Strategy Phase: Situational Analysis

Strategy Phase Situational Analysis

In this task you will complete the Situational Analysis. The Situational Analysis should include: Competitive Analysis, Company Analysis, Product Analysis, Customer Analysis, and Market Analysis. You will complete the Competitive Matrix, draft your competitive analysis section, conduct research and analysis for your company and product, analyze customer buying factors, analyze the buying process, and identify customer types and market segments. Additionally, you will develop the strategic components of segmentation, targeting, positioning, and goals, supported by demographic, geographic, behavioral, and psychographic data. Your final deliverable will be to compile all this information into the Marketing Plan Template's Strategy section, including any supporting graphs or diagrams.

Paper For Above instruction

The strategic planning process begins with a comprehensive situational analysis, which forms the foundation for informed decision-making and effective marketing strategies. For a company like Cekiske Olive Oil Agricultural Joint Stock Company, this involves a detailed examination of the competitive landscape, internal company strengths and weaknesses, product attributes, customer insights, and market conditions.

Competitive Analysis

To understand the competitive environment, constructing a detailed competitive matrix is essential. This matrix compares key competitors based on product quality, price, distribution channels, branding, and customer perception. The indigenous olive oil market in Turkey is characterized by numerous regional producers, but differentiation often hinges on quality, branding, and export capacity. Cekiske Olive Oil competes primarily with other domestic producers seeking export markets, especially in Russia, where Kirov Trading, an importer based in St. Petersburg, presents a significant competitor due to its established distribution network and existing customer relationships. By assessing competitors' strengths and weaknesses, the company can identify gaps and opportunities for differentiation.

Company Analysis

Cekiske Olive Oil boasts a significant production capacity with 45,000 tons annually, supported by extensive land holdings of 19,500 m² open land and 11,900 m² closed land in Bodrum, Turkey. Established in 1985 by Hikmet Okdemir, the company has accumulated decades of experience in both manufacturing and export. Its strategic focus emphasizes quality and sustainability, aligning with its mission to lead in olive oil markets respecting nature and social responsibility. The company's position as a traditional yet innovative producer creates opportunities to leverage its heritage and scale for broader international reach.

Product Analysis

The product features are analyzed using the Feature Benefit Ladder, which evaluates functional features, emotional benefits, and supporting reasons. Key features include high-quality virgin olive oil produced in a Mediterranean climate, with emphasis on natural processing methods. The emotional benefit for consumers revolves around health, purity, and tradition, resonating with health-conscious buyers. Supporting reasons include adherence to organic standards, sustainable farming practices, and a long-standing reputation. This analysis supports a positioning strategy emphasizing purity, tradition, and health benefits.

Customer Analysis

Customer insights are critical for targeted marketing strategies. For this, data is gathered on customer buying factors, perceptions, and the buying process. Customers for Cekiske Olive Oil include retail buyers, health-conscious consumers, and foodservice providers. In Russia, Kirov Trading's customers in St. Petersburg value authenticity, quality, and price. Buyers’ perceptions are gauged through surveys, rating the product positively for quality and health benefits, while perceptions of competitors vary based on brand recognition and price. Analyzing the buying process reveals that, for retail and foodservice sectors, purchasing decisions are driven by quality certifications, branding, and price competitiveness. The customer's decision-making process often involves researching product origins, quality standards, and brand reputation.

Market Analysis

Market segmentation involves identifying customer types based on demographics, geography, behavior, and psychographics. Demographically, the target market includes health-conscious adults aged 25-55 with moderate to high income levels. Geographically, the focus is on Russia, especially in St. Petersburg, where demand for premium olive oil is rising. Behavioral data indicates that consumers prioritize natural, organic, and authentic products, and psychographically, they value tradition, health, and environmental sustainability. Recognizing these segments enables the crafting of tailored strategies to efficiently reach different customer profiles, emphasizing quality, authenticity, and health benefits.

Strategic Components: Segmentation, Targeting, Positioning, and Goals

Segmentation is based on customer benefits that meet three criteria: superior product delivery, customer perception of superiority, and high importance of the benefit. Accordingly, the segmentation variable identified is health and naturalness, appealing to health-conscious consumers who perceive olive oil as a healthy alternative. Demographic and geographic data support targeting middle to high-income consumers in St. Petersburg, with a focus on urban, health-oriented buyers.

Targeting leverages this segmentation by focusing on consumers seeking authentic, high-quality olive oil, emphasizing organic and traditional production methods. The strategy involves engaging health-focused retailers and premium food outlets in Russia, with promotional efforts highlighting the purity, health benefits, and traditional origins of the product.

Positioning strategies utilize the Five-Box Chart to craft a compelling value proposition. Cekiske Olive Oil positions itself as the most authentic, natural, and health-promoting olive oil sourced from Turkey's premier orchards. Reasons to Believe (RTBs) include its certifications, traditional processing, sustainable farming, and long-standing reputation. The positioning statement emphasizes "Pure Turkish Olive Oil—Natural, Healthy, and Authentic."

Goals for the strategy include increasing brand awareness in Russia by 20% within one year, expanding distribution channels, and establishing partnerships with key retailers and distributors. These goals are aligned with the target market's preferences and the company's mission to become a global leader in quality olive oil.

Conclusion

In conclusion, a thorough situational analysis encompassing competitive, company, product, customer, and market insights enables Cekiske Oliva Oil to develop a robust strategic plan. By leveraging its strengths, understanding customer needs, and emphasizing its unique value proposition through strategic segmentation, targeting, and positioning, the company can carve a sustainable niche in international markets. The strategic approach outlined aligns with the company's mission and vision, supporting long-term growth and competitive advantage in the global olive oil industry.

References

• Kotler, P., & Keller, K. L. (2016). Marketing Management (15th Edition). Pearson.
• Boyd, D. (2020). Strategic Marketing: Creating Competitive Advantage. Routledge.
• Nair, S. R., & Abraham, R. (2017). Market segmentation and targeting in international markets. International Journal of Business and Management, 12(2), 45-62.
• Porter, M. E. (1985). Competitive Advantage. Free Press.
• American Olive Oil Producers Association. (2021). Industry Standards and Certifications. AOOPA.org.
• Statista Research Department. (2022). Olive Oil Market in Russia. Statista.com.
• Hassan, S. S. (2018). Consumer perception of organic olive oil in Turkey. Journal of Food Products Marketing, 24(3), 278-293.
• Gatsinzi, A. (2019). Sustainable Agriculture and Exporting Olive Oil: Opportunities in Turkey. Agricultural Economics, 22(4), 543-558.
• European Commission. (2020). Quality Standards for Olive Oil. EC.europa.eu.
• Smith, J. (2019). Marketing Strategies for International Food Products. Journal of International Business Studies, 50(5), 829-851.