Discuss about the Marketing Strategy for New Service Launch of Home Run.
Home Run is positioned among the most renowned retail brand that is focused on launching “Home Run” in Australia that are rich in high organic and nutritional value (Allen et al.2015). The company will have its retail operations focused on Australian food and petrol, supermarkets, drinks group and hotels. Hone Run is a 1-hour shopping as well as delivery experience whose organizational model is focused on simplicity and speed. After launching its business in Australia, consumers can choose their favorite supermarket and place a grocery order that will be delivered in less than 60 minutes. This “Home Run” development has considered undertaking an extensive review, reformulation and rebranding of the food ranges with major changes including decrease in salt, sugar, saturated fats along with overhaul of product packaging. This new grocery store will enhance product transparency on packaging with “Health Star Ratings” and the range will include offering textural innovations along with new ways to communicate with brands. (Baker, 2014).
SWOT Analysis
Strengths · Strong brand name along with effective business operations · Successful and popular own store brands for innovative foods · An established retail name within Australia having 800n stores and 3000 employees · Pioneer and among the oldest retail organizations for introducing modern retail trade model |
Weaknesses · The innovative food ranges of the brand have failed to have a competitive advantage · Decreased global presence of these product ranges in comparison to its competitors · Entered within the online market late that has resulted in competition having lower prices and increased experience |
Opportunities · Promoting the “Home Run” of the brand by means of new promotional strategies, advertising and sponsorship · Attain increased growth by means of strategic acquisitions along with franchise models within emerging economies |
Threats · Increasing costs of raw materials from food and the non-food sectors that will impact overall profit margins · Increased competition from global players · Economic recession might affect the overall growth strategy of opening more stores |
The attractiveness of the Australian retail market for the new product launch can be analyzed through carrying out Porters “five forces analysis” in order to evaluate the appeal and success of the market (Balaji & Roy, 2017).
Figure 1: Porters Five Forces Analysis
(Source: Charlton, Kähkönen, Sacks & Cameron, 2015)
The target consumer group those shop for Home Runs grocery products look for all-new “Green seal for approval” on the new “Home Run” product (Scollo, Bayly & Wakefield, 2015). The target consumers of the company desire for delicious, high quality product that contains no artificial colors along with flavors at a reasonable price that are created by nutritionists and chefs and are tested by them. For this new product, the new target consumer segment is deemed to be the household segment of the retail market. The consumer segment of the Home Run belongs to the age group of 18 to 45 years and generally belongs to the high-income group. The segmentation in relation to the income level of the target customer segment has facilitated the retail organization to develop different set of new food product innovation strategies in the product procurement from the manufacturers (Scollo, Bayly & Wakefield, 2015). Such consumer segment division is conducted by dividing the market into consumers having different needs or desires regarding food products. The consumers those are targeted by Home Run after its launch of new nutrition filled product ranges will be the consumers those look for higher product quality with better value process through convenient situations. Shifting focus on comparison of price to quality, Home Runs target consumer will be the ones looking for “The fresh food with high nutrition and great value”. Focused on the needs of its target consumer segments, “Home Run” will offer that will make sure its consumers attain great quality and tastier options (Scollo, Bayly & Wakefield, 2015).
There are a number of competitors for Home Run new food product ranges in the Australian market. There is a high competition level in the Australian retail market from other major players such as Aldi, Wesfarmers or Coles that also introduces innovative product ranges and has a huge loyal consumer base. However, there is small number of major players in Australian retail market and there is absence of high differentiation due to generic nature related with products and services offered by Home Run (Zarkada-Fraser & Fraser, 2015). The competition that is faced by the company is generally based on price and the other factors encompass location and of store and product choice. Two major drives that can increase future competition are the American retailer Costco and the Coles, which indicates high threat in future from their products (Scollo, Bayly & Wakefield, 2015).
In launching its new grocery product, Home Run has focused on setting positioning strategy of its products in its new brand promotion campaign. This product positioning strategy indicates that the positioning strategy is focused on advertising that the campaign captures the essence of the values of the food products that makes Home Run great and exceptional (Webster & Hume, 2015). The integrated promotional product positioning campaigns include online, print, radio, street and transit media along with You Tube pre-rolls. Moreover, for this grocery product ranges from supermarkets, Home Run has refreshed its product positioning through launching a multimillion dollar brand positioning campaign. This campaign seeks to promote the fresh food positioning that focuses on delivering food from the farm to the table. The new product positioning will focus on addressing major consumer concerns around quality, sourcing and freshness of goods. For increasing positioning of the brand, a few commercials will be released as a million-dollar campaign that includes micro site inviting shoppers to view the grocery products fronting the spots with interviews along with behind the scenes talent footages (Xie, Hong & Stroud, 2015).
