Cal Mart Maketing plan

Current Situation Analysis 4 a. Macro-Environmental Scan of the Grocery Industry 4 i. Physical Environment 4 ii. Socio-Cultural Environment 5 iii. Demographic Environment 5 iv. Future Plans 9 a. Matching Opportunities to the Organization 9 b. Strategic Gap Analysis 10 c. Target Market Selection 10 d. Market Objectives 10 i. The grocery is facing competition from other established stores such as Safeway and Raley’s. It has also been determined that the current customers of Cal Mart are 5,155 people who reside in Calistoga. It is also common for the store to receive out of town customers visit the region whenever they are on vacations. Introduction Cal Mart is one of the prominent grocery stores in Napa Valley, California. The store was established in 1968 as partnership of community members (Cal Mart, 2018). The macro-environmental scan of Cal Mart can be analyzed on the following basis.

i. Physical Environment The geographical characteristics of Napa Valley are adequately favoring Cal Mart as described below. Firstly, Cal Mart is located on top of the valley thus making it one of the recognizable business in this region. Secondly, the physical formations of Napa Valley attract many tourists who end up visiting Cal Mart. Cal Mart’s success is also favored by the good social relations that its management enjoys in the community. The business is operated as a family venture whereby local entrepreneurs have contributed to the establishment of the store. iii. Demographic Environment According to demographic statistics, Napa is the most populous city in Napa County, with a total of 76,915 people as determined in the 2010 census (World Population, 2018). It is also stated that Calistoga is one of the most inhabited cities within the entire Napa Municipality, with a population of 5,155 resident (World Population, 2018).

During the seasons of economic boom, business competition increases because of the projected profits. Companies such as Dean & Deluca, Napa Valley Olive Oil are known for their competitive strategies of providing services at lower rates. Thus it requires significant adjustments such as improvement of the value of products in order for stores like Cal Mart to remain operational. v. Science and Technological Environment The grocery industry of Napa Valley is being influenced by the recent scientific and technological developments. As a result, the grocery industry in Napa Valley has experienced a significant improvement. The grocery industry in Napa Valley strictly regulated in order to achieve improvements in development. There exist fiscal policies, economic regulations and legal provisions that must be honored by retail the retail stores operating in this region.

Grocery stores are also monitored in order to maintain their registration at a sustainable level. Otherwise, unregulated establishments can result in unhealthy competition and a possible involvement in illegal trade. ii. Weaknesses The major weakness of Cal Mart is the company’s inability to supply adequate food items to the increasing population. The firm is facing difficulties in expanding its operations to accommodate high volumes of differentiated products. Apart from the organic food items, it is unlikely to find a variety of packaged products in the store. iii. Occasionally, out of town customers visit the store whenever they are on vacations or weekend picnics. d. Evaluation of the Competition An evaluation of the retail industry of Napa Valley indicated that many groceries are being established in the region.

Some of which include; Oakville Grocery, Safeway and Raley’s. In the larger Napa County, some groceries have expanded their operations to the statue of supermarkets. b. Strategic Gap Analysis An analysis of the current market situation at Cal Mart revealed that many groceries are entering the market hence providing high competition. As a result, the firm has made a resolution to venture into new market gaps such as wine production as a way of improving its dominance. By adopting the stated proposals, Cal Mart will apparently achieve a higher financial performance and large market outreach as desired. c. Price The initial sales of wine at this store should be accompanied by relatively affordable prices like $3 per bottle and promotional discounts in order to establish a good customers’ base.

Afterward, the company can adjust its prices according to reflect the value and innovative ideas added to the wine. iii. Place The grocery store will be selling its wine products at the company’s premises located in Calistoga. Here, the grocery store will be operating a new lounge where consumers can visit and enjoy the drinks. References Cal Mart. Business Operations. Obtained from] http://www. calmartnv. com/81-2/ [Accessed on 29/10/2018] Kim, G. Strategic marketing: creating competitive advantage. Oxford University Press, USA. Wilson, R. M. Gilligan, C.