Situational Analysis and Quantitative Goals of Salad Creations - Essay Example

?Contents Contents 1.0.Executive Summary 2 2.0.Situational Analysis 4 3.0.Key Objectives 5 3 Quantitative Goals of Salad Creations 5 3.2.Qualitative Goals and Objectives of Salad Creations 6 4.0.Marketing Strategies 6 4.1.Product 6 4.2.Pricing 7 4.3.Promotion 7 4.4.Web Strategies 7 5.0.Market Research 8 6.0. Marketing and Promotional Strategies 8 6.1.Marketing Channels 8 6.1.1.Internet and Online Marketing 9 6.1.2.Social Media Marketing 9 6.1.3.Traditional Marketing Channels 9 6.2.Creative positioning 10 7.0.Budget 10 Appendix 12 Appendix 1: Questionnaire 12 Appendix 2: Locations of different Salad Bars in London 13 Appendix – 3: Proposed Location of Salad Creations in London 14 1.0. Executive Summary Salad Creations has been offering fresh and natural salads in different parts of United States for years. Considering the response of the customers in United States, the company has planned to expand its services in United Kingdom as well. There are lots of reasons behind the success of Salad Creations in United States and the company would be highly relying on the brand image and management expertise to make the brand successful in London as well as it plans to expand. Salad Creations offer fresh and healthy salads. Different variety is available for customers to choose from and even if they do not like any of these, then the company gives them the freedom to prepare their own salads. Although, in United Kingdom there are few competitors offering fresh salad but considering the market research and response of the target market, the management feels that London would be the best suited area for opening a new store in the European Union. The management plans to make use of different marketing channels and has devised different short term as well as long term objectives. Strategies have been devised to achieve these objectives by the management. The company would also be making use of traditional as well as latest marketing channels to promote the offerings of the company so that they are able to reach the target market. Also the company would be evaluating different marketing channels and then prioritising the investment on different marketing channels accordingly. Online marketing strategies, social media marketing and traditional promotional channels such as direct mail, advertisements on billboards and advertisements on newspapers would be ysed by the management to promote the brand in London and in United Kingdom. Marketing Budget has also been setup by the management however the management has pre-decided that this budget would not be fixed and it would be flexible. The management would be evaluating the marketing budget on a quarterly basis so that they can invest more in activities that yield better returns so that it helps in the long run profitability of the company. 2.0. Situational Analysis Salad Creation is a renowned name in the food industry of United States offering fresh and healthy salads. Salad Creation offers spectacular taste at affordable prices and with the growing consciousness of the people around the world to have more fresh and natural foods, the demand of salad has increased to a great extent. The proposal analyses the situation of Salad Creation to start offering the fresh salad in United Kingdom as it plans to expand the idea of fresh and natural foods in other parts of the world besides United States. Salad Creation has been evaluating to offer its services in London, United Kingdom and then afterwards to other parts of United Kingdom. In London, the management has selected the Oxford Street where the company should be opening its first outlet in United Kingdom. There are several reasons for selecting this location; accessibility of resources, ease of customers to reach, an important area in the city, availability of transport etc. In the appendix section, a map has been placed identifying the proposed location of Salad Creations. Although, the demand for such products have been increasing throughout the world. However, there are few competitors already operating in London and United Kingdom but Salad Creations could make a difference with its amazing services along with exceptional prices and effective marketing strategies to attract people towards buying the products offered by Salad Creation. Some of the companies that are already operating in the market and offering similar kind of services are: a. 4°C – The Food Company b. Well Dressed Salad c. Maoz d. Tossed e. itsu f. Bakkavor g. Neal’s Yard Salad Bar All these above companies offer salad and different natural foods in London, United Kingdom. In addition to this, there are other food companies that are also offering salad to their customers and particularly with the increasing number of people looking to have salad as one of their main diets considering its advantages to the health, number of restaurants have also started promoting salads as an important meal. The management also conducted primary research by asking interviews and questionnaires from the target market and it has been found that the offerings of the competitors have not been able to satisfy almost half of the consumers and almost two third of the respondents believed that the products and services offered by different salad bars could be improved. 