Marketing Strategy for Ahold A Royal Dutch Disaster

Introduction

The report primarily focuses on the marketing strategy of Ahold A Royal Dutch Disaster to give a reader an overview of the growth dynamics of the company. Recently, several strategic issues and managerial problems have been identified in marketing strategy of Ahold A Royal Dutch Disaster that have drawn the attention of the entire management to devise new marketing strategies that can help the company to resolve the problems to continue its expansion and future growth to achieve a competitive edge in the marketplace. This report is written to provide Ahold A Royal Dutch Disaster marketing strategy with the required strategic solutions using multiple frameworks and tools.

External Environmental Analysis

PESTLE Analysis is the most popular strategic tool that is used by many organizations when conducting an external environmental analysis. This framework typically focuses on political, economic, social, technological, legal, and environmental factors that can impact the macro environment of the business (Zalengera, E.Blanchard, & C.Eames, 2014).

Political factors

Political Stability

Ahold A Royal Dutch Disaster operates in a politically stable environment, which means that it provides the company with more friendly and stable business growth opportunities (Christodoulou & Cullinane, 2019). However, since Ahold A Royal Dutch Disaster operates in multiple countries, there are high chances of various political tensions that can cause instability in market growth trends for Ahold A Royal Dutch Disaster. This can limit the company's growth opportunities.

Pressure Groups

Moreover, it is important for Ahold A Royal Dutch Disaster to analyze and monitor the activities of pressure groups. Ahold A Royal Dutch Disaster can create a close collaboration with these groups to achieve long-term goals.

Corruption and Changing Policies

Ahold A Royal Dutch Disaster must keep a close check on the changes in any government policies because they can directly impact the performance of the business. The operations of Ahold A Royal Dutch Disaster are its different countries can become unpredictable if there is a high level of corruption and weak enforcement of the law (Achinas, Horjus, & Achinas, 2019).

Trade and Taxes

The profitability of a company is directly influenced if there are high taxes in a country. Ahold A Royal Dutch Disaster should look into the taxation policies in each country before further expanding its operations (Eierle, Hartlieb, & C. Hay, 2022). Similarly, if there are high trade restrictions, it can get difficult for Ahold A Royal Dutch Disaster to import and export its products, impacting the relationships with trade partners.

Economic factors

GDP, Employment, and Exchange Rates

The long-term growth strategies of Ahold A Royal Dutch Disaster are majorly determined by the GDP growth of the economy. The purchasing power of consumers significantly increases with a high GDP. High unemployment in an economy shows that Ahold A Royal Dutch Disaster can benefit from surplus labor with low-cost wages. Furthermore, Ahold A Royal Dutch Disaster should monitor interest rates as it can affect the borrowing ability. With that being said, if there is a high fluctuation in currency, the profitability of Ahold A Royal Dutch Disaster can also be influenced (Sadeghi, 2020).

Labor Market

It is important for Ahold A Royal Dutch Disaster to make appropriate predictions regarding the labor market conditions in a specific economy (Sadeghi, 2020). This can help the company to hire a more talented workforce that can improve the performance of the company.

Industry lifecycle stage

Ahold A Royal Dutch Disaster should consider expanding its operations in growing economies to benefit from growth opportunities. It can be challenging for Ahold A Royal Dutch Disaster to enter a mature industry at a growing stage (Villamarín & Pinzon, 2017).

Social factors

Demographics

Ahold A Royal Dutch Disaster should study the changing patterns of demographics, such as socio-economic variables, the aging population, and trends in migration (Barbara & Cortis, 2017). This can help the company to identify the right segment to target with a high potential for growth opportunities.

Cultural norms

Every country and society has a distinctive culture with different norms and values. It is important for Ahold A Royal Dutch Disaster to study and identify social class stratification.

E-commerce

There has been a significant shift in online shopping. Ahold A Royal Dutch Disaster needs to adopt necessary changes considering the growing use of social media networking sites and mobile phones to increase its revenue and overall profitability (Villamarín & Pinzon, 2017).

