Integrated Marketing Communication Theory: of City Snacks Restaurant - Case Study Example

Introduction With the turn of the century many companies have reported making huge profits alongside increased economic activity of the world. As such the Pleasure Foods Company was not left behind expanding and exploring new markets. The company through its affiliate company City Snacks increased the number of its branches to stand at 140. This did not bypass the attention of would be competitors in the retail business. As time went by the Retail giant started experiencing serious competitor from the new entrants in the market. Sales were going down and the only viable way for the company to retain its position in the market ahead of its competitors was to introduce a more relevant marketing campaign that would be best suited to address the current market situation. In a move viewed by many to be timely if not late was the hiring in of anew marketing director who is going to be responsible for introducing the new strategies that are going to lift the firm from doom in the market. Situation Analysis At the moment the company is thought to have effectively saturated the market in its expansion programs. However this does not mean that the company is operating at its optimum. Such a case directly points to the fact that there is room for improvement in increasing the company sales revenue. The management feels that the projected 4% annual growth is not enough. Alternatives ways of increasing the sales have to be sought as expansion though opening of more outlets is out of question as the market is being viewed to be saturated with the number of running outlets standing at 140. The best way forward for the company for now is to increase their marketing efforts something that has received new blood with the appointment of a new marketing director. Marketing situation In handling of its marketing programs the company has to adopt a very personalized marketing mix given that the business borders on product marketing and service marketing. Dwelling on the traditional 4Ps model to determine the perfect marketing mix is more suited for product marketing while the more modern McKinsey's 7S is better suited for service marketing. The 4Ps model emphasizes on the importance of product, price, place and promotion. On the other hand the 7S model emphasizes on Structure, strategy, systems, skills staff style and shared values. The later model is more preferable as it sources its findings from a broad spectrum that is more involving that the rather involving 4ps model. In our case we analyze the hotel using the 7s' model Strategy This is basically the agreed and planned for general direction of the company in the long run. The inclusion of the company's products and service offering are paramount in pinpointing the direction that the company is to take as determined by the market in which it is operating. For Pleasure Foods the idea from the case study seems to fully play an integral part as a major market player in the provision of fast foods. The goal seems to have been reached with the increase in outlets and creating and maintaining a strong brand name. However the management should not view this as the end of the road as new strategies and challenges need to be outlined in order to give the company a new sense of direction and purpose through which all efforts will be geared towards. At the moment the company does not seem to have well thought out issues and objectives that are to be achieved in the short or long run. Structure The structure of a firm defines how power, decision making abilities, duties and responsibilities are distributed from the highest level to the lowest. This call for the creation of departments or sections which are usually determined buy the size of the organization as small organizations may merge some departments. With the existence of many departments in City snack restaurant and Pleasure foods at large a detailed cooperation, coordination and harmonizing of operations is necessary for the overall performance of the whole group. At the moment the departments are operating at a seemingly awkward manner. The marketing department is blaming the financial department for their failure saying that the money budgeted for them is never enough for their operations. By the look of things it’s like all other departments look down on the IT department gauging their performance on output. Systems This relates to formal and informal procedures that the organization performs in aligning the functions of the various departments in realizing the goals and objective s of the company. The systems may operate as independent entities though their interdependence is important in their operations. Skills As a unit the skills of the overall company can be compared to the strengths in which it has in attaining its objectives and handling of competition. City snacks at the moment is very apt in learning the consumption trend on part of their customers as shown by their ability to notice when to carry on the expansion of their outlets and when to hold back. Shared values A company has to develop and train their staff to operate within an expected code of behavior and values. Guiding phrases and slogans are introduced to help in instilling the sense of responsibility and cooperation. For city snack they have adopted the phrase ''TEAMWORK'' ''CitySnacks: First Class employees for first class customers'' The management is correct in introducing such slogans which makes the employees feel valued through their reference in the phrase as ''first class'' Staff On the issue of staff there seems to be very little teamwork going on though this seems to be one of the principles of the company. This is clearly shown when Tim's secretary does not recognize the teammate who placed a plaque right behind her desk though it’s encouraging