Marketing strategy for Ronnie's Place convenience store relocation

¶ … city of Four Oaks, North Carolina is involved in the planning stages of development of a new diamond interchange at Keen Road. Unfortunately, several businesses lie in the way of the design and construction of the project and must be relocated to other parts of the town. Ronnie's Place, Inc. is at the center of controversy as the business must be demolished and a new building must be constructed in another location. In order to finance the reconstruction, the State Department of Transportation must purchase the existing facilities and compensate the owner for his time, effort, and interruption of daily business. Until a fair price has been established between both parties, the owner must concentrate on other opportunities to acquire capital to construct the new facility. Furthermore, he must create and implement a suitable business plan to sustain the growth of his new business. To accomplish these efforts, the owner will utilize the four P's and the four C's of marketing:

Product

Company

Price

Customers

Promotion

Competitors

Place

Collaborators

The following discussion will provide a detailed analysis of each of these basic marketing principles in the context of the creation of the new business in Four Oaks.

Product

The new convenience store promises to deliver a greater quantity and variety of quality products in its new location than in the past. In association with its suitable location just off the interstate, the store will offer food items such as snacks, sandwiches and beverages, gasoline, gifts, and novelties, designed for both travelers and local residents. In addition, the store will sell tires and offer tire installation for those who may experience problems in driving to their destination of choice. Other items that will provide numerous benefits to customers include farming supplies for local residents, animal feed, and hardware products. Finally, during the spring and summer months, a variety of plants and shrubs will be offered for those interested in maintaining gardens and landscaped surroundings.

All products will be high in quality to maximize the attractiveness of the business. For example, all food items will be fresh and routine merchandise reviews will be performed to remove all expired items from the selling shelves. Furthermore, many brand name products will be available for purchase, ranging from food items to hardware products. The store will also be fully staffed at all times in order to provide consumers with the best possible customer service since word of mouth may be a possible method of attracting new business. Finally, the store will implement a friendly return and exchange policy that will provide simplicity for customers who wish to return products, and a warranty policy will be available for more expensive products such as hardware items and tires.

Price

Items sold in the convenient store will be competitively priced at all times in order to attract a wide variety of customers. On a weekly basis, sale circulars will provide customers with a variety of products listed at a sale price. Recurring sales on tires will also be in effect, with additional special promotions for purchasing more than one tire at a time. Local farmers will have the opportunity to purchase farming supplies at a heavily discounted price during harvest seasons. For those who do not have sufficient cash for payment or who choose to purchase their items in another manner, credit cards in the form of Visa, Mastercard, American Express, and Discover will be accepted on all purchases. Furthermore, since the owner will invest in a check machine to validate purchases made by check, personal checks will also be accepted with the presentation of proper photo identification. Finally, British Petroleum (BP) gasoline will be competitively priced at twelve pumps according to market trends and the availability of oil reserves for U.S. Markets.

Promotion

The convenient store will utilize a number of promotional tactics to attract new and existing customers. Sales circulars will be available in the front of the store to promote items discounted for the week, and an advertisement will be posted in the local newspaper every Tuesday. In addition, once the new location has been established and the interchange has been constructed, a new road sign that clearly describes the store and its gasoline availability will be created on the interstate, three quarters of a mile before the exit ramp to encourage travelers to exit at the ramp and obtain any supplies that they need.

Another sign will also be constructed at the end of the exit that will provide directions to customers who are not familiar with the store's location. Since the store will be promoted as a 'one-stop shop' for customer needs, public restrooms will also be available for use.

Finally, for those who may experience tire trouble in their travels and must purchase new tires, while waiting for installation to take place, customers will have access to a number of comfortable seats where they can rest while they wait for their vehicles.

Place

Since only one business location will exist, it is in the owner's best interest to clearly communicate future relocation plans to members of the surrounding community so that they are prepared to take their business elsewhere in the interim.

Once a purchase price has been negotiated with the State Department of Transportation, plans must be made to identify a feasible site near the original location for new construction. This site must be located near the proposed interchange to accommodate interstate travelers and must be easily accessible to a diverse customer base. Construction on the new site will require the employment of new contractors and the acquisition of new building permits and licenses. Furthermore, the new building and parking lot design must accommodate the standards of British Petroleum in order to construct new underground tanks, a fuel tank, and required storage facilities.

