. $ounded in 177)5 Mega .mage is one of te first networ" of supermar"ets appeared in te local mar"et. Mega .mage is part of te &elaize 4roup5 te international retailer founded in 18*9 in 3elgium wic operates on tree continents :;.'.5 #urope and -sia<. Mega .mage is a company in te process of e6pansion tat aims to %e te first coice in terms of fres food5 1uality products and uni1ue and diverse range of products5 all offered in a pleasant environment. Te first supermar"et5 Mega .mage =izeanu5 was opened in May 177). 3y 2>>> tere were 7 oter supermar"ets open. .n te same year te 3elgian &elaize 4roup ?ederland 3@ ac1uired te )1A sares from te 4ree" investors in Mega .mage. Mega .mage participation to te capital progressively increased5 reacing 9>A5 ten to 1>>A. .n 2>>)5 te company0s legal form was canged from /oint stoc" company to a limited lia%ility company. -t te end of 2>115 Mega .mage is considered one of te largest supermar"et cains in Bomania and te largest cain of 3ucarest. ?etwor" comprised 1>) stores. Te company currently as a networ" of 174 supermar"ets in 3ucarest5 Constanta5 3rasov5 Ploiesti5 Pitesti5 Mum%ai and oter cities5 of wic 142 and )2 Mega .mage 'op C 4o. Te concept of 'op C 4o5 means tat Mega .mage ma"es availa%le for tose wo want to %ecome entrepreneurs5 te possi%ility to ta"e a sop and manage it. Te retailer as offered francises to 'op C 4o convenience stores in early 2>11. Troug continuous investment in tecnologies suc as %a"ery ovens5 last generation rotisseries5 new types of display selves for more efficient products5 Mega .mage will continue to focus on 1uality5 variety and prices5 development and remodeling its stores to provide a pleasant sopping e6perience to customers. .n 2>125 Mega .mage continues to open new stores under %rands Mega .mage and 'op C 4o5 and its e6pansion plans are supported %y te wor" of new logistical center in Popesti =eordeni. Mega .mage will continue to support local producers to provide Bomanian clients specific products under its own %rand DBomanian Tastes D. 4 %&% Product portfolio Mega .mage product portfolio includes a various range of products depending on store size :medium5 small5 city<. Te product range is diverse5 aiming to cover as many consumer needs+ food5 maintenance and ygiene5 ouse"eeping5 #lder e1uipment5 cloting etc.. .n addition to %asic products offered %y Mega .mage tere can %e found premium products5 specialties and delicacies in con/unction wit te area were stores are located. Tere are also a num%er of own %rand products as follows+ E 3*) ( Mega .mage own %rand tat provides great 1uality and savings daily customer purcases. E 3io ( Bepresents own %rand organic products. E Care ( 1uality food products. E &elaize ( passion for fresness and 1uality can %e found in every product &elaize own %rand. E #co ( .ncludes range of non(food organic products. E Bomanian Tastes ( Bomanian traditional products. E =e 3oucer ( constitutes %rand for fres meat and taste derived from te %utcer sop. %&( Main competitors Mega .mage main competitors in te local mar"et is 3illa :*3 units<5 Carrefour Mar"et :)2 units< and Cora :1> units<. .n everyting it does5 Mega .mage offers first 1uality and fresness5 along wit a unmista"a%le am%iance wit caracter5 original5 intended primarily to provide customers te most comforta%le and easy access to all products offered under varied assortments. Tis view is strengtened %y te 9 pillars specific :pro6imity5 product5 promotion5 store presentation5 distri%ution5 service5 price<5 under te slogan D.t0s greener ereD. Category of customers targeted %y supermar"et mar"et segment :Mega .mage supermar"et default< is te pro6imity to consumers in stores. 5 %&)& Organi$ational structure .s a fle6i%le organizational structure5 divided into departments5 as follows+ E &epartment of Trade and 'upply E -ccounting department E &epartment of Fuman Besources and -dministration E Tecnical &epartment5 researc ( development E Mar"eting &epartment E .T &epartment and =ogistics E =egal &epartment E &epartment of e6pansion5 pu%lic relations and safety E Operational &epartment :stores structure< The Mar*eting department see"s tat te products offer of te company meets te e6pectations and needs of consumers. Customers will %uy te products offered only if te mar"et is insufficient5 if te products are identical5 are ceaper5 more efficient and more %eautiful. Tus5 te main aim of te department is