TABLE OF CONTENTS
A MARKETING PLAN FOR THE HEADQUARTERS OF AMERICAN PREMIUM ENTERPRISE LIMITED………………………………………………………………………………………………………………………………………. i
DECLARATION……………………………………………………………………………………………………………. iii
ACKNOWLEDGEMENTS………………………………………………………………………………………….. iv
EXECUTIVE SUMMARY……………………………………………………………………………………………….. v
CHAPTER ONE: INTRODUCTION………………………………………………………………………………… 1
- Introduction………………………………………………………………………………………………………. 1
CHAPTER TWO: PROJECT NEEDS ASSESSMENT………………………………………………………. 10
- Overview of Chapter…………………………………………………………………………………………….. 10
2.9 ……………………………………………………………………………………………………………………………………….. 14
Summary of Identified Problems………………………………………………………………………………….. 14
CHAPTER THREE: MASTERY OF SUBJECT MATTER……………………………………………….. 15
3.3.2 Strategic Decision Areas for Retailing………………………………………………………………. 16
3.3.4 Retail Growth strategies………………………………………………………………………………….. 16
CHAPTER FOUR…………………………………………………………………………………………………………. 19
SOLUTION…………………………………………………………………………………………………………………… 19
……………………………………………………………………………………………………………………………………………. 22
4.6.3………………………………………………………………………………………………………………………………….. 23
People……………………………………………………………………………………………………………………. 23
4.6.4………………………………………………………………………………………………………………………………….. 23
Promotion………………………………………………………………………………………………………………. 23
4.6.5………………………………………………………………………………………………………………………………….. 23
Price………………………………………………………………………………………………………………………. 23
An analysis of the Retail Industry in Ghana using Porter’s Five Forces………………………………… 26
4. 10 …………………………………………………………………………………………………………………………………….. 28
Stage Two: Objectives………………………………………………………………………………………………… 28
4.11 ……………………………………………………………………………………………………………………………………… 29
Stage Three: Strategy…………………………………………………………………………………………………. 29
Segmentation, Targeting and Positioning for the Headquarters American Premium Enterprise Limited
……………………………………………………………………………………………………………………………………………. 31
4.12 ……………………………………………………………………………………………………………………………………… 33
Stage Four: Tactics…………………………………………………………………………………………………….. 33
4.12.1 The New Marketing Mix………………………………………………………………………………… 34
Product……………………………………………………………………………………………………………………… 34
Place and Physical Evidence………………………………………………………………………………………… 34
People……………………………………………………………………………………………………………………….. 35
Price…………………………………………………………………………………………………………………………. 35
Promotion………………………………………………………………………………………………………………….. 35
Text Messaging of Customers……………………………………………………………………………………… 36
4.13 ……………………………………………………………………………………………………………………………………… 37
Stage Five: Action Plan……………………………………………………………………………………………….. 37
Table 2 Budget Analysis……………………………………………………………………………………………….. 38
Table 3 Timeline of Activities…………………………………………………………………………………………. 38
4.14 ……………………………………………………………………………………………………………………………………… 40
Stage Six: Control and Evaluation……………………………………………………………………………….. 40
CHAPTER FIVE: CONCLUSION AND RECOMMENDATIONS…………………………………….. 41
REFERENCES……………………………………………………………………………………………………………… 42
APPENDIX…………………………………………………………………………………………………………………… 44
Figure 10. Interview Guide for the Client, owner of American Premium Enterprise Limited….. 44
Figure 11. Continuation of Interview Guide for Client…………………………………………………….. 44
Figure 12. Interview Guide for Existing Customers of American Premium Enterprise Limited.. 45
Figure 13. Interview Guide for Potential Customers of American Premium Enterprise Limited. 45
CHAPTER ONE: INTRODUCTION
1.1 Introduction
This applied project aims to develop a marketing plan for American Premium Enterprise Limited, a department store located in Accra. Although, the company currently has five branches in Accra, this project is focused on increasing the sales and customer base of its Headquarters which is situated at Ashaley Botwe, Accra.
1.2 Overview of Chapter
This chapter begins with a profile of American Premium Enterprise Limited and a rationale for choosing to work with the department store. It further analyzes the Ghanaian retail industry, and the external business environment of the store through a PEST analysis. The chapter concludes with a thorough analysis of the strengths, weaknesses, threats and opportunities of the company.
1.3 Internal/Organizational Context
1.3.1 Company Profile
American Premium Enterprise Limited was incorporated in 2007 under the name Ghana Ventures. In 2015, it transferred its management and changed its name to American Premium Enterprise Limited. The company operates as a department store that offers a variety of consumer products to customers. The company sells both convenience and shopping products like groceries, furniture, paints and home appliances to consumers. Despite its names, it sells products from other parts of the world including Ghana that meet the American standard.
