Strategic Marketing Options For A Large Hardware Retail Chain In South Africa - Management Assignment Help

Assignment Task

1. Working Title:
“Strategic marketing options for a large hardware retail chain in South Africa in a rapidly changing environment."
2. Rationale:
The title of this study is"Strategic marketing options for a large hardware retail chain in South Africa in a rapidly changing environment."
The background to the proposed study is that in November of 2019, No company worldwide had an idea that the coronavirus pandemic would halt traditional trade business. Thus, they are forcing change management and readjustment of all planned promotions, stock imports, store closures, and, most importantly, job losses to the already profoundly affected South African market. 
The current global situation is that business environments are changing rapidly due to internal and external factors that cannot be controlled by large organizations, i.e., government legislation, availability of produce, innovation, and economic position.
During the current pandemic, the service-oriented sectors will be more impacted than agriculture or industry. With fewer tourists and lower consumption overall, airlines, retail, hospitality, and entertainment sectors are all expected to suffer significantly from the outbreak.
Exploring and understanding the research attained from the customers making purchase decisions at the store level will allow better planning for tactical short-term as well as long-term strategic marketing plans.
Key insights such as understanding the market, identifying the changes to the market, understanding customer needs, reduce risk and uncertainty.  
South Africa has fierce competitors entering the market space that is aggressively driving strategic strategies used in other countries with a focused approach to consumer needs.
The research study proposed will be of importance to the retail hardware sector. A better understanding of consumer behavior will create synergy and will positively impact large hardware retailers.  
The research will contribute new information to understand better the gap in knowledge regarding "consumer behavior in South Africa in a rapidly changing environment," creating better communication with the hardware retailer's target consumers.