to ma"e so tat product meets Dconsumer needsD. .n te company Mega .mage5 Mar"eting is te tool wic must provide profit %y selling te company0s products. Fowever5 tis department conducts preliminary mar"et researc in product definition5 mar"et researc furter in setting sales targets5 designing mar"eting strategy of te company and is involved in preparing te mar"eting of te company0s %usiness plan. Te department also proposes mar"eting training seminars for staff directly involved in selling in stores :eg5 D'uccess in retail ( te role of te ead of te sop in %usiness<5 and ways to %oost tem :you get different %onuses if te sales target is acieved<. Tis department defines and designs te content and conducts advertising campaigns. Te mar"eting department wor"s wit oter departments5 commercial and supply department to define te products offered %y te company and te target group5 te finance department :transmit all information relating to sales rate<5 operational department to retrieve store information a%out te structure and teir staff5 uman resources and administrative department :employee motivation<5 te .T department to promote te company0s products on internet we% pages and to carry out electronic promotional materials :eg posters5 flyers5 %usiness cards5 etc.<. 3etween all departments tere is a close relationsip5 in order to meet te main target5 te satisfied customers. 6 %&+& The company,s mission E To provide employees an international wor"ing environment5 callenging5 en/oya%le and conditions for development and promotion. E To provide customers wit a pleasant sopping e6perience in a friendly environment. E To provide a variety of fres5 ig 1uality and very prompt service. E Compliance wit environmental and social involvement. E .t is an innovative company tat anticipates and satisfies it!s consumers. (& Mar*eting environment analysis (&%& Macro analysis (&%&%& -conomic Factors Mega .mage as adopted a policy of aggressive e6pansion in 2>12 so as to e6tend te networ" of supermar"ets in 3ucarest and oter large cities in te country5 %ecause it pro/ected an economical growt of >.)A for 2>125 tus estimated populations consumption growt of 1.3A in 2>12. -lso5 lower inflation increases te real incomes of te population5 so te food retail mar"et e6pected to increase domestic demand. Te supermar"et segment is te most developed segment of te Bomanian retail products. Te main trend in #urope tat retailers are increasingly diversifying teir presence5 %ot geograpically and %etween formats5 adopting multi(format strategies is felt even in Bomania. #ven toug large groups ave not yet developed locally all formats included in teir international portfolio5 retailers ave already ad/usted strategies in tis regard. $igures presented %y Boland 3erger are relevant+ if te average selling surface for newly opened stores was over 15*>> s1m in 2>1>5 tis figure fell in 2>11 to less tan *>> m and in te first alf of 2>12 to %e at %elow 4>> m. 'o if large formats dominated e6pansion %etween 2>1>(2>115 now players in te industry are moving towards smaller formats :pro6imity stores5 discounters and supermar"ets< and many adopt a multi(format strategy. 7 (&%&(& #ustomer .ehaviour in times of economic crisis 3efore te crisis &uring te crisis 'opping was an opportunity to rela65 spend time wit family 'opping in %ul" :%as"ets full< Curiosity as a motivator to try oter %rands 'pending any amount of money /ust to ave a sense of saturation #motional %uying decisions :pac"aging5 smell5 curiosity5 recommendations5 ego %rand< *>A of customers :2>11< went sopping unaccompanied 3asic needs+ commodities5 small amounts Customers %uy only %rands tat tey already "now5 tey are not willing to e6periment Prior esta%lisment of a fi6ed amount of money tat will %e spent in stores Bational purcasing decisions+ price5 1uality5 proven %rand store (&%&) emographic Factors 'o far5 te group &elaize opened stores especially witin te capital5 wic is due to iger purcasing power in tis area compared to oter ma/or cities in te country. Proportion of population in ur%an areas is )2.)A in 2>11 and 49.)A rural one5 so most sales are acieved in ur%an areas5 and mainly around te capital5 %ecause population density is iger. -fter mar"eting studies it was o%served tat in te last tree years it!s %een dramatically reduced summer sales5 reason %eing city population migration to seaside or mountain areas for spending olidays. .n 