Technological factors

Technological innovations

On-going technological innovations should be considered carefully by Ahold A Royal Dutch Disaster so that it can stay ahead of the competitive market. Ahold A Royal Dutch Disaster should continue working on introducing major technological transformations to achieve a competitive advantage (Rastogi & TRIVEDI, 2016).

Social Media Marketing

The collaboration with consumers has been growing rapidly because of the development of communication technologies (Rastogi & TRIVEDI, 2016). Ahold A Royal Dutch Disaster can take it as a great opportunity where can use innovative strategies to expand its customer base.

Environmental factors

Waste Management

Ahold A Royal Dutch Disaster should implement the latest technological tools to minimize environmental pollution. Waste management is now getting popular and has been considered a major business norm (Igliński, Iglińska, & Cichosz, 2016).

Climatic Conditions and Eco-friendly products

Climatic conditions can influence the efficiency of Ahold A Royal Dutch Disaster. The cost of a company's operations can be increased if there are extreme weather conditions. Similarly, there has been an increasing demand for eco-friendly products. Ahold A Royal Dutch Disaster should work towards adopting more sustainable business practices to gain customer trust (Barkauskas, Barkauskienė, & Jasinskas, 2015).

Legal factors

Employee protection laws

It is important for Ahold A Royal Dutch Disaster to follow the health and safety laws for its employees that are issued by the authorities to ensure the safety of its labor.

Consumer laws

Ahold A Royal Dutch Disaster should protect its customer data to ensure their security and privacy concerns. Moreover, it should set the right price with the right product quality (Igliński, Iglińska, & Cichosz, 2016).

Porter's Five Forces

Ahold A Royal Dutch Disaster can use Porter's Five Forces to analyze the competitive landscape of the industry. The strategic planners of Ahold A Royal Dutch Disaster can use this framework to make effective decisions.

Threat of New Entrants

Ahold A Royal Dutch Disaster operates in an industry where it is difficult to achieve economies of scale, making it difficult for new entrants to enter the industry (Yunna & Yisheng, 2014). There is a strong product differentiation with high capital requirements. Moreover, it is difficult to establish a distribution network easily in this industry. Thus, Ahold A Royal Dutch Disaster has a weak threat of new entrants.

Bargaining Power of Suppliers

There are more suppliers in the industry of Ahold A Royal Dutch Disaster. This shows that there is less control over prices. Organizations like Ahold A Royal Dutch Disaster can easily switch to other suppliers because of less differentiation in products. This makes the bargaining power of suppliers a weak force in Ahold A Royal Dutch Disaster's industry (H. Th. Bruijl, 2018).

Bargaining Power of Buyers

The industry in which Ahold A Royal Dutch Disaster operates has many suppliers as companies to buyers. This means that buyers have fewer options and do not have control over prices (H. Th. Bruijl, 2018). The high product differentiation shows that there are few alternative products for buyers, and there is a high switching cost. This makes the bargaining power of buyers a weak force in the industry.

Threat of Substitute Products and Services

Ahold A Royal Dutch Disaster operates in an industry that offers very few substitutes to its customers. The substitutes that are available are expensive because of their high quality (Zhao, Zuo, & Wu, 2016). However, companies like Ahold A Royal Dutch Disaster sell their products at a lower prices. This clearly shows that buyers may feel reluctant when switching to other substitutes.

Rivalry Among Existing Firms

Ahold A Royal Dutch Disaster operates in a less competitive industry. The already established companies have a large market share, meaning that any move by the existing companies will be noticed. Moreover, Ahold A Royal Dutch Disaster has to take several competitive actions to become a market leader, as the industry is likely to grow rapidly in the coming years (Aithal, 2020).

SWOT Analysis

Ahold A Royal Dutch Disaster can make use of SWOT analysis to effectively analyze the company's internal strengths, weaknesses, external opportunities, and threats.

Strengths

Strong distribution network

Ahold A Royal Dutch Disaster operates in various countries and has multiple outlets that help the company to deliver its products quickly to its customers. This shows that Ahold A Royal Dutch Disaster has a strong distribution network (Benzaghta, Elwalda, & Mousa, 2021).

