Retail Strategy of Home-Base and Wickes in the UK Market - Dissertation Example

? Retail Strategy of home-base and Wickes in UK market Executive Summary This report mainly deals with the effectiveness and competitiveness of the organization of Sainsbury's Home-base and Wickes in the market of United Kingdom. Along with this, it also includes a brief description of the different strategies implemented by the organization so as to improve its portfolio and image in the market. And the ways by which, the retail mix of these organizations enhanced as compared to others. Apart from this, it also presents a short description of the micro and macro environment of the organizations thereby concluding it with a short conclusion and recommendation. Table of Contents Executive Summary 2 Introduction 4 Brief background of home-base and Wickes 4 Discussion 5 The retail Strategy used by Sainsbury's Home-base retail group and Wickers 5 Analyse the Retail Situation of the Organizations in Competitive Environment 8 Critical evaluation of the relationship between elements of strategy and retail mix 12 Conclusion 14 Recommendation 14 References 15 Bibliography 16 Appendices 17 Introduction Brief background of home-base and Wickes Home-base is recognised as one of the renowned home-improvement and gardening centre, operating in the market of United Kingdom since 1979. It came into existence by the planned support of both Sainsbury's supermarket chain and Belgian retailer GB-Inno-BM. And due to their support, the Sainsbury's Home-base retail group developed and became successful in offering a wide range of products to its customers at a competitive cost. As a result, the total sales enhanced by ?1.57 billion in the year 2010 thereby amplifying the brand image and demand by a significant extent as compared to other rival players. Apart from this, being headquartered in United Kingdom, it offered value-added products in the entire world in an effective way. It became possible due to the presence of 356 stores in and around United Kingdom and Republic of Ireland. Other than this, Wickers is also another highly reputed retailer of United Kingdom presenting an extensive range of budgeted home decorative and gardening products to satisfy the desires of the customers. By doing so, the revenue and reputation of Wickers enhanced to a significant extent as compared to other contenders operating in the similar segment. It also proved extremely effective for the brand of Wickers to improve its position and brand-value in the market among others. This report is divided into four phases, highlighting the effectiveness of Sainsbury's Home-base retail group and Wickers. Along with this, it also highlights the positioning strategy utilized by both the retail players in order to position itself in the market of United Kingdom. It also includes the competitive strategy used by the retail players of UK to retain its portfolio and image among other contenders. Discussion The retail Strategy used by Sainsbury's Home-base retail group and Wickers The Sainsbury's Home-base is one of the leading UK based retailer that mainly desires to offer qualitative products at an effective price so as to enhance customer satisfaction and loyalty. This is because; customer is the prime requirement of any organization in this age of extensive rivalry and economic downturn. Without which, an organization may not sustain or prosper in the market among other rival players. Therefore, in order to remain competitive and dominant in the market, Sainsbury's Home-base retailer desired to offer high attention over corporate social responsibility (CSR) strategy. In order to make this strategy effective, it invested huge amount of revenues in lighting, refrigeration, heating, ventilation and many other services to enhance the efficiency of energy and to reduce the range of wastes. Along with this, by implementing such types of services, the Sainsbury's Home-base retail group desired to offer best quality of products to its targeted customers so as to enhance their level of satisfaction and reliability as compared to others. Along with this, it also preferred to enhance its image and loyalty within the minds of the customers so as to increase its market share and size in the regions of United Kingdom thereby reducing the rate of switchover costs significantly. Other than this, in order to reduce the rate of green houses gases like carbon dioxide; varied types of renewable sources of energy are used in spite of non-renewable sources. This acted as a boon for the organization of Sainsbury's Home-base retailer thereby amplifying its range of customers and profit margin as compared to others. And as a result of which, the range of profitability and demand of the products of Sainsbury's Home-base retailer enhanced to a significant extent among other players. Not only this in order to, retain its portfolio and supremacy in the market of United Kingdom Sainsbury's Home-base retailer renovated the entire store location. It implemented varied types of latest concepts such as small stores built with timbers to retain the freshness of the products, bio-mass boilers, rain-waters to flush over toilets and many others to present a soothing atmosphere to its customers. This helped the organization to retain its promise to offer qualitative products at a competitive price to its customers that enhanced its ratio day by day to a considerable rate. Other than this, the organization of Sainsbury's Home-based retailer also improved the distribution system by separating it into four categories such as Primary Consolidation Centres (PCCs), Fulfilment Factories (FFs), K Line depots and Frozen food depots. This strategy also proved extremely effective for the organization of Sainsbury's Home-based retailer thereby amplifying its range of customers and reputation in the market of United Kingdom. Along with this, it also enhanced the operations of the