Souq Company Marketing strategy


Operation Management


Case Study 1

Souq Planet (hypermarket)

Prepared by:

Talal Mohamed Ali Sultan Al Hammadi


Supervised by: Chockalingam, Dr. Annamalai

Souq Company Marketing strategy

Table of Contents

TOC o “1-3” h z u HYPERLINK l “_Toc417590638” Introduction PAGEREF _Toc417590638 h 4

HYPERLINK l “_Toc417590639” Objectives PAGEREF _Toc417590639 h 4

HYPERLINK l “_Toc417590640” Strategies PAGEREF _Toc417590640 h 4

HYPERLINK l “_Toc417590641” Marketing strategy PAGEREF _Toc417590641 h 4

HYPERLINK l “_Toc417590642” Management strategy PAGEREF _Toc417590642 h 5

HYPERLINK l “_Toc417590643” Competition PAGEREF _Toc417590643 h 5

HYPERLINK l “_Toc417590644” 4Vs Model of Operations and 5 Performance Objectives PAGEREF _Toc417590644 h 6

HYPERLINK l “_Toc417590645” Challenges PAGEREF _Toc417590645 h 7

HYPERLINK l “_Toc417590646” Uncertainty PAGEREF _Toc417590646 h 7

HYPERLINK l “_Toc417590647” Attracting new business PAGEREF _Toc417590647 h 7

HYPERLINK l “_Toc417590648” Financing PAGEREF _Toc417590648 h 8

HYPERLINK l “_Toc417590649” Competition PAGEREF _Toc417590649 h 8

HYPERLINK l “_Toc417590650” Recruitment PAGEREF _Toc417590650 h 8

HYPERLINK l “_Toc417590651” Technology PAGEREF _Toc417590651 h 9

HYPERLINK l “_Toc417590652” Conclusion PAGEREF _Toc417590652 h 9

HYPERLINK l “_Toc417590653” References PAGEREF _Toc417590653 h 11

IntroductionWe were (under Abela name) is the first supermarket opened in the UAE, and we became the first recipient of Planet Supermarket offers a service to its customersDigital shopping in the Middle East, the first digital experience for retail sale in the Middle East –


We strive to always provide the best quality and most diverse selection of household goods available in the UAE. Our value packs and combination discount offers mean that we can offer these products at even lower costs, keeping your household essentials at unbeatable prices.


A strategy is a plan which sets out how a business sends its assets to attain to its objectives. The organization’s qualities set the tone for the choice making methodology. In May 2011, Souq submitted AED1 billion capital and income speculation to enhance the shopping trek for customers. It set out a seven section procedure intended to accomplish its objectives of being very esteemed by customers and getting a charge out of solid long haul development (Harris, Schwartz & Brownell, 2010).

Marketing strategySouq introduced a loyalty card in 2010. This card was giving markdown however likewise essential it gave a chance to keep a hand on a beat of customers need and to gather all vital information for future planning’s. New objectives were situated: Expansion to outside business, creating of a nonfood items offering. Souq’s principle publicizing motto seemed “Each and every makes a difference” (Matsa, 2010). Its promotions in print and on TV for the most part comprise of item shots (or a suitable picture, for example, an auto when publicizing petrol) against a white foundation, with a value or proper content, e.g. “Souq Value”, superimposed on a red circle

In universal development Souq took to consideration contrast in tastes between diverse districts. While entering Central Europe market Souq was imparting western models of shopping by presenting substantial number of hypermarkets. (2) Also enormous consideration was given to customers ‘ requirements ordinarily it was speak to in product offering. In Czech Republic for instance Souq focused on giving Dubai items in retail shops. In UAE, local people wanted to purchase live fish, turtles, meat and other prominent items, for example, moment noodles, dissimilar to in UAE. Souq needed to give these in its hypermarkets to draw the UAE customers’. So also in Dubai, the customers spent an immense extent of their wage on crisp nourishments. To adjust to the shopping propensities for the Thai customers , Souq built up a new market lobby – a region nearby the primary store, wherein 14 neighborhood sellers sold a scope of new natural products, vegetables, meat, prepared to-eat items and other nearby sustenance items. This zone was intended to furnish the Thai customers with customary and nearby environment.

Management strategySouq`s global extension technique in Asia was fundamentally spoken to as joint endeavors with the neighborhood accomplice firms like Samsung Group in South Korea (Samsung-Souq Home in addition to), and Charoen Pokphand in UAE (Souq Lotus) because of affectability of nearby market for nonnatives and some more confounded “know how” than whatever is left of the world. In these mergers nearby work force has a guaranteed quantitative command in low and center management positions. . It additionally plan not enormous acquisitions a vital part of its development method.

Souq has made a commitment to corporate social obligation, by contributing of 1.87% in 2006 of its pretax benefits to nearby groups’ philanthropy souq. (3) In 1992 Souq began a “PCs for schools plan”, offering PCs consequently for schools and doctor’s facilities getting vouchers from individuals who shopped at Souq. Until 2004, AED 92m of hardware went to these souq. The plan has been likewise executed in Poland.”BITC – Souq Computers for Schools”. Beginning amid the 2005/2006 affiliation football season the organization now supports the Souq Cup, a football rivalry for youthful players all through the UAE. The container now runs a kid’s rival at Under 13 level and two young lady’s containers at Under 14 level and Under 16 level. More than 40,000 young men alone joined in the 2007/08 rivalries.

