Marketing strategy of walkers crisps

Walkers is the UKs favorite crisps brand. Founded in 1948, butcher Henry Walker started making crisps in his Leicester Plant to keep his personnel busy, as meat was scarce in post-war Britain. Today, Walkers is Britain's major crisp manufacturer, employing thousands of folks in seven locations. Walkers have 16 ranges of crisps and snacks including Walkers Sensations, Doritos and Quavers. Still based in Leicester, Walkers joined the PepsiCo family in 1989 and makes around 10 million bags of crisps each day. Walkers will probably be worth around £436 million, and Walkers snacks are enjoyed by over 10 million people in the united kingdom every day.

In 2007, Walkers became the first company on the globe to display a carbon reduction logo over a consumer product. The label covers the carbon used from seed to store and to product disposal. Dealing with the Carbon Trust, Walkers reduced energy use per kilo by one third, and water use per kilo by 45%. Walkers also have focused on further year on year reductions to continue to qualify for the label. As part of their efforts to reduce our carbon emissions by reducing our road miles, they switched to using 100% British potatoes for Walkers crisps in July 2007.

Introduction to Task 1

This task is regarding online marketing strategy options for walker, the requirements from task is to identify the kind of growth for walkers which is most relevant to the company and provide justification with the. And provide two marketing strategy options for walkers and clarify how these options may be used to achieve the competitive advantages and permanent growth.

What is a marketing strategy

Marketing strategy is a process that makes it possible for a business to concentrate its limited resources on the best opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centered on the key concept that customer satisfaction is the primary goal. [1]

There are three steps in formulating a marketing strategy

Step 1: Identification of growth opportunities

Step 2: Consider developing Porter's generic strategies

Step 3: Draw up marketing options

While assessing the growth opportunities some points which needs to be focused are "Planning for a new business", "Downsizing or terminating the old ones that happen to be no longer profitable", and the "ratio between the desired sales and projected sales".

As per requirement of this task the discussion will be only limited to the step one 1, which is the identification of growth opportunities for Walkers.

Type of growth for Walkers

As considering the current business, market share and market opportunities it indicates that for walkers the growth type is "Intensive Growth". Intensive Growth relates to the growth when a business want to improve their current business and make an effort to identify opportunities to attain further growth within the current business.

The above given diagram was produced by "Ansoff" which really is a useful framework for companies management looking for the new opportunities to increase their sales and profits. Since it show which it has four marketing strategies

Two marketing strategy options for Walkers

By looking into the existing market position Walkers and the revenue they generate each year throughout the uk market, I recommend Walkers the next two marketing strategies.

Market Penetration Strategy

Market Development Strategy

Market Penetration Strategy

The first strategy each and every company wants is to adopt for increasing their sales and earnings is the market penetration strategy. Market Penetration Strategy is the marketing efforts of the business to offer their existing products and services within the current market. The best way to do this is to attract rivals customers and looking for potential clients in the existing market for existing products.

As Walkers contain the chance to use market penetration strategy for their different brands in UK, and also abroad. Prior to going for marketing penetration strategy proper analysis of opponents in market is required what exactly are their strengths and in which areas they are lacking in providing good services to customers, what exactly are the core competencies for Walkers against those who are already on the market, and then develop a intend to address those areas which have to be, and try to capture increasingly more customers of other competitors and also become an attracting brand symbol for clients in the market of crisps.

Market Development Strategy

Developing a fresh market for the existing company product is named market development strategy. In this activity efforts are placed on to find new markets and make clients to increase company revenue and profit. Walkers gets the chance to develop markets oh geographical such as cities, counties, and demographical such as on basis of sex, age group and class etc.

Walkers possess the opportunities to build up new markets because of its product throughout the uk, and also in other potential areas globally. Through market penetration strategy they can provide good packages to their customers to be able to encourage current customers to buy more, the second and important factor in this strategy is that to attract competitor's customer by providing them good packages to buy Walkers product and attract all those customers who are not used to this market and boost the variety of customers.

