This sample will let you know about:
- What is Marketing Essential?
- Discuss Situational Analysis.
- Explain SWOT analysis.
This report will provide detail analysis of marketing strategies and 7Ps of Greggs. The marketing strategy of Greggs will be compared with the marketing strategy of its competitor Subway. The primary purpose of this report is to highlight some significant tactics that are applied by organisations such as Subway and Greggs to achieve their business objectives. Additionally, a basic marketing plan for Greggs will be recommended that highlight specific actions. Greggs Plc is the largest bakery store in UK. It is located near Newcastle Upon Tyne. Various products are offered by the firm such as, Sausage rolls, Vanilla slices, Bakes, Boughnuts, Sandwiches and many more. Need Assignment Examples?Talk to our Experts!
Greggs Plc is located in North Tyneside near Newcastle upon Tyne. Various food products like, sausage rolls, bakes, doughnuts, sandwiches and so on are offered by the firm. Organization turnover in terms of operating income is $ 107.2 and net income is $84 in the year 2018. There are 2009 stores of Greggs product in the global market.
Greggs adopts VRIO Model in order to analysis competitiveness as well as to categorize their resources as per the priority level. The acronym VRIO is formulated by four dimensions which are as follows:
Value: Greggs value their resources which are used to prepare the food. Management try to utilize their resources effectively so that best outcome can be attained. By this firm is able to compete with Subway and other rivalry prevailing in the market. Subway serve bakery sandwiches without deep fry which are healthy for customers. Greggs is coming up with low calorie Vanilla Slices so that healthy food can be offered to them in the era where people are suffering from issues related to obesity and other health problems.
Rare: The resources which are used to prepare low calorie Vanilla Slices by Greggs are rare in nature. In order to gain competitive advantages against subway it is essential to come up with innovative idea continuously. Greggs creative food item is of low calorie which helps to reduce fats from the body and make people fit and healthy.
Inimitable: In the open market place resources can be imitable because of the combination of three aspects such as, unique historical conditions, social complexity and ambiguity. In order to compete with Subway Greggs need to set the nominal prices for low calorie Vanilla Slices so that they can be expensive to substitute. By this Greggs is able to gain huge profit which is a positive mark for the business.
Organized: To prepare low calorie Vanilla Slices Greggs uses the resources in organized manner so that they turn out to be profitable for the firm. Subway uses their resource in systematic manner so that less deep fry sandwiches can be served to the customers in the set time frame. Whereas, Greggs utilize the ingredients as per the requirement so that low calorie Vanilla Slices can be offered to customers so that they can remain fit and healthy.
Bullet Point of Pestle analysis
Create impact on long term sustainability and profitability.
Economic status of the country can be determined by studying economical factor.
Helps in examining the demographic trends, power structure.
Raises the importance of the technological factors at the process of strategic making.
Benefits from the renewable technologies and help to foster the business.
Provide potential threats to the firms purchasing power of buyers.
Porter's Five Force Analysis:
Bargaining power of suppliers: The power of degree is high when suppliers size is less in number. They charge high prices for the goods and exploit the customers. The raw materiel which are needed by Greggs to prepare low calorie Vanilla Slices are limited in nature. The power of supplier is intense when:
- Suppliers are large in number
- Cost of switching raw materiel is more
Bargaining Power of buyers: Here, customers can push the seller to sell high quality goods at low price. By this Greggs is able to sell low calorie Vanilla Slices at nominal price. The bargaining power of buyer is high when:
- Many substitute are available
- Switching rate to other suppliers are low
Threat of new entry: Greggs faces threat when more form are entering into the same market with similar product. Through innovation in food high barriers can be formulated by firm which will deter new entrants. The power is intense when:
- Less funds are needed to enter
- Goods are mostly similar in nature
Threat of substitute: Subway is the competitor for Greggs because they sell bakery sandwiches which are less deep fired. Greggs also deals in bakery food items so slight changes in the prices or taste of the food can bring huge loss to the firm because customers can easily switch to subway products. By this profit margin decreases.
Competitive Rivalry: Greggs frame unique tactics in order to deal with rivalry prevailing in the global market. By this set objectives can be attained easily. The power of rivalry among competitors are high when there are too many competitors present in the market, exit barrier is more and low customer loyalty.
