Marketing Concept Development and Situation Analysis

NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.

NB: All your data is kept safe from the public.

Table of Contents

Introduction
Situation Analysis of the Selected Sustainable Market Offering
Market and Customer Analysis
Conclusion
Recommendation
References:

Introduction

Sustainability: The Concept

Sustainability in simple terms can be defined as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (Wood 2011). Sustainability necessitates focusing holistically on the various components of the operations of your business that determine the success of your business. The main components include: protecting the environment for future generations via environmental performance, meeting the expectations of visitors (customers), the profitability of the business, and engaging the local community.

Three codes reinforce Sustainability:

It is not a ‘niche market’ or marketing approach.
The objective should not be ‘carbon neutrality’ short of first looking at impact reduction.
Triple-bottom-line is the only answer that delivers real assistance.

Oishi Gourmet Restaurant and the ‘triple bottom line’ approach

We, as the Supreme Marketers Organization deliberated and concluded that we shall market the Oishi Gourmet Restaurant: a new up-and-coming restaurant with a key sustainability benefit and the ability to overcome the existing ‘problems’. Our objective is to market this restaurant with positioning on sustainability.

For us to achieve this, our marketing decision making process shall incorporate the ‘triple bottom line’ approach. The ‘Triple Bottom Line’ (TBL) approach is a concept of sustainability where three P’s are identified and considered simultaneously in decision making. These three P’s are Planet, People, and Profit. “This involves environmental/ecological stewardship (maintaining and renewing ‘natural capital’), social stewardship (equity and well-being of humans and community), and economic stewardship (valuing financial continuity over profit)” respectively. (Bridges& Wilhelm 2008 58)

Background to a selection of the offering

An in-depth analysis was carried out by our organization to vet whether or not to market the Oishi Gourmet Restaurant. Given the prevailing ‘problems’ in the market, we were challenged to successfully tackle this venture. Therefore, as a group, we employed a Creative Problem Solving process aimed at marketing the restaurant as a sustainable offering. Our objective is to market the restaurant from a perspective where sustainability replaces the contemporary celebration of growth with a new ethic of sufficiency and attention to what is enough and what is too much. Our selection of Oishi Gourmet Restaurant as the clients we chose to market was guided by five pre-implemented stages of the Creative Problem Solving process:

Problem identification and information gathering – Our objective here was to identify the prevailing problems in the market that posed as threats to Oishi Gourmet’s penetration into the market. To achieve this we used the bug list whereby we interviewed several businesses that formed part of our target. We then consulted with several customers at various exotic restaurants to find out if there were any problems that we could solve. Finally, we tried to put ourselves in the shoes of the consumer to keep track of any unmet needs.
Problem delineation – We realized that the main concerns that were raised by the consumers related to the ‘triple bottom line’ approach of decision making which the market offering seemed to overlook. For instance, the cuisines were highly over-priced suggesting that the restaurants were more concerned about profits than financial continuity. Also, the restaurants seemed to ignore the maintenance and renewal of ‘natural capital’ as they were not keen on recycling.
Idea generation –In our quest to select the non-sustainable offering we were hoping to market as a sustainable one, we decided to employ de Bono’s six thinking hats approach to generate the ideas. This approach took us through the following steps: (Blackburn 2007 26).
The White Hat – We used this to define the questions that needed to be asked and as a means (through surveys and questionnaires) of collecting the required information.
The Red Hat –This was useful in expressing our opinions and feelings without necessarily having to validate them. No explanations were allowed here and group members were able to put across their emotions as they were.
The Black Hat –here the group members were allowed to point out what they thought was wrong, out of place, or would not work. This ensured that time was not wasted unnecessarily in making wrong decisions.
The Yellow Hat – Under this, we tried to fathom the benefits that were available in a suggestion and how practicable an idea was when it comes to actual implementation.
The Green Hat – The color used in this stage is a symbol of growth and productiveness and as such the stage was characterized mainly by putting across brand new ideas. Options and alternatives, both obvious and fresh, were laid on the table in an attempt to amend and improve them.
The Blue Hat –this stage represents organization of thinking. The outline of the sequence of the other stages was laid out here. This ensured that discipline was upheld at all times and that people conducted themselves as was required in each stage and also signaled the transition from one stage to another. (Dolan 2002 48).

Situation Analysis of the Selected Sustainable Market Offering

A situational analysis is aimed at showing at a glance the stand of things at the time the marketing plan is presented. This part of the Marketing Plan is extremely vital but at the same time, quite time consuming and may be difficult for businesses entering new markets. The situational analysis covers the following key areas: Current goods and services offered by current competitors, financial analysis, current target market, and external forces.

Profile of the Sustainable Market Offering

Oishi Gourmet Restaurant is an upcoming exotic restaurant that seeks to fuse some of the finest culinary influences from all over the world in an attempt to bring out the exciting and unexpected aspects of different cultures. The restaurant idea has been well received and marketing it is now acute to ensure its continued success and future profitability. It gives an extensive offering of gourmet cuisines for a basic market that needs fresh dishes to bring them that feeling of home.

The restaurant hopes to achieve this through the team of qualified and experienced staff that it has employed which consists of attendants who are well trained and experienced in consumer public relations. The kitchen team is also well versed in the preparation of cuisines that meet international standards and can therefore ensure customer satisfaction.

Oishi Gourmet Restaurant is inclined to consumer type of market and has gathered adequate information concerning the industry and thus possesses knowledge about most of the common qualities of the prized and loyal potential customers. Leveraging this information to get a better understanding of the customers it serves, their explicit needs, and how the restaurant can stand out from the rest.

