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Winners Group Of Supermarkets Marketing Essay

Introduction Organisations vary widely. Some are simple and consist of only one business while others are complex, like a group and containing several businesses. Whatever the size or complexity of organisations, they are all faced with the need to manage for survival and development in the long term (Zastrow, 2009: 45). To cope with the changing market conditions and competition, organisations now must seek long term plans and actions to survive in the market. Strategic planning therefore becomes important for the long run survival and profitability of organisations.
State what this essay sets out to do!!!
Winners Group of supermarkets- a short introduction The food retailing sector via hypermarkets and supermarkets began to spread rapidly from the 1990s onwards and the rate of growth is now accelerating, reflecting overall growth in demand for convenience and quality food in a quality environment in Mauritius. In terms of consumer demand, grocery shopping involves the purchase of a large number of individual products and the size of the bundle is varied according to the size and income of the household. It is important to look at the characteristic of demand for groceries, that is, the pattern of grocery shopping by consumers and the nature and range of substitutes for particular types of shopping in terms of type and location of outlet that are available to them.
Winner’s is a leading Mauritius grocery chain founded in 1994 by the IBL group, one of the major private sector business players in Mauritius. All stores carry a full range of groceries, garments, electrical and household goods as well as fresh food and ready-prepared meals ( With around 20 outlets spread all over the island, sales is forecasted to reach Rs 4 billion by end of 2010.
The mission statement of Winner’s clearly defines customers as their first priority. They want to build a long-term business partnership with customers by providing products and services that meet or exceed their expectations. Their core values include internal and external customer focus, quality, profitability and corporate responsibility.
Strategic Management Strategic management, as quoted by Lamb in 1984 is
“an ongoing process that assesses the business and the industries in which the company is involved; assesses its competitors and sets goal and strategies to meet all existing and potential competitors’ and then reassess each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment…, or a social, financial, or political environment”
A major process in developing strategy is the assessment of the strengths and weaknesses of an organisation as well as assessment of external factors or macro factors that impact on market factors in which the company operates. This assessment is called a SWOT analysis
PESTEL analysis PEST analysis helps us identify factors influencing the food retail industry which in turn impact on strategy formulation.
and evaluate it on basis of Winner’s strategy In order to identify the factors that is, very much going to as of now, we apply.
A PESTEL analysis is a tool that management would use to evaluate the external macro-environment. It allows a business to look in particular at political, Environmental, Socio-cultural and Technological factors. As these factors are generally beyond the control of the organisation and so are usually considered as opportunities or threats.
Law passed by the government and or the people in power could affect the supermarket business. Certain laws are put in place to prevent collusion between firms or one firm dominating other. When Winner’s decide to build new stores it will not be straight forward to do so because the local and regional planning policy is extremely costly and time consuming.
This is a major factor not only for Winner’s but for all businesses in Mauritius and overseas. The issue of global warming and climate change affects everyone. Winner’s is addressing the issue by minimising waste and recycling and by telling customers to reuse their bags and charging for new bags.
The social impact of opening new stores is immense. By opening new stores Winner’s will be creating new employments for many people.
Technology has improves massively over the years and it has dramatically affected Winner’s. By introducing sophisticated software for monitoring
Winner’s constantly analyse the economic factors as that will determine how and when people are comfortable enough to spend money. If the economy is doing good then people have more confidence in spending more money. Stock exchanges and tax increases have to be monitored to always be aware of any threats and opportunities.
Porter’s Five Forces Analysis Porter’s five forces analysis “is a means of identifying the forces which affect the level of competition in an industry” (Scholes, 2008).
Force 1: Threats of new entrants In order to boost brand loyalty Winner’s have engaged into additional roles such as clothes stores, pharmacies and bakeries. This has been a potential growth area for the retailer.
Economies of scale may occur when buying in large quantities and improved supply chain efficiency. The existence of economies of scale creates a barrier to entry.
The capital requirements in entering the supermarket industry are huge.
Product differentiation
There are very low switching costs to customers in the market and so market share can typically be gained by leveraging price and product range variables.
Force 2: Threat of Substitutes Though Winner’s has successfully improved its margins by selling the range of non-food to food in its stores it has now moved to a more competitive ground. For example selling electrical appliances has put it to collide with JKalachand.
Force 3: Power of the Buyer Buyer power is very strong in Mauritius’ grocery retailing industry where there is a high concentration of buyers. There is Winner’s, Way, Jumbo and Spar that dominate the market.
Winner’s has a very loyal customer base and this is of great importance when considering product ranges that turn away from traditional Winner’s design. Winner’s has responded to the needs of buyers by providing a wide range of quality convenience goods.
Force 4: Power of the Supplier Power of suppliers is high if the number of suppliers is few and has the power to negotiate prices. Suppliers include raw materials that a firm uses and finances too and this can be affected by the structure of an industry whereby if a firm can get suppliers elsewhere then it has more bargaining power. For example, Winner’s is a monopoly and so it extracts low prices because it has power over suppliers.
Force 5: Competitive Rivalry Classical economics predicts that rivalry between companies should drive profits to zero (Gordon, 2003:48). This force describe the intensity of completion between existing companies in an industry.

