Walkers is the UK's favorite crisps brand. Founded in 1948, butcher Henry Walker commenced making crisps in his Leicester Herb to keep his workers busy, as meat was scarce in post-war Britain. Today, Walkers is Britain's greatest crisp manufacturer, employing thousands of men and women in seven locations. Walkers have 16 amounts of crisps and snack foods including Walkers Sensations, Doritos and Quavers. Still located in Leicester, Walkers became a member of the PepsiCo family in 1989 and makes around 10 million totes of crisps each day. Walkers is worth around Ј436 million, and Walkers appetizers are enjoyed by over 10 million people in the UK every day.
In 2007, Walkers became the first company on the globe to display a carbon lowering logo on a consumer product. The label includes the carbon used from seed to store and to product disposal. Dealing with the Carbon Trust, Walkers reduced energy use per kilo by one third, and water use per kilo by 45%. Walkers also have committed to further year on season reductions to continue to be eligible for the label. As part of their efforts to lessen our carbon emissions by reducing our road kilometers, they turned to using 100% British isles potatoes for Walkers crisps in July 2007.
Introduction to Task 1
This activity is regarding online marketing strategy options for walker, certain requirements from process is to recognize the type of expansion for walkers which is most highly relevant to the company and offer justification for the. And provide two marketing strategy options for walkers and explain how these options may be used to achieve the competitive advantages and long-term growth.
What is a marketing strategy
Marketing strategy is a process that makes it possible for an organization to concentrate its limited resources on the best opportunities to increase sales and achieve a ecological competitive advantages. A online marketing strategy should be centered on the key strategy that customer satisfaction is the primary goal. [1]
There are three steps in formulating a marketing strategy
Step 1: Id of development opportunities
Step 2: Consider producing Porter's universal strategies
Step 3: Draw up marketing options
While evaluating the expansion opportunities some tips which must be targeted are "Planning for a new business", "Downsizing or terminating the old ones that happen to be no more profitable", and the "percentage between the desired sales and projected sales".
As per requirement of this the talk will be only limited by the step one 1, which is the recognition of expansion opportunities for Walkers.
Type of development for Walkers
As looking at the current business, market share and market opportunities it indicates that for walkers the growth type is "Intensive Development". Intensive Progress relates to the expansion when an organization want to enhance their current business and try to identify opportunities to achieve further progress within the current business.
The above given diagram was made by "Ansoff" which is a useful framework for companies management looking for the new opportunities to increase their profits. As it show that this has four marketing strategies
Two marketing strategy options for Walkers
By looking at the existing market position Walkers and the income they generate each year throughout the uk market, I will suggest Walkers the next two marketing strategies.
Market Penetration Strategy
The first strategy every single company wants is to adopt for increasing their sales and revenue is the market penetration strategy. Market Penetration Strategy is the marketing work of the company to offer their existing products and services within the current market. The ultimate way to do that is to get rivals customers and looking for potential customers in the prevailing market for existing products.
As Walkers have the possibility to use market penetration technique for their different brands in UK, and also abroad. Prior to going for marketing penetration strategy proper examination of competitors in market is required what exactly are their strengths and in which areas they are lacking in providing good services to customers, what are the main competencies for Walkers against those who already are on the market, and then create a plan to dwelling address those areas which need to be, and try to capture increasingly more customers of other opponents and also become an attracting brand sign for clients on the market of crisps.
Market Development Strategy
Developing a fresh market for the prevailing company product is called market development strategy. With this activity efforts are placed on to find new market segments and make new customers to increase company revenue and earnings. Walkers has the opportunity to develop markets oh physical such as towns, counties, and demographical such as on basis of sex, generation and class etc.
Walkers have the opportunities to build up new markets for its product throughout the uk, and also in other potential areas globally. Through market penetration strategy they can give good packages to their customers to be able to encourage current customers to buy more, the next and essential aspect in this plan is that to attract competitor's customer by giving them good deals to buy Walkers product and get those customers who are not used to the forex market and boost the range of customers.
