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Spar Supermarket Marketing Plan 1
Executive Summary
SPAR is a global independently owned and operated wholesaler and retailers that work
cohesively in partnership under the SPAR brand to provide superior quality value for shopping to
communities served. SPAR International provided US$1billion license in Oman to Khimji Ramdas
Distribution Company in 2014. The opening of SPAR Oman supermarkets highlights the new
strategy to a neighborhood by SPAR Oman integrating products yonder the traditional
supermarkets offer. In 2017, SPAR Oman was operating 24 supermarkets with a retail trading
space of 8,286m² and £27,342 retail sale in 2017. The current objectives include providing a high
level of client excellence, to be the leading food retailer nationwide, and to work collaboratively
with other global partnership to enhance productivity, competitiveness, and profitability. Some of
SPAR Oman strengths include affordable prices, customer convenience, strong brand portfolio,
and availability of natural products. Weaknesses include a smaller base than its competitors and
limited health consciousness in most of its operating supermarkets. SPAR Oman competitors
include Lulu hypermarkets and Smile Supermarkets. SPAR Oman segments its market based on
lifestyle, families, and attitude. It is recommendable that SPAR adopts behavioral segmentation
by considering factors like benefits, attitude, and loyalty. Currently, SPAR Oman adopts the 4Ps,
which are price, promotion place, and products. However, to enhance its marketing mix, SPAR
Oman could adopt promotion strategies like social media, company website, and banners.
Moreover, SPAR Oman should open more stores close to its customer’s proximity, thereby, leading
to a competitive advantage. Evaluation and control tool will entail the use of a balanced scorecard
using KPIs such as customer satisfaction survey and sales trend analysis. This will enable SPAR
Oman to meet its objectives, which are increasing customer satisfaction and growth in the next
three years.
Spar Supermarket Marketing Plan 2
Introduction
SPAR International is a group of independently operated and owned wholesalers and
retailers who work collaboratively in partnership under the SPAR brand to offer exemplary quality
as well as value for money spending experience for the society served. SPAR International mission
statement is to make sure that it remains the global leading voluntary food retail chain, continue
its brand growth and promote its presence and partnership thereby intensifying its productivity,
competitiveness, and profitability of its wholesale and retail internationally. SPAR International
started in 1932 and encompasses over 12,700 stores in about 48 nations. The growth of SPAR
International is underpinned by its primary values, which have directed the corporate since its
development over 85 years back. SPAR International stores globally including Oman is committed
to freshness, services, quality, and choice.
SPAR International granted a US$1billion license in Oman to Khimji Ramdas Distribution
Company in 2014. Notably, Randas Distribution Company has been operating since the year 1870
and is the largest and leading business conglomerate in Oman. SPAR has continued its swift
expansion in the Middle East after its market entry in Omani retail in the year 2014 in partnership
with Randas. The opening of SPAR supermarkets highlights the new strategy to the neighborhood
by SPAR Oman integrating products yonder the traditional supermarkets offer. The supermarkets
provide various products range including frozen meat and poultry, fruits and vegetables,
confectionary, snack items, tobacco in addition to ready to cook meals (Muscatdaily.com. 2017).
In 2017, SPAR Oman launched 10 stores and currently operating 24 supermarkets (8 independent
and 16 corporate stores) with a retail trading space of 8,286m² and £27,342 retail sale in 2017.
SPAR International in Oman has enjoyed a 50% elevation in sales since the year 2016 and in 2017;
SPAR was awarded the accolade Oman’s Most Trusted Brand.
Spar Supermarket Marketing Plan 3
Objectives
Provide a high level of customer excellence
To be the leading food retail chain nationwide
To work collaboratively with the partners to enhance productivity, competitiveness, and
profitability
Current Market and Company Situational Analysis
Spar Oman operates in a highly competitive Oman market with presence of a number of
fresh product retailers in the market. With a plan to enhance customer satisfaction and increase the
realized sales, Spar International Oman requires expanding their supermarkets and neighborhood
stores in Oman. This will enhance convenience resulting in customer satisfaction, growth of the
market share, and a corresponding increase in the realized sales.
