Assignment Sample on Principles of Marketing
INTRODUCTION
Marketing is considered as the activity of generating leads and communicating messages to the consumers. Marketing allows the business to interact with the potential buyers and making them ready to invest money in its goods and services. Spice Kitchen is the chosen firm for this study (Matic and et.al. 2019). This is the business which is run by son and mother as it is a family-owned firm. This provides homemade food to the consumers. The firm is supporting near families. The company ensures that it delivers the best quality food to the buyers that can make them feel satisfied and make them loyal towards the brand. The current assignment will describe the Pestle analysis to evaluate the external market condition of the business. Furthermore, a SWOT analysis is going to be conducted to know more about the internal condition of Spice Kitchen. The report will illustrate the marketing activities of the business that may the firm to increase its revenues in the market. STP will be conducted to attract the right consumers to Spice Kitchen.
PESTLE ANALYSIS
External market analysis is done with the help of a pestle analysis framework. This is the tool that allows the business to evaluate its position in the external market.
Political factor
Spice Kitchen is considered a family-run business that is run by mother and son. The political condition of the nation has a great impact on the sustainability of the company. If there is a stable government then it may increase opportunities for the business to grow well but the unstable government always comes up with new norms and creates an issue for the companies to manage their operations well (Al-Omari and et.al. 2018). Covid19 government of the country has announced a complete lockdown in the nation hence no international visitors can come to the region that has affected sales revenues of Spice Kitchen badly. This has decreased the demand for its food.
Economic factor
Spice Kitchen is conducting its business in the food processing business where it prepares food at home and delivers these foods to the consumers. Changes in economic conditions influence the working of Spice Kitchen. A high employment rate enhances the capacity of the buyers and they like to buy such tasty food but if there is unemployment then people save money and do not spend much on this outside food (Venaik and Midgley, 2019). This affects the profitability of the firm badly.
Social factor
This component has a great impact or direct impact on the business operations. The taste and preferences of buyers get changed continuously. If there are small changes in the taste of buyers then Spice Kitchen will have to make changes in the cooking style so that it can deliver satisfactory food to the buyers (Mesak, Bari, and Ellis, 2020). Culture affects the food pattern of the consumers. Changes in cultural norms may create an issue for Spice Kitchen to manage its cooking style and this may affect the operational performance of the company greatly.
Technological factor
In recent times many businesses are using the online application, mobile applications to make great interaction with the buyers. Spice Kitchen may also use this technology to increase customer engagement in the business. This may help in reaching a large audience and increase sales order as well. But this may enhance cost as well hence Spice Kitchen will have to ensure control over its other expenses (Haque, Shafiq, and Maulan, 2017).
Legal factor
Law affects the entire industry badly, changes in laws create pressure on the company to make changes in its operations as well. Recently the government has introduced hygiene standards and Spice Kitchen will have to follow this to sustain itself in the market for a longer duration. The legal operations help in improving brand image and developing the confidence of buyers as well. In this way, more consumers take interest in its food products.
Environmental factor
Spice Kitchen is continuously working for supporting near families in the pandemic situation. This CSR activity of business helps the firm in improving its brand image and attracting more consumers towards the Spice Kitchen. In this way, a business may earn high revenues and can retain its consumers in the business for a longer duration as well (Efanny and et.al. 2018).
SWOT ANALYSIS
A swot analysis framework is used by companies to identify the internal market position of the business and the capability of the firm to sustain itself in the market for a longer duration.
| Strength | Weakness |
| · Strong supply chain management: Spice Kitchen has made a strong relationship with its suppliers, these suppliers are delivering raw material to the business on time. In this way, this becomes able to meet the demand of consumers always (Rachmawati and et.al. 2018).
· Strong distribution: Spice Kitchen’s strength is that it has a strong distribution network system that supports in reaching the consumers greatly. That is why the company’s consumers are increasing with the rapid speed and this is growing well. · High quality of products or services: Spice Kitchen ensures that its consumers feel satisfied hence businesses always take care of using spices or ingredients properly so that the quality of food can be raised. It follows the food standards properly that helps in enhancing the quality of food items greatly. |
· Limited presence in the geographical area: Spice Kitchen is unable to enhance its revenues as it is operating in the limited space only hence it has limited consumers that restrict its revenues.
· Poor marketing: Spice Kitchen does not spend much amount on marketing that is why fewer people are aware of the quality of food delivered by Spice Kitchen. · Poor financial resources: the financial position of Spice Kitchen is average; it does not have reserves to sustain itself in the market for a longer duration. |
| Opportunities | Threats |
| · Technological advancement: Spice Kitchen can grow well and can gain new opportunities by enhancing the technologies in its food processing system. This may enhance the production capacity of the firm as well (Wang, 2020). This is beneficial in eliminating resource wastage as well.
· Globalization: This is another main opportunity available to Spice Kitchen, the firm may enter into the international market and can deal with foreign consumers to generate more revenues. |
· Economic fluctuation: this may cause the issue to the sales of Spice Kitchen and may create trouble in sustaining in the market for a longer duration.
· Competition: high competition in the food industry may cause trouble for Spice Kitchen and this may affect its sustainability greatly. |
Spice Kitchen is running its operations on a small scale as it is a family-run business and operating in a limited place only. The firm has limited funds hence it does not spend too much on its marketing. This creates trouble for the business to reach large consumers and increase its sales. It has an amazing quality of food and its services are also so amazing. This helps the organization to attract more consumers but due to limited marketing arrangement currently, it is unable to attract more buyers (Bonaparte, 2019). The limited funds and the restricted marking efforts is the major component that affects its sales. To grow well in the future it will have to increase its marketing efforts so that it can increase sales and can raise its brand image as well.
