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Strategy and Positioning Analysis Part 1
Learning Team B
MKT/421
December 19, 2016
Shannon Peterson
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Walmart Stores Inc. is the largest American retail corporation that serves many countries
worldwide. As of October 2016, Walmart currently has 11,593 stores in over 28 countries
including department stores, grocery stores and hypermarkets. This corporation was founded in
1962 by Sam Walton and incorporated in 1969. The first store was opened in Rogers, Arkansas
by Sam Walton with the notion to lower the cost of living for everyone by working together.
Over the past 50 years, Walmart has grown from grossing $12 million in sales annually to
making $40 million a day grossing over $14 billion annually.
The products that Walmart sell come from a wide variety of sorts. They have become a
company with integrity that consumers trust and are known for being a one stop shop. Walmart
sells everything from groceries, clothes, toys, furniture and even have automotive services at
select locations. With Walmart establishing such a brand and being as successful as they are,
they have decided to branch out into the world of delivering baked goods to homes. This new
venture is one that is sure to appeal to their consumers as they are already a brand that has not
only become a household name but have been delivering world class services since its
origination.
The Product
Sweet Treats is a delivery service that will offer consumers a chance to order a sweet
treat with a drink or side of their choice. But what will make us stand out from our competitors,
is we will be offering an option that meets customer’s dietary restrictions. In today’s society,
there are a lot of people who are gluten free, wheat free, dairy free, vegans, etc. By offering this
service, it allows us to reach more consumers allowing everyone to enjoy these sweet treats.
Here you have an option to order something for yourself or provide a thoughtful gift to your
family and friends.
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Our standard package consists of an option between a dozen cookies or brownies with a
side of milk with an option to choose between which type of milk you would like to be delivered.
We have regular milk, soy milk, and almond milk as your options. Our next package will be
your choice of pie (apple, peach, blueberry, pumpkin, or pecan) delivered with a side of ice
cream. Once again, we will have options for customers to meet their dietary restrictions. We
understand that sometimes it is hard to find a bakery who offers these options, and it’s even
harder to find someone who can deliver these products. We want to make sure that customers all
over can enjoy a guilty pleasure, which is why we have partnered with Walmart. Most of the
time, you have to live in a big city to find somewhere who offers more than just your everyday
bakery items. By teaming up with Walmart, we can reach people even in the most rural parts of
the Unites States.
Target Market Segments
Sweet Treats will focus on its target market utilizing the four bases of segmentation:
demographic segmentation, psychographic segmentation, geographic segmentation, and
behavioral segmentation.
Demographic
Most Americans make an effort to eat healthy, whether it is gluten free, dairy free, wheat
free or vegetarian. According to PR Newswire, 60% of American adult’s limit, or completely
eliminate, at least one particular nutritional component from their diet. Specifically, nonwhites,
age 18-49 years, restrict gluten in their diets (Riffkin, 2015). and 33% of nonwhites include
gluten free products in their diets, compared to only 17% of whites.
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Psychographic
While many Americans choose to restrict their diets of certain nutritional components
due to diagnosed diseases, such as Celiac disease related to gluten products, “eating healthy” has
become a lifestyle choice for a large portion of the population. Sweet Treats will offer a variety
of healthy alternative treats to satisfy this particular need.
Geographic
Many consumers that choose restrictive dietary products live and work in the large cities.
Because Sweet Treats delivers their products, they can reach this very large market segment. As
the demand grows in more rural areas, the company will be able to satisfy its customers in these
locations. Walmart stores are located throughout the country in both large cities and small
towns, making Sweet Treats easily accessible to consumers.
Behavioral Factors
Consumers of baked goods and ice cream desire appealing textures and flavors. Sweet
Treats understands this and markets products that have been proven to give the consumer a
culinary delight. The usage rate increases during the Thanksgiving and Christmas seasons;
therefore, Sweet Treats will be ready to increase production during this time.
