Marketing Strategy Selection Market Metrics -Myassignmenthelp.Com

Question: Discuss About The Marketing Strategy Selection Market Metrics? Answer: Introduction An organisation requires an effective corporate strategy, a business strategy and a marketing strategy for achieving continuous growth and expansion. These three types of strategies are the key to success for any business organisation. A corporate strategy can be explained as the corporate actions of any organisation that are performed to accomplish the set objectives and aims of an organisation while achieving the various competitive benefits (Sharifi, et al., 2013). A corporate strategy comprise a vision that which for long term as well as clearly defined used for motivating the workforce as well as creating high level of corporate value for the implementation of the adequate actions to have satisfied customer base. The business strategy can be understand as long term plan of action which is established for the achievement of some specific business objective or goal. It is used by the organisations for strengthening the overall performance of any business. The third key aspect is t he use of marketing strategies which offers a roadmap to the business organisation for marketing the products and services and the way there can be fetched the attention of the consumers. The report will present how effectively Amazon Fresh can take use of growth strategy as corporate strategy, low cost leadership strategy as the business strategy and the various marketing mix based strategies and the marketing strategy. Selection of Corporate Strategy There are various corporate strategies that are used by the organisations to achieve success and growth. There are various strategies such as the, growth strategy, consolidation strategy, cooperative strategy and global strategy. All these strategies have their several advantages and benefits. The generic corporate strategy which will be most useful for Amazon Fresh is the diversification aspect of the growth strategy. This corporate strategy of Amazon Fresh is based on leveraging the innovative technological capabilities for the success of the business and following with an effective cost leadership strategy for providing maximum value to the customers at the minimum possible price (David, 2011). Such strategy will paid off well to Amazon fresh as it can be analysed that Amazon is regarded as one of the largest online retailer and is also considered as the market leader in the online market. And thus, it possess the capacity and potential to have innovative technologies in the busin ess operation s to achieve growth such as diversification as well as cost leadership can also be used as it will help Amazon fresh to have increased customer base. The growth strategy has four major parts on which there is a need to have focus upon i.e. the market development, diversification, product development and market penetration (Peppard and Ward, 2016). Market Development Market development is taken use as one of the key growth strategies of Amazon Fresh. In such intensive strategy, the key objective is to conquer the new markets and attain growth. There is addition of new markets and new countries when there is provide services of Amazon Fresh. At the initial level there were only provided the retail services to the customers in the regions of the United States. And presently it has its presence in Berlin, Tokyo and London and it has planning to operate in more countries in coming time frame. Every new nation is a new market for Amazon Fresh which helps in creating growth opportunities for the organisation (Taylor, 2012). This corporate strategy of growth builds strong competitive advantage for the organisation that allows the organisation to implement the market development intensive strategy with utmost effectiveness. A marketing strategic objective in consideration with the market development growth strategy of Amazon Fresh is to establish a few m ore online grocery retail websites which can correspond with the new regions which can help the company in achieving more global visibility (Stephens, Gabriela Balan and Callaghan, 2010). Market Penetration Market penetration is another aspect of growth strategy used by Amazon Fresh as its corporate strategy in its online retail grocery business. The key aim of this factor of the growth strategy is to have more revenues from all the markets where the organisation is currently serving. Amazon fresh develops with enhancing consumerism. When there is development of increased level of interest in the online grocery market, the organisation help in gaining advantages from increased sales revenues particularly when there is high level of popularity and brand image of the organisation (Koks and Kilika, 2016). For the sudden and initial growth of Amazon Fresh, the factor responsible is the market penetration in the United States. This growth strategy of Amazon develops several competitive benefits which are required to penetrate the markets that are based upon the prices and the low cost. A marketing strategic objective which can be based upon the growth strategy is to incorporate an effective marketing campaign for attracting high number of customers for the Amazon Fresh website (Zentes, Morschett and Schramm-Klein, 2017). Product Development For the continuous growth of the business, Amazon Fresh takes use of product development as a supporting growth strategy. Offering new products and developing new services for attaining higher revenues is the key aim of the growth strategy. Amazon Fresh has achieved growth and success by developing innovative services and products over time. For example, earlier Amazon only used to be a retailer of various products comprising of clothes, accessories, etc. But now it has started developing more services such as delivering fresh groceries (Baker, 2014). The cost leadership strategy combined with the growth strategy supports the intensive corporate strategy of Amazon Fresh by offering the organisation with business processes