organization of Sainsbury's Home-based retailer by offering a huge range of products and services to its customers at an efficient cost. This helped in amplification of its range of profits and total sale of the products that enhanced its market value significantly as compared to its biggest competitor, Tesco. Moreover, apart from CSR strategy, Sainsbury's Home-based retailer also implemented the policy of recruiting experienced and talented staffs within the stores so as to fulfil the inner desires of the customers. It is done with the aim to increase the range of total sale of the organization of Sainsbury's Home-based retailer by assisting the target customers with their preferred products or services. By doing so, the inner morale and satisfaction of the customers might get enhanced resulting in amplification of its total revenues and profitability. It also enhanced the image and position of the brand of Sainsbury's Home-based retailer in the market of United Kingdom among many other retail players (Wiid & Diggines, 2010, pp.567-678). Additionally, in order to retain its competitiveness and sustainability, Sainsbury's Home-based retailer also decided to offer high attention over the procedures of its operation management. By doing so, the entire operation of the stores became more systematic and efficient thereby reducing the total cost of labours. As a result of which, the efficiency and effectiveness of the operations enhanced that fulfilled the desire of the customers to attain, ‘best quality of products’. Therefore, such a strategy enhanced the brand value and prosperity of the organization in the market of United Kingdom as compared to many other retail players. Hence, due to the implementation of such type of strategies, the status and position of Sainsbury's Home-based retailer improved thereby amplifying its portfolio in the market. Apart from Sainsbury's Home-based retailer, another popular retailer named, Wickes implemented the strategy of presenting best quality of services to its customers so as to retain its effectiveness. In order to fulfil such desire, the management of the organization of Wickes implemented the policy of total quality management (TQM). It is the procedure to maintain each and every process of the organization in the best way so as to enhance its reputation in the market of United Kingdom and within the minds of the customers. Along with this, it might help the organization to enhance its strengths and reduce its weaknesses to a certain extent among other retail players. Other than this, the management of Wickes also decided to offer the products at a quite lowest cost so as to position itself as the strongest competitor in the market of United Kingdom among others. This proved extremely effective for the organization of Wickes thereby amplifying its total sales by ? 10.1 million. And due to this cost-leadership strategy, Wickes very easily expanded its stores to South Africa, Mainland Europe and Ireland among many other retail players that acted as a blessing for the organization to amplify its brand image and opportunities significantly. Other than this, the management of Wickes also decided to offer high attention over promotion and advertising in order to enhance the level of awareness of its target customers. And in order to do so, it decided to promote varied types of features and specialities of their products in an attractive way so as to fascinate large array of customers. All these advertisements are offered in social networking sites and various online sites that effectively enhanced the total sale of the products of Wickes in the market of United Kingdom as compared to others. Therefore, it might be depicted that the desktop strategy implemented for the improvement of the total sale of the products proved extremely effective for the organization of Wickes among others. Not only this, in order to position itself in a quite differentiated way, Wickes also decided to present varied types of professionally designed products in order to satisfy the changing requirements of the target customers. By doing so the total sale and profitability of the organization of Wickes enhanced in the market of United Kingdom as compared to other rival players. Thus, it might be stated that the promotional and pricing strategy of the management of the organization of Wickes proved extremely effective thereby amplifying its market size and image in the market of United Kingdom. Therefore, it might be clearly revealed that both the organizations of Sainsbury's Home-based retailer and Wickes implemented differentiated strategies so as to position it-self and both became successful in an efficient way. Analyse the Retail Situation of the Organizations in Competitive Environment In this age of stiff competition and economic downturn, the prime aim of any organizations is to improve the level of sustainability. This might be possible only by enhancing the range of customers as it may amplify the profit margin of the organizations. Along with this, it might also enhance the brand image and reputation of the organizations in the market of United Kingdom among other rival players. However, in order to do so, the organization always tried to implement varied types of strategies in order to retain its competitiveness and sustainability in the market of United Kingdom among others. Similarly, the most renowned retail player, Sainsbury's Home-base implemented the strategy of CSR and brand promotion in the market of United Kingdom among others. And likewise Wickes implemented the strategy of presenting differentiated products through high-end promotions to attract the customers of United Kingdom. As a result of which, the competitive retail situation of the organizations mentioned above might be evaluated with the help of an analytical technique, SWOT analysis. Strengths: Strong brand equity- due to the implementation of the strategy of CSR, not