Financial position

Ahold A Royal Dutch Disaster has established itself as a strong financial company over the past few years. It has generated enough profits that can be used to finance any future expenditure (Basset & Mohamed, 2018).

Automation

Ahold A Royal Dutch Disaster has adopted the latest and innovative technology in its business operations, which has allowed the company to reduce its production costs (Benzaghta, Elwalda, & Mousa, 2021).

Social media presence

Ahold A Royal Dutch Disaster has been successful in establishing itself as a strong brand on social media platforms that, includes Facebook, Twitter, and Instagram. This increases customer engagement (Basset & Mohamed, 2018).

Weaknesses

High rent costs

Ahold A Royal Dutch Disaster has its manufacturing plants on rented properties. This increases the company's overall costs, and a significant portion of Ahold A Royal Dutch Disaster's profits go into paying the rent (Comino & Ferretti, 2016).

Research and Development

Ahold A Royal Dutch Disaster has not been able to conduct effective and in-depth market research regarding new markets and products (Comino & Ferretti, 2016). Customer trends are always evolving, and it is important for Ahold A Royal Dutch Disaster to take immediate action in conducting its research.

Centralized Power

There has been a centralized decision-making process in Ahold A Royal Dutch Disaster. This means that employees have to consult their managers before taking any decision themselves. This slow down the decision-making process. and employees feel demotivated. Thus, impacting the operations of Ahold A Royal Dutch Disaster (Comino & Ferretti, 2016).

Opportunities

Presence of Internet

Ahold A Royal Dutch Disaster has a great opportunity of expanding its business by using the internet. Since there has been a growing trend in online shopping Ahold A Royal Dutch Disaster can boost its sales by expanding its online stores (Yan, Xia, & X.H.Bao, 2015). Additionally, social media platforms can be updated constantly to engage customers with all the new products introduced by Ahold A Royal Dutch Disaster.

Technological Innovations

Technology is constantly evolving, and Ahold A Royal Dutch Disaster can benefit from it by implementing the technology in its various departments. Manufacturing process can be completed automated, which can eventually help Ahold A Royal Dutch Disaster to reduce its costs (Taghavifard, Mahdiraji, & Alibakhshi, 2018).

Globalization

The continuous increase in globalization has allowed Ahold A Royal Dutch Disaster to expand its business operations across borders. It has the opportunity of entering new markets (Yan, Xia, & X.H.Bao, 2015).

Threats

New Entrants

Recently, many companies are entering the industry in which Ahold A Royal Dutch Disaster operates. This means that there are chances of increased competition. This poses a threat to Ahold A Royal Dutch Disaster as it has to put more effort into gaining market share (Taghavifard, Mahdiraji, & Alibakhshi, 2018).

Fluctuations in exchange rates

The exchange rates are highly subjected to fluctuations that negatively impact the sales of Ahold A Royal Dutch Disaster. Ahold A Royal Dutch Disaster needs to study the changing fluctuations to keep up with its profitability (Vlados & Chatzinikolaou, 2019).

Consumer trends

The consumer trends are constantly changing, that causes changes in their demands. This puts pressure on companies like Ahold A Royal Dutch Disaster, who have to continuously meet their consumer demands. Moreover, there is a significant threat from substitute products because consumers tend to switch to these companies (Vlados & Chatzinikolaou, 2019).

Marketing Mix

Product

Ahold A Royal Dutch Disaster operates in a wider range of products. Each of the products has its further product lines that are sold under the Ahold A Royal Dutch Disaster. This means that customers can benefit from a large variety of products. Ahold A Royal Dutch Disaster sells highly differentiated products with higher quality that, gives it a competitive edge (Khan, 2014).

Price

Ahold A Royal Dutch Disaster follows a competitive pricing strategy. The company also takes into account all its costs before setting its prices (Londhe, 2014). Currently, Ahold A Royal Dutch Disaster is using a product bundle pricing strategy where customers get bundled products at lower prices.

Place

Ahold A Royal Dutch Disaster has adopted various distribution channels to reach its customers. The company sells its products through its website directly (Thabit & Raewf, 2018). Apart from this, it also distributes its products to wholesalers, who then further sell it to small retailers. Ahold A Royal Dutch Disaster has its own retail stores where it sells its products directly to consumers.

