Assignment Sample on Strategic Marketing Planning
Introduction
This assignment is based on Bernadini’s Gelato Company and the company faces problems with tread during winter. Though the company is famous for multiple reasons but still lack of production is a treat for engaging the business of the company. Hence, this assignment is focusing on the betterment of the business. In order to analyze the current business environment of the company several relevant framework theories, as well as current market position, have been discussed in a strategic manner. On the basis of conclusion, a critical reflection has been profiled as well for better understanding.
Background of the company
Enzo has been known to be the third generation of the family of the Bernadini’s. He has the current owner as well as the manager of the Bernadini’s Gelato which is present in Bristol, the United Kingdom. It has been known that the Bernadini family first stepped into the United Kingdom in the period of 1901. It has been analysed that the process of building up a sustainable relationship with all its suppliers as well as the customers has always been maintained by Enzo. It has been also noticed that the owner of the company mainly prefers to buy eggs as well as milk and other items from the local families who own farms and the owner has always shown the interest to know these families on a personal level. The owner of the company makes sure of the high quality and standards of its raw materials and products as he himself goes and checks it on a regular basis. The company is known to use milk instead of cream with a different churning process. The company mainly sells fruit sorbets and gelato. The gelato is mainly made in the in-house laboratories which are present at the backend of the shop (Mintel, 2020).
PESTLE
| POLITICAL | It has been analysed that the political situation in the United Kingdom has evolved the entire food industry. The ice cream industry has been in close monitoring and is very strictly regulated in order to maintain health as well as safety standards. The regulatory changes are very much frequent in the United Kingdom to ensure the healthy standards of the products. This gains the customer’s trust and loyalty (Carot Zarzoso, 2018). |
| ENVIRONMENTAL | It has been ensured that large multinational companies are obliged to initiate and process certain social initiatives for maintaining the sustainability of the environment (Helmold, 2019). In order to maintain sustainability, Bernadini’s Gelato is pressured to follow the sustainable form of packaging, ensuring the customers about the sustainable form of supply chain management and maintaining animal welfare. Hence it is the responsibility of Bernadini’s Gelato company to maintain environmental sustainability. |
| SOCIAL | In the United Kingdom, there has been an increasing awareness related to health affairs and this is causing a fall in the demand for ice cream products. On the other hand, there is an increasing concern regarding the health issues such as tooth decay and obesity which are caused by sugar. Hence this can be a concern for Bernadini’s Gelato company. |
| TECHNOLOGICAL | The technological advancements made in the production house of Bernadini’s Gelato have been aimed to give very high-quality products along with the very carefully selected flavors and ranges of products. The company aims to produce a different and novel flavor every summer in order to attract customers and also to maintain the prior customer base. Hence the owner is basically ready to undergo any kind of technological changes which will enhance the quality of the products. |
| LEGAL | The regulatory, as well as the influential factors which are imposed by the government of the United Kingdom mainly, have the ability to alter the operations of the firms in the United Kingdom. It has been seen that the tax-related to sugar is imposed on sugary drinks. This is mainly known as the sugar tax. Hence there is a possibility that the tax can be extended to the ice creams and gelatos as well (Kumar, et.al. 2018).
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| ECONOMICAL | According to the reports published by the IBIS, the demands of the ice creams and gelatos which are of premium quality are increasing gradually. The ice cream industry has been estimated at about 395 million pounds which has an annual growth of about 3.5%. Hence Bernadini’s gelato has an opportunity to expand and earn profits based upon these figures. |
Porters five force
The threat of New Entrants: Bernadini’s Gelato company can face the threat from the new entrants in the market of the United Kingdom, which will impose a threat to them because the new entrants will try to gain the market share as soon as possible. But on the other hand it has been determined that the seriousness of this threat actually depends upon the barriers that are present in the trading aspects to enter into the market of the United Kingdom. The United Kingdom is a country with strict regulations and restrictions that do not allow any company to enter into its market without a proper background check. On the other hand, the barriers of entry can be related to the economies of scale or existing higher loyalty of the customers for the brand, requirement of higher capitals, etc. The threat of the new entrants for the gelato company can be considered from low to medium (Bruijl, 2018).
