Effectiveness Of Customer Relationship Management Of Greggs Marketing Essay

The target of this research is to propose a virtual investigation of marketing functions of the Greggs in UK. This analysis is mainly about the customer relationship management of this company at East Ham branch.

Objectives:

Critical evaluation of the contemporary theories which are part of consumer relationship management.

Analysing the customer relation management in one of the leading bakery market leader Greggs at East Ham branch.

To evaluate the effectiveness of customer relationship management at Greggs East Ham branch.

To give conclusion and recommendation for improving customer relationship management Greggs at East Ham branch.

Introduction:

In the competitive bakery market Greggs is one of the leading companies in the United Kingdom. This company is achieving much facility over competition by providing its good products and services. The reason why this company is doing so because of its great customer relations and this company is looking closely the requirements and expectations of customer. This company looks customer’s wealth both in the secondary and tertiary level. These sectors indicate the manufacturing and customer services department of this company. The main target of this company is to fulfill consumer’s requirements and also to provide its shareholders for sustainable financial returns. This company provides opportunities for its staffs to improve their work performance. To encourage the staffs and make them more active this company provides rewards. To run the business of Greggs supplier’s policies are maintained strictly.

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Marketing strategies play an important role for achieving the competitive usefulness and as the good service provider this company is doing better. To inform consumers about the latest products Greggs is following some customer relationship policies and it is helping the company to achieve its marketing target. As the bakery market leader this company is dominating the UK bakery market and this company is trying to expand their business in several regions. Communication and brand value is helping this company to create more accurate customer relationship between Greggs and its customers (BBC news 2006).

In the bakery market Greggs in second position and it has become in this position because of its perfect stock and supplying products anytime to its valued consumers. The customer relationship management and delivery system is nice but should improve a bit and in this research it will be explained briefly. It is possible to be improved like the bakery market leader. It will take some time but it is possible (Jorn Madslien, 2006). The image value of Greggs is much demanded and it is not so cheap. I think that with the help of customer relationship management Greggs will try to reach the highest positions and it may start from my research place at East Ham branch.

Background of the company:

In my research work I have discussed about Greggs which is mainly a ready food manufacturing company and making profit by providing good services. Greggs is the UK’s leading retail baker. It is specialise in sandwiches, savouries and all sorts of other baker-fresh food on-the-go. This company started its business in Newcastle with one shop and seven vans and now its total shop is more than 1400. It is really a well organized company that is the reason why I have decided to make may report on this company. Bakery business and its all types of technical points are available in this company. There are a number of shops in United Kingdom and I will discuss the customer relationship management in a particular shop and it is the East Ham branch. Market share of this company indicates the sells on particular products and it is determined by the ration of brand’s sales and total category sales (Brittorn and Rees, 2005).

According to the some research company like TNS world panel, Tesco, Asda, Sainsbury’s and Morrison’s are the largest four chain super shops in the United Kingdom. These four companies hold 74.4% grocery market. There are some food preparing company which are also running their business in the UK but their contribution in this sector is not too effective like Greggs. By inventing new products and improving products and customer services this company is becoming the number one company in the United Kingdom. New products and good customer services are attracting customers and making this company profit.

Conversely there many companies which are maintaining their business from home country and expanding there services over the world. Wal-mart/Asda is the best example in this sector. Some super chain shops are offering a large range of brand value and providing product with cheaper price and some of them are struggling against their competitors. A well known British Company Greggs is providing customer services in various ways and their approach of customer services. Greggs is producing new products very frequently and they are inventing newer products considering customer choice.

Literature review:

Going to the Greggs at East Ham I found that the operating system of this company in this particular store is democratic. This store is following democratic style in solving several problems and arranging meeting this company try to solve anything wrong for the company. According to the management of this company Greggs follows the democratic style but according to the staffs of this shop it is known that this company is following the autocratic style to run their business. There are two types of opinions are found in this shop. One is that managers believe that for decision making not only the managers but also the staffs are responsible and the second one is that staffs of this company believe that they are totally driven by managers and they do what their managers want from them.

There is a hierarchy of managers and it is followed in this company for the wealth of Greggs. Managers of all levels are responsible for particular duties. Decisions of various levels are taken by managers of that particular level. Every level of managing system is responsible for their duties and they generally communicate with upper position for their changing or modification. Mainly Greggs follows the democratic style of management but sometimes it also follows the others styles for running the business profitably. According to my own opinion Greggs is doing good and following several strategies for running their business and making more profit. Making good profit and running the business smoothly means that this company is well organized.

