A marketing analysis of a company
As a business consultant to Bob and Lloyd, it is required to devise a marketing plan for their fast food business, Delicious Goodness. Before getting into the depts of marketing concepts and principles, it is important to inform Bob and Lloyd as to what marketing is. According to Phillip Kotler, marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. It is the manner in which management of a business goes about satisfying the needs and wants of consumers as a primary function of the business.
A marketing analysis of a company is a valuation into the type of market for the businesss products that are available to consume. This investigation is done through a thorough research using marketing tools such as PEST analysis, SPICC analysis and SWOT analysis which would ultimately allow Bob and Lloyd to grasp an understanding into the type of market they wish to enter, making them aware of the possibilities of market growth or failure of the business and further implications on the potential of and the direction in which the business may be headed through identifying the strengths, weaknesses, opportunities and threats of the business. The marketing model of Wright, 1999 is shown in appendix 2 highlighting these analyses.
A PEST analysis was firstly conducted, as a measure of the macro environment of the business through the political, economic, social and technological aspects in which Bob and Lloyd may encounter.
Although a recent change in government, the government still encourages the role of small businesses in the economy. Bob and Lloyds business complies with the laws and can therefore be easily approved as small company status. These laws are put in place to ensure that citizens are consequently benefited, for example; it is required that the business make use of locally produced raw materials, creating jobs for nationals and that the business must be locally owned and controlled. Bob and Lloyd can also benefit of being privileged to assistance from the Business Development Company. The BDCs objectives are based on providing technical and financial support to small and medium businesses to empower growth and development whilst creating them to also be internationally competitive. Additionally, government has reduced corporate taxes to 25% of the net earnings of small businesses, and has initiated entrepreneur of the year awards to encourage small business.
The economics aspects such as exchange rates and inflation rates must be considered in light of purchasing supplies that are not locally grown and in creating selling prices. Also, matters of diversity of income levels and wage rates, variances of ages and the patterns of consumption within chosen geographic area to conduct business must be initially reviewed. Furthermore, the social features of the area must be studied, that is, the various types of races and religions practiced within area which would affect sales during certain periods of the year, such as Divali and Eid. The percentage of the grey market in area is also a concern, since the older folks would be more health conscious, however, Bob and Lloyd would be catering for those through providing grill foods. Technological factors are a necessity in business, Bob and Lloyd would have to accommodate for the rate in which technological advancements is occurring. Thus, constant improvement and updates would be required as of new processes.
Suppliers of raw materials within area would not be an issue, since there are various wholesalers and farmers within district. The only main concern here would be to develop and maintain moral relationships with suppliers to ensure efficiency within the supply chain. The business must also incorporate social responsibility within its local community which would ensure sustainability and good reputation. There are no intermediaries involved in this firm; customers can go directly into business and purchase. Customers satisfaction is most vital in marketing since they are the ones who have the power to make or break the business. Thus, customers satisfaction and behaviours must be closely studied when determining the type of fast food outlet. Competitors also play a major part in this market, there are many fast food outlets within decided area, therefore Bob and Lloyd would have to come up with concepts of distinctiveness (highlighted in appendix 3 via McKinseys 7Ss framework) that would make customers want to purchase from them.
Of the approximated 157,295 population of the San Juan area, about 60% is of the working population. Due to globalization and the fast paced lives of persons, it is estimated that about 80% of the working population would eat out and about 8% of that 80%, at an average of 5033 persons per month would indulge themselves at Delicious Goodness in its first year. Since Bob and Lloyd provide food for the health conscious and vegetarians, the targeted market is at ages 12-55. Bob and Lloyd would have a few local competitors since they specialize in a variety of foods.
Bob and Lloyds objectives are focused on customer satisfaction, by ensuring customers get good values for their monies spent on products and, through the high levels of customer service and provision of after sales service capture a larger portion of market share in the short run. In the long run though, they wish to mature, innovate and multiply the business and compete at an international level.
This tool is used as a major concept in modern marketing; it consists of Product, Place, Price, Promotion, People, Process and Physical evidence. Bob and Lloyd would provide a variety of high quality, mouthwatering dishes made by the finest chefs in the region, targeting customers needs and wants. Place of the business is usually intended as a location of convenience to both Bob and Lloyd and to consumers. The San Juan area is a very developed and fast growing region in all aspects. There are no major channels of distribution existing here but one, the customer directly goes into restaurant and purchase. Pricing of products is as per going rate of price as a result of the type of market, a market for fast food products. Though prices are set at this rate, Bob and Lloyd are still making profits on each unit to cover other costs; it is the only marketing tool which produces revenues. Promotion of products is major role in marketing, because it allows communication of and educating the public of the products provided. Bob and Lloyds means of doing so was through direct marketing of handing out flyers, the traditional mic-man passing around the area, internet advertising through the Express Newspaper classified as well as social networking through Facebook and twitter. In this case social networking is most effective as feedback is readily available, which is an important tool in building the business, and it is free. Delicious Goodness is set to be launched on 31st March, 2011 at the restaurants compound; a short, formal opening ceremony is planned with expected featured guest, MP for the area, Dr. Fuad Khan, and an appearance by home-grown superstars H2O phlo to aid in gaining initial social status. Dr. Khan and the guys of H2O are good friends of Bob and Lloyd.
People are the backbone of a company. With integrated networking practiced at Delicious Goodness, it allows participation in decision making, assistance in solving issues and overall building good team working. Thus, Bob and Lloyd would benefit in having motivated and reliable employees resulting in satisfied customers through high standards of services provided and great tasting food. Additionally, the processes in which customers are serviced would be competent and professional, yet customer friendly oriented. The physical evidence would be the employees and the efforts put in place of creating a soothing, welcoming and blissful ambience of the restaurant.
This is very important in this type of market since it distinguishes the qualities, appearances and tastes of the same products provided, by different suppliers, hence allowing consumers to easily identify their choice of product. A suggested brand logo for Bob and Lloyds product is available in appendix 4. As an upcoming business in a market with many competitors; it is recommended that Bob and Lloyd brand their products, especially since consumers would want to remember the brand as of first time tasting. It would also make the process of word-of-mouth of the product simpler, hence easily gaining greater market share and good reputation.
In conclusion, it is recommended that Bob and Lloyd analyze the market from time to time with regards to the constant changes taking place in the economy. This would allow the business to flourish in the possible innovation and creations of food products, due to first-hand knowledge of the various changes occurring; or it can also allow the company to brace itself if there should be a setback in economy.
Word Count: 1482 words
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