Enterprise Innovation and Markets

Topic: Marketing Position

How could a new entrant establish their marketing mix strategy in the Australian supermarket industry? Provide clear explanation in support of your answer.

Learning objective 1: explain the elements of the marketing mix Marketing is a philosophy or a way of doing business that puts the market

the customer, client, partner and society, and competitors — at the heart of all business decisions.

The marketing process is cyclical in nature and involves understanding the market to create, communicate and deliver an offering for exchange.

Marketers start by understanding the consumers, the market and how they are currently situated

. Armed with this understanding, marketers are next tasked with creating solutions, communicating the offering to the market, and delivering it at a time and place that is convenient for the customer.

There are various ways in which a new entrant can establish their marketing mix strategy in the Australian supermarket industry which can be seen through the following information. A marketing strategy is one which helps define one's marketing mix options so that what an entrant is offering meets the customer's need and demand. (MindTools 2016) The different marketing mix elements include: product, place, promotion and price which can influence the way in which the new entrant established their place in the Australian supermarket industry. These different elements satisfy the needs of a product's consumers, while generating optimum income. (Business Dictionary 2014)

A new entrant can establish their marketing mix strategy by being innovative with their product, which can be done by doing thorough research on Australian competitors. By doing research on competitors a new entrant can decide how they will make their product better and innovative. The product in the marketing mix strategy includes what the new entrant is going to make and sell. (MindTools 2013) The new entrant can decide what they would like to make and sell by doing thorough research on seeing which products sell the best in the Australian supermarket and how they can possibly present the product to consumers so that consumers will buy it. For example: If a competitor is selling laptops which are to individuals, the new entrant can sell laptops which are bright coloured to consumers which is attracts more customers as it has a more appealing presentation. The new entrant may also decide that they want to partner with another business to present their product. If the business who they are partnering with is well-reputed then the new entrant will certainly attract more customers. (Chron 2016) Furthermore a new entrant can select their target market when they are bringing their product into the market which means that when the new entrant is advertising then they can decide who they want to aim the advertising at.

Another important element when establishing a marketing mix strategy includes, advertising. Advertising is essential when presenting a product to the consumer base which is because it helps consumers get an idea of what the product is going to be like. For a new entrant advertising is extremely important because it will help the new entrant compete with Australian competitors which they may have in the market. (Chron 2017) By advertising their product the new entrant can communicate information to customers as it is one of the first steps in building strong relationships with the customers. Advertising plays a crucial role in reaching out to potential and existing customers in Australia because it allows customers to compare similar products from different brands and decide which one is better .(Reference 2017) An effective way to reach out to customer in Australia is social media as many Australian individuals use social media quite often.

When a new entrant is establishing their marketing mix strategy then they also must look at the price of the produce. Pricing decisions which are made by the new entrant need to be made through proper research and analysis and then decide strategically what the best price can be for a specific product. However, the customer's decision to buy a product is made by all the marketing mix elements. (Smallbusiness 2015) Keeping the price low at first, can always work to the new entrants benefit because customers will most likely purchase the product if the price is low. Also, the new entrant can possibly give samples to individuals so they can test if the product is good or not. When creating the product, it is extremely important to make sure that the product has good quality as customers will not purchase a product of bad quality. Profit maximization is also very important regarding price because for the new entrant to succeed profit is important. (Cleverism 2017)

Another important element includes: place which refers to the distribution of the product. This would involve the new entrant deciding whether they would like to sell their product in store or online. If the product is more likely to sell online then it would be best for the new entrant to sell their product online. (Hearst 2017) If the new entrant decides to sell the product in store then it is important for them to make sure the distribution centres are not too far from where the product is being sold. This is so the product is always in stock and thus sold in the market. (Maniktala 2013) For example: With electronics it is efficient to sell it online where as with groceries a new entrant is better off selling it instore as it is a daily need for the market.

Therefore it can be seen through these paragraphs how a new entrant can establish their place in the Australian supermarket.

References

Anon., 2017. Chron; Why is advertising important? viewed on 27 April 2017

http://smallbusiness.chron.com/advertising-important-business-3606.html

Anon., 2017. Cleverism viewed on 27 April 2017

https://www.cleverism.com/pricing-four-ps-marketing-mix/

Armstrong, G., 2017. Mars;The marketing mix in marketing strategy: Product, price, place and promotion viewed on 28 April 2017

https://www.marsdd.com/mars-library/the-marketing-mix-in-marketing-strategy-product-price-place-and-promotion/

Dictionary, B., 2017. Business Dictionary viewed on 27 April 2017

http://www.businessdictionary.com/definition/marketing-mix.html