Summative Assessment: Part B: Strategic Marketing Plan
mike76801
WK_2_MKT_574_StrategicMarketingPlan.docx1
2
Mike Solis
Strategic Marketing Plan
MKT/574
03/20/2023
Part A: Environmental Analysis and SWOT Analysis
H-E-B (Texas-based Company)
Name: Company Description
Mission Statement
HEB's mission states that the company is focused on providing the best service to its customers ensuring hiring the best and most hardworking people and providing customers with the best products and services.
Vision Statement
The Company's vision statement accommodates organization, employees, and personnel toward customers' satisfaction. The vision of the Company is to provide a Business strategy based on value-driven leadership that prioritizes the customer. The company believes that every team member is a leader, and each individual is personally responsible for the quality and customer satisfaction. Therefore, the vision of the Company is to create a customer-confidence platform through customer needs’ satisfaction and experience.
Product line description
HEB is specialized in natural and organic goods dealing in food retailers; serving serves families all over Texas and Mexico with more than 420 stores and over 145,000 Partners (HEB, 2023). The Company deals in retailers, warehousing, logistics, and manufacturing facilities.
Company information, such as the size of the company
HEB is specialized in natural and organic goods dealing in food retailers; serving serves families all over Texas and Mexico with more than 420 stores and over 145,000 Partners. The Company deals in retailers, warehousing, logistics, and manufacturing facilities.
Environmental Analysis
A comprehensive understanding of environmental factors including economics, competition, political, social legal, and ethical issues is critical for business marketing and performance understanding (Ahsan, 2021). Thus, HEB environmental analysis accommodates fundamental factors for effective understanding and applications.
Competitive Forces
The HEB faces significant competition from Carrefour, Wal-Mart, Tesco, Kroger, and Brookshire Brothers, hence effective competitive advantage strategies such as customer experience, satisfaction quality, and pricing are vital for effective competition management.
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Stars This SBU contributes significantly to H-E-B Own Brands' revenue. H-E-B Own Brands should vertically integrate by acquiring other supply chain firms. As this Strategic business unit has potential, this will help it earn more profits. Flows of cash H-E-B Own Brands has a large market share, but the overall market is declining as companies manage their suppliers themselves rather than outsourcing them. H-E-B Own Brands' recommended strategy is to stop further investment in this business and continue to operate this strategic business unit if it is profitable. |
Flows of cash H-E-B Own Brands has a large market share, but the overall market is declining as companies manage their suppliers themselves rather than outsourcing them. H-E-B Own Brands' recommended strategy is to stop further investment in this business and continue to operate this strategic business unit as long as it is profitable. |
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Marks for Questions In the BCG matrix for H-E-B Own Brands, the local foods strategic business unit is a question mark. Consumers are increasingly interested in local foods, according to market trends. As a result, this market is experiencing rapid growth. H-E-B Own Brands, on the other hand, has a small market share in this segment. The recommended strategy for H-E-B Own Brands is to invest in research and development to develop new features. This product development strategy will ensure that this strategic business unit becomes a cash cow for the company and generates profits in the future. |
Dogs The plastic bags strategic business unit is a dog in the H-E-B Own Brands BCG matrix. For the past five years, this strategic business unit has been losing money. It also operates in a declining market due to increased environmental concerns. H-E-B Own Brands' recommended strategy is to divest this strategic business unit and minimize its losses. |
Economic Forces
There are notable economic factors including price fluctuations, GDP Trend & Rate of Economic Growth, inflation rates, Foreign Exchange Rate, and Work Force Productivity that influences the HEB Companies' market performance and customers’ power to purchase products and services. Notably, price fluctuation in local and international markets influences the Company's performance and deliverability.
Political Forces
The HEB serves families all over Texas and Mexico and accommodates fundamental political factors and issues in the USA. Notably, factors such as governance, Segregation of Political Responsibilities between Different Government Agencies, and - Government Regulations and Deregulations on food and retails impacts the Company's operations and performance.
