Target market and value preposition
The essay is a critical analysis of customer driven marketing strategy used by Only Oz an Australian firm. It is one of the fastest growing firms that deal with a wide range of products and services including grocery, drinks, children and baby food among others. It also offers customers the options of shopping online as well as door step delivery. The firm deals with Australian products. It is worth noting that firms which have adopted technology in doing business have managed to gain competitive advantage (Charlesworth, 2009).
Scholars have strongly believed that successful adoption and implementation of online selling is key to success of any business entity. The product that will be used in this assignment is groceries. Customers, who by from the firm get very high quality services, avoid hassles associated with queuing and save time. They get value for their money.
The firm targeted families, hotels and individuals who need to cook and are not able to travel to Only Oz stores to buy groceries. To ease this problem the firm indulge in opening up a website where all their products can be accessed and orders placed. With proper identification of the right market segment, Only Oz has managed to cut costs and reduce time wastage in trying to reach unlikely customers.
In Australia, majority of individuals, families as well as restaurants and hotels do not have enough time to go looking for groceries. For this reason the firm established that customers are more interested in receiving high quality service in terms of ordering and delivery of groceries (Peacock, 2008).
The firm understands that to attain its goals and objectives there is need for it to clearly determine the needs and aspirations of customers and deliver goods and services to customers in a manner that is effective and efficient. To do this, Only Oz has managed to have a website where customers are able to place orders.
On the same note the firm has in place free delivery for products worth over $110. However when a customer is in Brisbane, inner Sydney, and inner Melbourne the charges ranges from $4.75 per 25 kg of product and $8.50 per 25 kg (OnlyOz, 2012). For individuals residing in all other parts of Australia the charges are calculated depending on the weight and the postcode. The cost is relatively cheap, making customers feel satisfied.
Additionally since time is of essence in delivery of groceries, the time taken to deliver the products has been greatly minimized. For instance Only Oz delivers the product the same day in the afternoon if an order is placed before 9am during weekdays for customers within Brisbane. Those living in outer Brisbane will receive the product after one day (OnlyOz, 2012).
To cater for international customers, the firm has in place a mechanism to hand international orders. This has helped the firm capture international market. It is worth mentioning that the firm has in place customer relation officers who are very helpful when customers call to inquire about placed orders and other related issues such as preferred packaging of groceries. Additionally customers were concerned about using packaging materials that are environmentally friendly.
The firm managed to use gluten free and 100% biodegradable materials. It is easy to dispose it since customers can just place them in the garden, in the toilet or in the sink. The same is not toxic. One major response the firm made from customers’ feedback is with regards to making their website user-friendly. Initially there were cases where the website was not easy to navigate especially when placing orders as well as tracking delivery of the placed orders.
Capturing value from customers
Scholars in marketing have established that it is cost effective to retain existing customers that looking for new ones. Similarly not all old customers are profitable to a firm. Additionally for a firm to grow there is need for it to capture new customers or steal them from competitors. With this in mind, Only Oz has adopted and utilized a range of strategies to capture value from customers. It is worth noting that Only Oz has managed to provide customers with high quality services.
Since customer value is objective, online ordering system, the way in which the groceries are packed and the time taken to deliver the products gives customers value for their money (Armstrong, Adam, Denize & Hotler, 2011). Additionally there are no mistakes when orders are received; customers are given what they ordered. This is similar to what Johnson & Johnson does, doing the right thing in business with the belief that the market will reward their efforts (Capon, 2008).
Another strategy the firm uses to capture value from customers is to provide them with goods and services at relatively lower costs. Additionally, the products (groceries) are local and fresh; this ultimately satisfies customers. The way customers are handle especially during disputes has resulted to customer loyalty.
Employees handle customers’ complaints in a professional manner, talk respectively to the customers and incase the mistake was on the firm’s side, the branch manager personally handles the issue. Lastly the firm has in place a system where shoppers gain points whenever they buy anything. These points can be redeemed for cash, other goods or even used to make a draw for customers to win a grand price (Gitomer, 1998)..
From the review of customer driven marketing strategy, there is no doubt that Only Oz has made strides in meeting the expectations of 21 century shoppers particularly when it comes to groceries. It has adopted internet selling, effective door step delivery and loyalty cards.
Armstrong, G, Adam, S, Denize, S & Hotler, P. 2011, Principles of marketing, Pearson Education Australia, French Forest, NSW.
Capon, N 2008, Managing Marketing in the 21st Century. Wessex Press, Indianapolis, IN.
Charlesworth, A 2009, Internet Marketing: A Practical Approach, Heinemann, New York.
Gitomer, J 1998, Customer Satisfaction is Worthless, Customer Loyalty is Priceless: How to Make Them Love You, Keep You Coming Back, and Tell Everyone They Know, Bard Press, McCormick Mt. Drive Austin.
OnlyOz, 2012, ‘Only Australian’. Web.
Peacock, M 2008, Selling Online with Drupal’s E- Commerce Module, Birmingham University Press, Birmingham.