Executive Summary of the SPAR international company in Oman

SPAR international company is working in Oman from last few years. There are 24 stores and supermarkets working in different areas of Oman. In this marketing, plan objective is to expand sales, increase customer satisfaction level, and build new supermarkets in Oman for the rapid business growth in the next 3 years.

External and internal environment analysis including SWOT and porter five factor analysis presents that there is opportunity for the SPAR business to get rapid growth in Oman. Porter five forces analysis presents that SPAR is facing competition in the market, therefore, the company needs to take the decision very carefully.

The targeted new market for SPAR supermarket is selected on the basis of geographical and demographical segmentation approaches. The report also covers the marketing mix and marketing plan evaluation and monitoring systems. However, the total estimated budget for construction and marketing promotion is 254,687.

Introduction and Objective of the SPAR international company in Oman

Threats of new entrants 

In the market, new entrants are coming with new innovative and unique products.

Bargaining power of customer

Bargaining power of the customer is moderate for the company in Oman.

Threats of Substitute

There are a number of other options available to the customers as they can visit online shopping websites, local stores and competitor’s stores for their required products.  

Bargaining power of Supplier

Bargaining power of suppliers is strong as they are well established in the market. Changes in the prices of raw material by the supplier cause to make changes in the prices of the products offered by the SPAR.

The rivalry of competitors.

The rivalry of the competitors is strong, changes in their policies and pricing strategies cause to draw impact on SPAR also.

Market Segmentation of the SPAR international company in Oman

In this section of the report, a new segment for the SPAR in Oman is identified that emanate from the external and internal environment analysis of the company.

Target Market and segmentation:

According to the market analysis, the best geographical region for the segmentation of the new SPAR outlet or supermarket is Seeb city of Oman. The new supermarket will operate in Seeb as the population of Seeb city is many times more than the population of other areas of Oman. Targeting maximum population increases the chances of sales and rapid growth for the business. Thus the products are segmented for people of Seeb. We will use demographic and geographic segmentation approaches to select the segments for the new supermarket. While in demographic segmentation our targeted market is economically above average people, female and male (both), in other words, population under the age ranges of <18 to >70, a supermarket will offer products for all age people. The retail in Oman is segmented by analyzing the economic condition, city development, people interest, population size, social trends and political factors of the segmented areas.  

There are several reasons other than the population that encourages to build the new supermarket in Seeb city.  At the first Seeb city is developing rapidly and their job opportunities available to the people. Because of better earning and strong economic position their lifestyle is better than the lifestyle of people living in the under developing or backward areas of Oman. The strong economic condition of the city will increase the affordability of the population, thus they can spend money to purchase products offered by SPAR. While the currently there are very few supermarkets working in the Seeb that provides the similar product, therefore the company will face low competition position in the market at the time entering in the market (Kotler, 2008).   

Marketing Plan Objective of the SPAR international company in Oman

The smart objective for the marketing plan is presented below:

Build 9 new supermarkets in Seeb city within 3 year

Increase in customer satisfaction level in one year by the percentage of 15.

15% increase in sales annually

Customer satisfaction will be measured through survey and an increase in sales. The goal of increase in the sale will be measured by viewing the annual reports, and through the databases of the company, as the company will make customer database to record the sale of each day. 

Marketing Mix in Strategy Recommendation of the SPAR international company in Oman

The following marketing mix strategy recommendations are based on the plan of developing a new supermarket in the Seeb city of Oman after analyzing the internal and external environment of the SPAR Company. Marketing mix includes price, product, place, and promotion.

Product: According to the marketing plan new supermarket will be established in the Seeb city that will offer the products related to grocery, frozen food including fish, meat, chicken, nuggets, creams and butter, and bakery related items including cakes, pastries, and soft drinks. The focus will be on the quality and eco-friendliness (Trackmaven.com, 2018).   

Price: prices for the product will be kept a little above from local shop rates and relatively lower than the competitors’ products. While prices will vary from product to product. Some products will be offered on discount and in some be offered in packages for promotion of sales. 

Place: The selected place for the supermarket is the central area of the city that is highly developed and appropriate.

Promotion: Social media, the website of the company, promotional events, and paid content approaches will be used for promotion strategies. While supermarket will also focus on print media and electronic media advertisement to grab maximum attention of the targeted market and promote sales in the market.

Evaluation and Control of the SPAR international company in Oman

There are several ways to monitor the plan as making the benchmark, updating records, and purchasing power. For instance, for the plan of developing new supermarkets in 3 years, we can develop a work break down structure with the timeline that will help us know that whether the activities are done in the desired manner and how efficiently we are going to accomplish our goals and targets. Using customer databases as mentioned earlier we can collect information about the daily sales, available inventory, level of growth sales, trends of customers, most frequently sold products, and total customer churn.    Budget

The whole budget mentioned above relates to the 3-year duration. The land cost, labor cost, and construction material cost ((taken from the international constructional market survey 2017) are used is the budget to calculate the initial cost and budget required to develop a single new supermarket in Seeb city of Oman (Turnerandtownsend.com, 2017). While inventory cost is 81,000 in the introduction stage that includes all products offered by the supermarket (Iira.org, 2018). Promotion budget social media marketing, advertisement, full-time customer support service, and paid content writing. The supermarket will contract with the marketing agency thirdrivermarketing.com for marketing package ($695 set-up cost and $297 monthly).

References of the SPAR international company in Oman