that are low cost for the introduction of new products. A marketing strategic objective in consideration with this growth strategy is to enhance the development and research investment for the faster product development and offering it to the customers through onlin e channels (Hussain, et al., 2014). Diversification There is also focus upon the diversification aspect of the intensive growth strategy used by Amazon as its corporate strategy. The growth and success based upon the new venture or business is the aim in implementing this growth strategy. It comprises of the acquisition Amazon took place i.e. IMBD, Junglee.com, Musicfile.com, Exchange.com etc. that are of various other diverse business fields and sell products that are extremely diverse from those of Amazon. As per this aspect, the organisation takes use of acquisition strategy for the effective use of this diversification growth strategy. The cost leadership strategy of Amazon Fresh enables it to develop in diversified portfolios by implementing the similar approaches for minimizing the costs of operations as well as the sales price. A marketing strategic objective in relevance with the diversification growth strategy is to develop the e-commerce business by the means more acquisition or can say an effective acquisition strategy (Hus sain, et al., 2013). Selection of Business and Marketing Strategy The generic business strategy which can be used by Amazon Fresh is the Overall Cost Leadership Strategy as the key emphasis and focus of the organisation is on saving additional costs and understanding the overall strategy. The particular measures which have been used by Amazon in pursuit of this growth strategy is the steep discounts which are offered to the prime and regular customers (Tanwar, 2013). The customers get groceries on the similar day they ordered with high level of freshness in the products at convenient places and low cost prices. Apart from the low cost business strategy, the business strategy of Amazon Fresh is also driven by the various sources of competitive benefits where the organisation has its major emphasis upon the innovative technology, the economies of scales and the benefits of synergy among the internal resources and the external drivers. For mapping the behaviour of the consumers there is also a strategy which is used known as the Big Data Analytics (Sa lavou, 2010). There is extensive use of this strategy so that the preferences, the needs and the demands of the customers can be analysed and matched which gives several competitive advantages to the organisation. Marketing Strategy linked to the Business Strategy The potential customers for the Amazon Fresh can be segmented on the basis of demographic factors such as the females will be the targeted customers of the service in comparison with men as there are groceries which are most of the time selected by the women only. Secondly from the behavioural point of segmentation, the key customers are the one who do not want to invest time time of the purchase of groceries by local shops or retailers and these sorts if customers want direct selection of the groceries. From the psychographic point of segmentation, there includes people who are of higher class and as upper middle class who spend their large amount of time on these stores as well as it also compromise of the people who prefer online shopping rather than going to stores and collect the products (Darroch, 2014). Modes of entry There are several modes of entry which can be used by Amazon Fresh to enter the new market and countries. But Amazon Fresh can take use of the merger and acquisition strategy for commencing its business sin several other regions. The reason behind recommending the acquisition strategy bas the mode of entry is Amazon as a brand has high and increased level of visibility and secondly there are vast amount of capital requirements in acquisitions and Amazon has the power to acquire the various other organisations. Therefore, acquisition is one of the best entry modes for Amazon Fresh to have a global market reach (Verbeke, 2013). Marketing Mix Analysis The product is the service offered by Amazon through Amazon Fresh. It is a free of cost and same day delivery service of the fresh groceries from the markets, shops and the local suppliers. The customers get the fresh and reasonable priced groceries at their door step or the most nearest pick up point and this helps the customers saving their lot of time in going to the market and purchasing the groceries. There is also a recognition system through which the preferences and the choices of the customers are analysed and they have been offered and recommend those products. There is also take sue of model of Click and Drive so that the customers can have their ordered products as fast as possible (Srinivasan and Moorman, 2013). Price The prices for the groceries offered by the Amazon Fresh are very reasonable which can be easily affordable by lower middle class, middle class as well as upper class people. There are no additional costs for delivery or for packaging. Only the costs of the groceries have to rapid by the customers. The marketing strategy related to price of the groceries is the cost leadership strategy by which there can be attracted increased number of customer base (Melis, et al., 2015). Place Being an online retailer of groceries, there is no such boundary of delivering goods except the regions or the countries where the services are not available. The United States is the most regions where the services are mostly available. In few parts of London, Tokyo and Berlin the services of Amazon Fresh are also available. Thus, the marketing strategy adopted by the company is to cover the maximum regions of a single country and then cover other overseas countries (Rosenbloom, 2012). Promotion For the promotion of the services of Amazon Fresh, the company can take effective use of television advertisements, online advertisements, marketing campaigns, posters and social media. There is a significance use