Assignment Sample on New Normal of Marketing Strategy

Introduction

The marketing strategy of a business is important in the context of increasing revenue and profitability. Based on an effective marketing strategy a business can be able to analyse the actual needs of customers and satisfy them in a better way. The following assignment is based on an assessment of the new marketing strategy of The Fat Duck. It is a UK based restaurant which operates its activity to satisfy customers in a better way. The impact of COVID-19 does not change the market scenario. In this aspect, various businesses and organisations adopt new strategies to capture the market. This study aims to highlight a new marketing strategy and its impact on business performance.

Company overview, and its competitors

The Fat Duck is one of the finest dining restaurants which aims to meet the ultimate satisfaction level of its customers in terms of food and beverage along with their restaurant services. Moreover, it also focuses on providing natural and sustainable quality of a product. In order to compete with its competitors in a better way, this company focuses on the sustainable nature of the product (Thefatduck.co.uk, 2021). It deals in creating beautifully crafted dishes and seeking out elegant British food. On the analysis of its competitors, it has been noted that various other restaurants such as Moor Hall, Core by Clare Smyth. As stated by Crick, and Crick, (2020), the presence of computers prude the scope for customers to experience better services. By emphasising these strategies, Fat Duck can be able to perform in the market effectively.

Business strategy to serve its customer

Customers are a key aspect of business that the whole business operation relies on. In order to attain sustained success, it is necessary for a business to meet customer expectations. The company uses various strategies to attract customers to its food and service. As stated by Ziaee Bigdeli et al. (2018), customer perception and their behaviour towards business products are affecting the decision-making process of business. In this situation, Fat Duck uses various strategies of customer retention such as customer feedback and providing excellent service. However, the impact of COVID-19 directly affects customer buying behaviour. During the pandemic, this company faced various issues due to being incapable of maintaining its revenue and profitability. However, the post-pandemic inclusion of other marketing strategies such as connecting with them on social media platforms and procuring products with less manual contact boosted its revenue. Besides that, it also increases customer engagement that enhances its customer retention policy. By implication of this strategy, The Fat duck restaurant can be able to compete in the market through its various competitive advantages.

Change in the external environment of business in five years (PESTLE)

In developing a business procedure of an organisation have o maintain multiple external factors. These external factors affect the business procedures and the management team of Fat duck have to look into these factors to develop possible strategies and planning procedures to increase their sales percentage and annual profit rate of Fat duck.

PESTLE analysis

Table 1: PESTLE analysis

(Source: Pan et al. 2019)

In the case of the development process of Fat Duck, the management have to get proper data and information about the Brexit process and develop an effective strategy to get the necessary raw materials and other equipment from their supplier in the meantime. This political factor has a high impact on the organisational performance development process (Kozubikova et al. 2019). Therefore, the management also looks into the financial back o the organisation. Proper financial backup hep an organisation to implement new strategies and advanced technologies. A strong base of economy helps to get data and information about the demand and desires of their customers. In this scenario, being an organisation in the hospitality industry, Fat Duck has to maintain the satisfaction of its customers. In this scenario, through fulfilling their demands Fat Duck is able to increase their loyal customer base. The organisation also has to maintain the social factors and take proper decisions to maintain those ethics.

Therefore, the organisation also has to implement advanced technology such as AI technology and block chain technology to improve their business process (Torresen, 2018). The organisation did not have proper technical support before 5 years but they are now eligible to implement this advanced technology and boost the performance of their employees. Apart from this, the operational team also have to understand their target customer and a proper place to expand their business. In this scenario, without having a supportive environment the employees are unable to improve their work efficiency of organisational development (Seabrook et al. 2019). Therefore, the organisation also has to look into the legal factors that can create various types of issues. Every nation has their personal rules and regulation, Fat Duck has to understand those rules, and the management have to develop their planning by maintaining those rules to expand their business in this competitive and get legal support from the Government.

Impact of change in business module

On analysis of PESTLE analysis Fat Duck, various external factors such as economic factor, social factor and other factors have been covered. These factors directly affect business productivity and profitability. As stated by Achinas et al. (2019), PESTLE analysis provides scope for businesses to analyse external factors of business On analysis of economic factors it has been noted that UK GDP is quite strong which increases the purchasing power of country people. Higher purchasing power positively impacts business performance as customers purchase more. Apart from this, this business can be profitable in the country as government policy of business stimulates business expansion. Focusing on sceptical factors of business it has been found that the unemployment rate is lower which signifies that companies can procure necessary skilled workers easily. This kind of resource availability increases business performance to procure its product in a better way.