to see she knows where it might have originated. But, given that it was her work station she is required to know who was responsible for the action. Style This should be the uniqueness existing in an organization's way of doing things that make it different from other organizations that may be plying the same business and probably in the same market. Currently the company does not portray any uniqueness in how the management operates though it has some serious flaws in how other departments perceives the IT department. The above combination constitutes the best recipe for an organization bent on implementing an effective frame work for a consistent marketing-led approach that puts the consumer’s needs and wants at the fore front. In the analysis we show some of the failures of the company and the best way how the management can address the issues. One of the most announced failings of the company is lack of interdepartmental cooperation. The IT department does not support the marketing department in that the programs they introduce do not in any way help the company in gathering data regarding their customers. The same case is seen with the information obtained from Logical System where there is minimal use of the information despite the finances sunk in the outsourcing. The draw is showed as lack of communication between departments which affect overall performance. More specific in the case, the programs which IT department created does not support marketing team to collect data from consumer. This makes the marketing team struggle to plan and set up strategy. In addition, program development is costly, financial director had to cut the budget from other departments, for instance, staff training budget. Organizational Culture The organizational culture of any given firm is more or less the same as the definition offered in the shared values analysis in the McKinseys 7S model. In analyzing the culture of City snack it is apparent to note that the firm has an extremely weak culture that has contributed a lot in creating employee dissatisfaction making them to seek alternative employment as displayed by the case of the two graduate employees in the marketing department. This is against the description of a strong culture where employees do things in the belief and knowledge that it is the right thing to do and hence no fear of condemnation from the top management for lack of consulting. Another problem afflicting the company in the way that it is organized is group thinking. The perception the management has was described by Irving L. Janis as a quick and easy way to retreat to a mode of thinking when they are deeply involved in a cohesive group. Bill Donhue helps us in noticing the prevalence of this problem by saying that even the Operations Directors do not argue with Julia Harris, the marketing research manager. This does not mean that the lady is exempted from making mistakes in her judgment and research findings analysis. When the management's strivings for unanimity override their motivation to realistically consider alternative routes of action where necessary, there is bound to be a problem along the way which in this case maybe what is ailing the company. In group thinking employees, do not challenge organizational thinking even if they have different ideas, and therefore there is a reduced capacity for innovative thoughts. This could occur, for example, where there is heavy reliance on a central charismatic figure in the organization, or where there is an evangelical belief in the organization's values, or also in groups where a friendly climate is at the base of their identity (avoidance of conflict). In fact groupthink is very common, it happens all the time, in almost every group. Induction process Every organization, large or small, should have a well-considered induction program for new employees or interdepartmental transfer subjects. However, designing an appropriate and results oriented induction package is a complex task that calls for careful considerations in disseminating relevant information for quick assimilation. (Palmer and Cooper, 2007)An induction program is aimed at providing all the information those new employees and others need, without overwhelming or diverting them from the essential process of integrating into a team. The induction process should not be hurried in any manner as its effectiveness determines the performance of the inductee's. The process may thus involve several steps. Orientation as part of this process can be done through a specific course or training event that new starters attend where for instance a brief history of the organization is given. Another probable step in the induction process could be socialization sessions. It is in these sessions that new employees build up working relationships and find roles for themselves within their new teams. It therefore happens that the effectiveness of the induction should not be allowed to be hampered by time as its length depends on the complexity of the job and the background of the new employee. A standardized induction process should be avoided at all times as the inductees are from different backgrounds with varying experiences. In my view the induction did not meet the expectations of an induction i.e. the description aimed at achieving the following Physical orientation where one is guided around the facilities Organizational orientation- This shows how the employee fits into the team and how their role fits with the organization's strategies and goals apart from roles and responsibilities assigned. Health and safety information more so since this is a food industry. Explanation of terms and conditions. Details of the organization's history, its products and services, its culture and values. Human resource managers versus induction In cases of junior staff, the induction of a specific employee