Promotion

Ahold A Royal Dutch Disaster uses traditional and modern promotional techniques. TV ads are used to reach a larger audience. Ahold A Royal Dutch Disaster also advertises on social media sites such as Facebook, Instagram, and Twitter. Events are sponsored by the company. Moreover, Ahold A Royal Dutch Disaster participates in several exhibitions (Londhe, 2014).

VRIO Analysis

Valuable

Ahold A Royal Dutch Disaster engages in corporate social responsibility activities. This has allowed the company to establish a strong brand image. Since, Ahold A Royal Dutch Disaster has a well-established distribution network, the products are reached to consumers in a timely manner. Ahold A Royal Dutch Disaster has been able to introduce innovation in its various departments, which has lowered its costs (Ariyani & Daryanto, 2018).

Rare

Ahold A Royal Dutch Disaster operates in multiple countries. This means that its global presence is a rare factor. It works towards an organizational culture that encourages teamwork, and creativity among employees (Ariyani & Daryanto, 2018). Ahold A Royal Dutch Disaster is also able to adapt to different societies, and cultures due to its exposure to various locations.

Inimitable

The products produced by Ahold A Royal Dutch Disaster are of a high quality. Customers make repetitive purchases, and thus it is an inimitable source. (Miethlich & G. Oldenburg, 2019). Ahold A Royal Dutch Disaster has a significant placement of its stores that gives an easy access to its customers. Additionally, the company has been using a competitive pricing strategy because it has been able to achieve economies of scale, thus lower production costs.

Organization

Ahold A Royal Dutch Disaster, over the years, has successfully gained a financial strength. Ahold A Royal Dutch Disaster can make use of these finances to invest in major acquisitions that give it more growth opportunities. The advancements in technology have allowed Ahold A Royal Dutch Disaster to manage its operations more effectively. Distribution channels are another resource for Ahold A Royal Dutch Disaster. The supply chain is very efficient, resulting in more revenue (Miethlich & G. Oldenburg, 2019).

Value Chain Analysis

Primary Activities

Ahold A Royal Dutch Disaster is involved in primary activities such as the production of goods and then selling them to the target audience.

Inbound Logistics

Ahold A Royal Dutch Disaster should ensure to have a strong relationship with its suppliers to avoid any inconvenience in receiving, storing, and distributing the product. This will help Ahold A Royal Dutch Disaster to have a more effective transformation of a product (Ariwibowo & Saputro, 2021).

Operations

Operations involves manufacturing as well as services. Ahold A Royal Dutch Disaster should conduct an in-depth analysis of its operational activities to remain ahead of its competitors (M.El-Sayed, W.Dickson, & O.El-Naggar, 2015). This will increase the productivity of the company, and more profits can be generated.

Outbound Logistics

It is important for Ahold A Royal Dutch Disaster to analyze, and optimize its outbound logistics so that it is able to achieve the long-term corporate goals. Managing outbound activities properly reduces the chance of late deliveries (M.El-Sayed, W.Dickson, & O.El-Naggar, 2015).

Marketing and Sales

Ahold A Royal Dutch Disaster should use various marketing and sales techniques to differentiate its products from its competitors. Ahold A Royal Dutch Disaster can adopt marketing and sales activities such as promotional activities, advertising, and building strong relationships with suppliers and customers (Ariwibowo & Saputro, 2021).

Services

In terms of services, Ahold A Royal Dutch Disaster must ensure that it provides its customers with the pre-sale and post-sale services (Jaligot, C.Wilson, & R.Cheeseman, 2016). The post-sale service typically falls into the promotional activities of a company. Ahold A Royal Dutch Disaster can thus develop its customer loyalty.

Secondary Activities

Firm infrastructure

A strong infrastructure of a firm can enable Ahold A Royal Dutch Disaster to optimize the entire value chain of the company. Moreover, by controlling the infrastructure activities, Ahold A Royal Dutch Disaster can be in a better position to get a strong foothold in the competitive marketplace (Darmawan & Wiguna, 2014).