The Mission of Greggs is to provide health food to the customers over the years. In order to attain this statement employees are trained properly so that they can perform their job role effectively.
Core values and philosophy:
Greggs core value is to provide high quality packed food to the customers. To meet this firm is scanning the dynamic environment so that designed core value can be attained easily.
- Social media platform is used by Greggs so that sales ratio of low calorie Vanilla Slices can be raised rapidly in the global market. By doing so huge profit can be maximized for further growth and development of the bakery business.
STP is involved in target market which are explained as under:
In order top compete with the rivalry Gregg need to segment their products. By segmenting the food item bakery business can be flourished easily in the competitive market place. By this tough bench mark can be created for rivalry. Customers will be benefited by this food item as it will help them to remain healthy. Order assignment help from our experts!
Gregg's innovative low calorie Vanilla Slices is targeting those customers who are health conscious and wants to remain fit in the hectic life schedule. As Vanilla Slices has low calorie so it does not raises fat in the body and can be easily digested. Example: Firm merge retailer in its bakery outlets into single brand. This is the best tool to promote bakery food item in the market.
The food item of Greggs want to position their image in the mind of the customer. By this they can be bind for longer time duration towards low calorie Vanilla Slice. By this set objectives of the company can be accomplished easily. Example: The innovative products is positioned in the eyes of the customers through adds. It is done for longer time duration.
Firm require 60,000 pounds during the first year of operation. It will be spend on promotion and production. Low calorie Vanilla Slice is innovative food-item of Greggs they are going to spend 20,000 on production process and in order to commercialize this creative food they are going to spend 15000. For catalogue an amount of 5000 is spend and left over 20,000 are spend on tools and equipments needed to prepare Vanilla Slice.
What are the 7Ps of Subway
Marketing mix is defined as set strategies used by firm in order to commercialize their goods and services in the global market. By effectively using it in the working premises Greggs is able to accomplish set goals and objectives in the specified time duration. Through this organisation is able to gain competitive advantages against rivalry. 7Ps of marketing mix in context of Greggs are illustrated as under:
The products of Greggs are, sausage rolls, sandwiches and bakes. The innovative food is low calories Vanilla Slices (Grecia & Qondado, 2019). The products is unique because of its taste and texture as compare to rivalry bakery. Innovative food is prepared by understanding the customers preferences so that sales ratio can be raised tremendously. By this overall productivity and profitability ratio raises to large extent in the global market.
Subway is famous for its foot-long and submarine shaped sandwiches. Sandwiches of Subway are highly customised which come with two bread sizes, including full (foot long) and six-inch (half) (Bhasin, 2019).
The price of the Gregg’s products fluctuate depending upon store location. For instance, a sausage roll cost 1.15 pounds to take away at Victoria Station (Manchester) and the amount of pepperoni pizza is 2.10 pounds. On the other hand, 0,95 pence is the price of sausage roll nearby Arndale shopping centre and cross street branches, and pepperoni pizza costs 1.75 pounds at the city stores. (Nguyen et al., 2018) Due to a large information share online by competitors, the price strategy used by Greggs is following a competitive based pricing.
The price of Subway goods varies from countries to countries and restaurants to restaurants. Comparing to the amount of McDonalds and KFC products, amount of Subway products is premium. The 6-inch meatball marinara sandwich cost 2.99 pounds in the U.K. But in Subway same food is rated as 5.99 pounds.
Stores of Greggs can be found in retail parks, industrial estates etc. Greggs is focusing to open store on non-street location customer might have a desire for baked goods on the go (Nguyen et al., 2018). By this sell ratio of the bakery food can be raised.
Subway restaurants are found in shopping malls, business centres etc. Most of the Subway branches have ‘take-away’ as well as ‘eat-in’ services. In some countries, Subway also provides delivery services (Rahman, 2017)
Greggs promote food item on newspapers, televisions and social media. Greggs promotes various available food options for customer on many websites. Firm offers award-winning loyalty app to its customer that give points to its dedicated customers (Grecia & Qondado, 2019).