2>125 trying to capture te new demand formed in Constanta5 &elaize 4roup opened anoter store in addition to te tree e6isting in Constanta :te second city in size and importance in Bomania<5 and tree stores near 3rasov5 tis town was %ooming in recent years. &epending on te age structure of te population and purcasing power you ave to ta"e into account te allocation of space for opening stores. Tus5 underdeveloped neig%ouroods5 mostly populated %y poorly educated population5 Mega .mage opened small sops trying to offer a wider range of goods in comparison to surrounding agricultural mar"ets. .n central areas5 witout treats from competition5 and populated %y people wit iger intellect and purcasing power5 it opened large stores5 fancier tat meet customer re1uirements :eg Titulescu5 Miai 3ravu5 Tineretului5 .on Mialace<. 8 (&%&+& Socio-cultural factors Cultural impact on %usiness environment companies depends on a num%er of caracteristics+ fundamental cultural values are "ept in time5 every culture is composed of secondary cultures. .t is well "nown tat Mega .mage stores assortment is different depending on te type of store5 on te one and its format :medium5 small5 city<5 on te oter and its concept :supermar"et5 discount software5 mini<. Tus we don!t find in te @illage type stores :discount software<5 located in villages and small cities5 rotisserie5 deli or %a"ery %ecause demand for tese products is insignificant. ?ational consumer preference for Bomanian genuine products5 led to teir product range called DBomanian TastesD to meet customer needs5 products tat offer taste of anoter time of specific Bomanian products :fres ceese5 ceese5 cream5 coo"ies5 mil" etc.<5 products tat until recently only te products made at ome5 from parents or grandparents5 met tem. Cultural environment is a "ey factor in te decision to locate a new store in a new area. $irst agreed to e6amine is weter tis form of trade5 language advertising5 logo and slogan sould %e carefully cosen so as not to imply5 offend5 incite feelings5 %eliefs and e6pectations of prospective customers. $or e6ample5 te D3lac" =ionD %rand of Mega .mage stores was cosen %ecause it is considered a strong animal5 li"e a man wo comes to sop decided and sure of imself. (&%&/& Political and legal factors ;nsta%le political decisions5 %ounces troug laws5 ordinances5 canges and return to te same law5 acts tat are canceled %y an emergency ordinance5 determine te uncertainty in te formation and implementation of long term strategies5 tat environment %ecomes ostile. .ntroducing te new system of deduction of @-T5 te D@-T collectionD %rings relevant amends for %usiness+ tey must "eep a separate data wic are receipts and payments to determine wen tey ave te rigt to deduct @-T5 o%ligation to pay @-T will cange accounting programs5 ta6payers are often in a position to finance from teir own resources te amount of ta6 owed to te state5 wile te collection from customer after payment deadline occurs @-T5 will create difficulties in "eeping separate records of @-T5 company income canges5 and ence its cas flow5 etc.. Meal tic"ets is a way of transfer funds to te company troug corporate income ta6 e6emption and sales growt due to consumption of te population5 increased income from %asic salary5 and rule %y encouraging wile consumption and 4&P. 9 (&%&0& Technological Factors Mega .mage stores invest mostly in information tecnologies tat elps te supervision of te trade process. .n an attempt to adapt to mar"et demands5 te last ma/or investment made %y Mega .mage as %een done to implement te process of self(scanning and electronic la%elling system. Te process self ( scanning is innovative5 more efficient for sopping ( on te one and reduces te time spent waiting at te cec"out counter and on te oter and te customer as at any moment te %as"et value and can add or cancel depending on %udget items availa%le5 witout te time(consuming counter D"eyD and witout %eing placed in te delicate situation of not aving enoug money in your poc"et. #lectronic la%el system allows monitoring and updating prices for 3)>> products. (&(& Microenvironment analysis (&(&%& Suppliers Products for sale are eiter delivered directly %y suppliers or delivered troug new logistics center in Popesti =eorideni5 wic as a total area of over 4>.