Business and Management IA How should “Honey money Top” which was the popular store in Greater Oneida , change its marketing plan in order to deal with renewed competition in the neighborhood? Name: Arizona Safer Total Word count ( without appendix and Bibliography) : 1997 Candidate Number : 006382-003 School : Pathways School Oneida school Number : 006382 Research Proposal Research Question: Rationale: The supermarket Honey money top is a well established as it has been building trust and faith since the past 14 years , which has been the reason for their consistent growth. D well known super market . With the arrivals of new super markets such as Reliance super is a new introduction into the market, in comparison Reliance fresh has a great popularity and reputation by having 560 outlets across the country. This results in new competition for honey money top , and I would be talking about why competition is good for a firm and its advantages overall. Honey money has to consider some changes regarding its marketing plan in specific if it wants to stay competitive and ahead of the other supermarkets and maintain its reputation and status.
Theoretical framework: With a reputed well known name such as reliance into the competition honey money has to consider the 4 aspects of the marketing mix: product , price , place and promotion. It’s the new changes and innovative methods and ideas which will keep honey money top superior than its competitors. With the main focus on the marketing mix, on the large scale it’s a complete SOOT analysis of honey money top regarding its marketing mix and what it can change.
Porters five forces analysis will give an idea of all the factors and the nature of competition for honey money top. The creation and usage of a questionnaire will give the point of views of the customers. Analyzing with the three factors : marketing mix, SOOT analysis and competitor analysis will give a clear idea from the producers side for honey money top to find a strategy and method to eliminate its competition.
Key areas AT syllabus: 1. 3 – Organizational objectives 1. 6 – Organizational planning tools ( SOOT analysis) 4. 2 – Marketing Plan 4. 3, 4. 4,4. 5,4. 6 – Product , price, promotion and place Other Business content covered in the project : Marketing mix Soot analysis Brand name and loyalty Porters 5 force analysis Pricing methods strategies Market positioning Market segmentation
Niche marketing Methodology Primary research : Visiting both the super markets, honey money top and reliance super to understand the way it operates and the popularity Conducting a questionnaire in Honey money top for 1 5 customers regarding the pricing, distance , products and quality and promotion Secondary research : Creation of the questionnaire Research and understand the history and popularity of Honey money top See the development and changes of the super market over the period of time as the area has developed Comparison of honey money top and reliance super through online search What are the advantages and disadvantages a super market can have if its located in a mall like reliance super or honey money top which is separate and exclusive .
Problems likely to be encountered: Problems : I Solution : I Conducting the questionnaire I Requesting permission from the owner and talks with the manager I Questions not answered properly I Specific questions with Just ticking options I Understanding both the super markets I Myself being a customer and regularly visiting I Cannot visit to often regarding this as it would cause disturbance I Gather as much as information before and visit a few times Ewing specific I Not too much online information regarding the supermarkets I Gather as much as information from the questionnaire and observation I Action Plan Dates: I Activities: I July 2011 I Topic selection I September 25th – 30th I Research proposal I October 7th to 10th I Questionnaire I October 1 5th to 18th I Introduction I October TNT to November 2 I write rest AT ten Introduction : art I Honey money top is a super market which currently runs in three locations across Oneida. It has been building up its reputation, trust and faith over the past 14 years. The whole super market sells fast moving consumer goods and also known as FMC .
It also has plans to open up branches in Delhi and NCR regions. The supermarket is known for its products which have a : Vast range of exotic, fruits and vegetables Indian and imported FMC Range of Organic pulses and spices General gift hampers Type of goods and products ( refer to appendix 1 ) Honey money top has its own target group and market segmentation. It targets the upper class of families with a high income with the pricing and the customers views in the questionnaire supporting this claim. Reliance super has more of the basic necessity ration goods as honey money top has more of the wanted goods such as gifts, chocolates, fruits and vegetables.
Although each of them have their advantages , disadvantages with different purposes there are a lot of similarities which can affect each of the super markets growth and demand in the vicinity, therefore making the marketing plan crucial for honey money top in specific to make changes to have an increasing advantage Although this super market may not be completely well established across Delhi and other states across India like reliance , he super market claims that it has been successful due to the fact that they are “great in understanding the needs and demand of the customers and that has been the reason for their consistent growth” ( Source 1 ) . And where it has been opened , it has been a huge success with it dominating the area.
Methods and Procedure : People around this vicinity of Greater Oneida mainly have two options of doing their shopping of household goods in Honey money top and reliance super. Therefore I wanted to come up with one conclusion of the reason why most of the customers prefer Honey money top over reliance super and what are the improvements and knees of honey money top in relation to its competitor. I decided to use a questionnaire to customers in relation to the pricing of the products, quality of the products, Variety of the products, distance and location, and personnel preferences of super markets with a reason. I designed 13 specific questions covering all these aspects and conducted this questionnaire with 16 people to get complete idea of the views , understanding and preferences of the public.
