Grocery Supply Chain Management Samples †MyAssignmenthelp.com

Question: Discuss about the Grocery Supply Chain Management. Answer: Introduction In a grocery supply chain, there are producers, distributors, wholesale and retail businesses. Wholesale groceries provide convenient shopping for fresh foods, vegetables, fruits, cereals, and drinks at discounted rates. Business purchase from wholesale grocers for resale because of the bulk offers. Wholesale shoppers prefer convenient shopping therefore go for stores that are nearby. In Canada, some of these popular wholesale stores are, Costco, Walmart, and Lobslow. The industry continues to face challenges as the market becomes highly competitive. As a result, industry players in the market are adopting new strategies to compete in the markets. A SWOT analysis of the industry reveals this fact and more. This journal discusses the business-to-business environment, channel relationships branding, andmarketing strategies as well as the price factors in this sector. These elements determine the business tactics that the wholesalers adopt. Effects of the external environment such as in novation and competitiveness influence the strategic approaches taken by grocers. Segmentation, Targeting and Positioning (STP) strategies differentiate winners from losers in this business. Costco as the case example features a combination of grocery, household, and pet (Costco.com). Using different strategies interchangeably depends on the organizations plan as well as competitor trends. Market driven strategies include regional and global approaches. Overview of the Industry Unlike in the manufacturer and distributor business model, the producer versus grocery relationship has intertwined roles. A farmer producing fresh foods can also serve as the distributor while the wholesaler can also be a distributor. The Business Dictionary defines a wholesaler as a buyer who buys in large quantities from producers, vendors or warehouse-for resale to small-scale distributors (BusinessDictionary). As a result, the price of the goods bought in bulk is cheaper, which means that the small business can maximize on the profits. The grocery industry comprises of the wholesaler, food suppliers, and distributors or shops. The modern industry does not leave out the online stores whose popularity with the consumer increases by the day. Suppliers who rely on physical location only have a challenge of competing with the virtual stores, which offer affordable and convenient deliveries. This explains why household shopping trends affect, the mainstream suppliers and operations. I n order to stay in business, grocery business vendors adopt tactics such as differentiation that allow for the sale of complementary items. Some middle-level stores incorporate frozen foods, beverages, emergency foods, snacks, canned and health foods. The grocery B2B environment B2B Environment The changing consumer demands determine the trend taken by the grocery business. In the contemporary market system, more retailers invest in the grocery segments (Alvarez and Schlesinger). Costcos business-to-business environment has varied customers. The brand classifies its clients in accordance to the product segments. The customers perception shapes the B2B business because the consumer places a high expectation of the brand. Organizations involved in its B2B take advantage of the special offers values, business referrals, and incentives. For example, suppliers of the meat products make use of the connection with Costco for wider business, billing and payment opportunities. The grocery markets expansion into e-commerce is a boost to the B2B business because it enhances value and interactions. Unlike in the B2C where social media provides a platform for sales and marketing, the B2B gains from business solutions such as networking. In the contemporary system, organizational buying and buyer behavior takes a business angle with the value-based approach (Crane). Legal issues in the wholesale business Running a large business like Costco involves more than the business registration. The complex business deals with many suppliers. Regulatory measures maintain high standards of quality in the food supplied as well as the type of food sold in the stores (Korstrom). The Canadian grocery stores have to abide by the required health standards. Other laws that tend to raise controversies are the employment policies, which ensure that the employee rights are free from violation. The legal structure emphasizes a good working environment for the employees. The modern consumer trusts ethically driven brands. As a result, large businesses like Costco invest in Corporate Social Responsibilities (CSR). This is a great influencer of investment decisions in grocery shopping (Memery). Crisis management is common in the grocery business because of the labeling laws, import products, trade disputes and health concerns. Concepts and Context of Business Strategy Wholesale business strategies vary from marketing, planning, and distribution agenda. Costcos exemplary performance in the market is attributed to, smart anti-competitor strategies, and business strategies that combine value and convenience (Lutz). Market Research The wholesale industry in Canada displays growing revenue and high employment creation rates (IBISWorld). The number of businesses delving into the industry is more than before with an annual growth of 2.2%. There are impressive operational benefits from gross profit margins and inventory. In the region, there are more than 2200 businesses in the specific industry. The industrys focus on niche production ensures that the customer gets value for their money. Market research in the industry highlights potential growth due to the technology capabilities. Competitive Analysis A SWOT analysis brings out the benefits of the niche market, which targets a wider scope of consumers. Of particular interest is the food industry, which accounts for beverages, fresh foods, frozen and canned products. Despite these benefits, threats such as emerging competitors in the