Assignment Sample MARK1248 Marketing Planning and Implementation
Introduction
Post the global pandemic situation, the UK based food shop chain organisation Associated British Food has taken up the decision of expanding their business roots to maximise their sales growth (Abf, 2021). This essay is based upon preparing a marketing mix investigation and lifecycle examination for opening up a new branch in Greenwich. During task one of the essay SWOT and PESTLE analysis regarding the organisation will be laid down. As the essay progress, it will also discuss the theory of marketing mix along with explaining the marketing strategy followed by the firm.
TASK 1: Overview of the organisation and SWOT and PESTLE analysis
Associated British Food is a UK based multinational food shop chain organisation that has its headquarter situated in London, England. ABF was established in the year 1935 and operates its business through more than 384 stores across different countries. The market share of ABF in the UK is 2.3% as of the year 2020. The USP of the organisation is to make high-quality meals by using organic products. The organisation has decided to open up their restaurant near the local railway station of Greenwich, catering to the needs of travellers.
SWOT analysis
Strength: The strength of Associated British Food includes their high brand status within the food market that contribute towards the overall growth of the organisation (GURL, 2017). Furthermore, the strength of the firm includes producing high-quality meals through the help of using organic products.
Weakness: The weakness for the organisation includes of lack of business presence in the diversified geographical location. Lack of experience also turns out to be challenging for the organisation that making it difficult for them in establishing their restaurant business in Greenwich (Teoli, et al., 2019).
Opportunity: The opportunity that lies in front of Associated British Food includes the shift in customers tastes and preferences that enables the firm in offering unique products to the customers. Expanding into a new business location also turns out to be an opportunity for the firm (Vlados, 2019).
Threat: The threat level for the organisation includes growing competition from Tesco and Asda that limits their growth opportunities in the competitive business environment. Changing the business nature of the organisation also turns out to be challenging for the firm to establish its business in Greenwich.
PESTLE analysis
Pestle analysis is referred to as the framework to analyse the key factors that are including political, economic and sociological that influences the overall operations of the organisation (Adji, et al., 2018). Examining the macro-economic factor help the firm in eliminating the issues that hinder the growth of the organisation.
Political: The political condition of the UK is facing a rough time due to the global pandemic situation of Covid-19. Moreover, Brexit has also negatively impacted the trade as the corporate tax rate stands around 19%, making it challenging for the firm in establishing their business in Greenwich, UK (Gov, 2021).
Economic: The growing GDP of the UK presents growth opportunities for the firm in opening up its restaurant business near the railway station of Greenwich. The GDP of the UK has grown by 5.34% in the year 2021 (Statista, 2021). The GDP of the UK has also contributed towards the growth of the local economy and infrastructure development that present opportunities for food shop chain to open up their restaurant business in Greenwich.
Social: UK’s society is considered to be multicultural were the people like to taste new and innovative things. Moreover, the Average Annual Income of the UK has increased by 30,800 GBP (Universitiesuk, 2021). The growing lifestyle of the UK enables Associated British Food in opening up its restaurant business.
Technological: The growth in the UK technology also contributes towards the growth of the restaurant business as development in AI and data analytics help the organisation in opening up their business in Greenwich (Uktech, 2021). Growth in technology also helps food shop chains in measuring customer footfall and growth.
Environmental: Associated British Food while operating in the UK needs to conform with The Environmental Protection Act 1990 in terms of reducing carbon emission along with the greenhouse gas (Legislation, 2021). Complying with the Environmental Protection Act 1990 help in maintaining long term sustainability for the organisation.
Legal: Associated British Food also needs to adhere to the legal policies and guidelines that include maintaining the HSWA Act 1974 in terms of offering better facilities to the employees to keep their loyalty and trust (Hse, 2021).
