Natural Kitchen Operations on the UK Market - Case Study Example

Natural Kitchen United Kingdom Contents Contents 2 Overview 3 Characteristics of the s using retail outlet 3 Geographic 4 Demographic 4 Psychographic 4 Behavioural 5 Cultural 5 Marketing mix 5 7p 6 Importance of PESTLE 7 Change in each element of PESTLE affecting the Shop 10 References 12 Overview Natural kitchen is a famous food retail shop in United Kingdom. The company was founded in 2007. It started its business by making organic foods. In the present time the restaurant is regarded as one of the best and healthy dinning option in UK. The restaurants of this company are designed in a very attracting and unique way. The restaurant has its outlet in five prime locations of UK. These locations are Marylebone, Fetter Lane, Trinity Square, Tudor Street, and Baker Street. The timing these resultants varies in some locations. Natural Kitchen prepares different types of good quality foods. Along with food the restaurant sell coffee, juice etc. The restaurant depends on various sustainable sources for preparing its different food products. This restaurant company puts huge effort for purchasing high quality ingredients. Best quality food products help the company to prepare healthy and nutritional food. The restaurant purchases its food from New Spitalfields Market of London for purchasing finest vegetables and food. The company believes in the philosophy of preparing good food. The company purchases its food products from few suppliers for a long period of time. These few suppliers help the company to satisfy its customers. Natural Kitchen spends huge amount of time for selecting and evaluating its ingredients. As a result the food of this restaurant is always famous for its quality. The company is also involved in different types of social works like organizing health care programs, educational programs etc for benefiting the society. Characteristics of the customers using retail outlet Natural Kitchen serves different types of customers in their restaurants. The company has wide range of food products which satisfy the requirement of its customers. Natural kitchen not only serves local customers but also attracts many foreign tourists. As it is a famous restaurant in London so many travellers who come to visit this country have their food in this restaurant. This company is also involved in providing catering service to various corporate parties and private parties. As a result many companies have become customers of Natural Kitchen. This restaurant chain mainly prepares healthy food. So the persons who are very much conscious about their health are the prime customers of Natural Kitchen. Geographic Natural Kitchen has its five restaurants in London. Therefore its primary customers are the people residing in London or its nearby areas. Its stores are located in very popular places of London where both young and old people visit. As a result the restaurants are able to attract customers of both of these generations. Many of the tourists travelling in London also visit Natural Kitchen. For its high quality of food the company is able to attract many foreign customers. Natural kitchen has good number of foreign customers in its five restaurants. Without expanding the company internationally, Natural Kitchen has been able to cater foreign customers (Joshi, 2005). Demographic Natural Kitchen prepares large variety of healthy food which attracts customers of all age. The restaurant prepares coffee, fruit juice, drinks, breakfast which is preferred by young crowd. Moreover the aged people who are very much concerned about healthy products are also the targeted customer of Natural Kitchen. The restaurants serve the food which attracts both male and female customers. Natural Kitchen also prepares foods which are preferred by kids. The food of Natural Kitchen is not so expensive. Therefore customers having moderate income level can afford the healthy food of this restaurant. Psychographic Growth of the restaurant also depends on the lifestyle of its targeted customer. In London most of the people maintain their social class and standard for purchasing any product and services. Mainly the upper middle class and middle class people purchase the food of Natural Kitchen. The people of UK having the lifestyle of doing breakfast, lunch or dinner in the restaurants are the customers of Natural kitchen. The customers of this restaurant prefer to have coffee in coffee shop accompanied with their friends or family members. The loyal customers of this company have the lifestyle of eating street food or fast food. Behavioural Buying behaviour of the customer influences the business growth of Natural Kitchen. The customers of Natural Kitchen prefer high quality food. They have the behaviour of purchasing high quality of food from the retail outlets of this restaurant. Many customers prefer to have food with the restaurant while other customers take away food from the restaurant. The loyal customers of Natural Kitchen frequently purchase different types of food from the outlets of Natural Kitchen. Cultural The customers of Natural Kitchen belong from the culture where they are influenced or they are use to have their food from restaurants. The restaurant of Natural Kitchen prepares huge variety of food. The culture of its customers permits them to eat different type’s products of this restaurant. Natural Kitchen’s customers have the culture to use catering service for serving food in different events. The culture of the customer helps the company to develop its catering service. Marketing mix According to the authors Yoo, Donthu and Lee marketing mix refer to the tactics and actions which help to promote the brand and market its products. The authors highlights that different elements of marketing mix contributes a lot in the developing and establishing a company’s products or services. It is one of the most important marketing tools of a company (Yoo, Donthu and Lee, 2000). 