Marketing Planning at Eat Limited - Assignment Example

? Marketing Planning Contents Introduction 3 Task 3 Tangible Resources 3 Intangible Resources 4 Capabilities 4 PESTEL Analysis 5 SWOT Analysis 6 Task 2 7 Task 3 8 Product 9 Marketing Plan 9 Marketing Mix 9 Task 4 10 Reference List 12 Introduction Eat Limited is a real Food company founded in the year 1996. They specialize in Coffee, Fast food and soup. Eat limited has become of the best local brands of fast food chain in London, having more than 100 outlets. The fast food chain is popular for its kitchen made and fresh food items, giving the feel of homemade food. The company is planning to expand its base. For this company will has started analyzing the market and choosing one product which the company will be promoting in the initial phase of the expansion. Task 1 The current business environment is constantly changing. The market is facing volatile changes which are affecting the overall planning of the companies as well. Thus, it is very important for any organization or organizes a proper and strategic marketing planning in order to survive and sustain in this volatile environment. A proper marketing planning is always helpful in properly organization activities and strategies used for future action. Marketing planning can be described as analyzing potential market places and marketing activities with the aim of determining how a business can optimize these potential markets. Planning process has changed over the years. For example, the planning process was much less competitive during the last century. The current market is ever changing and flooded with a large number of new products and services on a daily basis. Today’s consumers have much more options in terms of choosing between similar products and categories, compared to 10-15 years ago. This has also decreased the brand loyalty among consumers. To remain competitive in the current market, the food chain has to constantly update its marketing planning according to changing internal as well as external environment. In order to cope with the volatile environment, it is very important for the organization to have sustainable resources. Below is the resource based view of the organization. Tangible Resources Infrastructure, warehouse property and design of the chain of restaurants constitute the physical resources of the brand. Apart from these, the organization also has products such as brewing machines, facilities such as transportation and logistics. Though the organization does not boast a high financial resource, the company is fast growing and more and more investors are turning their head towards this newly popular organization. The organization can utilize this opportunity by collaborating with other investors as well as companies and grow its base in local as well as international locations. Intangible Resources The organization has created a powerful brand image and come a long way from the time it was established. Because of the increase brand image as well as overall brand equity, the organization has successfully created a niche in the fast food market. As a result, the market base of Eat Limited is continuously increasing. Apart from this, the organization has maintained a cordial relationship with its shareholders and other investors. This is helped in building overall trust among the investors and shareholders. Product diversification, service quality and availability of the brand in the major locations have made Eat Limited a local leader in affordable and quality fast food service provider. Research, development, marketing capability and creativity in new generating new products has provided a differentiated advantage for the brand. Apart from this, efficient and well trained human resource is strength for the organization. Capabilities Determining the capabilities and key resources of an organization is the fundamental starting point of any business strategy. The utilization of a company’s capabilities and resources with the aim of gaining competitive advantage defines the objective of resource management. According to the resource based theory, every firm has a pool of capabilities and resources. These can also be defined in terms of a company’s strategies and performance. For the maintenance of resources and gaining sustainable competitive advantage, proper utilization of the capabilities is extremely crucial. An organizational capability can be characterized as intangible and tangible. If an organization intends to establish a strategic planning in terms of marketing and communication, proper access to tangible as well as intangible resources is a must. Even though Eat Limited is not an internationally recognized brand, the firm has been successful in properly utilizing its tangible as well as intangible resources. Proper maintenance of a company’s resources is helpful during many critical stages, such as changing consumer expectations and demands, increasing consumer knowledge and their perception of quality, increase in disposable income thus increase in demands etc. the technological resources have also proved to be helpful in terms of providing quick services and increasing the speed of operation, thus reducing the overall operation costs. Human resources are other major resources which need proper care and maintenance, these are intangible resources and by far the most valuable resources a company can nurture. In case of Eat limited, the organization takes special care of its human resource pool, though maintain a proper and cordial relationship with all employees, providing proper training and development activities to its employees so that their service delivery is increased and quality of service increases (Semeijn et al, 2005). Efficient utilization of the resources has helped Eat Limited to create marketing plan according to the changing needs of the consumers. Eat Limited has established itself as a growing chain of restaurants in United Kingdom. To find out the present marketing environment PESTEL Analysis of the external environment has been done. This analysis will through useful insights into the current and future trends in the marketing environment as well the industry and will be crucial in making future strategies for the company. PESTEL Analysis Political Political trends are not much influential in stable governments, as compared to those countries which are highly unstable. Yet political factors do have some influence on business operations, even in stable governments. The country is one of the most developed nations in the world. Though the economic recession had a huge impact on the overall business, the government took some crucial decisions to reduce the impact. Cultural and sports budget saw a 22 percent reduction from their normal fund and the media department also saw a reduction in its