Bargaining Powers of the suppliers: Bernadini’s Gelato mainly has the power over its suppliers because it maintains a very good relationship with its suppliers. All the suppliers of this gelato company are mainly from small and local families who share a good bond with the owner of the company (Ze, et. al 2018). The owner mainly sees that the suppliers are paid the actual price of the quality of the raw materials supplied by them. This mainly increases the product range of the company which is a result of the good quality raw materials supplied by the suppliers. The bargaining powers of the suppliers are low in this context because their demands are met by the owner based upon the quality of materials supplied by them.
Bargaining Powers of the buyers: Bernadini’s Gelato company has a very huge amount of customer base. Hence this would mean that the customers can easily impose pressure on the company if the company fails to provide the desired quality or if they feel that they are sensitive to the price changes made by the company. The customers will have a huge amount of power over the company if there is any kind of deviation made from the company’s end in terms of quality, price, and ranges of products. The customers have the power to instantly switch to the alternatives or substitute for the gelato products. Hence the bargaining power of the buyers is termed to be medium to high.
The threat of the Substitute product: Bernadini’s Gelato company can also face the threat of the substitute products in the market such as ice creams, if the company fails to maintain the desired standard of their products and fails to innovate, then the customers will transfer to the substitutes of the gelato products. The substitute products that are sold by the companies such as Rich’s Ice Cream or Fat Boy’s Ice Creams parlor will have more demand and sales of these substituted companies will automatically increase (Mohammad Amin, 2017). Hence the threat of the substitute products can be considered to be from medium to higher level. The threat of the substitute is medium to higher.
Rivalry among existing competitors: One of the biggest rivalries of Bernadini’s Company is the Icestone Gelato Liverpool. Hence it is very important for Bernadini’s Company to assess the competition level in the markets of the United Kingdom and assess their powers and size when compared to the Bernadini’s Gelato Company. The threat of rivalry can be low to high.
Currents trends in marketing
Gelato is mainly known to be the style of ice cream that was mainly produced in Italy. Gelato is mainly known as ice cream based in Italy. The gelato is mainly created with the raw materials of cream, sugar, and milk after which it is mainly flavored with purees, fruits as well various flavorings. It has been estimated that the ice cream usually contains 50 percent of air but on the other hand, the gelato may contain 25 to 30 percent of the air in the final product which is finally produced. It has been analysed that gelato has achieved sales of 306 billion dollars in the year 2020.
Marketing Mix for Bernadini’s Gelato Company
The marketing mix of the Bernadini’s Gelato company mainly consists of the following:
Product: The product range of Bernadini’s Gelato mainly consists of gelato and fruit sorbets. These are the products which are mainly produced to satisfy the demands of the individuals as well as the group of customers. The product of the company mainly faces a life cycle that is mainly fluctuating in nature and ranges from the growth phase to maturity and then to the decline phase. The life cycle of the product of the company mainly depends upon the demand of the customers and the process of sales which takes place in the market. Hence it is necessary that the product should be made based upon extensive market research. The gelatos of the company are mainly made from milk instead of cream which mainly undergoes a separate kind of churn process. Flavors are then added based upon the seasonal fruits and flavors.
Price: The price of the gelatos and the sorbet fruits mainly depends upon the market price of the products in the market. The price of Benadini’s Gelato company has been stated as per the market standards of the company. The prices range from reasonable to premium modes for which the customer is asked to pay to enjoy the product that is served by the company. The price sensitivity highly depends upon the demand of the product as well as the prices offered by the substitutes and the rival companies of Benadini’s Gelato company (Wood, et.al. 2021).
Place: Benadini’s Gelato company mainly focuses its sales on the busy street of Park Street in Bristol. Apart from this, the company also focuses its sales on the various shoppers as well as the students of the Universities and along with the tourists. The shop mainly possesses a small seating area and since the company has a considerable amount of reputation most of the customers go out of the way in going to purchase the gelato products from Benadini’s Gelato company. On the other hand, the shop also has an in-house laboratory in which the products are mainly produced and it also has a cellar which would be used to make certain innovative aspects.