SWOT Analysis
There are two vital marketing components that must be considered for the SWOT
analysis of Sweet Treats. First, the organization must consider the three areas of the strategic
marketing process, which are resource allocation, putting plans into action, and plan evaluation
(Kerin, Hartley, & Rudelius, 2015). Sweet Treats must efficiently allocate its valuable resources
to the right target market for optimal growth potential. At the same time, the marketing
objectives must align with the company’s strategic goals and actively move toward such goals.
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Finally, the marketing plan must be evaluated to ensure it is effectively driving in sales and
delivering the expected results.
The second component of the SWOT analysis for consideration is the marketing mix or
“4Ps”, which are price, product, place, and promotion (Kerin, et al., 2015). Sweet Treats has to
offer fairly priced, quality products that are easily accessed and conveniently purchased to meet
consumer demands. Additionally, the products and marketing strategies must promote the Sweet
Treats brand. Following is the SWOT analysis of Sweet Treats for review:
Strengths (Internal)
Weaknesses (Internal)
Delivering fresh baked goods to meet
New to the market
consumer demands
Lack of brand recognition
Experienced bakers, staff, and
Online presence and marketing
Consumer loyalty
Delivery time restraints
management provide a solid business
foundation
Offering sugar-free and gluten-free
products
Competitive pricing
Attractive brand name and packaging
Support of Wal-Mart brand
Opportunities (External)
Threats (External)
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Demand for special occasion
brands: Mrs. Fields, Cheryl’s Cookies,
packages: birthday, holiday, etc.
Demand for catering events
Expansion for growth and
Carolina Cookie
Increasing online competition from
national sellers
development
Competing with large recognized
Technological and Internet capabilities
Improper marketing strategies can
create financial risk
Substitution options to consumers
Competitive Analysis
Current company’s
Potential
Competitive Rival’s
strengths and
Competitor’s
strengths and
weaknesses
strengths and
weaknesses
weaknesses (COSTO)
Target Market
Strengths
Strengths
Strengths
Wide
customer base
Strong market
presence
due to
international
Expansive
Niche market
that is loyal
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presence
Global supply
chain
Weaknesses
supply chain
Weaknesses
Weaknesses
Sale of one
type of
Exclusivity to
product. No
members
range of
Less influence
Low profit
different types,
in terms of
margins
nor healthy
healthy
cookies
products.
selections
Product
Strengths
Healthy
Appealing to
all ages
Wide range
that customers
can select
Strengths
Wide array of
Strengths
products
Established
almost
identical
Listed calorie
products with
charts, and
existing loyal
ingredients
customer base.
label
from
The existing
other dietary
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products from
the nearby
bakeries
Weaknesses
No cookies
delivery
business within
the targeted
market range
Selling of
incomplete
dietary cookies
that are nongluten free
Place
Walmart is in a
Competitors try to
Contrary to the
position to distribute
keep up with the
existing bakeries
its products to a large
strategies of their other
offering cookies,
customer base due to
competitors and
Walmart will provide
its advanced supply
therefore, COSTA
gluten free and vegan
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chain an also in its
would most likely
many stores that are
increase its outlets to
located in various
reach more customer
countries. However,
base. However, this
long supply chains
may take long periods
especially in
due to its already loyal
international markets
niche customer base.
cookies.
However, the existing
market likes the
different flavored
cookies currently in
the market.
Children love flavored
are not ideal for sale
cookies from the
of cookies
existing sellers and the
parents spent a lot in
making their children
happy.
Promotion
Due to its large
The competitors
The existing rivals
amounts of revenue,
depend on door-to-
flourish in buy 3 get 1
Walmart is able to
door marketing.
form of promotion.
conduct effective and
Additionally, their
Besides, the focus is
wide promotion.
focus is in radio and
on customized cookies
TV advertisements.
packages bearing the
Unfortunately, the
customers’ name.
market is migrating to
However, there is no
social networks. The
much of promotion
largest percentage of
that is customer
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the targeted market
engaging and helps
today spent a lot of
them to live healthy
their time on the social
lives.
networks.
Price
The cookies prices
The favorable prices
The promotion of buy
vary based on the
that depend on the
3 get 1 free entices the
packages. The lowest
customer’s type of
customers into bulky
package is 100mg
flavor favor the
buying.
and the highest
competitors.
package is 10kg. The
prices are affordable.