3. Literature Review:
Review of literature discovered thorough investigation based on the knowledge available identifying the current scenario in South Africa. "Strategic marketing options for a large hardware retail chain in South Africa in a rapidly changing environment."
Marketing strategies used by the traditional business have not sufficiently evolved using technological advancements. Based on a rapidly changing environment, the current situation with the global coronavirus pandemic, consumer behavior, and consumer spending is quickly evolving. Hardware sectors will have a reduction in the level of consumption. Explained by Mohd, a business can take quite some time to adapt the consumer behavior (Mohd, 2017). Confirmation that consumers have shifted spending habits to food as opposed to hardware equipment considering the current situation.Extensive research into how large retail chains will adapt their marketing strategy options in South Africa in a rapidly changing environment.
Contributor states that retailers in business, such as hardware, can apply the business environment analysis as a strategy of determining the possible mechanism to influence business growth (Contributor, 2015). The large hardware retailers should evaluate the current market opportunities by identifying what the customers can consume in the hardware and not getting affected.
The modern consumer uses digital technology such as social media on a mobile device. The technology has created significant changes in the retail environment and provides opportunities for hardware retailers to revisit their marketing and product strategies (Drapers. April 30, 2019). Research by Boston Consulting Group in 2017 found that personalization can boost businesses’ revenues by 6% to 10%. (https://www.bcg.com. 2017.)
Digital platforms are growing at a rapid pace in South Africa as many e-commerce purchasing websites continue building and focusing on ensuring a trust factor is in place and focusing on customer service, ease of transacting, and ongoing customer needs. Communication channels used to interact with consumers regarding product or service queries using communication channels like Twitter, Facebook, Instagram, LinkedIn, and Hello Peter.  
The Omni-channel approach originated when Best Buy's use of customer centricity to compete with Walmart's electronic department in 2003 (Baird, N., 2015.) The company created a unique approach centered around the customer, both in-store and online, while focusing on customer support. 
Globally, innovation and practicality to consumers are of high importance.     
A research article published by Manhattan Associates, Inc. in 2019 shares relevant significant findings from multiple sources (Associates, Inc., 2., 2019.). According to (Forrester Research), Two-thirds of shoppers say service consistency across channels is essential to the" consumers are willing to pay 4.5 times more for excellent versus poor experiences. They rank customer service number two on top drivers of customer experience, behind only actual product or service quality. (June 2018) “For Many Shoppers, Consistency is Key”).
• PESTLE Analysis of South Africa (Political, Economic, Social, Technological, Legal, Environmental review of South Africa)
• Porters Value Chain (Five Forces)
• SWOT
Many large hardware retail companies in South Africa have existinge-commerce shopping portalsavailable. When understanding the customer's needs and expectationsin a rapidly changing environment, revised strategic marketing plans must be revised. The projects will continuously improve with newfound knowledge from consumers. The outcome of the research will offer recommended updates to current strategies to the large hardware retailer. 
Walmart Inc. owns 51% of South Africa’s most successful retail chain, with 49% belonging to local business Massmart Holding.
The following literature explains that Massmart is far behind the advancements made by e-commerce businesses, such as Takealot.com.
Wasserman mentioned that Massmart has been slow to catch the digital retail wave. In fact, over the past six months, Massmart has seen its online sales fall 14%, and it now only represents 0.8% of its total sales. Takealot is now far ahead in the game, especially when it comes to delivering products within a day or two, says Schalk Louw, portfolio manager at PSG Old Oak.
By comparison, Makro and Game (both are Massmart subsidiaries) have much longer turnaround times (seven to 14 days), and their sites are not user-friendly.
"The hard truth is that Massmart's model is dead. Fewer people now go to large warehouse-type stores with large trolleys to load products. Shoppers now want to click and get their products delivered quickly. Massmart's massive warehouse-style stores are clumsy dinosaurs," says Louw. However, Massmart is a good position that can take on Takealot, given that it has massive warehouses and stock that can be deliveredimmediately. (Wasserman, H., 2019.)
Sabahle Malinga from ITWeb reported that the Talealot.com CEO confirmed the company has achieved 1.8 million registered users and dispatches an estimated 2 million packages per month in South Africa (Malinga, S., 2019.) The CEO also quoted, “After expanding our Johannesburg DC, our warehouse storage space now stands at 75 000m2. We house over 3.7 million items at any given time and have opened 47 Takealot Pick-up Points in all provinces”. (Malinga, S., 2019)
Will the additional omnichannel method, if used correctly, gain growth and ensure a sustainable footprint within the market in the retail hardware space within South Africa? Reviewing the case studies on two successful companies in the US that focus on innovation and consumer interaction. Quantifying sources of advantage for Walmart Inc. / Amazon.com Inc
Its global knowledge that Walmart Inc and Amazon.com Inc globally, as author Jean-Marc François of Forbes.com, describes "Clash of the Titans" competing for the top prize.  Reviewing and understanding the source of advantage used by each company as well as insight into estimated revenue achieved in 2019.(François, J., 2020.)
Walmart Inc.'s business model is well-positioned in the Value Chain, considering what the company stands for in the vision and mission. Reviewing academic paper (Richardson, James E2005.) is the direct linking the company works to implementing the planned strategy. Details show that Walmart has applied a similar concept but modified to that of (Porters Value Chain, Porter, 1985). Academic papers and journals have shown that Walmart has implemented the following factors when doing business to ensure they remain profitable as well as honest. (Dash.harvard.edu. 2020.)
The use of Porter's Value Chainused by Walmart Inc. assist delivering overall strategic results and directly compete on price model and customer service expectations with Amazon.com Inc.However, successful implementation of the omnichannel approach Amazon.com has proved an enormous successin the US market. They are showing a proven strategy to adapt this model, fully integrate the customer shopping experience and commination channel, and review multiple cases in the United States, where many large retailers have had to file for bankruptcy and close many retail bricks and mortar stores directly affecting unemployment. An age-old fashion retailer named Macy's had to close 68 stores in 2017; in early 2020, they will close a further 30 stores. (Mary Hanbury January 8, (2020). As a large retail chain, Macy's occupied a vast volume of space in shopping malls. Amazon has leased these sites for "Quick Pick-Up" assisting Customer Service.
Conclusions
Researchfindings on the studyaim to connect with the hardware retail purchasing consumer directly and fully understanding all theneeds, expectations, and services, ensuring excellent customer connection.
It is bringing new insight to the gap in knowledge that has previously been researched in South Africa, allowing large hardware retailers to adjust better current marketing strategies to adapt in a rapidly changing environment.

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