Marketing Management of Billy Supermarket-Free-Samples for Students

Question: Discuss about the the Marketing Management of Billy Supermarket . Answer: Company Background Billa has a chain of supermarket, it has opened first in 2000 and after that it never looked back. It has expanded in more than 35 Bulgarian cities, and currently operating 104 supermarkets. It has its maximum stores in Sofia. Billa is owned by Rewe Group. It is going to launch a new product of their own brand i.e. Billys pickle` There are various types of factors that influence the company and being a retail company it is more influenced by the, psychological and environmental behavior. The environmental factors, advertisement, pricing, strategies that will decide the future profit of the new product. A supermarket is mainly for all classes, as it has all kinds of products, therefore psychologically it is often seen that many people prefers supermarket as it has a variety of item which becomes easier of them to buy, they can do a weekly purchase, they can experiment with other products as well as buy the ones that is their personal favorite. Supermarket always has different kinds of brands which are another factor for the customers to go there (Stanciu 2016). Communication process and Regulation Supermarket has different types of communication requirement; it is different from normal departmental stores. The industrial revolution has brought changes in terms of communication and regulation. (McChesney 2015) The company used many devices as check stand scale, service department scale, and EFT (Electronic Funds Transfer), ATM (Automated Teller Machine) and store credit card terminal, direct store delivery access points, series I computer, all of these devices has to be connected in case of a harsh environment. In a supermarket they keep a commercial relationship with the retailers and their direct suppliers as long as it relates to the supply or sale of the products. However, wholesalers and retailers will be covered by the regulations of over 60 million turnovers (Grabosky 2013). Role of Advertising and Branding in Promotional Strategies Advertisement is very important for promoting a brand; in case the brand is already well-known then it becomes easier for the company, in order to launch their own product of their personal brand they have to make an advertisement strategy (Aaker and Biel 2013). The advertisement on the other hand has to be effectively given out the right message so that it leaves a mark on the customers. Before giving out an advertisement there should be a proper plan and hence there will be a couple of things, the advertisement will be attractive and appealing for the customer, it will give a proper tagline which has to be short and crisp and notable. In todays world there is variety of choices in giving out advertisement, like print media, television, social networking sites etc. For example in a supermarket they sell variety of goods and even services with respect to different group of customers. Promotion is basically used to achieve different kind of purposes. In a supermarket they have marketi ng mix is main way to make the most of customers satisfaction which results in high market shares and sales. The prime tools of marketing mix are; product price, promotion, place, customer solution, customer cost, communication and convenience, putting all these together will form a market mix and the figure of these shows the relationship between the four Ps and four Cs. There is competition in the market and therefore these advertisement and promotional ideas are even more important. . By using digital advertising techniques, the company can take on the customers in two-way communication. This allows the company to modify their branding posts and promotional propose for small and even micro, audiences that mirror their requirements and preferences. Current Trends in Advertising and Promotion with impact of ICT Currently there are various medium to promote, like newspapers, television and of course the power of internet and social media. This type of advertisement depends on which page it has been printed. Supermarkets are completely dependent on information and communication technology i.e. monitors control sale and performance sales, it helps to collect the entire data about the customers using loyalty cards which offers points whenever money is spent in the store. As technology moves on to increase, different types of advertisement are used to attract the consumers in supermarket (Andrews and Shimp 2017). The digital optimization is important to success. The new technology is compelling the marketers to arrange a line in their advertising and promotion. The new apps are making it easier for the consumers to collect their things. This data is technically used to examine and analyze the spending habits of the customers and according to that they send them offers for the exact type products they buy generally. Consumers behaviour depends on the sale and their advertisement. The strategy should be such that the consumer will flock to the market, when the consumer understands that they are going not only going to get different type of products but also different types of brands then they will get a lot more options (Fulgoni and Lipsman 2014). However traditional media stays feasible in many occasions. The abundance of expert programs that comes on cable TV might offer great promotional opportunities. In fact they can promote their brand name in some movies which will also help in recognizing the brand name. The flow in digital content and the surfacing of digitalization, however it creates a real opportunity. Branding is mainly the playing field of big business with mass previously, with vast mass-advertising budgets, is now probable for tiny businesses(Buil, De and Martnez 2013). Benefits of Relationship Marketing to Organizations Marketing relationship is very important for every organization. Relationship marketing means brands were