Company

In order to maintain a successful operation upon relocation, the owner must continue to communicate the importance of all aspects of the business while in transition. As the project begins, organizational representatives must actively engage in all aspects of the business in order to minimize losses during relocation and maximize future profitability at the new location. This must include a concentrated effort to achieve the best possible price for the existing location that will be demolished to make room for the new interchange. Furthermore, the costs involved in new development and construction must be thoroughly evaluated to sustain growth.

Marketing, financial, and operational initiatives must continue to be cultivated while relocation is in progress. Marketing efforts must be concentrated on the promotion of the new store in its new location for local community residents. In order for all efforts to be successful, the owner and all employees must engage an entrepreneurial spirit in regards to the project as it is likely to produce additional opportunities for growth and to attract a new customer base. The owner has already adopted an entrepreneurial attitude by engaging in the risks involved with relocating an existing business; therefore, it is anticipated that the new store will reap great rewards.

Location-based competition

The convenience store has a distinct competitive advantage in that the area population is small and a relatively few number of businesses that would provide healthy competition for the business. Therefore, the store possesses many opportunities for growth in its new location. Pricing is extremely important and should remain competitive throughout the year. In the peak farming season, customer loyalty will be rewarded through the discounting of bulk purchases for farming supplies. Furthermore, pricing for food items will be competitive, and sale items will always be available through the promotion of a weekly circular.

Competition will also be based on providing products of the highest possible quality. Most importantly, name brand items will be stocked and perishable products will be routinely checked for freshness. Those that are no longer considered high in quality will be removed from the shelves. Furthermore, nonperishable products such as hardware items, tires, gifts, and novelties will be selected based on a predetermined set of quality standards to attract and retain a diverse customer base.

A sustainable competitive advantage also requires paying attention to trends and other factors related to time. The convenience store hopes to maximize its potential growth by keeping track of the latest products and market transitions. This will involve defining specific objectives and timelines during the relocation phase to establish an appropriate plan and target market to promote the new store and its product line. It is also critical that the transition period is managed efficiently in order to maintain name recognition and to promote the new business.

The new location of the business is perhaps one of the most critical factors in determining future success. Since the store's existing location is in the way of the interchange project, the new location is extremely important to its future growth and competitive advantage. The location must be easily visible to new and existing customers and easily accessible from the nearby interstate. In addition, signs must be created to attract potential customers from the interstate to the new location. A variety of tactics must be implemented to assure that the location is promoted as a strength of the business.

Collaborators

In order to guarantee a successful launch, the owner must engage in partnerships that will provide mutually beneficial results. The first step that the business must take is to negotiate a fair and equitable selling price for the land that is to be sold to make room for construction of the new interchange. The final price should consider the cost of construction of the new facility, the employment of contractors, the purchase of necessary equipment and supplies, and any other immediate needs. Furthermore, the negotiated price must include an assessment of the costs associated with the loss of business from the period when the original location closes to the reopening of the new facility. This partnership will enable the owner to design and construct a new facility according to personal needs, specifications, and to maximize competitive advantage.

Collaborations with various suppliers are also critical for future success. Suppliers will provide the business with many opportunities to gain access to new products as well as best-selling products that act as the livelihood of the business. British Petroleum is also a large contributor to business success as a fuel supplier, providing customers with access to fuel for their needs. A substantial factor in the economic stability is the availability of fuel, as it provides exposure for the business and will attract customers who possess the potential to purchase additional products during their visit. Collaborators can provide the business with prospects for growth and flexibility in its new location.

Conclusion

Ronnie's Place, Inc. is faced with a number of challenges in the coming months. The future demolition of a thriving business will require extensive capital and resources to reconstruct in a new location. Once a final price for the sale of the existing property has been determined, plans can be drafted for the construction of the new facility in a desirable location within Four Oaks, close to the interstate to attract travelers and easily accessible for local residents. The business will require an extensive product line specifically designed for customer needs, and provisions must be made to satisfy the requirements of local farmers during the peak season, including the sale of harvesting supplies. Products such as fuel and tires will also improve the bottom line if they are effectively promoted. An effective business plan for the development of the new convenience store will enable the owner to sustain growth and a strong competitive advantage as long as a concentrated commitment to complete success is in place.