Spar’s Porter Five Forces Model
Michaux, Cadiat, and Probert define porter five forces as a competitive examination tool
for enterprises aimed at evaluating the intensity of competition in a market (2015). The following
are the five aspects of the model based on Spar’s Oman situation in the market.
Low Supplier power: Oman fresh products market reveals a high number of suppliers leading to
low supplier bargaining power. This implies that suppliers of fresh products in Oman market have
less negotiation power for prices in the market, which is advantageous for Spar Inc., which engage
multiple suppliers for the required products.
High Buyers Power: Spar Inc. Oman faces a high buyer’s power given the numerous number of
supermarkets and neighborhood store in Oman. This implies that the buyers control the prices of
fresh product market in Oman increasing the competition in the market.
Spar Supermarket Marketing Plan 4
High Competitively Rivalry: Oman fresh product market reveals a high competition from the
grocery stores offering similar undifferentiated products, an aspect that reduces the attractiveness
of a market. Offering differentiated products by Spar’s international enhance the company’s
competitiveness in Oman Market.
High threat of Substitution: This entails the presence of numerous alternative products that result
in the consumers switching products due to price sensitivity. Fresh product market offers a number
of alternative products leading to Spar International facing a high threat of substitution in Oman
market.
Threat of new entry: New entry poses increased competition in a market, often, with profitable
market attracting new entrants leading to subsequent erosion of profits in a market. Fresh products
market is highly profitable given the high demand for the products by the population, which attract
more entry of enterprises in the market.
SWOT Analysis
Strengths
Weaknesses
Affordable prices
Customer convenient
Quality, satisfactorily, and efficient
Limited 24/7 hours operations
clients services
Limited health consciousness in most
Strong brand portfolio
Availability of distinctive and unique
products
Trained and qualified staffs
Smaller
customer
base
than
its
competitors
of its operating supermarkets
Spar Supermarket Marketing Plan 5
Availability of natural products (health
conscious
organic
and
natural
products)
24/7 open supermarket
Opportunities
Threats
Nationwide expansion
Stiff competition
Continued provision of new unique
Legal issues
products
Provide ready to cook meals in all its
supermarkets
Increasing the number of opened 24/7
supermarkets
Launch its Natural concept in all its
supermarkets
Spar Supermarket Marketing Plan 6
Comparative Analysis of the Competitors
Comparative Analysis of SPAR Oman Competitors
Products
Lulu
Price
Product quality
Products include fresh Affordable
Hypermarkets fruits, fish, hot food, prices
Offers
Advertisement
fresh Lulu
offers
products of quality, inaugural
grocery, bakery items,
uncompromised,
discounts
vegetables, dairy and
and
meat products
(Muscatdaily.com.
variety
2018)
products for all
standards offers
on
and
a
of
seasons
Smile
Farm fresh vegetables Offers
supermarket
and
fruits,
grocery
its Exemplary products Provides
quality products
products, with
focused on bringing product
the customer happiness
bakery products, and fairest and
healthy eating choices
discounts to its
customers
affordable
prices
In comparison with its competitors, SPAR Oman market competition is high resulting from
similar quality services and products offered by its competitors like Lulu Hypermarkets and Smile
Supermarkets. Nonetheless, since its establishment in Oman in 2015, the company has gained a
competitive advantage from its various corporate social responsibilities. The supermarket engages
in various community initiatives such as educational programmes for kids undertaken in joint
venture with Kellogg’s. Besides educational programme, SPAR Oman not only participates in free
Spar Supermarket Marketing Plan 7
basic health checkups, often undertaken in conjunction with Apollo Hospitals, but also takes part
in Kid’s Healthy Lunch Competition, which is a nutritional program. Its engagement in CSR has
enabled SPAR Oman to strengthen its brand, therefore, leading to a competitive advantage.