CompetitionSouq was blamed by the UAE Office for Fair Trading (OFT) for being a piece of a value cartel; among members were main five UAE general stores (Safeway, Souq, Asda, Morrisons and Sainsburys) and various drain, margarine and cheddar. The examination began in 2007 and around the same time Asda, Sainsburys and Safeway declared them liable in acting against shopper enthusiasm by covering of 5000 agriculturists bolster in recuperating after the foot-and-mouth emergency. Aggregate fine for them summed AED 116M. Souq, then again, keep up to deny any action in this cartel, along these lines it is researched by the OFT. (3)

4Vs Model of Operations and 5 Performance Objectives

An operation has been recognized by researchers to incorporate all exercises included in the generation of merchandise and/or management s (Schroeder, 2000; Wild, 1989; Slack et al, 2007). Researchers just as change less on their feeling by proposing that despite the fact that operations may take distinctive form(s) between souq, its application includes an arrangement of info; change of the data; and the creation/conveyance of the yield. Operational exercises oblige a composed approach and management such that the ‘change methodology’s of info to yield, delivers an effective and successful item or management that will make value(Schroeder 2000; Slack et al, 2007).

The setting of Volume in operations management alludes to the size, rate or greatness of gainfulness of an association’s items. It is contended by researchers that the volume of the expected yield from an operation would normally shape or focus the procedure behavior (Slack et al, 2008). The idea of volume has a tendency to recommend that the span of yield of association would focus the operational procedure of such association such that souq with high volume of yield, souq have a tendency to have precise and tedious (institutionalized) operational techniques which builds velocity of the operation and thus decreases unit expense of creation of products/management s as saw in vast scale generation/management s works out. On the other hand, in generally little creation/management outfits, there is normally less institutionalization and higher adaptability in the generation process. (Kanigel, 1999; Slack et al, 2008)

The enquiry into the operational methods of Souq Planet and Souq Planet demonstrate contrasting operational example in every association. While Souq Planet has a high Volume, mid assortment, low variety, low perceivability profile, Souq Planet then again has a low volume, low mixture, high variety and low perceivability. The Strength and shortcomings of individual operational courses of action is highlighted beneath:

For Souq Planet albeit high volume realizes a low unit expense of items, the fundamental systemization of the creation methodology obliges a gigantic capital cost. Besides because of the span of the organization and its creation framework, there is an enormous point of confinement to the adaptability of their operation to differing interest. As being what is indicated a huge variety sought after would deliver the organization with higher every unit expense of item that may even result to money related shortfall for the organization.

For Souq Planet, in spite of the fact that the low volume of its operations requires less capital expense, the creation process infers that the unit expense of creating every vehicle will stay high. With only one model on offer, there is no assortment as the single model is the organization’s institutionalized item. This will restrain the association’s capacity to pull in an extensive variety of customers. Be that as it may it can be contended that maybe the organization is focusing on a specialty market (Kotler et al, 2009) in any case with practically zero mixture on offer, the organization’s capacity to match changing customers need is restricted.

The distinguished inadequacies of both organizations’ operational courses of action advise the premise of the recommended ideal arrangement; in souq which take part in high volume of operation, there’s have to outline adaptability into their framework to encourage the adjustment of operations to fluctuating customers’ needs and interest components. Souq ought to try to lessen the time crevice in the middle of assembling and usage by giving some level of perceivability through customers’ association underway process particularly item plan. Souq however participate in low volume of operational exercises need to gadget method for lessening unit expense of creating products or conveying management.


While it may appear that the tempest that was the UAE subsidence may have passed, it lamentably has left a questionable and remarkable future for the UAE business commercial center. Organizations today are as yet confronting an extensive number of difficulties as they set down arrangements to move forward.

UncertaintyThe current economic climate is something current entrepreneurs have not experienced before such a large number of are uncertain regarding how to push their business forward without the certification of a stable future. Business development and congruity originates from entrepreneurs having the capacity to arrange long haul and add to these arrangements over a time of time, yet this is harder to do in light of the absence of insurance as to the condition of the economy throughout the following couple of years.

Tragically, its outlandish for us to take conviction back to the economy, however its imperative that organizations still form a key long haul arrange so they have a reasonable vision with reference to how they need to advance. Having an arrangement set up will give you a chance to look to the future and help you to construct your business esteem. Regardless of how rough the business scene may look having an arrangement set up will give you a chance to overcome challenges less demanding (Reardon, Timmer & Minten, 2010).

It’s likewise essential to stay informed regarding how your business is advancing, keep a month to month record of your yield to guarantee that you know where you’re at, giving you a chance to examine how your business is getting along giving you a chance to work out a more organized arrangement and bailing you to cut out a more certain future (Michimi & Wimberly, 2010).