There is discount for
loyal customers and
those buying on
bulky.
Competitive
Switching costs that
Advertising used as
Predatory pricing that
Barriers
will be incurred
the sinking cost by the
tends to be customer
through delivering of
existing competitors.
friendly.
Loyal schemes that
Predatory acquisition
involve having
that involves
member customers.
competition
bulky purchased
products.
Online presence
where customers can
Vertical integration
commission. This
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do online ordering
that prevent the new
plays the biggest role
and payment.
entrants into the
in the competitor’s
market
reasons for thriving in
Strategic leadership
the market.
through developing
clear and effective
goals to help the
company establish
the customer’s
relation.
Leveraging on core
competencies through
offering the gluten
free and vegan
cookies.
Likely responses
Positive response
Competitors are more
These are more likely
from customers, thus
likely to create similar
to create substitute
increasing sales for
line of products that
products that appear
the company.
will compete with
more appealing to
Walmart’s line of
compete in the market.
healthy cookies.
Market to Buy
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When we start working on the Marketing of the product and how we will push the
product to be purchased. We will be going over a human’s emotions to attack the market of this
product and service. Product will have to have the right prices of the product and service. The
prices need to be reasonable to if someone went into a bakery and purchase it over the counter.
Attack the buyers that have health restrictions and anyone that keeps a big fitness life. If we
could make a bar that is only for a gym or instructor to give to their customers as well. We will
have to go after the market of customers that do not have the ability to back at their own place
that they call home. As a business we can take over the catering business of the Sweat Treats. As
a team we will bring the logical decisions so we can go forward.
Positioning Statement
For the consumer that suffers from food allergens, Sweet Treats offers a variety of gluten,
wheat, and dairy free sweets. Sweet Treats provides the safest, freshest allergy free product to
your door exactly the way you want it.
Sweet treats, wants everyone with a sweet tooth to have an opportunity to fill that need,
even though they are allergic to certain foods. Sweet Treats is combining forces with the
nationwide grocer Walmart, to offer a variety of sweet treats that are either gluten free, wheat
free, dairy free or a combination to consumers. Sweet treats, offers treats that are customizable
by the customer to meet allergy needs that are delivered fresh to your door.
The target market Sweet Treats is trying to reach is the large market cities where they can
deliver the product to either business or home using the Walmart connection. The main focus
will be the groups of people that suffer from allergens that are still wanting their sweet tooth fix.
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From 1997-2007 food allergens increased 50% and 1 in 13 children has a food allergy.
(FARE Food Allergy Research & Education, 2016) Sweet Treats is meeting customer needs with
allergens by providing tasty sweet treats to those with allergies that otherwise could not have
treats such as cakes, cookies, pies, ice cream and other desserts.
What sets Sweet Treats apart from the other competitors is that they are offering
customizable treats that are allergy free, fresh, and very tasty that are delivered to your door
when promised. Focusing on the customers’ needs and provide exceptional service is what sets
us apart from others.
References
FARE Food Allergy Research & Education. (2016, December 18). Retrieved from Foodallergy:
http://www.foodallergy.org/food-allergy-awareness-week/social#.WFcqPlyYKRg
Gerencer, T. (2016). MoneyNation. How much money does Walmart make in a year?
Retrieved from http://moneynation.com/how-much-money-does-walmart-make/
Kerin, R., Hartley, S., & Rudelius, W. (2015). Marketing (12th ed.). New York, New York:
McGraw-Hill.
Majority of Households Have Someone with Diet Restrictions. (2014). PR Newswire.
Retrieved From: http://www.foodmanufacturing.com/news/2014/06/majority-ushouseholds-have-someone-diet-restrictions
Riffkin, R. (2015). One in Five Americans Include Gluten Free Foods in Diet. Gallup.
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Retrieved From: http://www.gallup.com/poll/184307/one-five-americans-include-glutenfree-foods-diet.aspx
Walmart. (2016). Our History. Retrieved from http://corporate.walmart.com/our-story/ourhistory
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