is accomplished by the manager-to-be of the inductee. In this case the induction of a marketing director as a senior staff is delegated to the HR. Apart from not conducting the induction course for me, the HR manager went further ahead and denied me audience in the course of the induction process in pretense of meeting with the retail staff to address some issues. The excuse cannot be doubted 100 per cent at the moment since further verification is needed. To me it appeared that the HR's intention in skipping my meeting with him was to avoid my pre-meditated requirements in recruiting new staff in the marketing department to replace the already departed ones. In spite of all this there has to be a meeting with the HR to discuss the issues pertaining to the staff in the marketing department. Issues to be discussed In the first meeting with the staff the director is posed to familiarize premises of the department and himself with the staff before settling down to discussing issues affecting the department and the restaurant as a whole. In the first meeting some of the things that are posed to be addressed are Employees position in the company. This is how employees feel towards the company and whether their scope of work is what they expect in accordance to their professions and skills. Budget review Departmental relationships and how the marketing staff views other employees Motivation and appreciation issues The market as it is at the moment and how the marketing staff views it. Perception of the employees and the seat of a marketing director Discoveries At the end of the meeting with the marketing staff I should be able to locate and identify the staff subject to me and be fully conversant with their roles, duties and responsibilities in the department How do they employees feel about their work? Do they report to work as a routine or as an inner calling to give their best for the company? This attitude is important as it determines the level of commitment and level of dedication to work. The details on how the department utilizes its financial allocation pinpoints whether the department uses its allocations in the wrong way or highlights the chances of funds embezzlement or whether the allocation is not genuinely enough. Learning how the employees perceive the market for City Snacks gives us a sneak preview of the employees’ efficiency and competence as marketers. Where do employees position themselves in regards to the company? If they feel valued their productivity is bound to be high. What is the department's staff perception of the other departments and how do they relate. How do the employees fell towards the senior management? Barriers to proposals implementation Being relatively new in the company places you a few steps behind in employee loyalty compared to other managers and regular staff. It is therefore expected that any new measures challenging the status quo are going to meet some resistance and be viewed skeptically. The final implementation is thus to be delayed further increasing inefficiency. (Palmer and Cooper, 2007) The company at the moment seems to be very sensitive to financial matters with fall in revenue. It would therefore be expected that any additional financial pleas would fall on deaf years. This could cripple or at least affect the implementation of new marketing ideas and projects. Time- This is very essential in that the new implementations are expected to show positive results within the shortest time possible to evacuate the restaurant from the dire situation it is currently in. However the market and the company itself will take time to adjust to the changes introduced. In the case of new marketing ideas it will involve training the marketing staff about their new roles in the new strategies and on the best way of making them work for the benefit of the company and for the satisfaction of the customers. Meeting the CE As the head of the company the CE is the overriding authority in all decisions made. Departmental recommendations have to obtain his nod and it is therefore upon the departmental managers to impress on the CE on the importance of their recommendations and what role they play in achieving the company goals and objectives. It is with this in mind that the meeting with the CE is founded as a lot of flaws exist in the management of marketing in City Snacks according to my analysis and inefficiency of the process as shown by the sales trend. Importance of changing the marketing process Currently the restaurant is concentrating on selling itself to the consumers through promotional activities such as offering discounts and cultivating for customer loyalty by initiating the stalled Saver Card Loyalty project. However, this does not seem to meet the objective of increasing sales for the restaurant. In my view concentrating too much on these promotional activities can be likened to someone blowing his/her trumpet. What the company should be concentrating on rather is creating a good public relations policy that builds on the hotels credibility which tells the story of the restaurant through a relatively independent third party. Promotion through discounts delivers results as long as it is going on whose termination may at times brew skepticism from the consumers. On the other hand real marketing through public relations draws customer loyalty and has a carry over effect that lasts longer than the seasonal promotions and discounts offers. It is therefore open for all to see that the most effective method for marketing the restaurant at the moment is investing more on a public relations drive that will call for additional funding and reduce the expenditure on promotions and discounts. Introducing IMC As a management concept it is designed to make all aspects of marketing communication efforts such as advertising, sales promotion, public relations, and direct