Promotion: On the other hand the promotion of Benadini’s Gelato company has mainly a very sporadic as well as limited promotional activities. Benadini’s Gelato company mainly possesses a Facebook page that is not utilised in its fullest potential. The owner mainly has the idea of communicating with the customers as well as other stakeholders which will inform every stakeholder to be informed about the process of the company (Pomering, 2017).
Promotional strategies
Using an effective promotional strategy can be helpful for enhancing business in a competitive atmosphere in the market. Social media marketing is the current trend of digital marketing and on the other side, using this social media marketing as a promotional strategy for other companies has become very common nowadays. Hence, multiple campaigns on social media can be effective for promotion (Ortegon Sánchez, et.al. 2019). On the other side, Bernadini’s Gelato Company must post pictures with Gelato and, depending on the most liked picture, can be used for promotion. Also, customer engagement will be enhanced due to these campaigns. Using a hashtag (#) in the current trend of social media. Here the hashtag trend has enhanced the popularity of the product among people. In this trend, people post a picture on social media with the hashtag and key work, such as #Bernadini’s Gelato or #Gelato that makes other people attracted towers the product in a company.
Product differentiation
In order to make the company different from the other existing companies in the market, it is essential to differentiate the quality of products used by Bernadini’s Gelato Company. It has been identified that the other existing companies in the market as well as new companies in the market are using modern recipes and techniques to make products. On the other side, this Bernadini’s Gelato Company is a old-school and original with the best materials. artisan product of this company is making the product different than others. gelato is more healthy than ice cream because it contains half the fat of ice cream. Also, there is the use of real fruits rather than any artificial smell. The products are different because Bernadini’s Gelato Company uses milk for making products rather than cream. In order to do experiments in the shop’s laboratory, there is the use of unique products like blue cheese, watercress, and chili that helps to come up with new products (Thabit and Raewf, 2018).
Recommended future strategies
Social media marketing
Social media marketing can be used as digital marketing for Bernadini’s Gelato Company in order to enhance sales. Here the company will be able to attract customers from different locations and also in the future the company will be getting strategic ideas for business enhancement. On the other side, this social media marketing will help people understand the difference between other ice cream and Gelato. The health benefit will be identified by the customers and the company will get a strategic development by making people updating their benefit for having Gelato rather than any other frozen dessert in the market.
Development of technology
Bernadini’s Gelato Company must develop their technology so that they can deliver products to the customers over a long distance. Also using technology can enhance the production of products. Using technology will be able to develop the range of products as well in the market. On the other side, this technology will be effective for the better online service of the product. It has been found that the company is able to enhance business as the customer span is small. Hence this development of technology will be useful for enhancing business and trends in the company (Solimeno, 2017).
Lack of use for sugar
According to the case study, it has been found that the company does not use cream and they use milk for making products that are healthier than ice cream. On the other hand, there must be a lack of use for sugar in the product that the health-conscious people can have Gelato. Bernadini’s Gelato Company’s new recipe must include less sugar than diabetic’s patients as well as the people on diet can have it. Here the customer segment will be improved. It is essential to recall the legal factors before implementing any strategy and this will be effective for environmental and social sustainability.
Conclusion
Thus it can be concluded by saying that Benadini’s Gelato company will have to go through various stages in order to maintain its competitiveness. The report mainly dealt with the background of the company along with the PESTLE and Porter’s Five forces analysis to comprehend the external forces as well as the competitor’s analysis in the market. The report also dealt with the current trends of the market as well. Lastly, the report has also dealt with the recommendations which are required for the company to perform well in the near future. Hence the reader will understand the entire market analysis of Benadini’s Gelato
Personal reflection
Through the analysis of the case study on the Gelato shop, I have understood that digital marketing and personalized items are more in demand. Nowadays online shopping is in high demand. A channel helps to promote a brand and provides good competition to the competitors. A loyalty program also promotes the brand in the market. Nowadays no one wants to go to the stores. Everyone prefers online shopping. So the personal websites or YouTube channels are helpful for brand promotion. Marketing strategy increases the sales and promotes the brand most. Through websites and YouTube, channels companies can connect with many people. Right influencers are able to promote the brand and increase the income of the company. This method helps in many ways. Target the youths and create more fame. Brand expansion is the most important opportunity in business. The company understands the customers better, identifies the opportunities, and analyses the product’s features (Mazzuto, 2017).