Apart from this, customer reliance on digital media preview scope for businesses to easily adopt the digital market. In the UK almost all age groups of people are using mobile phones and connected with social networking sites. In this situation, this company has the scope to reach each group of customers and procure its services. UK technology is improving faster than any other country in the European Union. Apart from this, the UK is the fifth technologically advanced country in the whole world. This provides a wider range of scope for businesses to expand their business in an effective way. In the post-pandemic period, both customers, as well as businesses, easily adopt sudden changes in organisational structure and business module. In this situation, Fat Duck uses advantages of this while performing its business activity during the post-covid-19 period. In the past few years, the UK economy has grown faster as retail sales volume is 7.2% higher than the pre-pandemic level (ons.gov.uk, 2021). Through this, it can be seen how the economic condition of business increased in each quarter. This stimulates the business to increase its profitability.

Figure 1: Economic condition of UK in pre and post-pandemic

(Source: ons.gov.uk, 2021)

Based on the figure it has been clearly provided that in April month of 2020 when the pandemic hits the world, the country’s economy has fallen. However, in the next few months it moved up at a positive rate and by the end of 2020, its economy increased. But due to the second wave of the pandemic. In the year 2021, it has been noted that after the post-pandemic period total retail sales have increased by 1.4% that contributing to the economic growth of the country. Thus, an increase in retail sales provides scope for Fat Duck business to improve its performance in the market.

8Ps of marketing

Marketing strategy of business relies upon various factors such as product, price, place, promotion and others. This fcatir not only impacts business decision making but also on customer buying behaviour. As opined by Medina et al. (2017), customers always intended to purchase a product with great quality at a reasonable price. In this situation, companies need to procure those products which have high quality and low price. 8Ps of marketing mix provided scope for Fact Duck to satisfy its customer in a better way while maintaining its profitability.

Product: Product plays a pivotal role in the marketing strategy of business as its profit earring is dependent on this. As Fact dusk is dealing with providing food products to its customers its need to have better quality and possess healthy ingredients. Covid-19 changes the perception of customers. They focus on choosing healthy products rather than fast food. Thus, Fat duck has the opportunity to procure healthy and unique quality products which make a difference in the market.

Price: the price of a product should have to be attractive. As opined by Liu et al. (2019), an attractive pricing strategy of business increases the number of customers. Thus, Fat duck can choose various attractive pricing strategies such as economic pricing and price skimming. This pricing strategy enables companies to capture the market by increasing business profitability. Other than this, companies also need to analyse various other competitors pricing strategies which provide an opportunity to make decisions regarding providing products.

Promotion: Promotion increases the brand value of a business and attracts customers towards its business. Fat duck can use various promotional strategies such as feedback, post-sale service and advertisement. Thus activity positively impacts customer loyalty and retention. Apart from this, customers feel more engaged while using these promotional strategies.

Place: Fat duck can open its branch and operate its activity in those places which are crowded. Moreover, while choosing a place of business activity, companies also need to analyse the demand for the place. Higher demand always increases business revenue and profitability. Thus, Fat duck needs to consider these factors while choosing a place of business.

Positioning: How a product is positioned in front of the customer is necessary. It is necessary for businesses to present unique products in a better way. In the new marketing scenario, healthy products with sustainability in nature are quite useful. Thus, Fta duck can conduct various brand awareness programs and other activities by which the uniqueness of product can be shown.

People: people who analyse products in a better way is necessary to have. They play a pivotal role in the creation of marketing strategies. Due to the pandemic production process and quality of the product is necessary (Dai and Hao, 2017). Fat Duck by hiring skilled and knowledgeable employees can implement a product launch in a better way.

Partners: Partners play a significant role in the promotion and advertising of any product. They provide scope for businesses to market products in an effective way. On the other hand, each partner has a separate goal and expectation. a thorough analysis of this P, Fat duck can be able to assess product efficiency and its scope for amendments.

Figure 2: 8 P’s of marketing

(Source: Medina et al. 2017)

Packaging: in order to capture the market and compete in a better way, a company needs to make product packaging attractive. Through this, the implication of attractive packing Fat duck can be able to attract potential demand for the market. On the other hand, the impact on covid-19 makes this P of market more significant. As the given company is related to food products thus, it is quite necessary for a business to make product packaging up to standard safety measures.

Strategy to improve business performance in new normal marketing strategy

More focusing on digital marketing: in the covid pandemic period, customers shifted to offline to online marketing. Change in customer perception changed the market scenario as various businesses and industries entered the digital market. On the other hand, customers in the pandemic period preferred to have home delivery of food products rather than dining. Thus Fat Duck can enter the digital market by which it can procure its serves to its customers in a better way. Apart from this, digital margate provides a wide range of scope for business by which Fat Duck can reach its customer in real-time. On the other hand, facing various other competitors in the digital market increases the business competence and effectiveness of management to provide better services (Saura, 2021). Though this, company will be able to increase the total revenue of the business and its productivity. Other than this, an increase in global recognition and brand value can be possible through a digital market that financially benefits the company. A company can be able to expand its business by implicating these new marketing strategies. Global reach can be possible through this which increases areas of services. On the other hand, the performance of other competitors provides scope for this company to make necessary changes.