recognizing the need to move past a series of transactional campaigns. Relationship marketing is an emotional and private connection to a brand. This connection is based on the trust which is made through the steady delivery of a product or service which exceeds or meets the customer expectations. This trust comes with time and experience, and its hard to sustain, however brand should recognize their cultural proposition to flourishing strategy of marketing relationship. It also increases the values and compels to make profit. In order to gain insights relationship marketing strategy begins with insight data relationship marketing is very important. This helps to reveals challenges and opportunities. The first step of a marketing strategy is the goals and objectives that it addresses the main adjectives and goals. A big company like Billy who already has a big chain market all ov er the world has upper-hand in the market as they are experienced (Campbell and Martin 2015). They already have loyal customers as well as suppliers. Billa makes sure that the customers work together and so that they meet customers needs. They always take feedback from the customer and provide them with time to time offers to motivate them. They make sure customers are satisfied with their products so that they share their experience with other people. This will profit their market as more and more people will come. They also provide with innovative ideas like introducing new products and brands of their own (Mokhtarian and Tal 2013). Goals and Strategy Billy supermarket mainly looks after to the fact that people are satisfied with the food products according to their choice. In order to take care of the masss need, the new product that has launch which is an exclusive product which Billys Pickle. This product will serve the mass market, as it is affordable. To make sure that the product will work, different methods will be implemented to analyze whether this product will make profit or not. The main goal is to make sure that the customer likes the product or not, therefore before launching the products certain measures has to be taken in account, like the economical distribution, what is the nature and need of the market and the cost benefit for both the customers and the market. The outlets advertising that specific brands outlet will be handed to the customers who are coming to the store and even outside the store. The marketing mix i.e. the four Ps and Cs should be taken into account (Abeza, OReilly and Reid 2013). Another strat egy which should be focused on is shelves strategy, where all the new products will be kept together in the first level, as that is the most important level, because the consumer will be able to see the product clearly. Any new product should be kept in the first shelves as it will be easy to notice and will create a certain kind of interest for the consumer for the product. The strategy will be free samples or offers like buy one get one free, these kind of strategies, intrigues the customers and makes them buy the product. Barrier Evaluation and Ethical and Legal Issues of Marketing There can be several barriers for the entry of the product, the barriers especially can be both innocent and deliberate, it also acts as prevention against the new competitors. As Billy is already an established company therefore it is easier to market (Albert and Merunka 2013). However, still it has to follow certain evaluation, like porters five forces which basically decide the strength of the industry i.e. industry rivalry, bargaining power of the buyers, the bargaining power of the suppliers and the threat to substitute (Armstrong et al. 2014). As Billy is famous therefore there might not be any threat to substitute, but the buyers will have the bargaining power according to their preference, even though there will be no problem in the supplier because it already has trusted supplier, so before launching a new product they talk to their suppliers as it has already developed a bond. In order to overcome all these issues the company should first segment their market, which is sele cting target customers, it is generally focuses that whether the buyer is well funded or not. Another important factor is the legal and ethical issue, these varies from place to place mainly. Nonetheless the ethical marketing assessment and effort will be according to the customers, business partners and supplier need and satisfaction (Peck et al. 2013). Customers always prefers ethical companies, unethical behavior like price wars, advertisement selection and misleading advertisement should be avoided in highest degree as this will give a bad image of the company. Pricing and Communication Policies Billy pickle will start with market penetration which falls under Ansoff Matrix, it will focus on selling the offered products into the existing market to gain and expand a higher market price. This is one of the smartest pricing strategies to be used as it has the lowest amount of risk. This strategy will help to sell more to both the current and the new customers. For example if the current customer base consist of women between the age group of 17-25 then the strategy will involve trying to sell more of the existing product to the same group. The main objective of the communication is to describe what added value this Billys pickle will add in the company and also for customer. Communication is very important in this case as it depends on the consumer media changes. Retailers run advertisement and promotions to attract customers to the store. The most important communications strategy is to make potential customers aware of your store and the product they offer (Hamilton and Chern ev 2013). The communication in a supermarket can be done in various ways; it will have an online site, where they can give updates about the new product and a description about it. There can also be an app throw which they can connect with their customers (Svoboda and Kopecka 