>>> s1m5 wic centralizes te entire assortment of stores in te networ". Mega .mage 'uppliers are divided into+ E Product 'uppliers E 'ervice Providers E Providers of personal E 'uppliers of e1uipment Product 'uppliers are te source of raw material in sales process of te company. Mega .mage colla%orate 7)A wit domestic producers and direct importers5 attempting to eliminate intermediaries5 tus avoiding inflating te price of te product in te store entrance. $or e6ample+ a competitive advantage is te supplier of fruits and vegeta%les. Tis is one of te partners of te firm and is a domestic manufacturer and direct importer :olding plantations of vegeta%les and e6otic fruits<. 'upplier relationsips we ave wit &elaize group allow tem to carge prices as low as possi%le to Mega .mage stores and to te rest of our competitors prices sligtly iger :tis is possi%le %ecause te service provider is one of te most important5 on te fruit and vegeta%le mar"et<. #6amples of suc providers are many+ 'tar $oods ( manufacturer and distri%utor of sweets :croissants5 snac"s5 dry toast5 cips5 etc.<5 =oulis :formerly Titan< producing %read5 products of %read5 10 3renac5 &anone :fres mil" and mil" products<5 .fantis :meat products5 meat5 fres5 dried and frozen5 etc<. Contracting providers wit a wide range of products is te goal. 9)A of insured goods are delivered %y important trusts :?estlG5 3renac5 $irst5 ?ivea5 ?atural $arm5 -groalim5 Procter C 4am%le5 Fen"el5 Colgate(Palmolive5 &elta5 &anone5 Carlsrom5 -stese5 @incon5 Coca Cola5 2uadrant etc<. 3ut te main concern and callenge in te plan is te implementation5 for a%out tree years5 of own %rand products. Tese are te %est domestically in terms of price( 1uality ratio. Mega(.mage own %rand means+ E Products 3*)5 wic means te 3*) days of te year :%asically a product for every day<5 are eiter imported from 3elgium5 eiter produced domestically %y certain companies5 e6clusive to Mega(.mage. E &elaize products5 tat are imported from 3elgium. E Care Products5 tat are imported from 4reece. Contracts are periodic :ma6imum one year< and provide conditions for delivery of goods5 delivery prices5 te limit for display of products on store selves5 minimum selling prices carged %y Mega .mage :is negotiated a minimum mar"5 avoiding so practicing dumping prices ( ;nfair competition policy (<5 providing discounts5 re%ates5 promotional prices5 terms to return %ad mercandise5 outdated or damaged5 paying %ills5 etc.. 'ervice providers wic Mega .mage call are te ones on te financial(%an"ing mar"et5 and tose tat provide electricity and water supply5 waste collection. Personnel providers ave considera%le influence in tis %usiness. Tey are represented primarily %y te scool5 employment agencies and individuals loo"ing for a /o%. 2uality education is a very important factor. Tus5 if te employee comes from a renowned %usiness scool tat as strict re1uirements for graduation5 is a great advantage for te enterprise. Fe no longer re1uires prior preparation and 1uality of services provided %y te contact wit customers is ig 1uality. #1uipment suppliers provide products needed for sop fittings5 all leading to its functioning+ spatial structure store5 refrigerated sowcases5 selves5 roasters5 warm display cases5 ta%les of vegeta%les5 fruits5 etc.. -lso te relationsip wit tem as a great influence on te activity %ecause tey are te ones wo ma"e sure tat te store will %e fully e1uipped to %e open in time and to function properly. Te main e1uipment suppliers are Con Pol &esign5 -6is .nvest5 'ystem Center5 -CM'5 &--'5 -vitec5 etc.. Tey %elong to ma/or industrial trusts. 11 (&(&(& #ustomers Te category of customers targeted %y supermar"et mar"et segment :Mega .mage supermar"et default< is te pro6imity consumers of te stores. Te customer structure is diversified. Mar"eting of products strictly necessary to meet te every day needs does not impose special conditions for only a certain segment of people in te mar"et. .t aims to satisfy all needs from a %a%y to a senior. ?owadays5 te customer profile of Mega .mage is drawn according to se65 age5 level of education and income. -ccording to se65 most clients are female :*3.4A<. .f we consider te age criterion5 a significant sare is eld %y persons aged 2)(44 years :3).2A<5 followed %y tose aged 4)(*) years :3)A<. &epending on te study5 43.7A of clients ave a ig educational level5 following tose wit secondary education :41.2A<. .n relation to income5 a significant percentage of customers ave incomes %etween 1>>>( 2)>>BO? :42.