Culture

There are various types of organisation cultures and the most import four of them are:

Power Culture: in this culture individual’s activities are more preferred than group activities and taking any types decision personal opinions are considered with care.

Role culture- For carry out any thing every member should have a particular job.

Task culture- Team building is emphasised in this style and every member of this team should share aspiration and values.

Person culture- Every thing personal are centrally considered and any organization exits for serving the better things for them.

Greggs culture

This company is describing its culture in constantly and compete against any competitor of this organization. It is their target and process of doing anything. The process of this company is not too effective now a day.

Communication Channels

Any business needs to communicate. Without communication between clients, employees, suppliers and organisations within a business are not possible. Communication between several sectors like employees, organization and suppliers are very essential for any business and it is impossible for running any organization without keeping good relations between them and so it is needed to:

Everybody should be clear about their doings.

Communications between various organization and communications between companies and clients should be maintained clearly.

Everybody should be involved and motivating idea should be followed.

Any new thing and development should be responded quickly.

Well information is essential for any organization

Business location is where the business is situated. Location is considered very important for a business as it can determine if the business achieves or not. The business location is usually considered before the business is set up, as they need to look at all the factor, which affect it.

Business location is important for expanding business and it means the situation of the business. Depending on the location many things can be achieved or not. Before setting up any business its location should be considered with careful consideration and factors related to business should be maintained according to the company’s rule. Some of the factors are:

Competitors of the company

Charges of the local government

Complimentary businesses

Suppliers positions

Cheap land

Landing cost

Resources and its types

Cheap labour

Clients

Transport links for customers and suppliers Setup linking between several sectors

Select areas for potential clients

Main roads

These factors all influence the business’ choice of location. It is important for businesses to not locate too near other competitors, as there would be more of a struggle for customers. Complementary business is also helpful for any business and it is also related to the location. Consumers generally visit the store for essential and luxurious products and both of these products are produced in this company. Customers are finding every thing they need under the same roof in cheaper cost. Providing these services this company is attracting more customers daily.

Near suppliers are also chosen by the business company and location is really helpful for it. For example we may conclude some examples. If during the Christmas if requirement of some products grow up then the nearer suppliers are selected to supply product continuously. It is related to labour influence and cost. Cost may affect any business very much. If costs of any thing grow up and location is not too famous then the business never can see the light of success. So labour costs and supplier costs should be considered carefully for running any business profitably and it can be done only when every factor is under controlled. Low land costs may help any business to expand its business and business may help the company to make profit. So every types of rent should be in a minimum range.

Locations are important for running any business and making it profitable. There are some shops which are located in the petrol pump in the road side. This type of shop helps the business in a several ways. These small types of businesses are helping to control the business. Some shops are situated historically and its positions are not only location dependent but also event dependents. For example we may conclude the position of some shops in the china town London. This place is famous for some Chinese restaurants and this place is famous for some traditions and themes. Business could be the financial helping purposes and it is also important for any business.

Our considered Greggs store is an extra shop which indicated that all types of bakery products are available in this shop. Foods for any traditional area are available in this shop. Especially foods for the Asian and European are available in this shop. Some facilities of this store are as follows:

Customer toilets are clean

Cash machines are available

Good facilitate for disabled access

The location of my considered shop is at East Ham which is very busy and popular place for some consumers who works in the East London. If this organization would be a sole trader then it would earn a lot of profit. Sole traders are unable to control business situations and financing problem is also available in there. It is very stressful for this company and it also motivate all types of related factors. There are some disadvantages in the system of this company for its liabilities. One more reason is that if the sole trader does wrong any thing then it may affect the business very much in negatively.

In the whole sense Greggs and its business is now in good position and this company is attracting more customers by setting new stores near the locality. As this company is getting extra capital from shareholders and so this company is facing any economical recession. To meet the customers need and reaching the aim of the business the marketing department is very important and it is making the customers loyal. This is the Greggs customer caring system and in this system customers are consider as the valued person and they are considered as the first priority for the business of Greggs. It is an important part of the marketing department for making more profit by offering some nice options.

Technological development is affecting any business very much and business environment is changing its position rapidly. Communications and transportations are also helping this company to expand business and it can affect the business nation wide. This company is not only competing with the local competitors but also this company is competing globally. This can help the business to be recognized internationally. Continuous improvement of the business and expansion of the market size are the most important factors for Greggs to be successful ( Kotler et al, 2005).

Justification:

My chosen topic is very interesting to me because it will help me to be informed about national and international marketing systems and some of its critical policies. As any big business is changing day by day and their changing style is rapid and fast. For observe any large business and some of its critical issues my considered company Greggs is a very good example. Customer relationship management is very effective in this store and it is making the customer valued.