American Premium Enterprise Limited currently has five branches situated in the heart of Accra. These branches are located at Madina, North Kaneshe, Ashaley Botwe, Spintex and East
Legon. The company prides itself as being the number one distributor of authentic American consumer products including brand groceries.
1.3.2 Mission Statement
To serve the needs of individuals in Accra seeking for quality products by providing it for them at affordable prices.
1.3.3 Vision
The vision of American Premium Enterprise Limited is to become the market leader in providing quality American and American-standard consumer products to individuals looking for quality products at affordable prices.
1.4 Rationale for Selecting American Premium Enterprise Limited
As stated earlier, American Premium Enterprise Limited is a company which operates as a department store to cater for the product needs of individuals living in Accra. Due to the increased competition in the retail industry in Ghana, the stores’ headquarters is currently experiencing a decline in sales and customers.
The underlying reason for undertaking this project was to have the opportunity of further learning by applying the knowledge and skills that gained in marketing class to solving a real-life problem.
A marketing plan is able to help companies increase their sales revenue as well customer base, which leads to customer loyalty. Thus, it is very necessary for American Premium Enterprise Limited to have a marketing plan to reap the aforementioned benefits. The marketing plan devised would lead to an increase in the sales and customer base of the store as they will be able to maintain existing customers as well as attract new ones.
1.5 The Retail Industry in Ghana
The retail industry in Ghana has been booming for the past years. A report by the Central bank showed that retail sales increased by 31.37% in 2011 to GHS77.76 million from GHS59.19 million in 2010. Given the rising of the middle class who benefit from higher disposable incomes, retail spending is expected to reach about $11billion by 2019. (“Ghana Retail Market Potential Drawing in International Brands”, 2016). Per an article published by Bloomberg, Broll Ghana, one of the leading property management companies in the country, stated that the growing number of investors in the retail industry has led to an increase in the rent rate of floor space. (Bax, 2013).
According to Standard Bank, the rapid economic growth coupled with the rising disposable income and middle class has moved Ghana into the focus of pan-African retailers such as Shoprite, Edcon and Woolworths. Regardless of the low barriers to entry into this industry, its size is still small as compared to the other sectors within the Ghanaian economy. (“Ghana Retail Market Potential Drawing in International Brands”, 2016) The growth in this industry could potentially be a threat to American Premium Enterprise Limited as competition will gradually become intense.
Another report published by Deloitte revealed that 96% of all retail transactions in the country are carried out in the informal sector. With the informal sector being small market stalls, street side vendors and family-owned grocers. Retailers struggle to access efficient supply chain. A large number of goods are imported from countries like China, Europe, and South Africa. Due to the small size of the retail industry in Ghana, most retailers depend on small-to-medium size multi-brand importers who also rely on shipments from third party countries. (“Spotlight on Retail in Ghana”, 2016)
1.6 Overview of the External Environment in Ghana; PEST Analysis
The PEST analysis is an analysis of the external business environment in which the department store operates. It involves the analysis of the prevailing political, economic, socio- cultural and technological factors that could potentially affect the store.
1.6.1 The Ghanaian Political Environment
Ghana is one of the most stable countries in West Africa; the country has made some democratic achievements since its transition to a multi-party democracy in 1992 (“Ghana Country Profile”, 2017). This record has enabled the country to attract substantial investor interest. The political stability in the country combined with the rapid economic growth has helped boost investment. This environment has helped Ghana to form strong alliances with countries like the US, the UK, China, India and South Africa. (“Political Stability”, n.d.)
In Ghana, domestic taxes are administered by the Domestic Tax Revenue Division of the Ghana Revenue Authority. Companies are required to pay a tax rate of 25% on their profits gained in a year. Sole-proprietors are also required to pay income tax in four equal instalments. There is also the existence of the Pay As You Earn (PAYE). This is where employees’ salaries are withheld in order to cater for their income tax responsibilities. (“Domestic Taxes”, n.d.).
Moreover, Ghana is currently subscribed to the Harmonized System Customs Code for the classification of goods. This system allows for goods imported into the country to be subject to import duty, Value Added Tax (VAT), special tax and import excise duty. Although some items are exempted from the payment of customs duty, all imports are subject to import duty and VAT payments. (“Ghana Country Commercial Guide”, 2016) Given that American Premium Enterprise Limited imports most of its consumer products, high import duties and VAT could potentially affect its price.