3.0. Key Objectives Salad Creations has planned to expand its services in London, United Kingdom. It is important for the management to have specific goals for the short term as well as long terms (Lovelock, and Wirtz, 2011) so that in future they are able to analyse whether they have been able to achieve the goals of expanding their services in London or not. In addition to this, it is important for the management of the company to have quantitative as well qualitative goals and to analyse the performance of the company in London on both these goals and not just restricted to quantitative goals (Anderson, 1982). Some of the major objectives of Salad Creation as it expands its services to London have been segregated into qualitative as well as quantitative goals. 3.1. Quantitative Goals of Salad Creations To achieve profitability of around ?150,000 at the end of 2nd year and ?225,000 at the end of 3rd year. To achieve a profit margin of 20% by the end of 3rd year of the company’s operations. To have a customer base of around 200,000 by the end of first year. To expand its services and open new outlets in London as well others parts of United Kingdom. In three years, there should be at least two outlets of Salad Creations in London and one in any other city of United Kingdom. 3.2. Qualitative Goals and Objectives of Salad Creations To focus on quality services and ensure that the customers are satisfied so that the company is able to turn customers into regular customers. To not only focus on the profitability of the company, but to make sure that the customers and employees are satisfied. To make people in London as well as in other parts of United Kingdom aware about the company’s operations in London. 4.0. Marketing Strategies Marketing strategies would play an important role for Salad Creations as they would like to become an important player in the food industry of United Kingdom and it is important for the management to tactically devise marketing strategies and use all important tools (Borden, 1964) that could be helpful in making Salad Creations a success in United Kingdom. 4.1. Product Products offered by Salad Creations are fresh salads. Variety of salads is offered by the company and different varieties have been one of the hallmarks of the company in attracting people in United States. In addition to this, Salad Creations offers the option to make customised salads and with this option, people can choose what they need and what they do not. 4.2. Pricing Salad Creations has concentrated on making the products of the company affordable and prices of the salads are based on the size of the plate. 4.3. Promotion Salad Creations would have to promote the products in the right manner so that the offerings of the company become a success in United Kingdom as well. It is important for the company to make use of different promotional techniques so that they are able to not only make the people aware about the offerings of the company but also able to entice potential customers to come to the store of Salad Creations. Using right marketing channels would be significant for the success of the company and therefore the management has to make use of both the traditional marketing channels as well as untraditional marketing channels. 4.4. Web Strategies Salad Creations has a web presence but it is important for the company to make its web presence count. There is no point on having a website if the company is not making use of it effectively and therefore it is important for the company to make use of different online marketing strategies such as search engine optimisation so that the company is able to attract more traffic particularly from United Kingdom users. In addition to this, the company has to promote its product on different websites by placing their ads and banners. Also it is important for the company to identify important websites where the traffic of United Kingdom and particularly the traffic of London is high, and the company could place their ads on such website to make the people aware and attract to eat delicious and fresh salads. Moreover the company needs to make use of social media websites as well to promote its products. 5.0. Market Research The management also conducted market research to have an idea of the target market and to analyse how successful Salad Creations could be as it opens a new outlet in London. It has been identified that the London Market has a lot of potential for Salad Creations and the respondents wanted a new company that could satisfy the needs by offering customisable salads. It has also been found that the current products and services of the Salad bars have not been satisfactory and 60% of the respondents believed that the products and services offered by the existing companies could be improved drastically. Also it has been found that almost everyone wanted to have the option of customisable salads which existing companies are not able to met and even if anyone offers, then there are certain limitations that do not make the customers entirely satisfied. Also it has been found that not many people prefer going to restaurants and hotels to have salad in comparison to specific Salad Bars that offers different variety of salads. 