Justification for Marketing Strategies Choices

As Walkers Crisps is a UK brand with a 47% share of the British crisp market. And 12 different kinds of crisps products, which ultimately shows that almost 1 / 2 of the UK crisps market is captured by Walkers, plus they have a very good and popular brand, that is why in this assignment the two marketing strategies "Market Penetration Strategy" and "Market Development Strategy" for the purpose of marketing are recommended to Walkers. They can launch their product in new markets to attract their competitor customers and those who are new to the crisps market, because of having good will of Walkers and good market share in the country markets, Walkers will definitely get succeed in attracting clients and their competition customers.

The second proposed technique for Walkers (Market Development Strategy) will enable Walkers to introduce their products into new markets with their current products. Although Walkers have about half of the market share captured in UK crisps market but definitely you will see some potential areas where they don't have given the mandatory focus in past, or address those markets where they have low sales when compared with their competitors, which means this strategy can help walkers to properly analyze the new market areas and launch their products under the well known brand of Walkers to attain maximum benefits for the company.

Introduction to Task 2

For every product in market the PESTEL analysis is vital as it is a primary part of the marketing strategy development, therefore the requirement out of this task is to handle PESTEL analysis for Walkers, and then provide enough information and asses how technological change and globalization for the company's market planning in the next three years.

What is PESTEL Analysis

PESTLE stands for

P: Political

E: Economic

S: Sociological

T: Technological

L: Legal

E: Environmental.

PESTLE analysis is in place an audit of the organization's environmental influences with the purpose of using these details to guide strategic decision-making. The assumption is that if the organization is able to audit its current environment and examine potential changes, it'll be better located than its rivals to react to changes.

Importance of PESTEL Analysis

To help make decisions and arrange for future events, organizations need to comprehend the wider 'meso-economic' and 'macro-economic' environments where they operate. (The meso-economic environment is the one where we operate and have limited influence or impact, the macro-environment includes all factors that influence a business but are out of its direct control). An organization alone cannot affect these factors, nor can these factors directly affect the profitability of an organization. But by understanding these environments, it is possible to take the benefit to increase the opportunities and minimize the threats to the organization. Conducting a strategic analysis entails scanning these economic environments to find and understand the broad, permanent trends.

A PESTLE analysis is a useful tool for understanding the 'big picture' of the environment in which an organization is operating. Specifically a PESTLE analysis is a good tool for understanding risks associated with market (the need for something or service) growth or decline, and therefore the position, potential and direction for an individual business or organization.

A PESTLE analysis is often used as a generic 'orientation' tool, finding out where an organization or product is in the context of what's happening outside that will at some point affect what's happening in a organization. The six elements form a framework for reviewing a predicament, and may also be used to examine a strategy or position, direction of a company, a marketing proposition, or idea.

Completing a PESTLE analysis can be a simple or complex process. It all depends how thorough you should be. It is a good subject for workshop sessions, as undertaking this activity with only one perspective (that is, from just one person's view) can be frustrating and miss many critical factors. Most of us see things differently and harnessing the knowledge of several people will ensure the process is robust and meaningful.

PESTEL Analysis for Walkers

Following is the PESTEL analysis of Walkers in UK, keeping in mind the market share, growth and opportunities available in UK crisps market.

Political: what is happening politically in the surroundings where you operate, including areas such as tax policy, employment laws, environmental regulations, trade restrictions and reform, tariffs and political stability. As the political system in the united kingdom is one of the very most stable democratic systems, so Walker will be having no problems regarding the country political system. The taxations, employment laws and environmental regulations in UK have proper system to introduce so that isn't an immediate treat, however the Walkers have to consider ongoing recession which is effecting virtually all organizations on earth.

Economic: what is happening within the economy, for example; financial growth/ decline, interest rates, exchange rates and inflation rate, wage rates, minimum wage, working hours, unemployment (local and national), credit availability, cost of living, etc. the existing monetary conditions have effected the majority of the organizations across the world, so before launching any new advertising campaign it is necessary for Walkers to obtain proper analysis of the available resources for campaign and exactly what will be the consequences of that.