Attracting new businessIn January of this current year, drawing in new business was discovered to be the greatest test that souq are confronting. Again due to the rough economy, less individuals and organizations are looking to spend their cash, implying that the business sector for attracting new custom has contracted.

Both customers’ maintenance and building up your customers’ base all stems from your customer’s treatment, demonstrating to them that you mind through the management you give. The commercial center is overflowing with organizations battling for any new custom, so its dependent upon you to verify that your business picture is the best in can be keeping in mind the end goal to contend (Sutherland, Kaley & Fischer, 2010).

FinancingAt whatever point there are issues with the economy, it is ensured that there will be a thump on impact for both individual and business funds. With constrained financing help accessible, and the plans that are accessible being greatly difficult to secure because of banks being danger loath, numerous organizations have attempted to deal with their income effectively and keep their heads above water.

Knowing your methods is key here, overspending to any degree could be adverse to your business. Staying in control of your funds in key, if your income is constrained you have to continue top of it – recollect Cash is King (Loescher et al,. 2010).

CompetitionWhile it’s great that the nation is by all accounts recouping from the financial inconveniences, it additionally implies that more organizations are being situated up, conveying more rivalry to the table. This implies that organizations should not get smug – while your promoting method and publicizing strategies may have worked for you previously, the business sector have changed and you have to continue top of the advancements.

Making a stride back from your business and evaluating both your setup and plan and taking a gander at your rival will help you to take control and assemble a business picture prepared to tackle the new commercial center.

RecruitmentDespite record unemployment figures, it has gotten to be progressively troublesome for organizations to enlist and keep up quality workers. Having the capacity to discover gifted people with the right expertise set is key for organizations needing to develop is simply the first step, organizations need to give a work space that is attractive keeping in mind the end goal to hold ability.

You may feel that in light of a constrained capital importance you’re not able to offer high wages, you’re not able to pull in the right sort of applicant suitable for your business. This is the place you’re wrong, just offering your representatives a work environment where they feel esteemed and bolstered will pull in respectable competitors. Remunerating staff, offering adaptable working hours and occasions is more prone to get candidates than high wages and a controlled workplace.

TechnologyTechnology is all around nowadays and it is one of the things that is basic for any business to stay at the cutting edge of – yet how are organizations anticipated that would stay aware of the velocity at which new improvements are happening. Unless you have a colossal income, its far-fetched that you’ll have the capacity to always redesign your business innovation however there are ways and means around this. Staying aware of the mechanical advancements that impact your business division will empower you to arrange ahead and fit the improvements into your marketable strategy, helping you to settle on educated choices about if and when to buy or move up to advantage your business and your customers .

ConclusionThere ought to be a successful, predictable and unprejudiced approach to benchmark management levels in all the store retail branches, and Mystery Programs can give the arrangement. The workers ought to have intensive comprehension of what the branch offers with a specific end goal to win and hold the customers . In addition, the workers should completely comprehend the position of the branch in the business sector and what is anticipated from them (Horvathova, 2010). Secret shopping projects bolster the management and improvement of management conveyance in stores, changing an immaterial resource into precisely what one guarantees to the customers – a basic upper hand in today’s dubious business sector (Hays & Hill, 2006) . This project is exceptionally useful for making changes among the staff. It will help in recognizing territories for income upgrades, perceiving and remunerating worker and customers management activities Mystery shopping projects ought to be created to mirror own extraordinary quality conventions. These frameworks will help to gauge the staff execution. Continuous monitoring of the management growth could be possible through this system. One can characterize and screen staff from numerous points of view. These projects ought to be planned in such a route in this way, to the point that these can check variables like worker item learning, check reliably the quality check measures and consistency, and screen customers consideration and correspondence (Martyn, 2010). Benchmarking ought to additionally be utilized in the branch keeping in mind the end goal to make the examination among distinctive branches. Else, it is complex to recognize the zones that need change.

ReferencesHarris, J. L., Schwartz, M. B., & Brownell, K. D. (2010). Marketing foods to children and adolescents: licensed characters and other promotions on packaged foods in the supermarket. Public Health Nutrition, 13(03), 409-417.

Matsa, D. A. (2010). Competition and product quality in the supermarket industry. Quarterly Journal of Economics, forthcoming.

Michimi, A., & Wimberly, M. C. (2010). Souq of supermarket accessibility with obesity and fruit and vegetable consumption in the conterminous United States. International Journal of Health Geographics, 9(49), 1-14.

Reardon, T., Timmer, C. P., & Minten, B. (2010). Supermarket revolution in Asia and emerging development strategies to include small farmers.Proceedings of the National Academy of Sciences, 201003160.

Sutherland, L. A., Kaley, L. A., & Fischer, L. (2010). Guiding stars: the effect of a nutrition navigation program on consumer purchases at the supermarket. The American journal of clinical nutrition, 91(4), 1090S-1094S.

Tschirley, D. L., Ayieko, M. W., Hichaambwa, M., Goeb, J., & Loescher, W. (2010). Modernizing Africa’s fresh produce supply chains without rapid supermarket takeover: towards a definition of research and investment priorities(No. 93030). Michigan State University, Department of Agricultural, Food, and Resource Economics.