6.0. Marketing and Promotional Strategies Marketing and promotional strategies would be crucial for Salad Creations as it expands its products and services to United Kingdom. The company has to use effective promotional strategies so that they are able to earn good return on investment on the marketing and promotional strategies and for this, the marketing channels adopted by the company would play an important role (Haberberg, and Rieple, 2008). 6.1. Marketing Channels Marketing channels would be important in making the target market aware about the company’s offerings as well as in attracting people to eat salad offered by Salad Creations. Different marketing channels should be used by the company and the most important marketing channels that Salad Creations should choose have been discussed below: 6.1.1. Internet and Online Marketing It is important for the company to use online marketing by promoting the banners and ads of the company on different websites particularly websites where there is a large traffic from United Kingdom is attracted. This would allow the company to make the target market aware and entice them to use the products of the company. Also websites that are related to fitness, natural foods and some similar kind of topics should be selected as well for placement of ads. 6.1.2. Social Media Marketing Salad Creations should also use social media marketing to promote the company’s offering. Social media marketing has been highly effective and it yields very good return on investment therefore by investing in social media marketing, the company would be able to earn good returns by investing a lot less. Many businesses have been able to make effective use of social media marketing and earn good return on their social media marketing investment (Kotler, and Keller, 2009) therefore Salad Creations could also use social media marketing which mainly includes Twitter, Face book and YouTube. 6.1.3. Traditional Marketing Channels It is important for Salad Creations to also make effective use of traditional marketing channels as well and some of the important traditional marketing channels would include billboards and hoardings, advertisements on newspapers, direct mail etc. 6.2. Creative positioning Salad Creations has to position itself as a company that offers high quality natural and fresh salads. The positioning of the company would be crucial in attracting people to buy the products therefore it has to promote and position itself as a brand that offers customised fresh salads that are beneficial for healthy life. 7.0. Budget The management has to consider the budget of marketing activities and they need to analyse the return on the marketing activities as well and then plan accordingly. However, it is important for the management to have a guideline of how much to invest in different marketing channels. The following table reflects the marketing budget of Salad Creations in different marketing activities for the first two years:   Y1 Y1 Y1 Y1 Year 1 Total Y2 Y2 Y2 Y2 Year 2 Total Total Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Online Promotions 2,500 2,500 2,500 2500 10,000 3,800 3,800 4,500 4,500 16,600 26,600 Social Media Marketing 1000 1,000 1,250 1,250 4,500 1,500 1,500 1,750 1,750 6,500 11,000 Direct Mail 1,500 1,500 2,000 2,000 7,000 2,000 2,000 2,200 2,200 8,400 15,400 Marketing via Blogging 1,200 1,200 1500 1500 5,400 1,800 1,800 2,200 2,200 8,000 13,400 Search Engine Optimisation 3,000 3,000 3,500 3,500 13,000 4,000 4,000 4,000 4,000 16,000 29,000 Billboards 8000 8000 8000 8000 32,000 10000 10000 10000 10000 40,000 72,000 Advertisements in Newspapers 5000 5000 5000 5000 20,000 6000 6000 6000 6000 24,000 44,000 Other 2000 2000 2000 2000 8,000 2000 2000 2000 2000 8,000 16,000 Total   99,900   127,500 227,400 Reference list Anderson, P. (1982). Marketing, Strategic Planning and the Theory of the Firm. The Journal of Marketing, 46 (2), 15- 26. Borden, N. (1964). The concept of marketing mix. Journal of Advertising Research, Retrieved November 29, 2011 from http://www.commerce.uct.ac.za/managementstudies/Courses/bus2010s/2007/Nicole%20Frey/Assignments/Borden,%201984_The%20concept%20of%20marketing.pdf Haberberg, A., and Rieple, A. (2008). Strategic Management: Theory and application. New York: Oxford University Press. Kotler, P., and Keller, K. (2009). A Framework for Marketing Management. New Jersey: Pearson Prentice Hall. Lovelock, C., and Wirtz, J. (2011). Services Marketing – People, Technology, Strategy. New Jersey: Prentice Hall. Appendix Appendix 1: Questionnaire 1. Please select your age group a. Under 20 b. 20-25 c. 26-30 d. 31-35 e. Above 35 2. Please select your gender a. Male b. Female 3. Are the existing salad bars able to meet your needs and satisfy you with their offerings? a. Yes b. No c. Only to a certain extent 4. Do you really believe that the existing salad bars offer customizable salads? a. Yes b. No c. Only to a certain extent 5. How much the services of these firms salad bars be improved? a. It could be highly improved b. Only slight need of improvements is required c. The existing services is highly satisfactory 6. Do you prefer having salads offered by other hotels besides salad bars? a. Yes b. No c. At times, they can be good Appendix 2: Locations of different Salad Bars in London Appendix – 3: Proposed Location of Salad Creations in London Read More