2015). Importance of Brand Loyalty Brand loyalty is very important for any company; however for a reputed brand it is even more vital to maintain the standard of the company so the brand loyalty remains. For example if the company supports a cause which the buyers do not agree with then the buyer might switch their brand and therefore the loyalty is gone. The customer is measured to be the bread and butter of the company, it keeps the brand alive. In this supermarket they provide the customers with a card which keep a track of their buying and add points so that they can redeem those points and get a amount of discount when they want to, these kind of things builds the bond between the customer and the company and creates brand loyalty (Nagle, Hogan and Zale 2016). These cards are basically a strategy to achieve long term goals. Billy has its store in almost all over the world. Therefore the market value of their brand is already very high. There are a number of factors which influence the behaviour of the customers w ithin this kind of supermarket, which are the benefits that the customer will get while shopping from that particular brand (Swoboda 2013). Two type of psychology works in the mind of customers when they go to the same shop and have a loyalty for that brand, i.e. instant gratification and delayed gratification. Instant gratification works when there is a sale going on, in the super market the customer will get various offers, and the delayed gratification happens when the customers knows that they can buy now and add the points to their card which they can take today (Rosenbaum, Percy and Pervan 2015). This forms the brand loyalty. Campaign effectiveness and the Key requirements of the Plan Campaign effectiveness will depend on the sale, therefore when the product was launched, there were many people who bought the product and even in the below the line communication was successful, where people tasted all the flavors and liked it. Even though the garlic pickle and the mango pickle was more of a favorite among the people, even the advertisement in the television worked as a lot of people flocked just to try this product. The key requirements that made this possible was various analysis before launching the product and the strategies, be it porters five forces or advertisement and communication. The ATL and BTL test also confirmed the success of the plan (Siddiqi 2014). Evaluation of the product according to ATL and BTL Communication The company is mostly known for using above the line advertisement and marketing communication. In above the line advertisement the new launched product is showed through the mass media to promote brands and reach out to a bigger target consumer. It grasps a great number of buyers. This also includes conventional media like television and radio advertising, internet as well as print. So this will communicate to a wide spread audience and not to individual customers (Iqbal and Malik 2017). ATL ( Above The Line) advertising helps as they try to reach out to the mass as consumer audience. Below the line communication is something which involves distribution of handbills, pamphlets, stickers, brochures placed at the point of sale, on road through banners. BTL is mainly followed by the companies which are low on budget. It also involves product demos and samples, which will be a benefit for this product as it is people and in a mall if there is a sample of it then people might taste it an d take according to their choices. However ATL helps the most in terms of growth of the not only of that particular product but also market. It increases the overall sale and the popularity of the brand (Rucheva 2015). BTL (Below the Line) is used mostly to test the product before launching it that whether it is working for the customers or not. This brand launch of pickle has three different kinds of flavors; garlic based pickle, mango based pickle and carrot based pickle, now with the sample products people will get to taste it and take according to their choice. BTL is more like marketing directly with the costumers. Both ATL and BTL is has different ways to attract customers, but for this product as it is a supermarket product therefore it can use both ATL and BTL mode of communication as it will benefit from both. The first strategy should be the use of ATL advertisement that is advertisement to promote the product, once people gets to know the product and then it will increase customers in the supermarket; simultaneously BTL advertisement is also important as it includes staff interacting with the customers demonstrating the product, it can also include direct mail promotional campaigns. This will create more interest for the customers. (Hossain 2015) BTL advertisement is handled by the company itself, and it might not be involved in the advertising campaign. BTL advertisement is mainly used when there is a need to have a personal relation or interaction with the customers. To understand the need of pickle in the market and how many people wants it or likes it Therefore especially in a supermarket these kind of tests are very important as it gives a statistic about that particular new product. (Udod 2014) ATL communication happens on a big scale whereas BTL communication takes place for a small group of customers, however because Billys supermarket is a big brand by itself and has its stores all over the world therefore it can afford ATL advertisement and they have to reach out to all of their customers therefore it is more important for them. However they have several stored in different localities therefore to connect with their customers they use BTL as well Conclusion It concludes with the fact that a before a product is launched there are many steps that should be taken into account and therefore the above evaluation is done accordingly. All the analysis are very important, be it the environmental factors or the psychological factors. 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