Table of Contents
2.0 Background of Greggs Plc.
3.0 Greggs Vission/Mission.
4.0 Greggs Aims and objectives.
5.0 SWOT Analysis.
6.0 PESTLE Analysis.
7.0 Greggs Corporate Social Responsibility.
8.0 Greggs Strategies.
8.1 Consumers Segmentation: Greggs 2014.
8.2 Greggs Segment Grid for 2014.
8.3 Greggs Targeting for 2014.
8.4 Greggs Positioning for 2014.
8.5 Product-Market Growth (Ansoff) Matrix for Greggs.
8.7 Greggs Generic Model for 2014.
8.8 Integrated marketing mix decision for Greggs 2014.
8.9 Greggs’s milestones for 7P’s development in 2014.
Appendix A: SWOT Analysis of Greggs Plc.
Appendix B: Greggs Corporate Social Responsibility.
Strategic Management is the systematic analysis of the factors associated with customers and competitors (the external environment) and the organization itself (internal environment) to provide the basis for maintaining optimum management practices. The objective of strategic management is to achieve better alignment of corporate policies and strategic priorities. This report defines and discusses the Strategic Management of Greggs Plc, UK.
2.0 Background of Greggs Plc
Greggs is the UK’s leading bakery retailer specializing in freshly made bakery food for the last 70 years with quality and value. It has ten regional bakeries supplying it with over 2000 shops; a central savory production unit, making all savories; and its own fleet of 375 delivery vehicles, to ensure food is fresh each day for customers. This currently employs approximately 20,000 people and plans to add 500 new shops in the next few years, creating up to 6,000 new jobs. Greggs can be found on the UK’s high streets, local shopping parades, and, increasingly, retail, industrial and business parks, airports, bus/rail interchanges, universities, and other locations where people live, work, and travel and spend their leisure time
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3.0 Greggs Vission/Mission
The vision of Greggs is to be the number 1 for sandwiches and savories from a united team who are passionate about being the best in the bakery. The value of Greggs is to be enthusiastic and supportive in all that they do, open, honest, and appreciative, treating everyone with fairness, consideration, and respect (Greggs, 2014).
4.0 Greggs Aims and objectives
Greggs aim is to be number one for sandwiches and savories in the UK and extend business in the international market including the EU and Asia.
|Financial||1. To increase local market share from 17.1% in December 2013 to 19.2% in December 2014.|
|2. To increase sales by 3.9%, from 2.2% in December 2013 to 6.1% in December 2014.|
|3. To increase gross profit from 38.89% in December 2013 to 45.5% in December 2014.|
|4. To increase net profit from 18.09% in December 2013 to 24.01% in December 2014.|
|Customer||5. To increase customers from 1.9 million a day in December 2013 to 2.10 a day in December 2014.|
|6. To control vary from 17.05% in December 2012 to 12.09% in December 2013.|
|7. Sales increase from £1050 a day in December 2012 to £1200 in December 2013.|
|Learn and growth||8. To increase product range including hot sandwiches, cream cakes, bread, etc by 31 March 2013.|
|Source: Kaplan and Norton (1996)||Source: Greggs (2013) and Interview with Greggs Manager, Yeomen|
5.0 SWOT Analysis
The key issues arising from the SWOT analysis are as follows:
A number of strengths and/or opportunities can be exploited/maximize: 1)Improving products ranges including hot savories, hot sandwiches, fresh cream cakes, etc; 2) Providing seating areas to satisfy the consumers ; 3) Promoting advertisement to compete in the market; 4) Introducing online sales and home delivery; 5) Setting up better technologies including card payment method and coffee machine for increasing speed of service; 6) Further training to staff mainly front-line staff; 7) Making sandwiches in front of customers to increase their confidence about fresh and quality.
A number of weaknesses and/or threats should be selective: 1) Aggressive competitors should keep in mind for business success; 2) Downturn economy may mislead the company plan; 3) VAT imposed by the government can lead worse for the business profit; 4) Local community structure with decreasing population may lead the business downturn; 5) Bad weather and climate change can increase the variance decreasing sales and profit. Details SWOT analysis is described as Appendix A.
6.0 PESTLE Analysis
Laws giving consumers rights against the seller of faulty goods.
|The new policy sees the introduction of VAT on Hot food.||Greggs is not selling hot food forwarding a decrease in sales and an increase in wastage.|
The economy of a country may influence one company’s market place
|– The country’s economy is down. Household spending falls. Tax increased||Customers are buying less and revenue is down|
-The growing concern among many groups in society with the environment is reflected in a variety of “green” consumer products
Leisure is becoming a bigger part of the life of people
|Greggs is not providing “organic” food and seating areas for customers||Decreasing sales because of lacking organic food. It is losing customers decreasing sales and profit.|
-New technology can allow new goods and services to be offered to consumers
|Greggs set up card payment, a new coffee machine, and free Wi-Fi forwarding customer satisfaction. it has got a lack of online selling||Compared with competitors, the payment method is performing poorly and leading customer’s dissatisfaction.|
Any rules, regulations, and legislation
|No data found out||N/A|
– Age structure, the geographic distribution of its population, the balance between males and females, and the likely future size of the population and its characteristics can affect the market of business.
|The population surrounding the shop is going to be decreased because of social structural changes.|
Competitor entered the market more aggressively
|towards decreasing sales|
|Citation: Palmer, A. (2000)||Source: Manger, Greggs|