Subway achieve its objectives by using celebrity endorsement strategy. The endorsement partners of Subway include Brazilian football legend Pele and Olympian swimmer Michael Phelps etc. (Guttmann, 2019).
The process is a standardised set of tasks to accomplish a specific objective, for example, processing a customer's order in case of Greggs. In 2018, Greggs launched a service in three shops in Manchester which offers consumers to pre-order and collect breakfast. This facility is provided through Greggs collect Manchester app which is powered by Pre day. Customers are now able to order breakfast minutes or even days before the collection. This service is perfect for around-the-corner ordering to avoid the queue in the morning. A range of porridges, granola and pastries are included in Gregg’s breakfast menu. Moreover, customer can order baguettes, wraps and sandwiches along with a variety of freshly ground international coffee. A pumpkin spice latte is a new product included in Greggs coffee menu (Grecia & Qondado, 2019).
People have to know some exceptional services of Subway before going to the restaurant. First of all, customers have to choose size and type of bread and the type of sandwich, for example, Cheese is added if customer want, moreover, it also depends on the customer that if they want cold or warm. There are various other options like salads and sauces, and then customer moves forward to pay. This process is the typical and traditional way of purchasing a Subway sandwich (Rahman, 2017).
Gregg’s highest priority is customer service as it has millions of customers across the United Kingdom and other states. Motivated and talented people are hired at Greggs who will work as a team, and it offers various opportunities. The job positions of Greggs are categorised in three divisions including regional jobs, local restaurant jobs and headquarter jobs. People can explore career opportunities at Greggs by browsing its website (Nguyen et al., 2018). Order Dissertation Help from our experts!
The staff of Subway is highly efficient and motivated as about 5,300 sandwiches are served by Subway every 60 seconds. The job categories of Subway are also divided into three sectors which are regional jobs, headquarter jobs and local jobs (Guttmann, 2019)
Physical evidence is the last element of the marketing mix of Greggs, which is associated with the physical environment that is experienced by customers. For a bakery brand like Greggs, the primary physical evidence is how the bakery store look. It includes hygiene, how the items are placed, and how the staff is dressed. The official website of Greggs looks user-friendly and beautiful. Greggs deals effectively with over all elements of physical elements (Nguyen et al., 2018).
The primary physical evidence of Subway is its stores, seating facilities and the appearance of staff. Subway's physical evidence also includes the atmosphere of the restaurant, its location and maintenance. Moreover, tangible evidence of Subway is highly depended upon the quality of products. For instance, a variety of bread, chicken and vegetables (Bhasin, 2019).
- Greggs marketing objective is to open five more new stores in UK in the coming one years.
- Low calorie Vanilla Slices is the innovative food prepared by Greggs for their potential customers. Firm is offering free home delivery who order five Vanilla Slices once at a time. As well as from 7 to 8 AM in the morning free delivery is given to the customers. By this brand recognition can be done easily among people.
In order to implement this plan of home delivery of low calorie Vanilla Slices management is training their employees and making them aware about the road map so that food can be delivered on time. It is every essential to understand the road map in order to timely delivery the order food at the door step of the customer. Management's prepare plan by examining the internal and external factor so that the designed idea can be executed properly. By this goodwill can be raised in the eyes of the customers regrading the brand.
Separate team is made who will be controlling the quality of the food regularly. By this resources can be utilized properly and customers needs can be accomplished in the set time frame which is a positive mark for the bakery business. By controlling all the business activities continuously chances of error and mistake can be eliminated and high quality bakery food item is delivered to the customers in the global market. The innovative food item which is low calorie vanilla slices can be made successful by controlling its production process effectively and efficiently sop that same level of taste and texture is there in all vanilla slices.
This report provides marketing strategies of Greggs and Subway, including 7Ps of the marketing mix. It can be concluded that Greggs is the leading bakery chain of the U.K. because of its baked product on-the-go and its pre-order services. On the other hand, Subway is famous and successful for its unique customised sandwiches and nutritious foods. The marketing strategies of both organisations are strong and unique. However, Greggs have to implement new marketing strategies to maintain its position and distinctness in the competitive market. For this reason, a marketing strategy has been recommended in this report which can help Greggs to achieve its business objectives.