*A<5 followed %y income customers %etween 2)>>(3)>>BO? :1*.)A<. (&(&) #ompetitors Te main players in te retail mar"et in Bomania are Carrefour5 Haufland5 -ucan5 Beal5 Cora ( ypermar"ets segmentI Mega .mage5 3illa5 -ngst5 Cris(Tim5 4Mar"et ( supermar"et segmentI =idl5 Penny Mar"et5 Profi ( te discount segmentI Metro and 'elgros cas C carry segment. Competitors of Mega .mage cain stores are divided into+ &irect Competitors+ 3illa5 Carrefour #6press5 Cris(Tim5 -ngst. .ndirect Competitors+ E Hypermarkets Carrefour5 Cora5 -ucan5 Haufland E cash & carry stores in category+ Metro5 'elgros. E Discount shop+ =idl5 Penny Mar"et5 Profi ;nli"e oter competitors on te Bomanian mar"et5 Mega .mage doesn!t ave a DfigtD strategy wit te competitors. Mega .mage as te advantage of pro6imity to ma/or ypermar"et cains. Tere is a Mega .mage store in every neig%ourood in 3ucarest5 even more so were tere is a ig population density. Consumers of Mega .mage are %ot male and women aged %etween 24 and 44 years in ur%an areas. Mega .mage as a wide range of products5 wit particular empasis on fres products. Te company!s policy is tat te fruits and vegeta%les aisle is placed at te entrance of eac store5 wit a great empasis on product 1uality. 12 Te top 1> general retailers in 2>11+ Place 1rand 2nnual turnover 3.il& lei4 Mar*et share 354 % Haufland 459* )583 ( Carrefour 357 4587 ) Beal 353 45>7 + Penny 15* 25>2 / -ucan 15) 1589 0 =idl 154) 1581 6 Cora 1539 1592 7 3illa 1514 1543 8 Mega .mage >5883 151 %9 Profi >.933 >57 1illa is te main competitor of te company5 wit a mar"et sare of 1.43A in 2>11. Tis retailer directly compete wit Mega .mage5 wit similar products targeting te same mar"et segment. (&(&+& Strengths: E 3illa stores are special %uildings designed in its own foundation5 carried out on large areasI E ave large par"ing areasI E selling space tat allows greater ligt e6posure of goods5 tis allows te prices to %e clearly visi%le for eac productI E ave at least ten cas registers allowing rapid collection from customersI E effective management programs tat are found in eac and every store for determining stoc"s at any time. E maintaining a larger period of time of products at promotional prices (&(&/& :ea*nesses: E tey aren!t pro6imity sops5 %eing in less accessi%le areasI 13 E product segmentation+ does not ave a igly developed premium segment and no diversified range of private la%elsI E low num%er of stores in 3ucarest and in te provincesI E te ,or" program in storesI E do not develop training programs of customer care for employees. #arrefour is considered %y consumers as aving te %est prices5 as well as te second largest mar"et sare of ypermar"ets segment in 3ucarest. Tis is largely due to te promotional offers tat Carrefour release 1uite often5 suc as te D%uy a product and te second you can get for alf te priceJD5 D3uy two identical items and get te 3rd one freeD5 or D.f you find ceaper elsewere we0ll give you 1> times te difference Dand intense pu%licity troug advertisements5 posters or %rocures. Begarding competitor 'tategy5 Carrefour placed street posters ne6t to its ma/or competitor5 announcing suc soc" offers. #ora ypermar"et offers its loyal customers a loyalty card tat tey can ave discounts on certain promotional products and can %e given points %ased on te amount of purcases made in return for wic tey receive a free product coice. &iscounts on certain products is not te reduction made on te moment5 %ut decrease te amount of future purcases witin suc reduction5 tus ma"ing te costumer come %ac" into te store. - study conducted %y te company Mega .mage on wy customers coose competitors or Mega .mage stores5 %ased on 1uestionnaires tat clients were as"ed to coose from te list tree reasons wy tey sop at a store are listed+ ;eason<Store 1illa #arrefour #ora ;eal 2uchan =aufland Mega Image 1etter prices A *9 *) )4 *) 4* 89 4) #loser to my home or the place I am 'or*ing A 4) 2759 1) 34 4) 32 *8 Product diversity A )* 87 9)52 89 89 )) 4953 Product >uality A 3) 43 )4 8) 3) 4) )7 Services A 3* 19 1*52 11 3> 12 2) The store environment A 12 29 4) 1>58 2) 757 19 14 -s we can see5 te main competitive advantage of 3illa and Haufland stores is te %etter prices. Carrefour5 Cora5 Beal and -ucan were cosen mainly for wide range of products. Mega .mage as a competitive advantage %y pro6imity. (&)& #apacity 2nalysis (&)&%& 2.ility trade .n a difficult conte6t5 Mega .mage ad a very good year 2>115 wic confirmed