Legal, Regulatory, and Ethical Issues
Level of Consumer Activism Concerning Environmental Concerns - B's Brands must understand the level of consumer activism concerning environmental concerns. It will assist B's Brands in developing environmentally friendly products as well as avoiding PR stumbling blocks.
Technological Forces
In the HEB, the emerging technologies in production, management system, and supply chain management provide a direct impact on the overall performance. Notably, cost of production and trends, mobile phones and internet access, Acceptance of Mobile Payments and Fintech Service, - Research and Development Investment Level, and integrated supply chain management impacts the company's performance and effective customer management.
Social Forces
In the HEB Company, there are notable social factors including savings attitude, education level, Nature of the Social Contract between Government & Society, and social attitude toward health and safety. Particularly, the Company accommodated the fundamental impact of individual's perception on organic food, giving an effective competitive advantage over rivalry companies.
Current Target Markets
In the current market, HEB Company enjoys notable benefits from a significant population and trends marketing including middle-aged students and working-class individuals, with a high average level of education, middle and high income, and effective access to the internet, supporting online ordering and delivery of organic food to the consumers. Thus, the Company enjoys available trends in the market to accommodate effective market share, performance, and profitability.
Review Current Marketing
In the current marketing, the HEB Company enjoys a fundamental marketing position including pricing strategies, effective customer experience, and high-quality products and services as a critical item for a competitive advantage. Notably, the Company focuses on product quality, consumer satisfaction, experience needs, and effective leadership to support employee performance and customer satisfaction. Finally, the current marketing strategies such as online advertisement, social media, and other digital platforms enable the target market to learn about the product and decide on a purchase, supporting continuous satisfaction, hence effective market share for the Company.
SWOT Analysis
Strengths
The Company's strength provides a fundamental platform for effective competitive advantage and performance. Notably, HEB company's strengths include a robust financial position, an experienced workforce, product uniqueness & intangible assets like brand value.
Weaknesses
The weakness of the Company includes a robust presence in Texas but very few stores in the other states; Very few stores have Bakery, toys, or linen, and Intense competition means limited market share.
Opportunities
There are notable opportunities for the Company such as H-E-B can expand outside Texas in the US and abroad as well, and home delivery in localities is very convenient to customers Customer loyalty programs help retains loyalty.
Threats
Despite fundamental opportunities, there are notable threats that require recognition and management to ensure effective company performance. Some of the threats include Departmental stores having more variety, Local mom and pop stores can affect the business of H-E- and impact from specialized bakeries, restaurants, and pharmacies (MBA Skool Team, 2020)
Strengths to Opportunities & Converting Weaknesses and Threats
The HEB Company’s strengths such as a robust financial position, experienced workforce, product uniqueness & intangible assets like brand value provide are transferable to opportunities such as available funds, customer and strong market share, and unique and quality products for effective performance. Similarly, notable weaknesses such as intense competition will be necessary to manage effective competitive strategies for quality and customer experience, supporting performance and profitability.
Marketing Objectives
The HED Company will exploit available technologies such as social media and big data analytics to study and understand consumer behaviors to expand new markets and segments of 21-to-35-year-old. This will provide an effective platform to customize and personalize products aligned with customers' needs and preferences with expected market growth of 30% by 2025.
References
Ahsan A. S.2021). The Use of PESTEL Analysis Tool of Quality Management in the Health Care Business and its Advantages. Am J Biomed Sci & Res. 2021 - 14(6).. DOI: 10.34297/AJBSR.2021.14.002046.
H.E.B. (20230. Our Story. https://www.heb.com/static-page/article-template/Our-Story
MBA Skool Team. (2020). H-E-B SWOT Analysis, Competitors & USP. https://www.mbaskool.com/brandguide/lifestyle-and-retail/9391-h-e-b.html
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