Table of Contents
Lulu hypermarket is a hypermarket that is located in the United Arab Emirates but it has opened numerous branches across the Arab Asia in such countries as Yemen, Oman, Qatar, Kuwait, Saudi Arabia and India. In the recent years numerous branches have been opened in the expansive Arab Asia and its presence is highly felt across the region. Its expansion therefore calls for a properly thought out, calculated promotion and distribution strategy if it has to survive and succeed in the new markets across the region. This work therefore aims to explain some of the activities in the two broad strategies that the above hypermarket has to influence for its own success and fight off any existing and potential competition. Generally, a hypermarket is a building consisting of numerous businesses all under one roof though. These myriads of business thus require unique kind of distribution and promotional strategies that addresses the need of each kind of business in the hypermarket, (Joshi, 2005).
Promotion is one of the 4ps of the marketing strategies; others include price, product and place. Apparently, promotion is definitely superior to the other goods given that the consumers and/or customers have to be acknowledged of the existence of a product or the hypermarket in our case. Promotion generally creates awareness to the potential customers. Thus in this case, promotion has to be done in such a manner that it creates a positive image of the business to the customers and the world in general. Quality promotion thus should be encouraged at all cost if the business has to capture massive number of potential customers. There are several promotional methods that are open to Lulu Hypermarket in its expansion endeavors. One very important aspect to factor in any kind of promotion is the use of medium. Any promotion has to take place through a media or a medium of communication. There are certain types of media that are more effective than others when it comes to promotion activities. A medium that is used by large number of people at any time normally is preferred in promotional work. The following are some of the strategies that facilitate promotion (Kotler, 2012).
Advertising involves use of media, both print and electronic in order to create awareness of certain product, service or an activity. Advertising is by far the most frequently used by many business organizations in the world today. This has been made possible by means of rapid expansion of science and technology. The hypermarket can explore various means and ways of advertising the products and services that exist in its premises. Below there are some of the medium of advertising that the hypermarket can use
This is one of the most effective medium of advertising. This is because it has audio-visual qualities. Millions of people in the world today have access to a television set. Moreover, the television enables the potential customers to view the qualities, location and the nature of the hypermarket. Existence of such facilities as DSTV enables the worldwide viewers of television to watch advertisements placed in a media house in a country to be seen by many people in the entire world. The unit cost of advertising using a TV is normally very small in comparison to other promotional means. Through seeing people are able to appreciate the product more compared to listening only.
This is another way of advertising a product. However, unlike the TV, the radio has only the audio qualities. Furthermore, it is also used to create awareness of a product or a service. The main huge advantage of using a radio is because of its affordability by many people even the financially challenged, thus the message can reach many people. It is also to catch up radio messages in such media as YouTube thus netting so many potential customers as compared to using a TV.
Facebook is a social media that emerged in the better part of this century. It allows people to socialize with each other through internet. There are millions of users of the Facebook in the world today who interact with each other from all corners of the world. Its popularity is growing each day. Many businesses have cut a niche by advertising and promoting their products on Facebook. This is owing to its huge clientele base. Lulu Hypermarket should open a fan page on the Facebook and advertise itself there as well as getting comment from the customers over the services that are offered in its outlets. This will serve as an important source of feedback information which can be used in order to improve its services delivery. It is also able to create awareness of its existence in various countries through the Facebook.
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This works in a similar manner to the Facebook’s but its clientele base is smaller because normally it is used by the people of high social class in the society. However, these people who are important because they are the ones who frequent such places as hypermarkets. The Lulu Hypermarket can create a Twitter account and promote itself via it and also get a lot of feedback from the existing customers.
The hypermarket can also use prices to attract potential customers to its premises. It could lower prices as compared to its competitors and this ensures that many people flock to its premises to buy goods and services. For instance, it could come up with offers during certain times of the year such as during holidays both religious and national. For example, hypermarkets that are located in predominantly Muslim countries can offer low prices and free gifts during the season of Ramadan to attract Muslim faithful.
This type of promotion is generally a special type of price promotion. This is based on the premise that the hypermarkets in many countries are generally preferred by the high class people in the society and thus should be established in the leafy suburbs and posh areas so as to attract rich people. As such premium prices should also be levied on all goods and services offered within the hypermarket to regulate the buyers frequenting the premises. This strategy will highly work for the Lulu Hypermarket since many people in such countries as UAE have money because it’s a business hub and in other countries there is a lot of oil wealth thus a hypermarket established in such a region would grow and succeed (Tapaleao, 2008).
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Distribution involves transportation of goods and services from the hypermarket to the customers as well as movement of the goods from the suppliers to the stalls and business within the hypermarket. Goods should be delivered to the hypermarketand to the customers in a timely way. The delays may occasion losses and also loss of customer loyalty to the
hypermarket. The hypermarket should outsource its distribution activities. This ensures reduced costs as well as enabling the hypermarket to focus on its core competencies and outsource the rest. Outsourcing also ensures reduced burden on management and thus ensures efficiency and effectiveness. The business should also enlist the services of many logistics companies in the world today to ensure proper distribution activities. Outsourcing ensures that the business directs all its expertise and resources to the areas that are core to the operations of the business and this promotes growth as the hypermarket will outsource all the activities that are not critical to its operations.
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Lulu Hypermarket stands to benefit a lot from the implementation of the above mentioned strategies as it seeks to have its presence and impact felt in all the places where it
establishes its operations. Promotional strategies are the keys to success of any business since they serve to sway the customers towards its premises. Outsourcing is a new business concept in the world of business and its benefits are numerous thus the hypermarket should make use of it for its own advantage and prosperity (Homburg, 2009).