its leading position in te supermar"et segment. Tis performance was acieved %ot %y a positive trend in sales recorded in te same stores :li"e for li"e ( e6isting stores in 2>1>< and an e6traordinary organic e6pansion :33 stores+ K3) new stores and (2 sops closed due to pro%lems in partnersips locations<. Mega .mage continued e6pansion plans in te souteast5 wit most sops open and penetrate new cities 3ucarest and Pitesti5 3usteni and oter smaller towns. Tus5 Mega .mage ended 2>11 wit 1>) stores :7* Mega .mage and 7 of 'op C 4o< confirming its position as te most dynamic trader for te last two years :2>1> and 2>11< and increasing its mar"et sare %ot in 3ucarest and in Bomania. -ward for D3est Betail 'trategyD %y te magazine 3usiness Beview was anoter recognition of te dynamism tat Mega .mage as. (&)&(& Financial 2.ility Te income of te 3elgian &elaize 4roup5 owner of Mega .mage supermar"ets rose %y 32A last year in 'out(#ast -sia5 to 2.) %illion euros5 positively influenced %y ta"ing &elta Ma6i retail networ" and te e6cellent results in Bomania. 3elgian &elaize 4roup revenues in 'out(#ast -sia increased %y 32A in 2>11 compared to 2>1>5 to 2.) %illion euros and operating profit in tese regions increased %y 18.9A5 from *7 to 82 million euros. On te positive %alance of te group contri%uted5 among oters5 te e6cellent results in Bomania5 were &elaize owns Mega .mage supermar"et networ"5 wit 1>) units in 2>11. Te entire group5 &elaize ad revenues of 21.117 %illion euros5 up 1.3A in 2>11 compared to 2>125 %ut operating profit fell %y 18.1A to 812 million euros. 15 Mega .mage activity in Bomania is supported mainly %y investments made %y te group5 so tat te positive results of te group indicates tat it will continue to support te company0s e6pansion policy. (&)&) Organi$ational capacity Te organizational structure is fle6i%le and is influenced %y a num%er of internal factors :among tem most nota%ly5 sales volume and e6tension of sops tat ma"e %usiness volume increase5 tis is reflected in te increased need for staff< and outside factors5 trying to continually adapt to te company staff needs :see -nne6 1<. Beview of te wor" procedures at te store5 reorganize to streamline wor" and %etter distri%ution of wor"ing time5 generated organizational structure canges :appearance of new /o%s or complete reorganization of e6isting ones<. Tere are constantly encouraged promotion witin te company5 to put in front te middle( management level employees wit potential. Tere are also loyalty programs5 wose main o%/ective is to control te staff flow. (&+& #ause-effect analysis !r& :ee* points #ompared to #ause -ffect %& Beduced assortments5 altoug varied %y type of raw Te main competitor+ 3illa Beduced self space 'pace(saving storage &ecrease turnover (& &ecrease in sales in te premium segment 'econd 1uarter of 2>12 compared to te year 2>11 ig prices 'mall num%er of customers for tis product segment &ecrease turnover )& #co segment sales decreased =ast 1uarter of 2>12 compared to te year 2>11 ig prices insufficient promotion &ecrease turnover +& Fig costs of e6pired and damaged products =ast 1uarter of 2>12 compared to tat of 2>11 &ecreased customer traffic employee negligence sales decline / lac" of par"ing Te main competitor+ 3illa =ac" of space :usually rented< =ow num%er of own construction loss of customers 16 (&/& Future actions to correct 'ea*nesses Begarding small assortment we %elieve we sould e6pand stores were you can rent storages togeter and so space will %e iger and sales room will e6pand so tat te rac" can %e e6posed to several products tus increasing te possi%ility of aving several types of products. On te oter and5 we may reorganize goods on te self and tus eliminate products tat sowed low sales5 using of space %eing more efficient. To increase sales of premium products and #CO is needed a %etter negotiation wit suppliers5 and tus will decrease te price of products. -lso5 %etter promote of tese types of products will attract customers. To avoid te products to e6pire tere sould %e a iger turnover and orders must %e reviewed %efore %eing made so tat if te products are not sold5 not to remain more in store. -ny penalties and sanctions for employees wo do not respect andling and arranging products. Most of Mega .mage stores are located in rented %uildings and often lac"s space and an outdoor arrangement. .t is terefore advisa%le to see" out tose places wic gives te advantage of outdoor space5 or else to resort to property ownersip. 