Another competitive advantage emanates from the availability of a skilled workforce, thereby,
providing exemplary services to its customers.
Market Segmentation
SPAR Oman segments its market in various categories: demographics, psychographics,
and behavioral. Demographic segmentation as put forward by Larsen (2010) divides clients into
segments grounded on demographic values like family size, income, gender, age, education, and
social class. SPAR Oman targets all age since it provides consumable products, for instance, ready
to eat food and grocery products. Besides, SPAR targets both low and high-income earners, as a
well as families.
Psychographic segmentation in SPAR Oman bases mostly on lifestyles. Arguably, SPAR
Oman realizes that customers seek fresh products and this has enabled to provide fresh fruits and
vegetables leading to increased customer satisfaction. Notably, lifestyle is an imperative market
segmentation aspect in SPAR Oman. With the rapid shift in consumer taste and health, consumers
have become health conscious. As a result, to tap this market segment, SPAR Oman launched in
SPAR Natural in 2017 that focuses on catering for current and potential SPAR clients that have
made lifestyle choices as well as have changed their eating habits, for instance, vegans,
vegetarians, and those that lack a specific diet but prefers eating healthy.
Accordingly, SPAR Oman should target its market based on behavioral factors like
attitude, benefits, and loyalty status. Attitude refers to a customer’s reaction towards the product,
which can vary from positive, enthusiastic, indifferent, and negative. Apparently, SPAR has
Spar Supermarket Marketing Plan 8
managed to attract its customers in a positive way as evidenced by its rapid growth and expansion.
Additionally, SPAR deals with grocery and food items, which experiences regular purchases from
its clients. This acts a good marketing segmentation since it enables the supermarket management
to trach its purchase, thereby, ensuring availability of such products at all times. Lastly, benefits
segmentation aims at targeting clients according to disparate benefits they seek from a product.
Thus, the launching of Natural aimed at targeting health-conscious customer segment due to the
health benefits gained from these products.
Marketing Plan Objectives
Marketing plan objective outlines the framework aimed at fostering the ability of a
company to realize the set goals in a bid to promote offered products and services to existing as
well as the prospected customers (Luther 2011). This defines a specified period in which the
company would achieve the consented marketing goals and objectives; hence, accomplishing the
intended overall corporate objectives.
Therefore, the objective of this marketing plan is to outline the tactical framework aimed
at promoting Spar International, Oman to realize the corporate objective. Primarily, the marketing
plan objective is to provide the outline focused on enhancing the ability of the fresh food retail
company to achieve better customer satisfaction as well as heighten a sales increment over the next
three years.
Marketing Mix Strategy Recommendations
Currently, SPAR Oman engages in the 4Ps: product, place, promotion, and price as its
marketing mix. The Spars supermarkets operates in residential areas, thereby, enhancing product
convenience. Besides, SPAR provides a variety of products such as meat and poultry, grocery
products, snacks, and ready to cook meals thereby ensuring readily available products to its
Spar Supermarket Marketing Plan 9
customers. Pricing strategy adopted by SPAR is fair and affordable while promotion implemented
includes advertising strategies such as fryers.
SPAR Oman could implement ways of enhancing its marketing mix such as promotion and
place. Arguably, although the SPAR uses fryers to promote its products, the management could
adopt the use of social media and company website to target a large number of customer segment
utilizing the Internet and social media platforms like Facebook. Secondly, SPAR can also banners
and branded T-shirts to help in increasing its brand awareness. An addition, SPAR expansion
strategy should focus on the most populated areas in Oman thereby enabling the supermarket to
reach a wide range of clients.
Evaluation and Control
Spars will monitor the marketing plan using the sales growth and customer satisfaction
levels. The balanced scorecard will be the primary evaluation tool that will enhance Spar’s Inc.
