SWOT Analysis - Collins Foods Group - Case Study Example

A marketing plan report Name Name of the institution 21 November 2015 A marketing plan report Introduction Collins Foods Group is a company that is based on an Australia. The company is mostly involved with the management, operation and the administration of the restaurants in Australia. Over the past years, the company has expanded its operation to Asian countries whereby, it is operating in countries such as Thailand, Japan and as well as in China. The company operates in segments whereby it has two major segments. Collinsfg.com.au, (2015) outlines that the KFC Restaurants and Sizzler Restaurant, on the other hand, Collins Foods Group operates around three brands which are KFC Restaurant, Snag Stand joint and Sizzler Restaurant. The company has set franchise that operates in Australia’s territory and other parts of the world. It has at about 61 franchised Sizzler restaurants in Asian countries. Collins Foods Group was founded or rather began its operations in 1969. The company operates 172 KFC and as well as 25 Sizzler restaurants company that are located in Australia. Collins Foods Group Company is an Australian company that is registered in the ASX market (Collinsfg.com.au, 2015). The company operates the food retails business in Australia, and it has opened newly promoted joints or outlet in Asia. Recently, the company is seeking to continue with the improvement in all of its areas and department. The company mission is to become the leading company that will operate brands where customers will be satisfied with their services. For Collins Foods Group to achieve this mission, the company has rolled out plans to produce services and products that are innovative, unique and as well as marketable. So as to achieve this objective a marketing plan for the company is needed as it will enhance the company’s growth. Karunakaran, (2008) found that a marketing plan that will ensure that the company accomplishes its objective should identify the customer target, the way the company will reach to its customers and the ways that will use the company to retain its customers. In this report, a marketing plan for the company is well presented mostly focusing on the SWOT analysis technique and market environment analysis. SWOT analysis as a marketing tool will require the company to evaluate and measure its strength, weaknesses, opportunities and threats. According to (Kotler, & Keller, 2009) the goal of a good marketing plan will make customers buy more from any company. Therefore, this report focuses on examining Collins Foods Group marketing plan and a SWOT analysis so as to determine its success in the market. The report further explores internal and external environment factors that influence the company’s marketing strategies. SWOT analysis A SWOT analysis is a structured planning tool that is used by any company to evaluate their strength, weaknesses, threats, and opportunities (Bertelsen, 2012). The Internal factors are those that the company can control while the factors that are beyond the firm control are called external factors. SWOT analysis is well illustrated in the following table; Opportunities Threats Health policies that legalize the use of food products. Increased taxes and foreign taxes duty that makes the company face expensive marketing cost. The emergence of a market that has loyal customers in different part of the world. Improved and new advertising strategies launched by the company’s competitors. The availability of food products and skilled personnel in Australia. New franchise shops in the nearby location. Provision of expensive service and product of poor quality that are similar to that of Collins Foods Group. A recession of the economy and minimal spending of the customers. Strengths Weaknesses Strong customer connection. The cost of the rental properties. For example offices. Improved internal and external communication systems. Government rule and regulations Excellent staffs especially for handling sales, marketing, and advertising. In particular, staffs with strong skills and knowledge of the services operation of Collins Foods Group. Increasing stock inventories and expensive inventory costs. The Collins Foods Group reputation regarding its innovative ideas. Incompetence employees who make the company have many missed deadlines and a lot of pending marketing tasks. Findings and discussions. (SWOT analysis table) SWOT analysis can be used in by any company to identify the favorable and unfavorable factors or issues that may affect Collins Foods Group Company. SWOT analysis focuses on the company’s opportunities, threats, strengths, and weaknesses. SWOT analysis involves opportunities and threats as well as the weaknesses and strengths. Bertelsen, (2012) found that each factor is considered regarding the internal and external aspect of the Company and market. The Internal factors are those that the company can control while the factors that are beyond the company control are called external factors Opportunities and Threats Opportunities and threats give a company the mean to improve its performance and gains a competitive advantage. The two factors can be simply be described as the type of environment that is explored by the SWOT analysis tool (Bertelsen, 2012). Threats are factors outside the business environment. Typically, internal factors can adversely affect the Collins Foods Group Company performance. On the other hand, opportunities are the external factors that Collins Foods Group Company can capitalize on to yield greater performance. Opportunities are mostly the foreseen factors in the business. Strengths and Weaknesses Also, SWOT analysis as a tool is structured to reveal the weakness and the strength of any company. In a business strengths and weaknesses are referred to as the internal factors that affect business operation. In this case, the strengths of the Collins Foods Group Company are the factors that will allow the company to operate more effectively (Bertelsen, 2012). The strengths of the company will enhance its operation more than its competitors. On the other hand, the weaknesses of Collins Foods Group Company are those factors that will make the company undergoes higher costs and experience lower productivity. However, in any company, weaknesses can be improved and be transformed to be the strength of the business. Environment evaluation A research that was done by Kotler, & Keller, (2009) indicated that environmental evaluation is mostly based on the external market assessment. The focused cases are the trends that have the potential impact to the business strategy. Therefore, for the Collins Foods Group Company, environment analysis is necessary because it will help the company identify the trends and measure their effect to the marketing programs. As such, conducting