17 )& S:OT 2nalysis Strengths :ea*nesses E Te 1uality5 variety and fresness E Pro6imity+ at least one store in every neig%orood E -ccessi%ility prices Dalways low pricesD E #mployee Hindness+ customer orientation :Dour client ( our partnerD< E 'afety+ &ept e6istence of Dfood safetyD :audit 1uality< E close relations wit customers E Products 0e6clusive0+ sauces5 %reads E Conducting periodic review assortments E #asy to find te products sougt to identify desired districts E 2uality standards+ Mystery 'opper E Mostly %asic assortments E Categories few products5 altoug various E Mar"et sare decreased+ in 2>11 occupies 1>t place in te top 1> general retailers E reduced Promotions E reduced self space E reduced storage space E low sales in te premium segment and #co E Tere is no par"ing at all stores amen/ate E Fig costs of investment in very sort periods+ low cas flow OPPO;TU!ITI-S T?;-2TS E -doption of a policy of aggressive e6pansion+ supermar"ets segments are growing E #6tension cain stores in large cities and towns developed punLin E Creating new /o%s E Mar"et orientation to convenience stores E Ta"ing oter cains E Creating new e6clusive products E .ntroduction of self(scaning process E .ntroduction of electronic tags E Competitors e6tension outside te capital mar"ets due to increasing consumer needs E .nsta%ility of political decisions E =ac" of /o% security E Beduced demand for food E .ntroduction of D@-T collectionD+ canges in accounting5 separate records5 canges in cas flows of te company. 18 +& Identifying strategic mar*eting o.jectives .ncreasingly fierce competitive environment in wic organizations of any "ind operate today5 compel tem to particular regard to te esta%lisment5 implementation and maintaining competitive advantage. .n order to create competitive advantage te organizations need to set some realistic goals5 clear and specific to a particular time orizon5 wic can %e measured5 and to %e receptive and em%races te audience. +&%& The company@s Auantitative o.jectives refer to+ E -nnual turnover+ turnover increase %y 4>A %y te end of 2>13. E Mar"et sare+ Mar"et sare increased %y 2)A in te ne6t * monts. E 'ales+ .ncrease sales troug te sales e1uation M Traffic N rate N medium cost . 'o5 we want to increase te num%er of visitors O day wit 1>A5 ac1uisition rate of )A and )A in average %as"et5 in te following * monts. E -ggressive e6pansion+ e6panding cain stores5 open 2) Mega .mage stores Province and @illage %y te end of 2>13. E -ccessi%ility+ tere is a sop in 3ucarest every 9>>m over te ne6t five years. E Competitive pricing and accuracy+ monitoring and updating prices for te 3)>> competition products using electronic price la%el system. E Premium segment and #CO+ increased sales in premium segment and #CO wit )A in te ne6t * monts. E Own 3rand+ introduction of 2> new products in te segment own %rand and own %rand segment sales increased 1>A in te ne6t * monts. E Te process of self(scanning+ increase average customers %y 2>A in te ne6t * monts %y introducing to )> stores a procedure called self(scanning. Te process is innovative5 more efficient sopping ( on te one and reduces te time spent waiting at te cec"out counter and on te oter and te customer as at any time in front of te %as"et value and can add or cancel a product depending on te availa%le %udget5 witout %eing placed in te delicate situation of not aving enoug money in your poc"et. +&(& >ualitative o.jectives: E 'atisfy a wider range of customers5 from cildren to seniors. E -ttracting new customers and retaining e6isting ones troug competitive pricing. 19 E Coverage of customer needs troug constant statistics regarding customer satisfaction. E .mprove customer relationsips+ "eywords in te company on customer relationsips are %rief5 warm5 sincere5 friendly. E &ecrease in complaints %y )A in 2>13 compared to 2>12. E &evelopment of internal training programs as 'tore Managers Trainee program. .t is designed for selected individuals to develop te s"ills for a %etter understanding of wor"ing procedures and activities of te company. E 'et up meetings %etween departments to promote "nowledge wor"ers5 leading to greater activity %y te company. E .ncrease awareness E .ncrease image troug social involvement+ a continuing callenge to protect te environment and its natural rices :tecnologies resulting in a low power consumption5 