Each of the questions were short, covering the point with ticking options to make sure less time of the customers were consumed to make it as easy as possible. Analyzing the data and views of the questionnaires would give a clear idea of the preferences of the consumers, strengths and weakness of honey money top and the aspects of the marketing plan in which it has to make changes. Main results and findings : For money money top to nave a long term success Ana immolation , It NAS to KICK at the factors in porters 5 force analysis such as the threat of new entrants , threat of substitutes, bargaining power of suppliers , bargaining power of buyers and existing rivalry within the competitors.
As honey money top also has unique and specialized reduces in the vicinity high prices are set in comparison to the other super markets in the area. There is a specific pricing strategy named ” price leadership” by honey money top as there are few substitutes that the consumers have a choice which gives the liberty for the super market to set its own prices. As this super market dominates the purchase by consumers in comparison to reliance mart , other super markets have to follow the leader which is honey money top in this case and set prices similar to those of honey money top. The figure below shows the view on pricing by the 15 people surveyed the super market The major factor in deciding whether the pricing at the super market is the monthly income by the consumers.
The figure below shows the income of 15 customers in the super market : With a quality super market such as honey money top, providing specialized, international products and being different from other super markets, a decent shopping monthly would minimum be 9,000 rupees with the survey being taken, the results show that there’s 9 of 1 5 people monthly shopping budget less than 5000 rupees which is 60% buying products which are way to expensive in comparison to their earning. The bargaining power of buyers is less as there is not too much choices for them to switch to another super market with honey money top having the bargaining power of suppliers to have a pricing for all products.
That’s the reason why people still continue to come as there is no other major alternative. There was also a question pertaining to any suggestions or recommendation to the super market, everyone who had a suggestion requested more reasonable pricing and more discounts which consisted 10 customers out of the 15 with the rest 5 not having any problems with the super market. Conclusion and Recommendations : Although the super market as a whole is doing successfully within the vicinity, there is always huge scope for changes and improvements and there are some clear indications and changes that need to be made by the super market regarding the ups and marketing plan.
Another question is the reason for the customers choosing other super markets over the rest and the results are below : As the result above shows, the supermarket is doing great and the success of the supermarket is due to the quality and variety of products with the influence and benefit of less competition. Another factor for the success is the low price elasticity f demand which gives the opportunity for prices to be set high but demand still remains constant . The main reason for the low PEED is the lack of supermarkets in the vicinity where people have no other choice other then the few supermarkets in the area. The surrounding supermarkets in the vicinity are capitalizing on the fact Tanat ten prices are null I Nils can De countered Day slung new pricing strategies.
I nee are already using competitive pricing strategy but it can choose other options such as psychological pricing which gives a feeling to the customers that there is discount and price reduction. Promotional pricing strategy could also be used by reducing prices for a short period of time which results in building brand awareness and short term boost in market share. Another recommendation which honey money should look to do is more marketing and advertisement with a fast developing and expanding locality such as Greater Oneida. Marketing would therefore create more awareness of the people and people will be willing to travel more far as it is becoming more popular.
This would also create a special distinguished brand name and loyalty which is crucial for a fast growing and established super market such as honey money top. As the supermarket mainly focuses on international products , they can also look at some basic necessity goods which exist in the other lower priced supermarkets, with the pricing being done reasonable to convince the consumers that its worth the change from another supermarket to honey money top. They should also stamp their authority more on the market positioning by identifying their competitive advantages, decide on the aspects that can be marketed and implement the desired position with the suitable marketing mix .
Another solution is Honey money, increasing its focus on niche marketing where it specializes more and creates specific group in the market where it can release its product line and membership being a form of encouragement and exclusive. Its only with these changes regarding the marketing plan that honey money top will remain dominating in the area, competitive , specialized and different from the rest of the competitors and new shopping areas at present and the future. Appendix 1 : Type of goods and products sold at honey money top Fruits – a huge variety from imported kiwi to apple and watermelons Fruit Juice Vegetables – all vegetables needed are available Fast moving consumer goods : Chocolates
Biscuits Drinks Local preferred snacks ( such as pads and mixture ) Bread Cottage cheese Milk International imported products : Dairy products such as cheese Ready made items Fruits Toiletries and perfumes undergarments Gifts Appendix 2 : Questionnaire Business Project questionnaire I Arizona Safer of pathways Oneida kindly request you to please fill this form as this information of your view regarding this super market is crucial for my Project research. Name : Date : How old are you? 15-30 31 -45 46-60 61 and above How often to you visit this super market in 6 months? 1-3 3-5 5-7 More than 7 times How far is your residence area from this supermarket? Less than 1 km 1 – 2 km 2-km More then 5 km What is the reason for choosing this supermarket over other supermarkets in greater Oneida? ( You can maximum tick 2 options) Distance Price Quality and variety of products Lack of other super markets in the vicinity How do you find the pricing at this supermarket? Low and Cheap Reasonable Expensive Very Unreasonable Are you happy and satisfied with this supermarket?