overall fund (Gurdgiev, 2011). To reduce the pressure of the corporate, the government also decided to reduce taxes levied on corporate (Westfield, 2012). Economical Even being an economically established and developed nation, United Kingdom felt the effects of recession. Currently in a highly uncertain economy, the country has seen a drift from the normal behaviors. The consumers have become more conservative in their purchasing as well as eating patterns. These changing economic patterns are very critical for the brand because they will have an impact on trends such as pricing, demands, overall costs and revenue generation (Levine, 2013). Less spending power has automatically decreased the frequency of eating out among consumers, affecting the overall revenue generation and profits earned by the company. Moreover, the rising prices of raw materials have increased the overall price of the processed foods. This price hike has affected the overall pattern of expenditure of the food company (Marketline, 2012). Social Economic slowdown has turned consumers more sensitive towards price. After the recession, companies have seen a gradual shift from brand consciousness to price sensitive consumers. Now people are ready to compromise on quality of services and goods for a lesser price. This will affect the pricing strategy followed by the restaurant chain. The food chain might have to compete with cheaper restaurants in terms of pricing as quality is fast becoming the second priority among consumers. Technology In order to be competitive in this volatile environment, the organization will have to increase its operation process. This can be increased with the help of advanced technology and better equipments. The organization can provide technologically advanced services such as Wi-Fi in the cafeteria and mobile applications, in order to create a niche market for them. The internal environment of the organization can be analyzed with the help of SWOT Analysis. This will help in further strategies of the organization SWOT Analysis Strengths The rate of product diversification is high. Many new and self regulated highly advanced stored have been established. UK has a favourable business environment. The financial situation of the organization is strong. High reputation in market the large base of repeat and loyal customers (Williams and Cutis, 2012). The stores attract a large number of target customers because of their specific positioning in the market, in terms of location and area. Opportunity Looking at the current opportunities, the organisation can opt for retail strategies the organisation can also opt for rural marketing, since the company does not have a far reach in this market. The organisation can opt for innovative distribution channels such as online retailing. New products can be launched as a brand expansion strategy. The organisation can also opt for international expansion in countries such as Italy and India. Weakness The internal values of the organisation are weaker, compared to the external strategies. Another weakness in the strategy of the company is cannibalization. The amount of retailing conducted by the organisation is limited, which can be a grey area in future. Threats Competition from restaurants and other competitors have increased manifold especially in case of coffee pills and caffeine products. The UK market has saturated. The supplying markets have become more volatile and unpredictable. This could have an adverse effect on the pricing strategies of the company. Consumers have started switching to healthier products and have become more conscious towards health. Task 2 Marketing planning can be described as a logical series and sequence of activities which ultimately leads to formation of marketing objectives and subsequent formulation of strategies to achieve those objectives. For developing a marketing plan, companies generally follow series of processes. For smaller organizations these processes are informal. In case of bigger organizations, marketing planning is often a systematic process. Marketing planning is necessary to cope up with many difficult situations such as environmental instability, complexity in the market, increasing turbulence, etc. Marketing planning is important to formulate the strategies for growth in future. A barrier can be described as anything which impedes or blocks anything which is ongoing. Barriers are generally intrusion to the normal process and they can cause obstacles in accomplishing work (Malcolm and McDonald, 2000). Marketing planning is a complex phenomenon. In creating and formulating a proper marketing planning, the marketers encounter a number of barriers. These barriers can be internal and external. External barriers come from the environment where the product or service is targeted. For example, social, cultural perception of the target population does not match with the organizational goals and objectives. Other barriers can be internal barriers emerging from the conflicts of internal members of the management. Disputes in personal and organizational goals can also create obstacle in proper marketing planning. Other barriers with respect to the current organization four barriers to marketing planning have been identified, as follows; System and procedures- even though Eat Limited has been fast gaining recognition as a local fast food chain, the overall market share and popularity is still less compared to other established brands. Lack of proper systems and a standardized protocol makes it difficult for the organization to follow a standard marketing plan. The right resources- right amount of resources is very critical for the success of any marketing plan. In this case, eat limited is lacking sufficient resources to fund its entire marketing operation. Thus, rather than expanding its entire operation, the organization has limited itself to only one or two products, which will be expanded in the new market. Task 3 A marketing plan for the organization can be formulated by a strategic analysis of the internal and external environment and defining marketing objective based on the analysis as well as organizational goals. A subsequent marketing mix strategy will be helpful in converting the actions in desirable results. Product Eat Limited is a local fast food brand delivering foods products such as Coffee, Soup etc. in the product portfolio, coffee is the top selling product and in order to grow its base, the organization has chosen coffee as a target product for further promotion. Marketing Plan The food chain functions on the mission of highest quality customer service and total dedication towards the need of the consumers. The company aims to deliver this mission with a sense of friendliness, warmth, company spirit and individual pride. The restaurant chain operates with employees