Oman will monitor various key performance indicators (KPIs) in a bid to evaluate and control the
marketing objectives of the company in Oman.
Balanced Scorecard
This is a tool used as a KPI for organizations essential in the process of evaluating
effectiveness in achieving the set objectives. Spar will utilize the balanced scorecard to determine
the attainment of the marketing plan objectives, which are increased customer satisfaction and
sales growth over the next three years. This will involve for primary attributes, which include
financial, customers, internal process, and organizational capacity as described on the diagram
appendix 1.
Customer Satisfaction: The satisfaction survey will heighten the ability to determine the
extent of customer satisfaction against a company set benchmark. This will involve collecting
Spar Supermarket Marketing Plan 10
information regarding various services offered by Spar from the customers and perform a statistical
analysis to determine the satisfaction level of the customers.
Sales Growth: The sales growth evaluation is another KPI that Spar’s Inc. Oman will
utilize in the course of evaluating and make essential controls, aimed at attaining the corporate
primary objectives. This will involves making a comparison of the daily and monthly sales in a
bid to identify sales trends recorded by the company.
Spar’s Marketing Plan Budget
The table below reveals Spar’s supermarket Oman marking plan budget aimed at
promoting awareness in a bid to enhance the corporate sales growth.
Spar’s Supermarket Marketing Plan Budget
Description
Projected Amount (Omani Rials)
Promotion
Advertisements
Social media
5,000 OMR
Banners Ads
5,000 OMR
Corporate Website
8,000 OMR
Branded T-shirts
50,000 OMR
Market Research
10,000 OMR
Total Amount
78, 000 OMR
Brief Explanation and Justification of Figure
The budget will enhance Spar’s supermarket to increase brand awareness, which will lead
to a corresponding growth in the market share, and a subsequent increase in sales. For instance,
Spar Supermarket Marketing Plan 11
the use of social media enhances the ability to market company products to potential clients online.
The banner ads and a website created specifically for Spar Oman Supermarket would play a vital
role in enhancing awareness of the supermarket. The promotional strategies will costs the company
approximately 68,000 OMR including printing branded t-shirts for distribution to the esteemed
clients. On the other hand, the 10,000 OMR marketing research cost will enhance the ability of the
company to identify various consumer needs in the course of enhancing the product assortment
available in the Spars supermarkets Oman. This will promote customer satisfaction one of the
primary objectives for this marketing plan.
Spar Supermarket Marketing Plan 12
Reference
Larsen, N., 2010. Market segmentation: A framework for determining the right target customers.
Aarhus School of Business.
Muscatdaily.com. 2017. Smile Hypermarket opens the biggest branch in Sohar. Available from
https://www.muscatdaily.com/Archive/Oman/Smile-Hypermarket-opens-biggest-branchin-Sohar-50dy
Muscatdaily.com. 2018. Lulu Group to open a new outlet in Ibri Bawadi Mall. Available from
https://www.muscatdaily.com/Archive/Oman/Lulu-Group-to-open-new-outlet-in-IbriBawadi-Mall-5a5j
Luther, W. M. (2011) The Marketing Plan : How to Prepare and Implement It. New York:
AMACOM.
Available
at:
http://search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=359060&site=ehostlive (Accessed: 15 October 2018).
Michaux, S., Cadiat, A.-C. and Probert, C. (2015) Porter’s Five Forces : Understand Competitive
Forces and Stay Ahead of the Competition. [Place of publication not identified]:
50Minutes.com
(Management
&
Marketing).
Available
at:
http://search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=1096527&site=ehos
t-live (Accessed: 15 October 2018).
Spar Supermarket Marketing Plan 13
Appendices
Appendix 1: Balance Scorecard
Internal Process
• Customer services
• Service delivery time
Customer
• Satisfaction
survey
Spar’s Marketing
Objective
Organizational Capacity
• Knowledge
• Innovation
Spar’s Balance Scorecard
Financial
• Sales growth
analysis
…
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