Spice Kitchen has huge potential to grow well in the future, it can expand its business to the international level because foreign clients also like to have some delicious food of high quality. This may create a huge opportunity for the business to grow well. Apart from this, it has huge potential to retain its existing buyers by delivering the food on time and reducing the waiting time. This may help Spice Kitchen in gaining a competitive advantage and sustaining in the market for a longer duration (Panjaitan, 2020).
MARKETING MIX
Marketing is the only way to raise brand awareness and attract people towards the brand. Marketing supports the businesses to communicate the information about the product and its quality to the buyers and developing confidence in their mind so that they like to experience services of enterprise greatly. Spice Kitchen can grow well in the future if it makes effective marketing strategies and implement these tactics properly (Rėklaitis and Pilelienė, 2019). 7P’s of marketing of Spice Kitchen is illustrated as below:
Product
This is the first major component of marketing that is considered as one of the major elements because if the company is unable to offer the best quality items to the consumers then no one will take interest in the business. Spice Kitchen will enhance its product quality and will involve the industry standards to raise the quality. It will ensure the following hygiene aspect and food safety standards so that it can satisfy its consumers greatly. Apart from this, services will be improved and it will make an instant reply to its consumers to that they feel positive. It will improve its packaging as well so that food can be delivered to the consumers in its original form and do not get damaged (Ardiansyah and Trianasari, 2018).
Price
Cost affects the buying behavior of consumers. If a company offers costly goods then people may take less interest. The main target market of Spice Kitchen is lower-middle families that like to get high-quality affordable foods. The business needs to implement the penetration strategy of pricing in which it will offer the food products to its buyers at a lower rate at the initial level. Once the consumers feel happy and loyal then it will increase prices gradually. Apart from this, Spice Kitchen will have to provide discounts in the season time so that more people like to have its amazing food.
Place
Spice Kitchen will sell its food item through its store but it will provide an online delivery option as well. Due to pandemic people are unable to visit its store but businesses will ensure that food reached the consumers on time (Sugiyarti, Asmilia, and Hanah, 2020). Apart from this, it will make a partnership with the curious and delivering services so that they can deliver the food items to the consumers within a set time. This will also improve the interior of its store so that people who are visiting this place get an amazing experience. This may make them positive and they will like to come to this place continuously.
Promotion
Spice Kitchen needs to promote business through a TV advertisement. People watch TV and get influenced by the advertisement broadcasted on it. This may raise their interest and they may visit the store surly. This TV advertisement is affordable as well. Apart from this, Spice Kitchen can take support of social media sites (Camilleri, 2018). It will promote the brand through Facebook, Twitter. Many people are visiting these sites and reading the comments of others as well. By using this platform Spice Kitchen will be able to enhance the interaction with consumers that would be better for the business to gain success in the market.
People
It requires improving its people strategy and needs to train its staff members about the industry standards and food manufacturing process. This may enhance their skills and capabilities and they will prepare food properly and will serve the consumers greatly. This may make them feel confident and happy as well. Spice Kitchen should also give attractive pay to the employees to retain them in the business for a longer duration.
Process
The complaint resolution process will be so smooth. Consumers can chat with Spice Kitchen through its mobile application and the customer care team will resolve the issue of buyer soon. This may make them positive towards the brand (Panjaitan, 2020).
Physical evidence
Spice Kitchen will have to improve its infrastructure of the store. It needs to improve the website a little more by adding more videos and images. This will attract more people and they will continue using its food services in the future as well.
STP STRATEGY
Segmentation
Segmentation strategy is an essential marketing tool that allows the business to target the right consumers in the right manner. Each consumer has its feature and segmentation divides the group of consumers based on their features only. Spice Kitchen is going to take the assistance of geographical segmentation strategy and the demographical segmentation tactic. This will ensure to target people based on their age. It will deliver food items to the consumers based on their age as young age people like to have fast food and such tasty food items. Income is another major criterion of business on which it will target the consumers. On the other hand, adults like to have more hygienic and healthy food (Wang, 2020). Whereas old age people like to have simple, no spicy food. Spice Kitchen will take care of these features of people and will offer them food and services accordingly. Geographical segmenting is also used by Spice Kitchen in which it will ensure to add some local dishes in its menu so that people feel connected and likes to visit this place greatly.
Targeting
Spice Kitchen aims to target the large section hence it will use differentiated targeting tactics. This is the best strategy for and will help the firm to increase its revenues in the market successfully. In this way, it will be able to deal with a large audience and will deliver the food and services on time. This is the best technique that will attract more consumers and will support Spice Kitchen in sustaining in the market for a longer duration (Haque, Shafiq, and Maulan, 2017).
Positioning
Spice Kitchen will apply the cost positioning tact. The main target market of Spice Kitchen is lower-middle-class people hence cost-effective food products will be offered to the consumers so that they can afford them and use its services continuously.
RECOMMENDATION
There is a need that Spice Kitchen makes changes in its marketing strategy so that it can grow well in the market and can gain success in the competitive environment.
- Spice Kitchen should improve its marketing promotional techniques as it should use the promotional campaign strategy to promote the brand. In this way, it will be able to interact with more consumers and will be able to make them aware of the brand name. This will increase sales of Spice Kitchen in the market successfully.
- It should make changes in its people strategy as well and need to provide incentives to its employees. This will make them loyal and they will put their best efforts to deliver the best services to the consumers.
CONCLUSION
The above study can be concluded as marketing is the essential business function that ensures to raise awareness of consumers and promotes the brand greatly. It always improves the brand image in the market by using different techniques. Marketing can increase the number of consumers of the business and can affect its sales as well. If a company is not making effective marketing efforts then it may decrease the interest of consumers and consumers may shift to another brand hence there is a need that businesses spend money on marketing activities so that they can communicate with consumers greatly.
REFERENCES
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