who are highly productive and runs on absolute low cost strategies. Thus, they have successfully captured a major chunk of the local market. Apart from this, their basic business strategy revolves around providing warm and friendly ambience, providing lowest possible prices to the customers and growth management. These strategies have helped the local fast food retailer brand in creating a niche in the food industry and gain constant profit since its establishment in the country. Eat Limited is regarded as one of the most successful local brands in fast food and snacks category and with the help of a solid and strategic business strategy, they have gained a substantial competitive advantage. Eat Limited provides specific products and services created for exact target demographics and a simplified payment process so that the passengers are aware of exactly what they are getting for the price paid (Pettigrew, Whittington and Thomas, 2006). Marketing Mix The following discussion outlines some of the details of the proposed marketing mix for the steel cable manufacturing firm: Product Strategy The chosen product coffee is a universal drink consumed by all class and age groups. Eat Limited attracts both old and young base of consumers and offers various ranges of coffee and other non-caffeine products. Distribution There has been a decrease in the demographics of age and more concentration has been given to middle income group. The primary distribution centre of Eat Limited is Retail stores .the organization has also established partnerships and collaborations with outlets such as grocery which has increased overall retail space captured by Eat Limited. Pricing Strategy The organization has followed a competitive and affordable pricing strategy. The major target group for the brand is middle and upper middle income groups, newly established entrepreneurs and executives and college goers. With the increase in the product range, the brands hope to tap into new market and new demographics. Promotional Strategy Promotional strategy involved generating awareness among the target customers through various mediums. With the growing popularity of e commerce and online promotions, the organization can increase its options in terms of media for promotions (Johnson, Whittington and Scholes, 2011). Online brand awareness can be initiated with the help of social media sites such as face book, twitter. The brand can also promote its business by creating online marketing campaigns with web based technologies (Ferrell and Hartline, 2010). With the increasing acceptance and popularity of online mediums, the brand can also tap this opportunity by establishing its own online customer base. Apart from this the organization can also opt for outdoor advertising like placing billboards, signage and flyers across popular hangout places. Task 4 Ethics can be described as moral values and principles that determine the decisions and subsequent actions of a group or an individual. Ethics can be regarded as guidelines on the right path when a group or an individual is faced by dilemmas of moral concern. In terms of marketing, ethics deal with moral values and principles of individuals as well as groups. The laws and principles governed by society and groups are enforceable and people are expected to follows these laws. There are numerous situations in a marketing planning where ethical and legal boundaries are pre defined and need to be implemented in order to avoid any obstacles in the normal flow of the marketing processes in future (Cohen, 2004). Ethical and legal issues are as complicated as marketing planning itself. Actions and activities which are considered as legal might come under unethical framework. It is also possible that activities which are considered as ethical may not come under the legal framework. Thus it is very important to segregate the legal and ethical issues and keep monitoring the involvement of any legal authority during the marketing planning process. Ethics in marketing emerges out of various factors. These can be societal and cultural norms. The activities which are normal and accepted in one society or culture can be considered unethical in other cultures (Brinkmann and Peattie, 2008). Ethics can also arise out of different industry practices and business culture. A business culture needs to understand the borderline differences between unethical behavior and competitive strategies. It also comprises of the codes of conduct which organizations as well as management needs to follow in their various business dealings. In terms of industry practices, ethical issues arise in exchanging relationships between buyers and sellers and competitive behavior among sellers. In this age of economic volatility as well as globalization, the actions of buyers are the most crucial factors in determining the strategies of an organization. If the consumer’s are not happy with the products and services, it can result in degrowth of a company. To keep its customers happy and maintain consumer ethics Eat Limited should follow the guidelines mentioned above, it order to build positive consumer perception and overall growth and development of the organization. Reference List Gurdgiev, C., 2011. Euro's crisis: From The Sovereigns To The Banks And Back To The Sovereigns. Advances in Ecopolitics, 8 (1), pp.109-139. Cohen, W. A., 2004. The art of the strategist: 10 essential principles for leading your company to victory. New York: AMACOM Division American Management Association. Ferrell, O. C., and Hartline, M. D., 2010. Marketing strategy. 5th ed. Connecticut: Cengage Learning. Johnson, G., Whittington, R., and Scholes, K. 2011. Exploring strategy: text and cases. 9th ed. New Jersey: FT/Prentice Hall. Porter, M. E., 2008. The Five Competitive Forces That Shape Strategy. Harvard Business Review, 86(1), pp. 78-93. Brinkmann, J. and Peattie,K., 2008. Consumer Ethics Research: Reframing the Debate about Consumption for Good. Journal of Business Ethics and Organization Studies, 13(1), pp. 22.31. Levine, L., 2013. Economic Growth and the Unemployment Rate. [online] Available at < http://www.fas.org/sgp/crs/misc/R42063.pdf> [Accessed 28 June 2013]. Marketline, 2012. Country Analysis Report: United Kingdom, In-depth PESTLE Insights. [online] Available at [Accessed 28 June 2013]. Pettigrew, A. M., Whittington, R. and Thomas, H., 2006. Handbook of strategy and management. California: SAGE Semeijn, J., Van Riel, A. C. R., Van Birgelen, M. J. H. and Streukens, S. 2005. E-Services And Offline Fulfilment: How E-Loyalty Is Created. Managing Service Quality, 15(2), pp.182 – 194. Malcolm, H. B. and McDonald, 2000. Ten Barriers to Marketing Planning. Journal of Consumer Marketing. 8(2), pp.45 – 58. Williams, J., and Cutis, T., 2012. Marketing management in practice. London: Routledge. Read More