7p Products: Natural Kitchen deals with wide range of products. It prepares different types of foods with variety of ingredients. The company focuses more on its product quality. The restaurant outlets prepare various types of starters, healthy salads, heavy breakfast, lunch dishes, sandwiches etc. This wide range of products satisfies huge number of customers. The outlets of this restaurant also prepare different variety of drinks and deserts. Natural Kitchen produces organic food products. Fresh pastries of this company are very famous. Price: Natural Kitchen has its restaurants in five major location of UK. All the outlets of this restaurant sell almost same products. The prices of food products are same in all of its outlets. Natural Kitchen has set moderate price for its food products. The restaurant provides high quality of food at a reasonable price. This helps the company to attract large number of customers. When the company launches any new food dish it keeps its price low for influencing its customers to purchase the product. Place: Natural Kitchen presently has five retail outlets in London. These retail outlets are located in famous location of London which helps the restaurant to attract more customers. Locational advantage of this restaurant chain contributes a lot in its branding and advertisements. The company does not have international present but the location of its retail outlets facilitates this restaurant chain to acquire many foreign customers. Promotion: Big hooding and banners of Natural Kitchen are displayed in front of the retail outlets. The company advertise about its different types of products in various crowded places of England where the target customers of Natural Kitchen visit. The firm is involved in performing different types of social work which help the company to build strong relationship with general people. This facilitates the company to establish good PR relation. Natural Kitchen also gives various discount offers to its customers for promoting its new food products. People: Natural Kitchen has a large number of customer bases. So for dealing all customers in five retail outlets, many staffs of Natural Kitchen are involved in the business process of the company. The company is highly dependent on its employees for maintaining the business operations in its five retail outlets. The company recruits efficient employees for serving its large number of customers (Magretta, 2012). Process: The employees of the company put huge effort to develop different processes to sell its products. Natural Kitchen treats their customers in a very nice way which influences the customers to visit this restaurant again. This restaurant also provides the facility to take away food from its outlets. Physical Elements: The retail outlets and the food products of Natural Kitchen are the main physical elements of this company. Some other physical elements of this restaurant chain are its menu card, dishes, table chair and other furniture which are present in the retail stores of Natural Kitchen. Importance of PESTLE All the firms need to consider different environmental factors for establishing and developing its business process. The companies do PESTEL analysis to monitor and analyze of various macro environmental and factors which influences the business process of the company. It is one of the important tools of marketing used by the companies to understand its business environment. The important elements of PESTEL are as follows: Political: Political factors highlight the different ways by which government interfere the business activities of the company. The company needs to know and understand political stability of a country for doing its business operations. It helps the company to understand the market situation. On the basis of this the company can find out its growth opportunities. Every country has different government policies and rules. The company needs to follow these rules for doing its business operations. Political factor of a country includes its tax policies, tariffs, fiscal policies etc. These influence the business activities of the company. Economical: The economic condition of a country has a strong impact on all companies. Various economic factors influence the performance and activities of a company. To some extent the profit and loss of a company depend on the economic condition of the country. Various economic factors of a country are its inflation, exchange rate, economic growth, interest rate, income level of the people etc. These factors help to understand the economic development of a country. Based on the economic condition a company needs to do its investments for making its business process effective. Social: The Company needs to analyse social condition of the country where it is operating or wants to operate because social norms and structure of the society influence the buying behaviour of the customers. Various social factors have strong impact on business process of the company. Based on the social factors, often the company needs to develop its organizational structure. Social factor highlights the cultural trend, population and demographics