marketing work together in harmony and unity as a single force. This is against what is apparent at City Snacks where promotion and other marketing efforts work as independent departments rather than permitting them to work in unity. In its application IMC is aimed at creating and sustaining a single message in all elements of a marketing campaign. Integrated Marketing Communication theory is the key that successful organizations and enterprises utilize in achieving a market-oriented, consumer-core enterprise integration of all marketing and communication activities centering on the theme concept of consumer satisfaction and the best combination to maximize the dissemination of results for the market and the organization. As per my evaluation there is no evidence of application of an Integrated Marketing Communication system in the organization. Essentially, what is lacking is an ''inside'' communication system that allows the restaurant to gain information on the consumers' needs and design their products and services according to the wants and wishes of the consumer in a bid to form a market oriented approach. Forming of different information channels that unanimously seek to cement the consumer-to-restaurant brand initiation trust, and maintain the long-term trust and brand loyalty will at the moment jump start a positive growth in the restaurant sales. (Palmer and Cooper, 2007) A successful integrated marketing communication plan will customize what its market research has recommended as to constitute the needs for the market based on time, budget and resources to reach target goals. Now, one may wonder why we are emphasizing on suing IMC so much while other forms of advertising may be doing well. Some shifts in the way that organization do business both in the same market and in different markets has necessitated the adoption of IMC. Theses shifts are: 1. From traditional mass media to more specialized media, which are centered on specific target audiences important in market segmentation 2. From a producer-dominated market approach to a retailer-dominated market where market control has transferred into the consumer's hands. 3. From generalized advertising and marketing to data-based marketing. 4. From low agency accountability to greater agency accountability. Agencies now play a larger role in advertising than ever before. 5. From traditional compensation to performance-based compensation. This encourages employees to do better because they are rewarded for the increase sales or benefits they cause to the company. 6. From limited technology such as Internet access to advanced technology meaning Internet availability. This means that people can not only have 24/7 access to what they want, but that advertisers can also target potential buyers just as much. In the last case of the shifts City Snack as per the case study seems to have noticed the restaurant going trends of their consumers but there is no evidence shown that they have made the correct steps on capitalizing on the visiting hours of the customers. City Snacks is an organization that is in the process of rapid growth & development aiming to increase revenue and at the moment cutting on further expansion into new markets but also for the mature market. Willoughby (2007) observed that the development of a new marketing strategy requires off-the-shelf system and method for easier implementation and development of IMC plan. City Snack is best suited in the development of its IMC system than trying to change the existing system partly, and overlapping changes Recommendations to the CE Introduce a better employee motivation and rewarding program to increase the efficiency of the whole organization. In doing this the organization is to introduce a rewarding system where the employees are to be awarded on merit by the organization. More integration in the functions of the company- Each department in the organization is at the moment working in a competitive environment with one another for the finances and to outdo one another. While this is healthy for the organization in other aspects it does not auger well with the company's mission and objective which requires the contribution of all the departments. Moreover, develop long term strategy by improving system to get the accurate data base from customer and develop product, services and promotion. Marketing team starts selecting information they need and cooperate with I.T. Department. The data will support team to improve quality to reach consumer requirement, then create royalty and end up with increased shareholder value. Staffs using the program are one of the main factors which affect quality of information; therefore training process has to be applied to improve staff skill to be able to use the program effectively. Training not only helps marketing team to collect the data but also increase customer satisfaction by providing good service. For example, the problem of invalid voucher when the time is due can be solved by trained retail staffs to give information to the customers about condition of the promotion and keep them informed on how long the voucher can be used for a particular customer. Using motivation to improve performance, different career level has different need, therefore the method of motivation have to be suitable to influence their behavior. Work Cited Source Boddy, D. Management an Introduction, Spain: Mateu Cromo, 2005 Cummings, T. Worley, G. Organization Development and Change, Thomson South-Western, USA: New York Press, 2005 Handy, C. Understanding Organizations, Harmondsworth: Penguin Books, 1985 Johnson, G. (2005), Strategic Management Journal vol. 9 pp 75-91 Palmer, R. Coockton and J. Cooper, G. Managing marketing. The Netherlands: Charon Tec Ltd, 2007 Willoughby, M. Managing marketing performance. University of Central England Business School, 2007 Read More