Justification for Marketing Strategies Choices
As Walkers Crisps is a UK brand with a 47% show of the British isles crisp market. And 12 different kinds of crisps products, which ultimately shows that almost 50 % of the united kingdom crisps market is captured by Walkers, plus they employ a good and popular brand name, that's why in this project both marketing strategies "Market Penetration Strategy" and "Market Development Strategy" for the purpose of marketing are recommended to Walkers. They can kick off their product in new marketplaces to draw in their competition customers and those who are new to the crisps market, because of experiencing good will of Walkers and good market talk about in the united states markets, Walkers will definitely get succeed in attracting new customers and their competition customers.
The second proposed technique for Walkers (Market Development Strategy) will enable Walkers to present their products into new markets with their current products. Although Walkers have about 50 % of the marketplace talk about captured in UK crisps market but definitely there will be some potential areas where they don't have given the required focus in past, or dwelling address those markets where they have got low sales as compared to their competitors, which means this strategy can help walkers to properly assess the new market areas and start their products under the popular brand of Walkers to achieve maximum benefits for the company.
Introduction to Activity 2
For every product in market the PESTEL examination is vital as it is a primary part of the marketing strategy development, therefore the requirement from this task is to handle PESTEL research for Walkers, and then provide enough information and asses how scientific change and globalization for the company's market planning within the next 3 years.
What is PESTEL Analysis
PESTLE stands for
P: Political
E: Economic
S: Sociological
T: Technological
L: Legal
E: Environmental.
PESTLE examination is in effect an audit of the organization's environmental influences with the goal of using these details to guide tactical decision-making. The assumption is that if the business is able to audit its current environment and determine potential changes, it will be better positioned than its rivals to respond to changes.
Importance of PESTEL Analysis
To help make decisions and to plan for future situations, organizations need to comprehend the wider 'meso-economic' and 'macro-economic' environments in which they operate. (The meso-economic environment is the one where we operate and have limited affect or impact, the macro-environment includes all factors that impact a business but are out of its direct control). A business on its own cannot impact these factors, nor can these factors immediately affect the success of an organization. But by understanding these conditions, it is possible to take the advantage to increase the opportunities and minimize the threats to the organization. Executing a strategic analysis entails scanning these economic surroundings to discover and understand the wide-ranging, long term tendencies.
A PESTLE examination is a useful tool for understanding the 'big picture' of the environment in which a business is working. Specifically a PESTLE research is a good tool for understanding dangers associated with market (the need for a product or service) growth or decline, and as such the positioning, potential and way for an individual business or company.
A PESTLE research is often used as a general 'orientation' tool, finding out where a business or product is in the context of what is occurring outside that will sooner or later affect what's happening in a business. The six elements form a platform for reviewing a predicament, and can even be used to examine a strategy or position, course of the company, a marketing proposition, or idea.
Completing a PESTLE evaluation can be considered a simple or sophisticated process. Everything depends how in depth you need to be. It is a good subject matter for workshop lessons, as executing this activity with only one perspective (that is, from just one person's view) can be time consuming and miss many critical factors. Most of us see things in a different way and harnessing the knowledge of several people will ensure the procedure is solid and significant.
PESTEL Examination for Walkers
Following is the PESTEL analysis of Walkers in UK, remember the market talk about, development and opportunities available in UK crisps market.
Political: what's occurring politically in the environment in which you operate, including areas such as taxes policy, employment laws, environmental restrictions, trade restrictions and reform, tariffs and political stability. As the politics system in the united kingdom is one of the most stable democratic systems, so Walker will be having no problems regarding the country politics system. The taxations, career laws and environmental laws in UK have proper system to create so that's not an immediate treat, however the Walkers have to consider current recession which is effecting almost all organizations on the planet.
Economic: what's taking place within the market, for example; economical growth/ decline, interest rates, exchange rates and inflation rate, income rates, minimum wage, working time, unemployment (local and national), credit availability, cost of living, etc. the existing monetary conditions have effected the majority of the organizations throughout the world, so before introducing any new marketing campaign it's important for Walkers to get proper examination of the available resources for plan and what will be the after effects of that.