It is found from Porter’s Five Factor Analysis that in the food business of Bernadini’s Gelato Company, the single customer does not hold much bargaining power but when it comes to the group, it works as a powerful force. In the Bernadini’s Gelato Company industry suppliers don’t hold much importance. The action is very less at the end. Suppliers have to follow the rules only made by brands. The food industry is deeply populated where new brands are coming in on a regular basis and looking for success. Here the new Bernadini does not hold much power (Azhar, et.al. 2018).
Direct marketing, brand promotions are elements of marketing strategy. Through brand Promotion Company can connect with many people and also the brand can collaborate with many brands for connection purposes. Charity is also an innovative method to help poor people and promote the brand. Bernadini’s Gelato Company’s quality and uniqueness of the products are able to attract customers. The brand expansion allows a large number of customers and provides great benefits. It helps to increase the popularity of the brand. Improvement of marketing helps the brand or company in sales. Internet marketing will make Bernadini’s Gelato Company very popular. Advertising for the brand will also promote Bernadini’s Gelato Company and increase sales and income. Price, promotion, packaging are also important elements in marketing. Nowadays online shopping is high in demand. Through online companies, they successfully promote the brand. Making strategies is very important. Making strategies help the employees working in an organization free from overwork and overburden with extra responsibilities. The strategy makes the company run its operation smoothly. In order to get success and raise the morale of the employees, it is necessary that the strategy must be explicit in Bernadini’s Gelato Company. Functions play a very active and important role in the organization. It is important for Bernadini’s Gelato Company to identify the issues and primary customers in order to run smoothly. One of the recommendations of a strategy is an imperial strategy which puts the role of function first (Bulgaru, POPESCU and BULAT, 2019).
References:
Bruijl, G.H.T., 2018. The relevance of Porter’s five forces in today’s innovative and changing business environment. Available at SSRN 3192207.
Bulgaru, V., POPESCU, L. and BULAT, I., 2019. Gelato quality characteristics manufactured from natural ingredients.
Carot Zarzoso, M., 2018. Italian ice-cream parlor A. Mario Tacco marketing plan.
Helmold, M., 2019. Tools in PM. In Progress in Performance Management (pp. 111-122). Springer, Cham.
Kumar, R., Atanu, J., Ankit, D. and Satish, P., 2018. Suitability of type of herb and its form as flavoring in herbal ice cream. International Journal of Chemical Studies, 6, pp.1562-1567.
Mazzuto, V., 2017. Innovate to internationalize: a case in the Italian gelato industry.
Mintel (2020) Ice Cream, UK, April 2020. Available at: https://reports.mintel.com/display/987712/?fromSearch=%3Fargs%3D%252Fhomepages%252Fdefault%252F%26filters.category%3D97%26last_filter%3Dcategory%26start%3Dredirect [Accessed 24 June 2020].
Mohammad Amin, A., 2017. Improving resource efficiency in an ice cream factory based on material flow cost accounting method/Mohammad Amin Ameri (Doctoral dissertation, University of Malaya).
Ortegon Sánchez, S.P., Sánchez Rodriguez, I.S. and Vargas Galindo, B.Y., 2019. Plan de marketing de “gelato artesanal temptation, un placer sin culpa.
Pomering, A., 2017. Marketing for sustainability: Extending the conceptualisation of the marketing mix to drive value for individuals and society at large. Australasian Marketing Journal (AMJ), 25(2), pp.157-165.
Solimeno, G., 2017. Manufacturing 4.0-the case study of Gaya Gelato Lab (Bachelor’s thesis, Università Ca’Foscari Venezia).
Thabit, T. and Raewf, M., 2018. The evaluation of marketing mix elements: A case study. International Journal of Social Sciences & Educational Studies, 4(4).
Wood, B., Williams, O., Nagarajan, V. and Sacks, G., 2021. Market strategies used by processed food manufacturers to increase and consolidate their power: a systematic review and document analysis. Globalization and health, 17(1), pp.1-23.
Ze, Y., Abbas, H., Hussain, T. and Jiao, H., 2018. Analyzing the differentiation strategies of big companies competing with each other. Strategic Management, 23(3), pp.25-37.
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