of the social media platforms in enhancing the reach of the services and increasing brand visibility. As the services are offered online only, thus, the various online or social median platforms can assist in enhancing the number of customer base for the organisation. Therefore, these are some of the most favourable and potential promotional marketing techniques for Amazon Fresh to get more number of customers across the world. Evaluation of the strategy and Recommendations Evaluation of the corporate strategy From analysing the corporate strategy of Amazon Fresh through the Ansoff Matrix, it has been evaluated that the company is taking efficient use of the strategy and it has been realized that the best suitable strategy for Amazon fresh is Market Development strategy because of the reason that the key objective of any new business or service is to conquer the new markets and attain growth. There is addition of new markets and new countries when there is provide services of Amazon Fresh. At the initial level there were only provided the retail services to the customers in the regions of the United States but with the continuous efforts there can be gained acquisition of new markets (Proctor, 2014). Thus, it can be stated that Amazon Fresh can attain good market share and have strong customer base with its growth strategy of market development and also market penetration as Amazon is one of the most recognized brand and it can get benefitted with its b rand name to acquire higher revenues and increased level of market penetration. Therefore it is recommended that Amazon fresh can have better access to the market with existing product and existing market through its strong brand image and existing products in new market with high capital sources, strong corporate strategy and global visibility (Thijsen, Tong and van Leer, 2014). Evaluation of the business strategy By analysing and evaluating the business strategy of Amazon Fresh with the framework of Porters Generic Strategies, it has been analysed that the cost leadership and the differentiation strategy will work best for Amazon Fresh as the groceries offer by Amazon at such low cost prices is its primary competitive advantage it can achieved with its business strategy (Krishnaswamy, 2017). There are other organisations or retailers who offered online services but the quality at such as low prices is the best strategy which has helped Amazon fresh in acquiring a strong customer base and reliable set of customers. In the present time, the customers not only want fast and differentiated services that are unique in nature but also the cost effective services and products that do not laid much pressure upon the buyer (Box and Miller, 2011). And thus, the differentiated services of Amazon fresh at valued prices to the customers is considered as the most appropriate business strategy. Thus, with t he evaluation drawn from the analysis performed through the lenses of porter Generic strategy, it can be stated that the low cost leadership and differentiation strategy and perfect for the growth of Amazon Fresh. Therefore, it is recommended that it must remain its cost leadership but also offer differentiated services to the customers so that they can be retained for a longer period of time (Hill, Jones and Schilling, 2014). Evaluation of the marketing strategy The marketing strategy of Amazon fresh can be analysed through the Strategic marketing framework as the strategic framework explains the significance of the marketing strategies in the high revenues and success of the organisations. Amazon Fresh has performed a proper and adequate analysis of the market and it has been evaluated that Amazon being the leader of the online retailing has a potential platform to start with Amazon Fresh as online retailing of groceries (Pookulangara and Koesler, 2011). In the market selection, Amazon Fresh has selected its target group through demographic, psychographic and behavioural segmentation. There has been a performed a proper segmentation and targeting the consumer market. The next step according to the framework is marketing strategies and Amazon Fresh has effective marketing mix com prising of strong product marketing, price marketing strategy, place marketing strategy and the promotional marketing strategies (Zahay and Griffin, 2010). Thus, al l these marketing strategies are beneficial for having a large number of consumer bases. Thus, these marketing strategies of Amazon Fresh will help the organisation in acquiring customers as well as high level of customer retention and loyalty which at the end results in increased level of revenues. It is recommended that there must be more focus upon the place as there are few regions only where Amazon Fresh delivers its services and if the area will be increased there will also be increase in number of customers and the revenues of the company (Strauss, 2016). Conclusion There is a vital significance and importance of the corporate strategy, business strategy and the marketing strategy in the growth and success of a business organisation and its marketing plan. The growth, success and sustainability of the organisation is extremely depends upon the selection of business, corporate and marketing strategy the organisation take use of from this report, it can be concluded that there is growth strategy adopted by Amazon Fresh which is highly potential for the company as it helps the company in attaining growth and success in the future timeframe. The product development and market penetration are the most potential growth corporate strategy for Amazon Fresh. Thus, it is stated that it must extend its roots in few more overseas regions. From the analysis and insights of the business strategy, it can be concluded that in present time where is striving competition in the market of online retailing, it is essential that the companies must offer quality produ cts at low prices so that the consumers can gain utmost value from the amount they spent. 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