Main Body
TASK 2: Marketing mix and product lifecycle analysis
Marketing strategy is referred to as the overall business plan that is being used by the organisation to reach out to its intended targeted customers. Associated British Food has taken up the vertical diversification strategy that being including of expanding their business through introducing new products and services to cater for the needs of the customers (Morgan, et al., 2019). Vertical diversification strategy is also being undertaken by the organisation to improve the supply chain coordination that reduces the risk of wastages along with maintaining inventory of the organisation. Furthermore, the vertical diversification strategy for the organisation also benefits in capturing upstream and downstream profit margins that contribute towards the overall growth and profitability of the business establishment (Mothersbaugh, et al., 2020). The changing scenario undertaken by Associated British Food includes of vertical diversification strategy is appropriate and justified for the organisation as it opens up the door of opportunities for them in establishing their restaurants business to offer innovative services and menus to the customers to gain their attention towards the organisation. Vertical diversification strategy also aids the food shop chain in achieving economies of scale along with creating new customer profiles to grow the business opportunities for the organisation. The vertical diversification strategy for the organisation also benefits them in maintaining high-quality control that lets the firm differentiate itself from that of its competitors (Varadarajan, 2020). The organisation can improve their vertical diversification strategy by investing capital to improve its business operations. The vertical diversification strategy can also be improved through the help of expanding into markets that haven’t currently been explored.
The marketing mix includes of focuses on developing a comprehensive marketing plan that benefits the business in expanding its operations in different geographical locations (Thabit & Raewf, 2018). Effective marketing mix for the firm also helps in identifying the targeted market along with knowing about the pricing strategy that helps the firm in marketing their products among the customers. The marketing mix for the organisation is as follows.
Product: Associated British Food towards establishing a restaurant business in Greenwich, therefore the products that are being offered by the organisation includes innovative food menus, different organic products and a good ambience that builds excitement among the customers.
Place: The organisation aims to open up their business near Greenwich railway station to cater for the growing taste and preferences of the customers (Lim, 2021). Associated British Food also towards operating its business through online and social media platforms to gain the attention of the customers.
Price: The pricing strategy that has been undertaken by the firm includes of competitive pricing strategy. Competitive pricing strategy for the organisation helps them in being competitive and offer their services at a competitive price to the customers.
Promotion: Associated British Food undertakes ATL and BTL activities to promote their services among the customers. Television, newspaper and social media advertisement are being used as ATL promotional activities (Dadzie, et al., 2017). Whereas, trade shows and events are being used to make the services of restaurants among the customers.
People: Employees of the organisation help in the execution of the events in a synchronized way to achieve results that contribute to the overall progress of the establishment. Training is being offered to the employees to grow their performance and achieve significant results.
Process: Lean management processes are being used by Associated British Food while operating their business as it helps in eliminating the wastages along with contributing towards the overall growth of the organisation. Lean practices for the firm also benefit in increasing the overall efficiency of the establishment.
Physical evidence: The physical evidence that is being offered by the organisation to its customers includes pamphlets, product packaging and a high brand image. The physical evidence that is being offered by the organisation to its customers contributes towards their overall growth and business development.
Product lifecycle is referred to as the length of time from a product first being presented to consumers until it is detached from the market. Product life cycles are being used by the organisation to help in determining advertising schedules, expansion of new product markets and packaging redesigns (He, et al., 2019). The product life cycle comprises the introduction, market growth, maturity and decline. Associated British Food falls in the maturity section of the PLC lifecycle as the firm has a large set of product portfolios that are being offered to the customers to gain their attention. The growth stage of ABF in PLC helps them in managing time, resources and investment for the organisation to expand their restaurant business in Greenwich geographical location. Optimal usage of the resources and investing a significant amount of capital benefits the organisation in making the restaurant business grow and gain the attention of the customers to grow business opportunities (Otte, et al., 2019). PLC for the Associated British Food helps the firm in reducing time to market that grows the opportunities for the restaurant firm in Greenwich to establish their business and gain customer attention. Furthermore, PLC for the organisation also benefits in reducing market entry costs along with establishing efficient and profitable distribution channels. PLC for the organisation also helps in establishing a higher return on investment from promotional campaigns.
Conclusion
The overall essay has described the Associated British Food decision to open up their restaurant business in Greenwich. During the essay SWOT and PESTLE analysis regarding the organisation has also been laid down where the business environment of the UK has been identified. Moreover, the essay has also described the marketing mix and product lifecycle of the Associated British Food. The PLC lifecycle described the current business position of the restaurant firm.
Recommendation
The recommendations for the restaurant business firm are as follows.
- To maintain sustainability within the business operations Associated British Food can develop a strategic partnership with the suppliers for procuring resources that can be used to design high-quality services for the customers.
- Big data analytics can be used by the organisation to monitor the daily operations of the organisation along with measuring the total number of customer footfall monthly and annually. Big data analytics will be used by the restaurant firm in knowing about the current business environment and designing their operations accordingly.
References
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