only the reliability and loyalty of the customers enhanced but also the brand equity of Sainsbury's Home-based retailer amplified. As a result of which, the level of profitability and total sale of the organization enhanced by a substantial extent among other retailers of the market of United Kingdom. On the other hand, the implementation of the strategy of wide promotional campaigns proved extremely effective for the organization of Wickes that amplified its total range of sales and position as compared to Tesco, Sainsbury home-based retail and ASDA. Thus, it might be clearly revealed that the implementation of the strategies proved quite effective in the market of United Kingdom (Wiid & Diggines, 2010, pp. 245-456). Wide array of customers- as the organization of Sainsbury's Home-based retailer tried to offer value-added products at an effective price so, the array of customers enhanced to a certain extent. This proved extremely effective for the organization of Sainsbury's Home-based retailer thereby amplifying its profitability and turnover to a significant extent. On the other hand, Wickes also enhanced its range of customers by presenting them wide range of differentiated designed products at competitive price (Bradley, 2007, pp. 456-567). High level of competitiveness- due to the implementation of CSR strategy, the competitiveness and reliability of the organization of Sainsbury's Home-based retailer in the market of United Kingdom as compared to others. Along with this, the market share and market value of the organization of Sainsbury's Home-based retailer also enhanced to a certain extent among many other rival players. Whereas the organization of Wickes decided to enhance its competitiveness by offering professionally designed products to its target customers among others. Weaknesses: Treated as an expensive brand- due to the implementation of the strategy of brand promotion by extensive advertisements and CSR, the total sale of the products enhanced thereby reducing the weakness. It also amplified its strength of reputation in the market of United Kingdom and so, its market value improved. On the other hand, the organization of Wickes decided to offer its products at a quite low cost so as to improve its sustainability in the market of United Kingdom. Thus, the strategy proved extremely effective for the organization of Wickes to enhance its effectiveness among others. Opportunities: Expansion in new markets- due to the implementation of these strategies, the opportunity to expand in various new markets and regions amplified. As a result of which, the total sale and profitability of the organization of Sainsbury's Home-based retailer might also get amplified among others. Similarly, Wickes also amplified its chances to expand into new regions by offering its customers various designed products at an effective cost among others. New range of products- in order to satisfy the requirements of the customers of varied cultures, religions and creeds, varied types of inventive products might also be introduced. As a result of which, the brand image and market value of the organization of Sainsbury's Home-based retailer might also get enhanced to a certain extent among others. Similarly, in order to satisfy the demands and requirements of the customers of various regions, experienced professionals are recruited within the organization of Wickes. This might prove quite effective for the organization in future era (Bohm, 2009, pp. 267-310). Threats: Competition- in order to retain its position in this competitive market, the organization of Sainsbury's Home-based retailer desired to offer a wide range of products as per the preferences of the customers. On the other hand, the organization of Wickes decided to offer its products at a quite competitive cost so as to retain its individuality and sustainability in the market of United Kingdom among others. Economic Slowdown- in order to retain its sustainability and image in the market of United Kingdom, various organizations implemented varied types of strategies. By doing so, the profitability and turnover of the organization amplified to a certain extent. Therefore, it might be depicted that the micro-environmental factors of the organizations became quite enhanced due to the implementation of these strategies mentioned above. On the other hand, the macro-environment of the organization of Sainsbury's Home-based retailer and Wickes might be evaluated with the help of the analytical tool, PEST. Political- the introduction of varied types of policies and laws in favour of retailing, proved extremely effective for the organization operating under this umbrella. As a result of which, the brand image and popularity of the organizations of Sainsbury's Home-based retailer and Wickes enhanced to a significant extent among others. And so the market share of both the organization mentioned above amplified, which is presented in the graph 1 of Appendix. Economic-as these retail organizations offered wide range of products so the buying behaviour of the customers enhanced to a significant extent. As a result of which, the CAGR rate enhanced that acted as a boon for the country thereby amplifying the economic condition. Therefore, due to the implementation of the strategies mentioned above, the financial condition and brand image of the retail players amplified to a certain extent in the market of United Kingdom (Tidd & Bessant, 2005, pp. 323-456). Social- due to the introduction of these retail shopping malls, a wide range of customers might gather and spend a pleasant time. As a result of which, the total sale of these shopping malls enhanced that amplified its brand image and popularity in the market of United Kingdom. This became possible only due to the implementation of these above mentioned strategies in the retail malls. Technology- due to the introduction of varied types of strategies, both the organizations of