recycled pac"aging5 waste selective collection and recycling5 green products<. /& Identify mar*eting strategy Te company0s mar"eting strategy is %ased on two main pillars+ Promotions Product placement -ltoug promotions are not te primary element for supermar"ets5 Mega .mage is trying to loyal teir customers troug various promotions. Te main tools for implementation are+ E Promotional %rocures+ to %e found in store or distri%ute regular to te customers. E Promotional Campaigns D-lways low pricesD. E 'econdary placements+ allocated %y contract for various suppliers. E Contests for customers+ organized eiter on te company we%site www.mega(image.ro or $ace%oo" ttp+OOwww.face%oo".comOMega.mageBomaniaPrefMtsCfrefMts. Tese tools ma"e Mega .mage different on te mar"et wit campaigns tat promotes Dnormal pricesD and avoid price fluctuations5 wile promoting teir own %rands tat %alance %etween ig 1uality and afforda%le prices. Moreover5 customers will ave 20 te opportunity to %uy teir favourite products at promotional prices5 tese promotions %eing more and more fre1uent tan competitors. Te company0s vision was to ease product placement for clients to identify desired regions and find te products sougt5 wit great fle6i%ility wen %uilding new stores. Tools for product placement are+ E Placing "ey(aisles+ always at entrance te fruits and vegeta%les aisle to igligt te fres and clean5 and ten districts wit own %rand wit te %est 1uality(price ratio5 followed %y oter aisles wit different products. E 'econdary placements+ optimal and full use of selling space :depends very muc on time to wic we refer5 if for e6ample we are in te Cristmas period we will %e made pyramid wit sweets5 candies5 toys5 decorations5 etc.<. E -reas wit DimpulseD products tat are usually at te cas register. E Cross(mercandising+ different products associated in te minds of consumers :for e6ample5 if a client wants a %ag of popcorn or peanuts ten soft drin"s are located near5 e will purcase refresments<. Tus5 we o%tain a logical placement :3uilding %as"et of goods< and ma"e more placements for ig(turnover products. Fowerver5 customers en/oy te ease of sopping %y cross(mercandising policy and ease of purcase. &epending on mar"et dynamics5 te company is pursuing a growt strategy5 adopting a policy of aggressive e6pansion in te e6tension of te networ" of supermar"ets in 3ucarest and oter large cities in te country. .n 2>125 Mega .mage as opened 87 stores5 followed in 2>13 %y anoter 2) stores. Fowever5 tis strategy is also one offensive5 see"ing to increase mar"et sare %y volume of sales and num%er of customers. Towards mar"et structure5 te company is pursuing a differentiated strategy addressing pro6imity consumers. ,it a wide range of products from commodity to premium products and even e6clusive ones5 Mega .mage covers a wide range of products tat cover most of te needs of customers. Te company is responsive to mar"et canges %y adopting a proactive strategy. Tus5 regular tests of assortment5 igligts te products tat do not sell and identifies products according to customer re1uests to place tem in stores. 21 2nneB %: Organisation chart of the company 22 1i.liography %& -nnual Beport 2>11 &elaize 4roup (& www.mega(image.ro )& www.delaize.com 23
Operations Management in Automotive Industries: From Industrial Strategies to Production Resources Management, Through the Industrialization Process and Supply Chain to Pursue Value Creation
Rich Text Editodplr File MARKETING STRATEGIES OF DAWLANCE AND LG
A Comparative Study.
By ANNIE IDREES MEMON (MITM)
Department of Management Sciences
Isra University Hyderabad.
June 10 - 16, 2002
The study is based on the comparison of marketing strategies applied in LG. and Dawlance. In this study, the main focus to see the effectiveness of the marketing strategies applied by both the companies — Dawlance and LG, for selling their products particularly Refrigerators.
Just to understand the marketing strategies in general and refrigeration market in particular, one should know that what marketing strategies ought to be? Who are the main players in the market? What kind of other products do they produce? How do they promote and supply their products? What type of competition is going on in the market? And finally what are the marketing strategies being applied by both the companies? These are the questions to be addressed, but the main theme is the marketing strategies of