the marketing analysis for Collins Foods Group Company will require one to divide the analysis into numerous areas. This includes evaluating the external and internal marketing environment. The internal environment marketing evaluation Internal environment marketing evaluation explores and assesses the resources, the capabilities and the key competencies of the company. Analyzing the Internal environment will help the company to understand the step it will take so as to become competitive (KRZEPICKA, 2014). As such, for Collins Foods Group Company the internal environment that should be used so as to be competitive in the market include technological analysis and competitive evaluation. Technological analysis The analysis conducted regarding Collins Foods Group Company in its marketing plan, include the extent to which the company’s technologies are improving, and the technological trends that are influencing the company or will in the future affect the business. Competitive analysis The competitive analysis for Collins Foods Group Company will ensure that the company has a competitive advantage. For this competitive advantage to make Collins Foods Group Company the company should have both tangible and intangible resource. Such resources are assets and technological resources. Evaluation of external environment The evaluation of the external environment during the marketing plan include the analysis of factors such as economic analysis, political, sociocultural assessment and legal analysis (Bertelsen, 2012). Economic environment analysis In this factor, the economic trends that might affect the Collins Foods Group Company activity are evaluated (Polonsky, & Mintu-Wimsatt, 2005). The analysis should be carried out on the issues such as; the market interest rate, energy availability, inflations, and the level of unemployment, among others. Legal analysis In this context, the legal evaluation refers to the assessment of the market regarding the government changes. The government regulations will likely affect the Collins Foods Group Company. The regulation imposed by the government include; taxes and other incentives developed by the government. Sociocultural analysis The sociocultural factors that affect the Collins Foods Group Company marketing strategies include; the current trend of society’s lifestyle, people’s taste, and any other cultural component. Consequentially, this will affect the market size targeted by the company. Political analysis Political factors that affect Collins Foods Group Company marketing plan include factors such as legislation and regulations (Bertelsen, 2012). As such, findings in this report shows that the company operates in a highly regulated political environment. Recommendations The target market Collins Foods Group Company has a strong history in providing the restaurant services and in the sale of quality products that match the consumer preferences and demand (Collinsfg.com.au, 2015). The Australian and global market for the company’s products and services has potential consumers who prefer Collins Foods Group Company products. As such, with its high reputation in Australia and Asia, Collins Foods Group Company enjoys wide market share. For demographic segmentation, the market target for Collins Foods Group Company includes a group of people with special characteristics. The market target for the Collins Foods Group Company product is the primary and secondary target. Collins Foods Group Company targets to serve a market that characterized by all segmentation variables. The target market for the company is people within the age bracket of 13 and above, people with both gender and people from a different geographic location in the world. To a better understanding, the target market of the company is comprehensive as it involves the combination of major demographic variables. New product description In making a new product, for Collins Foods Group Company thinking about the customers or the buyers come first. Customers can be easily attracted by the new product description that the company may want to introduce in the market. For Collins Foods Group Company describing a new product will require the marketing team to be seductive. Though it is quite a long process, the new product should be described in a way that the marketer does not use ambiguous statement. Also, describing a product will need the marketer to use an enticing statement of the product rather that talking about the feature and specification of the product. Therefore, with enticing statements and as well as clear description of the product, the whole process of new product description will seduce the target group of consumers. Customer value proposition For Collins Foods Group Company, customer value proposition is used as a marketing statement that explains the reason for customers to purchase the newly developed products. The customer value proposition at Collins Foods Group Company is focused on serving potential target rather than other employees and the company’s partners. For the new product at Collins Foods Group Company the company need to break through the visible barriers in the market. In this case, the company uses the customer value proposition. Having CVP is vital to the company’s success in selling its newly developed product. Therefore, Collins Foods Group Company will need to put much effort in crafting its customer value proposition. The choice of new product The new product by Collins Foods Group Company should as well fit with the SWOT analysis techniques. Developing a new product for Collins Foods Group Company is a strategy for strengthening its internal factors and the strategy of being competitive by identifying new market opportunities. The new product intends to make the company stronger by creating a new connection with customers and as well making the company gain a good reputation in the market. Also, developing a new a product at Collins Foods Group Company makes the company unfold market opportunities. The marketing opportunities include serving the loyal customers, and as well the opportunity to expand its franchise will make the companies have a wide market share. Bibliography Bertelsen, B. (2012). Everything you need to know about SWOT analysis. [Newmarket, Ont.]: BrainMass Inc. Collinsfg.com.au, (2015). Collins Foods Limited. [online] Available at: http://www.collinsfg.com.au/ [Accessed 22 Nov. 2015]. Karunakaran, K. (2008). Marketing management. Mumbai [India]: Himalaya Pub. House. Kotler, P. and Keller, K. (2009). A framework for marketing management. Upper Saddle River,N.J.: Pearson Prentice Hall. KRZEPICKA, A. (2014). Marketing plan as a tool in marketing management process. Nowoczesne Systemy Zarządzania Journal, 9(1), pp.209-216. Polonsky, M., & Mintu-Wimsatt, A. (2005). Environmental marketing. New York: Haworth Press. Read More