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Introduction of Ocado's Marketing Plan Assignment
In the contemporary retail market, the introduction of a sustainable range of items has been widely prevalent. People have started to be aware of the environmental factors for the long-term sustainability of the environment. The companies too in compliance with the demand for the products have initiated to convert their business goals towards the use of sustainable items. Ocado being a product-effective and quality service company has initiated to expand the business by having added a new range of sustainable products in the market (Singh, 2019). Thus the company aims to come up with bio-degradable plates and bowls as a sustainable range of products having used a tactical marketing plan in the target market.
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Background: Ocado's Diverse Product Range and Online Retail Solutions
Ocado is one such company that demonstrates its products in the online platform backed by the Ocado Group Plc. The company mainly deals with the products like dinnerware, cosmetics, kitchenware, pet-specific items etc. Retailers from across the nation, abroad and corporate can avail of the services provided by the company via online retail solutions like online delivery apps, shop management, and content streaming (Weber and Schütte, 2019). The company works with several other brands with the aim to aid them with services and goods. Thus in order to boost the revenue rate of the company in the UK market, the company come up with the idea of introducing a sustainable product range and reaching out to the customers to make them aware of the existence of the product.
Vision/Mission/Corporate Strategy/Objectives
The research work that is being conducted in this part of the paper is based on the Ocado Company.
Figure 1: Ocado’s Mission
(Source: Ocado Retail Limited)
Vision
The company deems to have a long-term vision that states the aim of the company to be the uncontested leader and preferred global partner in the provision of technology and technology systems for grocery retail and other industries worldwide.
Mission
The primary mission based on which the entire company works is to expand sustainable products in the current market due to the current demand among the customers. The company's mission is "to change the way the world shops, for good".
Strategy
As the company have had to face major issues in the recent past with relation to the sustainability of its product thus this strategy of the product to produce a new range of sustainable item deems to be a great initiative taken by the company.
Objectives
Ocado is committed to achieving its long-term objectives by focusing on what matters most to its business.
- To evaluate effective marketing planning for new product lines in the market
- To implement work-process for positioning roles out for new product line by maintaining sustainability
- To increase sales of sustainable products by adopting advanced technology and automation in the current
Sustainable Range SMART Objectives
This product is a new set of bio-degradable plates and bowls. The SMART goals demonstrated have been used to get the product listed in the company.
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Objectives
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Specific
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Measurable
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achievable
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Realistic
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time-bound
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Objective: To execute work-process for positioning role out for the new product line has taken care of sustainability factors.
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With the rise in the sales rate of the product, the company aims to mainly greater sustainable measures.
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Customers are likely to get attracted to the new range of products at an affordable rate.
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Easily achievable with the help of a tactical marketing plan.
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One of the new ranges that are not offered by other competitive companies
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1-1.5 years
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Market Research
Ocado Group an online grocery business in the UK market has initiated to make use of sustainable products to meet the demands of the customers (Mason, 2019). Having introduced the bio-degradable plates and bowls the company aims to set a specific target demographic of the customers thus has conducted a survey from where it was found out that the age group belonging from 30 to 65 can be found to be the most targeted audience for the sale of the product.
Situational Analysis
PESTEL
Political:
- Brexit separation
- Possibility of military intervention
Economic:
- Rate of inflation
- Interest payment
- Foreign exchange rate
- Economic cycle
Social
- Social conventions
- Encouraging income for local marketers
Technological
- Robotic picking solution
- Revenue growth
- Advanced logistics process
Environmental
- Invested in Sustainability
- Improved energy efficiency,
- Efficient resource usage
Legal:
- Antitrust legislation in the retail business, as well as throughout the country
- Discrimination legislation
- Consumer law and e-commerce are two important topics.
- Employment law is a complex field.
- Health and safety regulations
SWOT
Strengths:
- Well-known for product innovation
- Has a strong distribution network
- Is able to reach out to its potential market
Weaknesses:
- Average profitability ratio
- Limited expansion
- Low rate of success in integrating firms
Opportunities:
- Low chance of getting impacted by the inflation rate
- New customer behaviour trends
- Technological advancement leads to better growth opportunity
Threats:
- The rising strength of local distributors
- The rising price of raw materials
- Shortage of skilled workers
Product Competitor Analysis
As the product is new in the UK market it deems to have a lower threat to the competitors. The biodegradable plates and bowls are the products that are new in the market thus by having introduced the same in the UK market the company will be able to gain a better competitive advantage over the other competitive companies (Raja, 2021). The busy lifestyle of the people in the UK will provide the company with the benefit of selling the product to the customer since it will further help the customers save time cleaning the dishes or purchasing a dishwasher ( Bierganz, 2021). Thus this range of sustainable products will help the company in outperforming its competitors in the UK market.