Hypothesis:

If consumers purchase products most of the time from this store then customer will be influenced by relationship management.

If consumers visit this store frequently then a good customer relation will be formed and this will happened because of good customer relationship management.

Methodology

The Greggs at East Ham will mainly be used for market research. The research basically base on the customers relation management and their doings. It is very good news for Greggs that this company need not research in this sector very accurately but it should keep in touch in this sector. By using the accurate customer services this company is achieving its target and making profit from all sectors. Price is one more important factor for this company to be successful. Loyalty of this company is also an important virtual factor for this business. The main aim of Greggs is to provide good customer services and treat them as valued partner of their business.

There are many customer services sectors and one very important point is that the complaints department. Customers may fall in any trouble with their products and if they come to the store then the customer service department will solve the problem with care. Greggs is always confident for good customer services.

To make any business organization famous and profitable some factors are very essential and customer service and customer relation is one of the most important factors of them. Needs may vary according to customers choices and Greggs always gives priority to the customers requirements. Greggs provides reliable customer services for its loyal and active customers.

People are the first considerations of Greggs and this company is emphasising on it very much. Customers are heartiest welcome in the shop of Greggs for collecting new products. For making the shop more efficient and making it only for the customers Greggs is changing its business policies. For better policies this company pays head on the current situations.

There are many tips for customers of Greggs and this company is providing these tips for good customer relationships. Some experienced employees are responsible for observing the customers choices and they are taking steps considering the customers choices. Greggs maintains its product quality and it is done with care. By providing good products for customers Greggs is maintaining the good customer relations.

Greggs customer expectations

Good value product offers is the best policy of Greggs and this company is doing this for making good profit.

Greggs is providing clear and good pricing policies to its customers and it is one of the most important factors for this company to be successful.

Quality customer services are very much prior point for this company and this company is providing good services and achieving good things from customers.

Some services related to customer and customer services before and after sells are available in this company.

Research design

Its major purpose is to gain an understanding of the factors that influence consumers purchasing because of good customer relationship management. Survey-based methods are used to collect information regarding the characteristics of direct purchasing from shop and internet purchasing on the Internet.

Data collection methods

Data for our research will be obtained from consumers and it will be achieved from 250 customers who buy products from Greggs at East Ham. Some survey questions will be used for our research work. These questions are easy to understand and it will take no more than five minutes for filling up (Cavana et al, 2002:307).

Data collection procedures

Secondary data will also be used for our research work and these data are collected before for doing another research. In this case I am interested for collecting data and process it according to some rules and regulations (Kotler et al, 2005).

Data collection will help the research in many ways and one of them is to provide the real information about the products of Greggs and effects of customer relationship management in this particular branch.

Data can be collected from various secondary sources and this type of data will help our project to be more successful.

We will visit the Greggs at East Ham between 12 pm and 1:30 pm while most consumers lunch and buy products at that time. The consumers will be selected randomly by us to answer the questionnaire. Firstly, we will introduce the research topic and purpose clearly to the consumers with polite attitude. Also we will mention that the survey will not take long, because majority people will deny to spend long period of time for doing survey during the lunch time. Then the consumers will be given the questionnaire .When the respondents have any doubts with the questions, then we should clarify those problems for them. In addition, we should maintain patient during the participants doing the questionnaires. We should not give any pressure to expose participants to physical or mental stress; it may affect participants giving untruly answers for the question or refused to complete the questionnaires.

Sample characteristics

A simple random sample of 250 will be selected from Greggs. Their ages range will be from 18 to 40 years. Most of the participants will be under 25 years.

Data Analysis

After data have been obtained through questionnaires, we need to be edited firstly. Then the blank answers will be handled by us, because not all respondents will answer every item in the questionnaire (Cavana, Delahaye & Sekaran 2002:315-318).

Using software program of SPSS

In this project SPSS will be used for some data analysis, a menu-driven software program to do the statistical analysis. Firstly, the SPSS data file will be presented on the table, and ‘each row will show the reposes to each question by each respondent; and each column will show the responses to each asking and its related answer (Cavana et al, 2002:403).

There are several limitations in this redesigned study. Firstly, the samples will be selected randomly from the consumers. Due to those reason above, the number of valid responses became less. There was a higher proportion obtaining the valid responses from this specific group. Moreover, the redesigned study used personally administered questionnaires to obtain the valid responses in the small boundary. However, for the original study, the author used electronic questionnaires could reach out broad geographic area.