Marketing Management

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EXECUTIVE SUMMARY

This report was commissioned to address the need for Wiggo, a successful Supermarket chain of Europe to introduce a new outlet in the Caribbean region on the island of St.Lucia. It was found that the major factors which would affect the decision of the marketing department of Wiggo in opening the outlet would be the following: Using the PESTLE Model for the situational analysis it was found that the main external factors which would influence Wiggo Tropico are the age distribution, class and mobility of the population, the target market being lower Middle class. The level of technology, the state of the economy and the political climate are all other factors affecting the tactical decisions of the Marketing Department. Wiggo’s sustainable competitive advantage of maintaining low costs but high quality is its main positioning tactic and by doing so they intend to reach their objectives of gaining the market leader position in the supermarket industry. Their products will be so designed that they are practical but unique in terms of their affiliation to the local fabric of the island by enhancing the “Buy local support your own” campaign emphasized by the local Ministry of Commerce there. They plan to attract specific segments within their target market, such as the young working adults, the elderly “shut-ins”, children, and wholesale/bulk buyers. They will become the first ever to offer home delivery service to the elderly who can’t physically come into the supermarket. These products and services of Wiggo Tropico would be promoted mainly by the local media, radio, television and print. Due to the fact that the level of technology is commendable, a large volume of advertising will be done via the internet. The amount budgeted for to defray the cost of Marketing this new supermarket is estimated at $365,000 for the first quarter and close to $2m for the year. The major threat for Wiggo Tropico would be that of losing some of its customers to the competition as a result of them copying the moves of the company. However they plan to achieve a remarkable return on their investment through market share and profit. It is also their aim to move into other villages of St.Lucia as well as the neighbouring islands of Martinique, St.Vincent and the grenadines and Dominica within the next five to ten years. It is recommended that Wiggo proceed to launch in the Caribbean island of St. Lucia and eventually expand into the neighbouring islands of Martinique, St.vincent & the Grenadines and Dominica. If it continues on the current trend of sustainable competitive advantage and excellent market share and positioning they will reap the benefits of in the form of triple return on revenue as any successful Franchise.

1.SITUATIONAL ANALYSIS

Wiggo is an international Supermarket chain which was formed in the late 1970’s and has now grown into a household name all throughout Europe and the U.S. Wiggo now boasts over 1000 outlets in total located in 31 US states and in a number of international markets. They carry over 1400 regularly stocked items from fresh produce to best cuts of meat to everyday essentials like bread and peanut butter, all at “Top quality and Low prices” as their motto suggests. They operate by focusing mainly on savings for their customers, thus they carry the most frequently purchased items which are of course Wiggo Brands. By doing this they get very low prices from their suppliers and pass those savings on to their customers. Wiggo stands out from its major competitors such as Walmart, Costco & Kroger because it has differentiated its product through its excellent Customer Services as warranted by its double quality guarantee Policy, ensuring that their customers are 100% satisfied. If customers are not satisfied with a product, tit will be replaced AND refunded cash. The marketing department of Wiggo is considering to expand their operations to include the Caribbean,...
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