Value Proposition and STP discussion with Positioning Map
Value Proposition
'Money saver that helps in keeping the environment healthy
'Good for health as well as pocket-friendly
STP
- Segmentation: This business idea happens to be a profitable range of products for the company as it will help the company in having better growth potential.
- Targeting: The Company aims to target health-conscious customers as the product is both healthy to be used by the customers as well as pocket-friendly by nature.
- Positioning: As the products are new in the market it will help the company have greater scope in the market and help it gain greater consumer perception.
Positing Map
As can be asserted from appendix two, the exact place factors that are likely to impact the company's market positioning have been demonstrated effectively (Karami et al., 2020). The picture further demonstrates the selling of goods that are of higher quality at an affordable range.
Marketing Strategy and Marketing Mix
Having used Porter's generic strategy is being used to evaluate new sustainable product development; with the use of this general technique, it is possible to determine where exactly Ocado is located in order to implement a better new sustainable product in the market. It assists in determining which aspects of the general plan should be concentrated on (Azimovna et al., 2022).
As per the marketing mix standards the products deems to be packaged in environmentally friendly packaging. The product will be included in the Ocado shopping store, which is an online shopping destination. The campaign is being promoted on social media, with images, and on the Ocado web platform. Having created an environment where our staff are treated with dignity, are encouraged to work hard, and are given every chance to thrive will be critical to ensuring Ocado's long-term success.
Marketing Budget
As the product deals with eco-friendly materials it deems to have a lower budget which the company will be collecting from local marketers. Since the local marketers will be involved in the production process the cost of the product production will also be low. The products will be ordered with a code and will be sent to the customers at their doorstep with free delivery service (Olson et al., 2021). Emails being effective in informing existing customers about my new product line and making me appear more knowledgeable will be adopted by the company to aware its customers about the existence of the product. Thus the marketing budget happens to be eco-friendly by nature.
Tactical Action Table
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Objectives
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Ways in which It can be achieved
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Objective 1
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Aims to expand the new product range in the existing market has used an effective strategy for marketing so that the objectives of the company can be easily met
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Objective 2
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Adopt a sustainable approach in both the financial planning process as well as in the business so that the demand of the customers can be met
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Objective 3
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Use of discounted pricing, leaflets, and email marketing will be done for promotion to reach out to the target audiences.
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Conclusion and Recommendations
For the successful execution of the business, the company aims to gain a cost-effective approach for the business. The company can also expand its business overseas so that it can generate a greater amount of revenue from the same. The company must aim to reach out to the customers at a personal level and has made use of social media so that they can be aware of the health benefits of the product. Thus in order to boost the revenue rate of the company in the UK market, the company come up with the idea of introducing a sustainable product range and reaching out to the customers to make them aware of the existence of the product.
References
Azimovna, M.S., Ilkhomovna, U.D. and Shokhrukhovich, U.F., 2022. Content of Product Strategy and Tactics in Enterprise Marketing. Web of Scholars: Multidimensional Research Journal, 1(5), pp.34-38.
Bierganz, M., 2021. Delivering virtual value: the role of virtual value creation in e-grocery business models and resulting implications for today’s grocery retail firms (Doctoral dissertation).
CIPD, 2021. CIPD. PESTLE example for retail industry as at November 2021. [Online] Accessed on: https://www.cipd.co.uk/Images/PESTLE-example-for-retail-industry-2021_tcm18-27108.pdf [Available at: 20.12.2022]
Karami, M., Rastgar, A.A., Azar, A., Feiz, D. and Esfidani, M.R., 2020. Identifying the factors affecting the selection of B2B online market entry strategies using soft system methodology (case study: it industry knowledge-based companies). Journal of System Management, 6(2), pp.55-80.
Mason, R., 2019. Developing a profitable online grocery logistics business: Exploring innovations in ordering, fulfilment, and distribution at ocado. In Contemporary Operations and Logistics (pp. 365-383). Palgrave Macmillan, Cham.
Ocado Retail Limited, 2022. Ocado. Our mission. [Online] Accessed on: https://ocadoretail.com/our-mission/#:~:text=We%20offer%20our%20customers%20unbeatable,help%20make%20modern%20living%20easier [Available at: 20.12.2022]
Olson, E.M., Olson, K.M., Czaplewski, A.J. and Key, T.M., 2021. Business strategy and the management of digital marketing. Business horizons, 64(2), pp.285-293.
Raja, A.R., 2021. To study the impact of social and digital media marketing strategies on customer satisfaction, customer buying behavior, and consumer loyalty: a case study of OCADO (Doctoral dissertation, University of the West of Scotland).
Singh, R., 2019. Why do online grocery shoppers switch or stay? An exploratory analysis of consumers' response to the online grocery shopping experience. International Journal of Retail & Distribution Management.
Weber, F. and Schütte, R., 2019. A domain-oriented analysis of the impact of machine learning—the case of retailing. Big Data and Cognitive Computing, 3(1), p.11.
