Marketing Strategy Analysis of Swiss Butchery

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The commissioning company for this advisory report is Swiss Butchery,a Shanghai-based butchery store chain active in China.The company was founded in 2015 and its core business activity is retailing a focused range of high-quality imported and local food products,with a focus on fresh and home-made and processed products.The aim of the company is ’to bring a world-class meat experience,that is comparable or better than home.’The company operates 4 brick-and-mortar stores and an online store,is in complete control of its sourcing chain and has its own production facility.The company aims to further introduce the Chinese market to high-quality imported meat products and Western-style cooking by offering a deepened variety of high-quality fresh products.The company has seen successful business amongst expat consumers and now intends to adapt its strategy to more accurately cater to local consumers.This advisory report is guided by the following research question:“What strategic changes does Swiss Butchery need to make to their market positioning,product portfolio and business operations to better target,attract and retain local(Chinese)customers?" In order to gather the data required to answer the main research question,an external analysis,consumer needs analysis and internal analysis have been conducted.The outcomes of this advisory report are based on both desk-and field research,conducted through qualitative and quantitative research techniques.Firstly,to outline the position of food retailers in the Chinese market in regard to consumer behavior,product portfolio and brand image,an external analysis has been conducted.The external analysis focused on the food retail industry,which is home to a strong degree of rivalry.This creates a highrisk and high-reward market.The market is seen to become increasingly difficult in regards to customer loyalty and requires a strong focus on keeping up with the competition.However,the market holds a large compound annual growth rate and rapidly developing new e-commerce modes are implemented at a high rate.New retail,an increased focus on food safety and quality,ethically sourced products and imported food provides large opportunities for players active on this market.Secondly,the consumer needs analysis has focused on identifying what local consumers look for in smaller food retailers when making purchase-and repeat-purchase decisions.This analysis has indicated that optimal price category is in the higher-end segment of the market,where the company focuses on catering to the following primary buying motivations of the consumer:quality,traceability,service level,product assortment and foreign cuisine.The consumers have a set of 9 most important and desirable product features in their food shopping process,which are:(1)omnichannel store accessibility,(2)country of origin,(3)traceability,(4)usability,(5),cultural relevance,(6)innovative products,(7)cleanliness),(8)loyalty programs and(9)meal setsHereafter,an internal environment analysis has been conducted.Through this analysis it became apparent that the company’s internal organization is relatively strong,but that the company has improvements to make in its marketing and brand positioning strategy.The company has been unable to accurately adjust its strategy towards Chinese consumers and should look at setting up a Chinese consumer focused product-,price and marketing strategy.Furthermore,the internal analysis has determined that whilst the company offers a home-delivery service,this home delivery is not up to par in comparison to its competitors.The company has some significant changes to make before they will be able to better target,attract and retain local customers.To establish viable strategic options,find correlations between strategic possibilities and set up clear targets,all strengths,weaknesses,opportunities and threats arising from the three analyses have been set against each other in the confrontation matrix.This matrix has indicated that the greatest chances for Swiss Butchery lie in following an active growth strategy whilst improving weaker strategic points within the organization.The strategic options further indicated that customers of Swiss Butchery aim to purchase products both offline and online,a shopping format called omnichannel shopping.Customers expect convenience and instant accessibility,and it is deemed important for Swiss Butchery to actively cater to this.Furthermore,it is recommended that the company looks into offering a wider product assortment to become a one-stop shop.The wider assortment should focus on products that supplement their core business activity:the sale of meat products.The best possible further market development strategy for the company is best described as follows.The best further market development strategy for Swiss Butchery is one in which they focus on filling the gap that lies between their current service and the need of the consumer.This report holds a strategy that is specifically focused on the Chinese consumer.This strategy focuses on creating convenience for the Chinese consumer through an omnichannel retail experience,giving the consumer the opportunity to verify quality and hygiene standards,providing traceability in the supply chain and the product offering and giving the customer the chance to learn about the products and cuisines offered by SB.This strategy further caters to the need for convenience by placing a larger emphasis on convenience cooking through meal sets,a potential meal subscription and readyto-cook meals.Lastly,this strategy focuses on building loyalty by further improving the loyalty program and this strategy recommends the implementation of a price promotion strategy.
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