The marketing objectives set for the organic grocery product launch by “Home Run” are explained under:
Two major marketing strategies will be involved in increasing the sales of Home Runs new food product ranges in order to compete successfully in the Australian retail market that includes in-store promotions and organizational dynamism. In launching its new organic and nutritional food ranges, “Home Run” has focused on setting positioning strategy of grocery in its new brand promotion campaign (McDonald & Wilson, 2016).
In Store Promotions |
In-store weekly specials on the new food ranges is decided to be offered with the sales catalogues to attain short term increase in the sales of these products |
Organizational Dynamism |
Regular investments within customer research along with staying ware with the environmental changes on nutritional products for adapting strategies to compete in a better manner in future. |
To promote its newly launched nutrition focused food product ranges, several effective promotional techniques can be implemented. The brand can focus on launching promotional campaign. The brand can use online media and the magazines as well as newsletters for better product promotion (Pantano, 2015). This marketing strategy can be effective through ensuring easy availability and accessibility for attaining loyal consumer base. “Home Run” can also focus on offering extensive offers and deals for the shoppers or the target consumers. Gift cards are also given away by the “Home Run” for in promoting the “Home Run” product of the company. Extensive promotion can be carried out through online media by “Home Run” Company that will promote the online stores as well as offering discounts for attracting huge consumer base towards its nutritional food ranges (Scollo, Bayly & Wakefield, 2015).
The marketing strategy of “Home Run” for the new food ranges is focused on setting suitable price for these new food product ranges. Considering that there will be organic and highly nutritional food ranges with increased variety in comparison to its competitors, prices will be kept competitive within the Australian market (Sutton-Brady, Kamvounias & Taylor 2015). Moreover, the retail chain will serve the consumer segment with low and premium prices for the “Home Run” product. This marketing strategy can be implemented by “Home Run” through offering its loyal consumers with shopping card that can automatically track their purchases along with providing discounts on first time purchase of such “Home Run” product for which they will require to retain paper receipts.
References
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Baker, M. J. (2014). Marketing strategy and management. Palgrave Macmillan.
Balaji, M. S., & Roy, S. K. (2017). Value co-creation with Internet of things technology in the retail industry. Journal of Marketing Management, 33(1-2), 7-31.
Charlton, E. L., Kähkönen, L. A., Sacks, G., & Cameron, A. J. (2015). Supermarkets and unhealthy food marketing: An international comparison of the content of supermarket catalogues/circulars. Preventive medicine, 81, 168-173.
Cuellar, S. S., Eyler, R. C., & Fanti, R. (2015). Experiential Marketing and Long-Term Sales. Journal of Travel & Tourism Marketing, 32(5), 534-553.
Dwyer, L., Pham, T., Forsyth, P., & Spurr, R. (2014). Destination marketing of Australia: Return on investment. Journal of Travel Research, 53(3), 281-295.
Ellis, R. B., & Waller, D. S. (2016). A study of the marketing curriculum in Australia: the 1930s to now. In Looking Forward, Looking Back: Drawing on the Past to Shape the Future of Marketing (pp. 86-93). Springer, Cham.
Kasemsap, K. (2018). The roles of corporate marketing strategies and brand management in the global retail industry. Digital Marketing and Consumer Engagement: Concepts, Methodologies, Tools, and Applications: Concepts, Methodologies, Tools, and Applications, 294.
Larke, R., Kilgour, M., & John, S. P. (2016). Tourist growth and the implications for retail marketing strategy: Insights from Japan. Journal of Travel & Tourism Marketing, 33(5), 658-670.
McDonald, M., & Wilson, H. (2016). Marketing Plans: How to prepare them, how to profit from them. John Wiley & Sons.
Pantano, E. (Ed.). (2015). Successful technological integration for competitive advantage in retail settings. IGI Global.
Scollo, M., Bayly, M., & Wakefield, M. (2015). The advertised price of cigarette packs in retail outlets across Australia before and after the implementation of plain packaging: a repeated measures observational study. Tobacco control, 24(Suppl 2), ii82-ii89.
Sutton-Brady, C., Kamvounias, P., & Taylor, T. (2015). A model of supplier–retailer power asymmetry in the Australian retail industry. Industrial marketing management, 51, 122-130.
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Xie, J., Hong, T., & Stroud, J. (2015). Long-term retail energy forecasting with consideration of residential customer attrition. IEEE Transactions on Smart Grid, 6(5), 2245-2252.
Zarkada-Fraser, A., & Fraser, C. (2015). Integrating social and economic orientated marketing: A study of retail management. In Proceedings of the 2000 Academy of Marketing Science (AMS) Annual Conference (pp. 219-223). Springer, Cham.
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