Sociological: what's taking place socially in the marketplaces in which you operate or expect to operate, cultural norms and targets, health consciousness, population growth rate, get older distribution, career behaviour, emphasis on safe practices, global warming. As Walkers is so much focused on these issues, they have got invested large numbers pound to improve the health related issues in their products.
Technological: what is going on technology-wise which can impact what you do, technology is leaping every two years, how will this impact your products or services, things which were not possible five years ago are now mainstream, for example mobile phone technology, blogging platforms 2. 0, blogs, networks. New systems are continuously being developed and the speed of change itself is increasing. There's also changes to barriers to access in given market segments, and changes to financial decisions like outsourcing and in sourcing. So Walkers need to keep updating on their technical side to ensure their parallel walk with the fast driven scientific world.
Legal: what is taking place with changes to legislation. This may impact employment, usage of materials, quotas, resources, imports/ exports, taxation etc. As described before that to bring changes in legal system in country there's a fair and soft process, so Walkers won't need to worry about it.
Environmental: what's happening with respect to ecological and environmental aspects. Many of these factors will be economical or sociable in nature. So Walkers need to build up environmentally friendly product and use such fuels in the making plants which produce min environmental pollution and don't harm the fitness of the employees.
Impact of Technological Change
In modern world the technology progress very quickly and every day there exists some new innovation in the manner organizations use the technology in order to enhance their functions and perform the daily activates in good and quick way. The business world has revolutionized almost beyond identification in the past few ages. Technology and we suggest the developments in communication and it has changed the facial skin and the pace of business.
As communication and information trips faster and faster, the earth seems smaller and smaller, and this has large implications for the way we perform business. Holding important in files over a computer rather than in drawers, for example, has made information easily accessible. Using e-mail allows businesses to talk and send these data files quickly to remote locations beyond an office.
The effects of technical change for Walkers in next three years will the following
General changes to technology
Communicating
Consumers in control
Technology has bring a innovative changes to just how of marketing, after the analysis of internet most of the business are actually not limited to shop-based shopping, however the concept of virtual business is unveiled. The fast communication among the business enterprise units and storage area of large scale of data easily, and convenience of data at finger tips are the key advantages of using technology.
Technology helps it be possible for consumers to find information that they are looking for they are actually in control of what they are receiving from businesses. While using internet, it is easy for consumers to get online and discover a great deal or the same product that you will be offering, but one of top quality for the same price. The internet has created a world of choices for the buyer to use, which means they can make requirements on what type of service or product you are offering. What you need to do is to change your product or service and what you are providing to ensure that your consumers are getting the best package possible, but that they are also getting the best service and the cost effective in comparison with others.
Impact of Globalization
Globalization has triggered dramatic changes to business practices about the world. Companies such as IBM, Intel, Microsoft, and Philips have began to outsource specialists from differing of the world, creating job shifts and changes in companies' structures (Engardio, Bernstein, and Kripalani, 2003).
Globalization is an interesting happening since it is apparent that the globe has been going right through this technique of change towards increasing economic, financial, social, ethnical, political, market, and environmental interdependence among countries. Virtually, many people are affected by this technique. Given these changes, globalization brings about a borderless world (Eden and Lenway, 2001; Ohmae, 1989a). Globalization drives people to change their means of living.
So to complete in the globalized world Walkers management need to believe from the container and develop their marketing strategy in way which fulfills the needs of all global stakeholders, and everything products and information must be accessible globally. To the they could need to outsource their business operations may be to some firms in countries other than in where Walkers is in operation.
Conclusion and Recommendations
Walkers have very good market in UK, providing their customers good crispy products having twelve brands of treats and crisps. They have got captured forty three percent of UK market; have very good online marketing strategy like having a ex - England football team captain as Walkers brand ambassador. But they have very potential development opportunities which will have to be availed insurance agencies improved online marketing strategy and handling the hidden marketplaces to penetrate in those areas, and also make an effort to attract new customers into market, also the customers of their competition. Also they have to keep updating on their system and technology both for information posting, marketing and product preparation to have better quality of products and achieve the organizational goals and goals.