of a country. The company analyses these things for establishing its position in the market. Technology: In the modern business environment technology plays a vital role in growth and development of a company. Now a day every company uses technology for doing its business operations. Technological landscape of a country can change very fast which creates strong impact on the business operations of the companies operating in that country. Developed countries of the world are very much advanced in using and innovating new technologies. Therefore the business operations of the company which are highly based on technology needs to establish their office in the developed countries for getting technological benefits. Legal: Various rules and regulations of a country come under the legal factor of PESTEL. Different countries have different legal rules and regulations which the company have to follow for operating its business activities. If a company does not follow the legal rules of a country then the government of that country will not permit the company to continue or establish its business operation. Other than government, the company can also develop legal rules for itself (Johnson, Whittington and Scholes, 2011). Environmental: This factor describes the environment in which the company is operating its business and the impact on environment on its business. Now a day various environmental issues affect the activities and process of the company. Therefore it is important for the company to analyse these issues for enhancing its growth opportunities. Change in each element of PESTLE affecting the Shop Natural Kitchen is operating in UK market for a long time. It has developed and implemented its strategies and business processes by analyzing various macro environmental factors of UK market which influence its business activities. Change in different factors of PESTEL will have strong impact on the business of Natural Kitchen. Political: Presently in UK the government has made the rule for using GM label for informing the customers about the ingredients of the food. The government has also imposed goods and service tax which has compelled the restaurants to increase the price of its food. If the government abolish these rules then Natural Kitchen can reduce the price of its food products. But it can’t inform the customers about the high quality ingredients used in its food which can generate many doubts on the mind of its customers. Economical: The economic condition of UK market is good. It helps the companies to grow their business operations. Companies have to bear low cost in setting up retail outlet of restaurants. It has helps Natural Kitchen to establish five retail outlet in prime locations of London. If the cost of establishing retail outlet increases then it will be difficult for Natural Kitchen to increase its number of retail outlets in UK market. Social: The people of UK live busy lifestyle. They are very much concerned about their health. So they prefer healthy food products. Based on these social factors the Natural Kitchen has developed its products and services. If the people is not concerned about their health and want spicy food then the company has to change its food product for satisfying its customer needs. Therefore the company needs to incorporate new business process (Johnson, Scholes and Whittington, 2014). Technological: In fast food industry technology plays a vital role. Natural Kitchen has incorporated many advanced technologies in its retail outlets for enhancing its business operations. The rules and regulations of food industry of UK have influenced the company to incorporate modern technology. To match with the technological advancement the company can use different apps for facilitating the customers in purchasing products. For implementing this change company have to advance its different technologies. Legal: As per the legal rules of UK the restaurant companies have to maintain proper guidelines of health and safety standards. The companies also have to maintain food standards for operating in the market of UK. Natural Kitchen has to follow guidelines and specific food standards for operating its business. If these strict rules and regulation are abolished then the company don’t have to invest much on its food products for maintain specific food standard (Hooley, Piercy and Nicoulaud, 2012). Environmental: UK has implemented strong rules and regulation for safeguarding the environment. The companies operating in the UK market needs to follow environmental rules for establishing strong position the market. Natural Kitchen performs different social services for helping people and developing the society. If the government of UK puts strong regulation on different environment factors then Natural Kitchen has to improve its activities which for benefiting the society. References Hooley, G., Piercy, N., and Nicoulaud, B., 2012. Marketing strategy and competitive positioning, 5th Ed. New York: FT Prentice Hall. Johnson, G. Scholes, K. and Whittington, R., 2014. Exploring Strategy. Tenth Edition. FTPH. New York: Pearson Education. Johnson, G., Whittington, R. and Scholes, K., 2011. Exploring Strategy (9th ed.). Harlow, UK: Prentice. Hall. Joshi, R. M., 2005. International marketing. New York: Oxford University Press. Magretta, J., 2012. Understanding Michael Porter. New York: Harvard Business press. Yoo, B., Donthu, N., and Lee, S. 2000. An examination of selected marketing mix elements and brand equity. Journal of the academy of marketing science, 28(2), pp. 195-211. Read More