Impact of Marketing Strategies on an Organization Free-Samples

Questions: 1.Analysethe Current Organisational Capability and level of Core Competence. 2.How does Competition Impact on the Organisation and its ability to serve its Markets?3.Consider Potential Customer Markets-that the Organisation Maytry and Serve?4.What are the likely Impacts of the External Environment Select at least two variables and Make Recommendations on how these Factors above will Impact on the overall Marketing Strategy of the Organisation. Answers: Introduction Woolworths is one of the leading retail chains in Australia. The brand was originally founded in Australia and it soon expanded to New Zealand as well. By revenue, Woolworths is the second largest company in Australia. It is also the second largest in New Zealand. The success of the brand can be attributed to the fact that it has utilized a large number of strategies throughout its functioning time span. Woolworths main areas of dominance lies in the food and liquor sector in which, it is a market leader. At present, Woolworths is the largest liquor takeaway dealer in Australia. In 2008, Woolworths was ranked as the 19th largest retailer in the world. 1.Current Organisational Capability and Level of Core Competence The Organizational Capability refers to the ability of an organization to effectively manage its resources and other aspects in order to gain an advantage over its competitors. Woolworths limited is one of the most popular and successful retail chains in Australia. Woolworths limited has adopted a variety of policies to improve its organizational capability and those policies have helped the organization to achieve an important place in the retail industry. Woolworths is one of the most popular brands in Australia and it has an important place in the market of New Zealand (Blackstone, Prest, Stern, 2016). The reasons for this is that the organization has utilized a number of strategies that have helped it to gain a firm footing in the market and effectively utilize its resources and employee base for the creation of an organizational capability that has given it an edge over the competitors. In order to achieve this target, Woolworths has adopted a kind of people strategy that provi des it with the tools to effectively apply its strategy to attain organizational capability. The most important part of this strategy is how Woolworths has built a system of employee engagement (Pilgrim, Pilgrim, 2008). The employee engagement helps the company to attract and retain workforce as the employees are aware of the organizational goals and objectives. The organization also aims to provide training to the employees in a manner where the workforce is trained in accordance with the organizational goals. This would help in the creation of future leaders from within the organization itself. The organization has 5 objectives that have helped it gain a considerable level of organizational capability. These are, Building a customer and store-led culture and team, generating sustainable sales momentum in food, evolving drinks business to provide even more value and convenience to customers, becoming a lean retailer through end-to-end process and systems excellence, empowering por tfolio businesses to pursue strategies to deliver shareholder value (Dolan, 2002). As a result, the organization has succeeded in the creation of an organizational capability that is up to the industry standards. The core competencies of Woolworths are varied and have provided the company with a distinct aspect. These core competencies provide the company with the much-needed distinction from other brands of retail. The product differentiation is what serves as the USP of any brand and in the case of Woolworths, it is no different. The most important core competency of Woolworths is seen in the food and liquor leadership (Du Plessis, Strydom, Jooste, 2012). While the retail chain specializes in a lot of products, the food and liquor are one of the aspects where we find the company does a good job of gaining a market leadership. The company has carved out a place in the food and liquor market for itself through media integration with The Voice, where they have created Australias Fresh Food Peoples marketing campaign. 2.Competition impact on the organization and its ability to serve its markets Competition means contending ambitiously to seek to sustain in the organization by performing well from others or dominating on rivals to be on the top. The impact of competition on the Woolworths limited is immense as it is a grocery market which includes fresh vegetables and fruits, meat of animals, monthly ration of rice, pulses, wheat etc, so the items are mostly perishable in nature and the pressure to sell the products are very much. Woolworth used to be the dominative supermarket giant from last two decades in Australia but due to other grocery markets like Aldi, Costco, and Lidl who sell homogeneous products like Woolworth at lower and discounted price, it led to cut-throat competition in the grocery industry and Woolworth has been affected a lot from its competitive rival firms (Ensaff, Rooney, 2010). This led to the change of the whole scenario of the market drastically. The organization is in threat of leading the market as its profit sharing margin and dominating the market is coming down. The organization is resolving the harm done to its business by its rival firm by taking necessary steps to sustain in the market by lowering the price of its product and also improving the quality of the product and assuring its customer that the product is best but the company will be affected with lower profit margin and less market share so the organization should be the biggest loser (Ferrell, 2016). The organization is following a strategy to serve its market in various ways by winning the trust of its customers and increasing its market share by lowering the price of the goods and enhancing the whole scenario of shopping by bringing new ideas to the products through change in the products and also offering new schemes to the customers by giving them gifts hamper on their bulk purchase (Plunkett, 2012). The organization also focus on providing fresh perishable items, more range of products and has brought new medium of selling the products through online by making a web portal in which the customer could order their goods and get the products in the form of home delivery as his will aid customer in restoring their energy and time management (International marketing strategy, 2002). There are millions of regular customers of Woolworth and thousand of customer online so the organization has to focus on their customer by providing them better service and resolving their queries and problems to se rve the market. 