Marketing Strategy of Fork and Dagger Pub - Essay Example

Marketing Overview Fork and Dagger pub has stayed operational for more than fifteen years a feature that portrays thesuccess of the management and marketing decisions that Richard Lynch and his sons had employed in the past. As he contemplates retire, Mr. Lynch understands that the division between is sons is likely to split the business possibly leading to its collapse. However, the business should not die since each of the two sons has wonderful ideas that can both expand the business thus sustaining its longevity. In order to pacify their differences, MR. Lynch must find a way of consolidating the two ideas the sons present thus safeguarding the future of his business. The fact that the business has existed for numerous years makes the renovations as proposed by Jason inevitable. Similarly, narrowing the business’ target market as proposed by Bradley would enhance its operations thus improving the profitability of the company. Mr. Lynch must therefore consider the possibility of consolidating the two approaches with the view of enhancing the longevity of the business and quelling the differences between his sons. Marketing approach Renovating the pub will place it in the modern society. The renovation will seek to satisfy the demands of the modern day customer. In renovating and expanding the pub, the management must consider the demands of the modern day customer thus safeguarding such features as convenient and comfort. As stated earlier, renovating the pub is inevitable. This implies that Mr. Lynch and his two sons must determine the most appropriate ways of renovating the pub thus positioning the business strategically in the modern society. While doing this, the management must narrow the pub’s target market a feature that will enhance the management. In doing this, Mr. Lynch must consider the importance of diversity in enhancing the profitability and longevity of business in the contemporary market. In expanding and renovating the pub, Mr. Lynch can therefore develop a section of the pub and permit Bradley to customize it strategically for its LGBT target market. Jason should then manage the other section that targets the general consumer. This way, the business diversifies its services while safeguarding the peace and unity of the two siblings. Such is an appropriate approach that will serve as an effective marketing research and analysis tool that will provide the two sons with the most appropriate trends in the market thus enabling the two to change the structure of their business based on the response of the market. SWOT analysis Diversity is the greatest strength that the new look Fork and Dagger pub will enjoy. As such, the business will target a larger target market thus enhancing its profitability. The two approaches will not only place the business in the contemporary market but also narrow its target niche a feature that enhances the management (Curry 3). The only weakness the two are likely to face is their inexperience. The two have no prior experience with the approaches they propose for the business. This implies that they are likely to face management challenges in the future. The new look Fork and Dagger pub is likely to enjoy new opportunities including a narrowed target market especially for the side that will target the LGBT. Furthermore, the renovations and expansion of the pub will ensure that the pub attracts the modern consumers thus placing the business strategically in the market in order to compete with other modern pubs in the region. The only threat the new pub will face is competition from other existing business in the market that had employed the new strategies already. Critical Issues Among the critical issues that Mr. Lynch and his sons must consider include the financial requirement of the renovation and expansion of the business. Investing in either approach has substantial financial ramifications. The two must therefore invest cautiously with the ability to change their approach depending on the response from the market. Financial and Other Analysis Finance is the primary capital that will influence the future of the business. Both ideas are costly but seeks t improve the profitability of the business. As such, Mr. Lynch must sanction the two to develop the business accordingly in order to position the nosiness strategically in the contemporary market. This further makes the consolidation of the two ideas important since they will serve as market research as the two will then make an appropriate investment decision based on the response of the target market. Alternatives Mr. Lynch must make an appropriate decision, one that does not only safeguard the future of the business but also safeguards the future of the relationship of his sons. This implies that he must permit the two to experiment with the business by consolidating the ideas the two present. The two should enjoy the freedom of implementing their divergent views on the business but the business must remain a single entity with the two being ready to change their views depending on the prevailing market trends. Mr. Lynch must therefore encourage his sons to work together in expanding and renovating the business before diving it into two as a way of comparing the most appropriate marketing strategy. This way, the diversity acts as an appropriate way of carrying out market researches before the two sons make a decision on the most appropriate marketing approach based on the response of the market. Recommendations In retrospect, Mr. Lynch must uphold the unity of his sons by allowing them to work together though in their different projects. The two should expand the pub before dividing it into two. This way, Jason will renovate the pub appropriately for his business ideas while Bradley does the same. As discussed earlier, consolidating the two ideas is the most appropriate way of ensuring the longevity and profitability of the business besides the unity of the two sons. Additionally, by diversifying the services of the pub, the two brothers will enjoy a cost effective way of carrying out appropriate market researches thus determining the prevailing features of the market. Appendix Segment Marketing mix elements Concern Segment 1 Product- Pub Rebranding and expansion Place- Struan Expansion and redesign Pricing- Flexible Inflation Promo- Mass media The role of new media Segment 2 Product- Pub Redesigning and expansion Place- Struan Size of the target market Pricing- Varied Inflation rates Promo- Old and New media Cost of advertisements Segment 3 Product- Fork and Dagger pub Consolidating the two ideas Place- Struan Viability of the target market Pricing- Varied Inflation plus cost of doing business Promo- Old and new media Cost of advertising Existing product New product Existing market Market penetration Aggressive marketing of the pub Product development Expanding and redesigning the pub New Market Market development Diversification Criteria 1 Alternative 1 Alternative 2 Expansion and rebranding Pros Will expand the company’s market Increase profitability Safeguard profitability Cons Costly Speculative Introducing cost effective products Diversifying the services and products Complete change of the pub’s positioning Pros Increase efficiency of operation Narrows the target market Cons Speculative Not tried and tested Extensive marketing Promotion through the media Use of social media Consolidating the two approaches Pros Increase profitability Safeguards profitability Platform for market research Cons Costly Speculative Dynamism in services delivery Effective market research an market analysis Qualitative Decision Matrix Alternative 1 Alternative 2 Decision Criteria Bradley’s Proposal, Targeting New Market Jason’s Proposal, Market Penetration Business and Management Competencies ++Bachelor of Arts degree. Experience as a Food and Services manager. +High school graduate. Experience in internal operations. s Customer relationship ++ Effective in understanding customer requirements, and seeking ways of improving customer experience. +Relatively low customer relationship abilities. Pub positioning strategy +Targeting the concentrated market like LGBT customers. + +Pub renovation and online marketing, to retain and attract new customers. Justification of strategy ++Research analysis indicates that homosexuals spend 10% more on average, than the straight customers. +Renovation will ensure an entertaining and exciting atmosphere. Quantitative Decision Matrix Alternative 1 Alternative 2 Targeting New Market Market Penetration Decision Criteria Weight Score/10 Total Score/10 Total Management Competencies 4 8 32 6 24 Customer relationship 4 8 32 5 20 Positioning strategy 3 6 18 5 15 Strategy justification 2 7 14 8 16 Total 10 96 75 Break even analysis Break Even Analysis = Fixed costs / (Unit selling prices – Variable costs) Fixed costs are the costs incurred that remain constant, regardless of how many products are sold. For example all start up costs, rent, furniture, equipments. Variable costs entail the recurring expenditures of each product unit sold. Unit selling price entails the price charged to customers, for purchasing a single product. Fixed costs = $1 026 038 +$990 957 +$955 291 +$896 534 = $3,868,820 Selling price – variables = net revenue = $186 617+$156 817+$134 158+$79 649 = $ 557,241 Break Even Point = 3,868,820/557,241 = 6.94 The Break even analysis is used in determining when the business will generate profits, after subtracting all the expenses. Read More