Sociological: what is occurring socially in the markets where you operate or be prepared to operate, cultural norms and expectations, health consciousness, population growth rate, age distribution, career attitudes, focus on safety, global warming. As Walkers is so much focused on these issues, they have invested millions pound to enhance the health related issues in their products.

Technological: what's happening technology-wise which can impact what you do, technology is leaping every two years, how will this impact your products, things which were not possible five years ago are actually mainstream, for example cellular phone technology, web 2 2. 0, blogs, networks. New technologies are continually being developed and the pace of change itself is increasing. There are also changes to barriers to entry in given markets, and changes to financial decisions like outsourcing and in sourcing. So Walkers need to keep updating on their technological side to ensure their parallel walk with the fast driven technological world.

Legal: what's happening with changes to legislation. This may impact employment, usage of materials, quotas, resources, imports/ exports, taxation etc. As described earlier that to bring changes in legal system in country there's a fair and smooth process, so Walkers don't need to be worried about it.

Environmental: what's happening regarding ecological and environmental aspects. Several factors will be economical or social in nature. So Walkers need to develop environment friendly product and use such fuels in the manufacturing plants which produce min environmental pollution and do not harm the health of the workers.

Impact of Technological Change

In modern world the technology evolve very quickly and each and every day there exists some new innovation in the way organizations use the technology to be able to improve their businesses and perform the daily activates in good and quick way. The business world has revolutionized almost beyond recognition before few decades. Technology and we mean the advances in communication and information technology has changed the face and the pace of business.

As communication and information travels faster and faster, the planet seems smaller and smaller, and this has large implications for the way we conduct business. Storing important in files on the computer rather than in drawers, for instance, has made information easy to get at. Using e-mail allows businesses to communicate and send these files quickly to remote locations outside of an office.

The impacts of technological change for Walkers in next 3 years will the following

General changes to technology

Communicating

Consumers in control

Technology has bring a revolutionary changes to just how of marketing, after the evaluation of internet most of the business are now not limited to shop-based shopping, however the concept of virtual business is introduced. The fast communication among the business units and storage of large scale of data easily, and accessibility of data at finger tips are the key advantages of using technology.

Technology helps it be possible for consumers to find information they are looking for they are actually in control of what they are getting from businesses. Along with the internet, it is simple for consumers to get online and discover a great deal or the same product that you will be selling, but one of top quality for the same price. The internet has created an environment of choices for the buyer to use, this means they can make demands on what type of product or service you are offering. What you ought to do is to improve your service or product and what you are delivering to make sure that your individuals are getting the best deal possible, but that they are also getting the best service and the cost effective in comparison with other companies.

Impact of Globalization

Globalization has caused dramatic changes to business practices throughout the world. Companies such as IBM, Intel, Microsoft, and Philips have started to outsource specialists from various parts of the world, causing job shifts and changes in companies' structures (Engardio, Bernstein, and Kripalani, 2003).

Globalization can be an interesting phenomenon since it is clear that the earth has been going through this process of change towards increasing economic, financial, social, cultural, political, market, and environmental interdependence among nations. Virtually, many people are affected by this technique. Given these changes, globalization brings about a borderless world (Eden and Lenway, 2001; Ohmae, 1989a). Globalization drives visitors to change their ways of living.

So to complete in the globalized world Walkers management need to believe out of the box and develop their marketing strategy in way which fulfills the needs of all global stakeholders, and all products and information must be available globally. With the they may need to outsource their business operations may be to some businesses in countries apart from in where Walkers is in operation.

Conclusion and Recommendations

Walkers have very good market in UK, providing their customers good crispy products having twelve brands of snacks and crisps. They may have captured forty three percent of UK market; have very good online marketing strategy like having a former England football team captain as Walkers brand ambassador. However they have very potential growth opportunities which will have to be availed insurance agencies improved marketing strategy and addressing the hidden markets to penetrate in those areas, and also make an effort to attract clients into market, also the customers of their competitors. Also they need to keep updating on the system and technologies both for information sharing, marketing and product preparation to acquire improved quality of products and achieve the organizational goals and objectives.

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