DisbaS.A Marketing Plan
DisbaS.A is a leading Spanish supermarket with over 130 stores situatedacross the nation that has an average annual sale of up to 300million euros. The company has been making tremendous growth in therecent past, the latest being 12% sales increment last year.Additionally, the acquisition of other stores in the recent past canbe taken to be among the latest advances in an aim for the businessto reduce the cost of operation and logistics. The organizationstores are located near its Barcelona headquarters to reduce costs.
Oneof the major challenges faced by Disba S.A management is in thecreation of a good marketing plan which will assist the businesscounter its competitors. In order to come up with an effectivemarketing strategy analysis of internal environment, SWOT, andexternal environment is necessary. The plan/ strategy will focus onDisba growth strategy while suggesting an appropriate channel of abetter consumer interaction, and provision of better services whichwill enhance customer satisfaction, hence leading to an increase insales.
Themain purpose of Disba marketing plan is to provide an insightfulevaluation of the marketing strategies and expound more on all thepossible methods of increasing sales. Despite the fact thatcompetition and environmental are the most constant factors affectinga business, the most vital part of a marketing plan entailsdiscussion of ways in which a business will increase its market shareand ensure customer satisfaction across all of the organizationstores within the region.
Disba`sorganization has its stores divided into two. That is the Disbastores which are located around the headquarters, and are quite smallin size. Their size range between 150 and 1000 square meters. Thenthere are stores located outside Barcelona whose size range between500 to 600 square meters. Contrary to the stores in Barcelona, Storeslocated outside Barcelona comprises of a parking space and a uniform4.000 Stock keeping unit. In future, Disba plans to beat its’competition mainly the one posed by hypermarkets, supermarkets, andretail stores. The organizations main competitor include Dia S.A,Valvi, Caprabo, El Pratt, Convenience Stores, Hypermarkets and thetraditional stores. Recent, the acquisition of stores in Albacete(17) and in Cartegena (22) by the organization are some of the majorchanges to have occurred.
Oneof the leading macro factors that are likely to affect Disba’soperations is the political atmosphere of Spain’s Catalan divisionmove to become independent (2016, 2012). The implications of such amove would be immense, ranging from changes in operation rules, legaland regulatory aspects, and taxation principles and pricing limits.On to the competition from its competitors, Disba`s stores isexpected to experience huge competition in its operations especiallywith Dia S.A making massive investments and opening its chain storesin Barcelona.
Althoughthe competition outside the capital is not huge, the need to increaseits marketing initiatives in all its areas of operation cannot beundermined. Moreover, technological advances in the operation fieldof retail are expected to hit the retail industry. As such, Disba`sstores will need to increase its resources committed to improving themarket coverage by encompassing technologically advanced parametersin its workings (McKinsey, 1996).
Economicfactors are also of huge influence towards the business as the needto reduce operational cost have forced many players in this line ofservices to accommodate technology in monitoring and records keepingas they reduce the spending on human labor. There are nodemographical changes or social, cultural factors likely to affectDisba`s store`s operations or strategies.
Disba`sstores face a stiff competition in the areas of working in and aroundthe Barcelona locality. For instance, in Barcelona, Caprabo had 50supermarkets and Valvi and Caprabo both more categories and highproducts per category ratio in their merchandise selections. OutsideBarcelona, Disba’s stores primarily face competition fromindependent grocers, hypermarkets, and traditional stores. The newestchallenge now comes from Dia S.A – a store with Germany origin.
Themain organization customers are women, although men are alsocustomers but their number is minimal when compared to that of women.A majority of the buyers are centered in the city areas and a fewalong the Mediterranean coastline. The management perceives areawith high population density as the most probable customers’clustered zones. The business has effectively used low pricesselling strategies to ensure its customer`s loyalty.
1.There is the low turnover rate in the institution as the employeesare paid well and are liked by the customers to the stores.
2.A high number of return orders from the customers served earlierindicates satisfaction of the customers by the services we offer.
3.We still offer quite lowest prices in the market and as per thestore management belief that customers will always go for low prices.
1.The ability of the hypermarkets to offer low prices is quite ahuge blow.
2.The competitors are taking the advantage of having a wide varietyof goods for selection in different categories, and this could provetricky too.
1.The emergence of social media in the recent past have created anadded platform the business could use to advertise its business toonline customers (McKinsey, 1996).
2.Replacing human labor with machines in the store monitoring andlabeling of products could significantly reduce the expenses of thecompany.
1.If the Catalan province manage to be a free nation, theconsequences will be inevitable.
2.The growth of Dia S.A may threaten the business and couldsignificantly reduce the sales of our stores.
TargetMarket & Positioning Strategy
DisbaS.A operates in an environment whereby competition is at its highestpeak. There is a need to diversify its products so that they welcomethe parties like men and children in their selections. The use of lowprice mechanism has not been helpful as it has seen Disba stores makeless than 0.2% before-tax profit on sales while competitors go up to% 4%.
Proposedchanges for marketing mix.
Thebusiness should encompass online operations in its businesses a movewhich will not only work as an advertising tool but also as a way ofincreasing customer bond. There is an estimated high level ofreturning customers with 90% of customers coming back every year. Useof gifts and incentives to customers could prove good move towardsincreasing customers’ loyalty. The usage of lower prices have beena great move so far regarding maintaining customers but costs thefirm quite high profit and hence should be replaced by high levels ofadvertisement. Since the prospects of attracting more customers arehighly dependent on the ability to keep the customers happy andsatisfy their interest. To coup with changing times, the businesswill adopt effective and fast methods of serving customers as well asdiversifying their selection range to counter the competition offeredby other players. More so, the firm would establish more stores tocontinue enjoying economies of scale not enjoyed by others.
2016,D. E. (2012, November 23). Argumentsfor and against Catalonia independence.Retrieved June 23, 2016, fromhttp://www.debatingeurope.eu/focus/independence-catalonia/#.V2xXpjWmQjU
McKinsey.(1996). Reshapingretail: Why technology is transforming the industry and how to win inthe new consumer driven world | retail.Retrieved June 23, 2016, fromhttp://www.mckinsey.com/industries/retail/our-insights/reshaping-retail