Marketing strategy for Swatch Original watches in Vietnam

Marketing Assignment Help Assignment Help Statement of purpose Swatch (‘Swiss’ ‘watch’) is a famous brand of the Swatch Group. In Vietnam, one of the main product lines of Swatch is the Original family which targets the young Vietnamese (aged, 18-25). In recent years, the brand faces not only fierce competition but also new opportunities. Thus, this report aims to introduce an approach for Swatch to increase the brand identity, sales volume and maintain customer loyalty in Vietnam market.
Wrist watches industry in Vietnam:
Back ground:
Due to the limitation of available data, it is difficult to account the numbers of wrist watch brands in Vietnam market. However, according to an informal source, it is believed that there are about 400 brands have been recorded. They are classified to eight levels (website):
Mass market
Mid-end market
US$150 -300
Premium market
US$1.000 – 10.000
Low market
US$10 – 50
Upper mid-end market
US$300 -500
Super premium market
Lower mid-end market
High-end market
US$ 500 – 1.000
Focus segment: (US$50 -150)
Currently, Swatch Original watches address in lower mid-end level, with the pricing vary from US$60 -80 (website)
Players in lower mid-end market include: Casio, Endura, Guess, Ogival, Seiko, Swatch, Titan, Roamer, etc……. However, Casio is the main competitor of Swatch because these firms target the same segment, the young Vietnamese with extrovert lifestyle.
Company and products:
Swath is one of 19 brands which belong to the Swatch Group. This brand is famous for watches that utilising plastic housing, strap, etc…. with fresh and cool designs.
Mission statement:
Though Swatch hasn’t announced its mission statement, it is believed that the brand implicit mission is “to offer low cost, high quality and accurate watch with synthetic material” (website)
Swatch has 5 product lines named: Skin, Irony, Original, Beat, Bijoux, in which the Original family is designed as youthful, witty and colourful.
Swatch watches are distributed in Vietnam mostly through Trading Development Company Limited (TDC Ltd.), the authorised distributor of Swatch. Following that, TDC Ltd. utilises 6 retail outlets (shop-in-shops, stores) and its website to deliver watches to customers (website).
However, the website of the dealer is poor developed. The website provides poor contents in meager format. There are little details of Swatch watches’ specifications and the prices of most of the products are unavailable to check.
Casio Company Co. Ltd. is a famous company in consumer electronics field. Casio watches are designed as both digital and analogue watches.
Mission statement:
Casio Watches believe the beauty of time lies in precision with no compromise, no shades of grey and no half measures. It’s all about accuracy and control (
Casio has 13 different brands that target different segment. Among these, Casio Standard is competitor of Swatch Original.
Casio Standard: This is the basic range of Casio watches. The concepts behind Standard are digital watches that are durable, long lifetime battery and affordable price. Casio standard target low to lower mid-end market with the pricing vary from US$35 -80 (website)
In overall, regarding added functions, durability and battery lifetime, Casio watches are more competitive against Swatch (figure).
Situation analysis:
Internal environment analysis:
Tangible resources:
The Swatch Group is the world largest watchmaker corporation. Belonging to the Group, there are 156 production centers which are in charge of producing watches and watch components (website). Furthermore, there are 6 electric components and systems companies(website) which take response for manufacturing automotive, industrial electronics. Together, these firms form a system of interrelated values chains, so each parts of Swatch watches are produced with high compatibility and high quality.
On the other hand, the Swatch Group has 6 general corporate companies (website) which specialise in R