Providing home delivery facility through digital tools: Demand for home delivery of food products in post-pandemic period is increased to a great extent. Various restaurants and other food industries provide home delivery facilities to their customers (Saiz-Rubio and Rovira-Más, 2020). In this situation, Fat Duck can use various digital tools such as robotic instruments and drones to deliver food products to customers. Based on this strategy Fat Duck can be able to satisfy its customers in a better way. Other than this, various other customers can also be attracted through this kind of strategy.

Better market analysis: in order to attain sustainable success, it is necessary for a business to analyse the market and its demand in a better way. In this situation, Fat duck needs to implement various digital tools such as the Internet of things (IoT) and blockchain technology. These tools provide scope for a better understanding of market scenarios. This analysis consists of various competitors’ decision making criteria and their performance. Fat duck by using effective market strategy in case decision-making process of business as well as customer understanding (Udriyah et al. 2019). Apart from this, various external factors such as the economic condition, government policies and tax rate are to be considered in depth. Detailed analysis of these factors enables businesses to fix the price of products. On the other hand, internal factors such as organisational structure, employee and staff engagement provide scope for the business to control cost and better utilisation of resources. Thus, Fat Duck needs to analyse both internal and external factors of business before making decisions for the business.

Better utilisation of resources and producing products of sustainability in nature: better utilisation of resources leads to increased business efficiency and product quality. Other than this, better utilisation of resources also provides scope for businesses to utilise funds of business in a better way. As Fat Duck deals with the food product industry, it is necessary to utilise its factor of production in an effective way (Nascimento et al. 2019). Apart from this, post-pandemic provide scope for businesses to focus more on the sustainability of a product. Customers prefer to choose healthy food products over fast food or junk food. In this situation, companies need to focus on product quality and maintain a standard level. Moreover, the implication of this strategy in the business module customer increases business competence. Apart from this, this strategy enables product differentiation.

Analysis of customer preferences: customer preference is a core factor that is to be prioritised by every business and organisation. All business activity and its operation depended upon customer demand and their buying behaviour. In this situation, Fat duck not only needs to conduct a detailed analysis of customer burning behaviour but also meet their expectation level. As p[roved in the figure, customer expenditure of some years has been shown. In this figure, it has been clearly shown that up to 2019 customer expenditure on restaurants and cafes has increased each year (Statista.com,2021). However, in the year 2020, due to pandemic business the country has faced lockdown and government restrictions imposed on both company and customer to reduce expenditure. This leads to a negative impact on business performance. In this situation, companies need to implement new technology such as search engine optimisation, and social media engagement. Based on this, Fat duck can be able to understand customer needs in a better way and satisfy them.

Figure 3: Consumer spending on restaurant and cafe

(Source: Statista.com,2021)

Use of digital tools in marketing strategies: Implication of digital toll increases business efficiency and provides better series to its customer. Digital tools such as drones and robotic instruments enable the company to procure products to every door. On the other hand, the internet of things (IoT) and social media engagement prude scope for the business to better understand customer demand (Agarwal, and Nandal, 2020). Moreover, block chain technology increases customer trust and loyalty towards organisations and their secure information and data related to customers.

Conclusion

Based on an assessment of Fat Duck current market strategy and its performance in respect to its competitors it can be concluded that the company is performing well. Though pandemic affects its business performance to a large extent, the new marketing strategy of business enables it to perform well as compared to its competitors. Implication of digital tools and 8 P’s of marketing strategy of business provide a better opportunity to provide better service to its customer. It can also be concluded that entering digital marketing may increase business performance and the number of customers.

References

Journals

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Agarwal, M.A. and Nandal, N., 2020. Digital Marketing: Paid Internet Advertising and Its Revenue Model. Turkish Journal of Computer and Mathematics Education (TURCOMAT), 11(2), pp.720-725. Available at: https://www.turcomat.org/index.php/turkbilmat/article/download/9766/7466

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Websites

ons.gov.uk, 2021 economic growth of business. available at : https://www.ons.gov.uk/economy/economicoutputandproductivity/output/articles/ukeconomylatest/2021-01-25 [accessed on 18 December 2021]

statista.com,2021, consumer perception available at : https://www.statista.com/statistics/476637/restaurants-and-cafes-consumer-spending-uk/ [accessed on 18 December 2021]

thefatduck.co.uk, 2021, overview of business available at: https://thefatduck.co.uk/ [accessed on 18 December 2021]