3.Potential customer markets that the organization may try and serve Potential customers are those customers who are serious customers who buy products and are willing to pay the money. They are not window shopping customers. The business market focused on retaining their potential customers as they are loyal to their sellers and the revenue comes from the potential customers and customers make their business sustain in the market. The Woolworth has performed well in the market of Australia and New Zealand and the company has recognition for its premium service and good quality of products and develops millions of regular customers and thousands of online customers (Peter, Olson, 2010). The company has done well in retaining its loyal customers by ensuring them with good service and better products and also making drastic changes in the strategy of business by offering products at lower and discounted price (Jagadeesha, 2012). The company should expand its business throughout the globe as it has got recognition in the global market so it should targe t people of other countries by establishing their market at countries where they will get potential customers. Countries like the USA, European countries, and Indian subcontinent has a broader aspect of business because of high population. The company should focus on advertising policy to aware people while entering a new market. They should focus on the needs of people and should have different policy reform for customers because of different in culture, language, and religion (Welham, 2003). They should offer low price of the products from the existing firm and should provide a new offer on a purchase, they should also innovate the products and bring new products to the market and make the customer try the new products. They could also create and generate needs of the consumer by adding new products to a particular product line. The company should focus on the growth of its business by establishing its branch in various part of the globe and also welcoming premium brands in its st ore so that rich people could purchase their product (Kotler, Keller, Manceau, Hemonnet-Goujot, 2015). The company should focus on middle-class people as it constitutes the major portion of the society by giving them the products of their choice. The retail market faces the most competition in the market as it connects directly to the customers. The company should remove the involvement of the intermediaries or middleman to provide goods to the customers directly from production department. These are the technique the organization can try and serve to potential customer market. 4.Likely impacts of the external environment In any business organization, external factor plays a vital role in shaping the organization structure. A company cannot exclude the external factor as it impacts the business of the organization. If a company doesnt take into consideration the external factor which affects the organization then the company is going to lose (Lovelock, Wirtz, 2016). Though the external factor doesnt play a direct role in companys production of goods but it plays an indirect role in companys success or failure. The company should communicate well to its external consumers to make them their potential customers by interacting with respect and dignity. They should be professional in their work while targeting outside people (Winer, Dhar, 2014). They should make their online portal user-friendly so that every consumer could access the website with ease and also promote their business with the help of social service. There are many factors which affect the organization but the two most important are as f ollows: Economy: The economy of the world affect the enterprise in a big way as the whole business has being globalized as countries have welcomed foreign investment. So the change in the economy of the world impacts the revenue of the company as it is connected to the world. If the global market business is good then the company business flourish but if there is a loss in the global market then the company also suffers a loss this happens due to fluctuations in the market because of emergency in a country, war, due to a terrorist attack and demonetization of money in form of notes (Marketing Management, 2010). The big companies are listed in the stock market so they are highly affected by the change in the economy of the world. Weather: this is the biggest external factor which affects the organization externally. The grocery market is most affected by weather as they sold more perishable items which are naturally produced and weather plays a vital role in it (Mothersbaugh, Hawkins, Mothersbaugh, Tom, 2016). If there is a storm or flood or drought in an economy then the cultivation are affected badly and in this process less amount of goods are transferred to end users and with scarcity of product the price of the product rises and people buy less so in adverse it affect the revenue of the organization but if the weather support cultivation then there is high productivity of goods and people get products at lower prices and it increases the revenue of the organization immensely. Recommendations on how these factors above will impact on the overall marketing strategy of the organization The factors above are what can be considered to be important in order to create a marketing strategy. The marketing strategy is in fact created by taking into account the various opportunities and limitations of the organizations. Performing a SWOT analysis is one of the most effective ways of coming up with a marketing strategy for any organization. From what we have seen above, the strengths of the organization lies in the fact that it is a market leader in some of the aspects and products. For example, Woolworths is a market leader in Food and Liquor. This strength of the organization should be utilized at the utmost level. The weakness of the organization lies in its limited market reach. However, this brings us to the opportunities that the organization has in front of itself. The organization still has potential markets in the USA, the European countries and the Indian subcontinent. This is one of the prime opportunities for the company as these markets have a high population a nd as a result, the organization may consider expanding into these markets. However, these markets have the threats of a large number of competitors as well as existing major players in the field. However, while deciding a market strategy, the company can utilize a strategy of competitive pricing and high-quality products in order to maintain a presence in the new markets as well. Conclusion Woolworth is one of the leading retailers in the world owing to its very effective strategies that it has implemented over the period of its operations. From what we have seen, the company has been a market leader in many aspects and continues to be so. However, the brand needs to expand to new markets in order to maintain its presence in the industry. The brand has performed well in the markets of Australia and New Zealand. However, it needs to expand to other markets in order to keep up with its competitors. The existing management strategies combined with an aspect of competitive advantage by the strategy of competitive pricing can provide the organization with the much needed growth. References Blackstone, W., Prest, W., Stern, S. (2016).Commentaries on the laws of England. 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