Sainsbury's Home-based retailer and Wickes implemented varied types of inventive techniques such as scanning machines and bar code readers. These enhanced the billing procedure to a significant extent in the market of United Kingdom. Therefore, it might be clearly revealed that the implementation of various strategies proved extremely effective for the retail players (Grant, 2005, pp. 235-345). Thus, it might be clearly revealed that the strategies helped in amplifying the prosperity of the retail organizations in the market of United Kingdom among others. Critical evaluation of the relationship between elements of strategy and retail mix In order to enhance the position and image in the market of United Kingdom, the organization of Sainsbury's Home-based retailer and Wickes implemented varied types of strategies. As a result of CSR strategies, the retail mix of the organizations became highly enhanced that might be presented in the below mentioned points. Product- the organizations of Sainsbury's Home-based retailer and Wickes became successful in offering a wide range of products at a competitive price. Along with this, it also comprises of products with varying features and characteristics that might easily satisfy the preferences and requirements of customers of varying cultures and creed. It became possible only by implementation of the strategy of promotion and CSR (Porter, 1986, pp. 376-456). Price- the organizations of Sainsbury's Home-based retailer decided to offer value-added products at a competitive price in order to satisfy the changing requirements of the customers. As customer satisfaction is the prime requirement of the strategy of CSR of any organization. On the other hand, Wickes implemented the strategy of presenting the products at a quite lowest cost in order to retain and attract new array of customers. This is done to position itself in a differentiated way in the market of United Kingdom among others. Place- in order to retain the value and image of the organization of Sainsbury's Home-based retailer and Wickes in a stable position in the market of United Kingdom, the managements decided to offer products as per the preferences of the target customers (Gupta, 2004, pp. 378-567). Promotion- by implementation of the strategy of promotion, the organization of Sainsbury's Home-based retailer desired to enhance the level of awareness of the customers. And by utilizing, desktop advertising strategy, Wickes tried to increase the total sale of its products among others. So, it proved extremely effective for both the organizations (Kolb, 2008, pp. 56-72). People- the organization of Sainsbury's Home-based retailer desired to recruit highly experienced and knowledgeable staffs in order to improve the reputation and image. Similarly, Wickes also employed numerous talented staffs in order to enhance its portfolio and popularity in the market of United Kingdom (ESOMAR, 2008, pp. 156-167). Process-the process of renovating the entire environment of stores, proved effective for the organization of Sainsbury's Home-based retailer thereby enhancing its operational management. And Wickes implemented TQM to attain best results in every step so as to position its products. So, the strategies proved highly effective for the organizations. Physical evidence- in order to enhance the satisfaction of the customers, the organization of Sainsbury's Home-based retailer implemented, timbers, bio-mass boilers, rain-waters to flush over toilets and many others. Similarly, Wickes implemented online sites, in order to simplify their purchasing behaviours that acted as a cornerstone for the organization thereby amplifying its image and portfolio in the market of United Kingdom (Porter, 2008, pp. 432-543). Therefore, it might be clearly stated that the strategies implemented in each of the organizations, proved extremely worthy for them in current era among many other retail players. Conclusion Conclusively, it might be depicted that the strategies implemented within the organization of Sainsbury's Home-based retailer and Wickes helped in improving its range of customers and image. Along with this, it also helped in amplifying its profitability and total revenue to a certain extent among many other retail players. And, the reputation and market share of the organizations enhanced thereby amplifying its portfolio and competitiveness to a certain extent. Recommendation After analysing and evaluating the entire scenario of retailing in the market of United Kingdom, it might be stated that the organizations, operating under this segment need to offer high attention over customer preferences. This is because; by doing so, the organization might become successful in offering their preferred products at a competitive price. Only then, the organizations operating in retail might retain its competitiveness and sustainability in the market of United Kingdom (Xu, 2005, pp. 378-456). References Bohm, A. (2009). The SWOT Analysis. Oxford Business Group. Bradley, N. (2007). Marketing Research: Tools & Techniques. New York: McGraw-Hill. ESOMAR. (2008). Market Research Handbook. London: Sage. Gupta, S, L. (2004). Marketing Research. New York: McGraw-Hill. Grant, R, M. (2005).“Contemporary Strategy Analysis”. London: Sage. Kolb, B. (2008). Marketing Research: A Practical Approach. London: Sage. Porter, M., E. (2008). Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: Springer. Porter, M, E. (1986). Competition in Global Industries. New York: Springer Tidd, J. & Bessant , J. (2005). “Managing Innovation: Integrating Technological, Market and Organizational Change” . Germany: JohnWiley & Sons. Wiid, J. & Diggines, C. (2010). Marketing Research. London: McFarland. Xu, J. (2005). Market Research Handbook: Measurement, Approach and Practice. New York: Springer. Bibliography Von Stamm, B. (2008). Managing lnnovation, Design and Creativity. Chichester: Wiley. Appendices Graph:1 Read More