Human Resource Management

Ahold A Royal Dutch Disaster should place its major focus on analyzing the different aspects of HR, such as recruitment, selection, training, and performance evaluation of employees (Darmawan & Wiguna, 2014). Ahold A Royal Dutch Disaster can reduce its costs by identifying and analyzing the costs associated with hiring and training.

Procurement

Procurement is an important element in the Ahold A Royal Dutch Disaster's value chain. It is important for the company to assess its overall procurement activities so that the inbound, outbound, and operational activities can be optimized (Kumar & P. V., 2016).

Ansoff's Matrix

Ahold A Royal Dutch Disaster can implement Ansoff's Matrix to make decisions regarding its business growth. This framework includes four different strategic choices that can be selected by Ahold A Royal Dutch Disaster.

Market Penetration

Production capacity

Ahold A Royal Dutch Disaster can increase its overall production capacity. This will allow the company to reach more wider audience in an existing market. Ahold A Royal Dutch Disaster can also benefit from the reduced costs by expanding its production capacity. Thus, Ahold A Royal Dutch Disaster can attract more customers using competitive pricing (Madsen, 2017).

Marketing Investment

Ahold A Royal Dutch Disaster can penetrate the market by investing more in marketing and sales activities. This will help the company to engage with its customer more effectively, leading to more potential customers (Dawes, 2020).

Distribution Channels

Innovative and unique distribution channels can be explored by Ahold A Royal Dutch Disaster. This will enable the company to reach new segments and groups of customers (Dawes, 2020). In addition to this, Ahold A Royal Dutch Disaster can penetrate the market by improving its supply chain, giving more accessibility to customers.

Joint Ventures/Acquisitions

Ahold A Royal Dutch Disaster can enter into joint ventures or can take over other leading companies of the market. This will give Ahold A Royal Dutch Disaster more market share.

Market Development

Research & Development

Ahold A Royal Dutch Disaster should keep on investing in its R&D department, so it is able to identify the changing trends of the market. This will help Ahold A Royal Dutch Disaster to target the right market at the right time (Mukangai & Murigi, 2021).

Expanding Regionally

Ahold A Royal Dutch Disaster can enter in a new market by expanding its operations regionally. This includes considering different cities of the country. Ahold A Royal Dutch Disaster must consider any cultural differences when entering a new market (Mukangai & Murigi, 2021).

New Segments

New segments of the current market can be explored (Mukangai & Murigi, 2021). Ahold A Royal Dutch Disaster can add new features and product uses to its existing products that satisfies the needs of a different customer segment.

Product Development

Modifications

Ahold A Royal Dutch Disaster can modify the existing product by improving its features to enhance the product offerings.

Launching additional products

Ahold A Royal Dutch Disaster should invest in its R&D department so it can come up with new and innovative products that attracts and fulfill the needs of the target audience. This will boost the sales of Ahold A Royal Dutch Disaster and will increase profitability (Khajezadeh, Niasar, & Asli, 2019).

Diversification

Vertical Integration

Ahold A Royal Dutch Disaster can consider vertical integration. This will allow Ahold A Royal Dutch Disaster to develop and launch new products that are similar to its existing product category (Khajezadeh, Niasar, & Asli, 2019).

Horizontal Integration

Ahold A Royal Dutch Disaster can diversify its business operation using horizontal integration. This means that the new products and services of Ahold A Royal Dutch Disaster will not be related to its current products (Dhir & Dhir, 2015).

A new business diversification

Entering into a completely new business can be considered by Ahold A Royal Dutch Disaster. The organization can work towards starting a new business that can give a company more growth prospects in the future (Dhir & Dhir, 2015). Ahold A Royal Dutch Disaster can conglomerate with the help of mergers and acquisitions.

Conclusion

To conclude, it could be said that Ahold A Royal Dutch Disaster can resolve its current managerial and strategic problems by focusing on its existing products. The company can adopt more attractive marketing strategies that can help Ahold A Royal Dutch Disaster to boost its revenue and profitability. It is recommended to focus on maintaining strong supplier relationships. Moreover, it is also advised to focus on more innovative products so Ahold A Royal Dutch Disaster can remain competitive in the market.

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