retail markets are rising at an alarming rate. Technology opportunities enhance the industrys strengths such as convenience and affordability. It is hard to ignore external market factors like inflation and price dynamics. Segmentation, Targeting, and Positioning Costco has a variety of products in its stores including fresh, frozen foods like meat and dairy items. To complement its bulk supply of seafoods and healthy organic supplies, the brand also has pet food. Suppliers of all these products have to match up to the standards of quality that the store requires. Creating a grocery product or service in Canada becomes successful because of the value it offers. One tactic that these businesses apply is customer targeting. Innovation and competitiveness sharpen businesses for better delivery, customer satisfaction, and quality. This explains why Costco includes pet food and health items under its grocery stores. Price in the B2B Market Business development and planning in this industry consider the price factor. The Costco brand has a 4P approach that considers Place, Price, Promotional and Product factors. The B2B market of selling to other businesses emphasizes on better pricing strategies that enable other middle-level operations to make money. Suppliers and distributors are often searching for better deals that give them a chance to make money. Consequently, B2B Branding targets businesses as customers and stakeholders. Service providers are also part of this complex deal (Chen). Channel Relationships and Supply Chain Management The survival of the grocery business has a demand driven outlook. The online shopping via mobile reduces the supply chain in the grocery industry. This affects marketing strategies, which have in turn taken to the digital platform. The wholesale business offers faster delivery, customer loyalty and a low-cost supply chain (Steve). Integrated Marketing Communication-Promoting in the B2B Market Marketing mix or integrated marketing is a common strategy adopted by leading business organizations. Costco invests a great deal in advertising but it also takes advantage of the affordable digital platforms. Creativity explores the consumer trends, attributes, and attitudes for effective strategies (Ashley). The use of traditional marketing platforms like posters for direct marketing is slowly being replaced by billboards, emails, and mobile networking for the business and consumer markets. Business affiliations, linked to Costco find networks from referrals and connection to the reputable brand. Social Media The internet as a promotional tool in the grocery industry is an important tool. Brands connect via Twitter and affiliate marketing sites. Relationships are important in business. Although consumers may use the social media platform for interactions, the business community uses it for networking (Swani). The use of social media in business is mainly for PR purposes. Costco uses its Facebook and Instagram links for creating awareness. Conclusion The wholesale industry today is more complex than ever. Due to the high competition, retailers such as Costcos are taking the lead as Wholesale distributors in the grocery industry. In its supply chain, it has a conglomerate of different suppliers who target different categories. The wholesale business has immense opportunities for the food and nonfood industry. This lucrative venture has a high annual return rate. However, there are challenges in regulating suppliers to ensure high health standards and quality. The online business model also poses a threat to the existence of the physical groceries because it offers convenient delivery. Discounting is a significant strategy for pricing and marketing in wholesale. Therefore, the changing wholesale business model provides an avenue for new revenue sources in the B2B sector. The management of bulk order continues to present a challenge. References Alvarez, Jose and Len Schlesinger. "Whole foods deal a big win for consumers." HBS (2017). Web. 31 July 2017 https://hbswk.hbs.edu/item/amazon-whole-foods-deal-a-big-win-for-consumers Ashley, Christy, and Tracy Tuten. "Creative strategies in social media marketing: An exploratory study of branded social content and consumer engagement." Psychology Marketing 32.1 (2015): 15-27. Web Banker, Steve. "The demand driven grocery store." Forbes (2014). Web. 31 July 2017. https://www.forbes.com/sites/stevebanker/2014/12/12/the-demand-driven-grocery-store/#7ce46889179d BusinessDictionary. Wholesaler. 12 March 2017. Web. 31 July 2017. Wholesaler. BusinessDictionary.com WebFinance, Inc. July 24, https://www.businessdictionary.com/definition/wholesaler.html Chen, Liang-Tu. "Dynamic supply chain coordination under consignment and vendor managed inventory in retailer-centric B2B electronic markets." Industrial Marketing Management 42.4 (2013): 518-531. Web Costco.com. Costco Wholesaler. 12 June 2017. Web. 31 July 2017. Wholesaler. BusinessDictionary.com WebFinance, Inc. July 24, 2017,https://www.businessdictionary.com/definition/wholesaler.html Crane, Andrew, and Dirk Matten. Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford: Oxford University Press, 2016. Print IBISWorld. "Grocery Wholesaling in Canada: Market Research Report." IBISWorld (2017). Web. https://www.ibisworld.ca/industry/grocery-wholesaling.html Jose, Alvarez and Len, Schlesinger. "N." Harvard Business (2017). Korstrom, G. "Contriversy swirls as wine sales in grocery stores increase." Business Vancouver (2016). Web. 31 July 2017. https://www.biv.com/article/2016/7/controversy-swirls-wine-sales-grocery-stores-incre/ Lutz, Ashley. "Costco's Simple Strategy for Outperforming Wal-Mart and Target." Business (2014). Web. https://www.businessinsider.com/costcos-simple-strategy-2014-9?IR=T Memery, Juliet, et al. "Understanding ethical grocery shoppers." Journal of Business Research (2012): 1283-1289. Web Swani, Kunal, Brian, P. Brown and George, R. Milne. "Should tweets differ for B2B and B2C? An analysis of Fortune 500 companies' Twitter communications"." Industrial Marketing Management 43.5 (2014): 873-881. Web