In an industry/market that is characterized by prices that are perceived by the consumers to be way too high and almost unaffordable, Oishi Gourmet Restaurant seeks to provide its customers with affordable prices while at the same time maintaining the high-quality standards that they desire. This is aimed at changing the perception that low-income earners cannot enjoy exotic dishes as often as they may like. This will be instrumental in facilitating the penetration of Oishi Gourmet Restaurant (as a new player) into the competitive market.

Environmental Analysis

Supreme Marketers Organization assessed the current external macro-environmental factors pertinent to the future of Oishi Gourmet Restaurant, as a sustainable market offering. To achieve this we used the following techniques:

Pestle Analysis

Oishi Gourmet Restaurant, like any other business, has its strengths and weaknesses that can affect its future performance. Analysis of future limitations is an advantage for a business as it helps it to identify the possible factors that impact its operations.

PESTLE analysis is a prevalent technique that focuses on the external factors of a business and the environment in which it carries out its operations. The acronym PESTLE stands for Political, Economic, Sociological, Technological, Legal, and Ecological aspects which impact the market environment of the business.

Political analysis scrutinizes the present and potential influences from political forces. With regards to directives, the government can set laws to govern businesses and also impose fines and penalties on entities that do not follow these laws. Under this, licenses such as liquor licenses are critical to the operations of Oishi Gourmet Restaurant, and regulations concerning them could largely affect its business.

Variability of laws, standards, requirements, and regulations of different countries could affect the restaurant should it decide to venture into foreign markets in the future. The political stability of the country in which the restaurant operates could also have tremendous effects on its growth and development.

The economic analysis addresses the local, regional, and global economic aspects that affect the performance of a business including recession and issues such as inflation. The recent economic crisis for instance has made a lot of people to shy away from spending their incomes on exotic cuisines and in a bid to save that extra penny; most people are opting for simple and affordable home-cooked meals. This may call for intense marketing strategies to attract customers which may require the business to ‘dig deeper into its pockets’ to facilitate these marketing consultation services.

The social analysis examines how changes in the community impact the business. Changes in attributes such as lifestyles and attitudes of the customers may have a huge effect on the performance of the restaurant. More people are starting to pay more attention to their nutritional needs for example which may prove to be ultimately advantageous to Oishi Gourmet Restaurant in the future as more people attempt to cut down on their consumption of junk foods. (Hooijberg & van der Kaaij,2003 145)

The drastic changes in technology that have been experienced in recent years have necessitated technological analysis. The introduction of new technologies implies more opportunities for product improvement in terms of marketing and production. This could increase the efficiency of Oishi Gourmet Restaurant in expanding its market as well as meeting the needs of its customers.

Legal analysis scrutinizes the impact of national, regional, and global legislation on the operations of Oishi Gourmet Restaurant. The health standards and labor legislation prevalent in this line of business could have serious legal implications on the performance of the restaurant if not adhered to. (Hawken et al 128 1999)

The ecological analysis focuses on local, regional, and global environmental issues. The move by most businesses to conserve the environment in what is termed ‘the green initiative’ may affect the methods and techniques used by Oishi Gourmet Restaurant in its operations. The business may opt for techniques that promote recycling to keep up with its counterparts in meeting its corporate social responsibility.

SWOT Analysis

SWOT Analysis focuses on how the business is or will be, if placed under the present market conditions, and reveals the ability of the firm to compete in the current market. SWOT is an acronym coined from strengths, weaknesses, opportunities, and threats that affect the operations of a business. It breaks down the advantages that the business has over its competitors as well as the issues that put the entity at a disadvantage in comparison to its counterparts.SWOT analysis gives the business the chance to improve or strengthen certain practices to gain a competitive advantage over other players in the market.

Strengths

In as much as Oishi Gourmet restaurant is new, our organization has observed the following strengths that may potentially give it a competitive advantage…

Oishi Gourmet’s exterior is clean and tidy and the prices offered are cheaper than those of its competitors. The restaurant’s service style is new to the area in which it is operating and it has a diverse range of items on its menu. Lastly, the restaurant has employed highly competent and experienced staff.

Weaknesses

Some of the main weaknesses constraining the restaurant as it starts up are the fact that it’s new and not well established. An insufficiency in funds has also been noted which is straining its rate of growth. By Oishi Gourmet is a restaurant that offers exotic cuisines, it is in effect offering a product that is already available on the market. Another major weakness affecting the restaurant is that it has not advertised itself efficiently.

Opportunities

A new office complex is opening nearby and this is a great opportunity for Oishi Gourmet because it implies a potential increase in the customer base.

New housing development is also being built in the area and this may also contribute to an increase in customer base. Another potential opportunity is the on-going health campaign that has seen most people opt for balanced meals (like the ones offered by Oishi gourmet) as opposed to fast-food meals which are considered junk food.

The building next door has become available so expansion may be an option and may prove to be instrumental in increasing the restaurant’s customer capacity.

Threats

From an analysis of the external environment, it has been noted that a fast food joint is opening up in the office complex and this may prove to be a competitive threat to Oishi Gourmet’s business. Also, due to the rising cost of supplies, the operating costs are set to increase shortly. Another potential threat is the fact that rent for the premises is set to go up and this may have negative impacts given the limited funding the restaurant is operating on.

How the strengths can be merged into opportunities to produce leverage

The lower prices offered by Oishi Gourmet Restaurant will attract the masses of people from the new office complex and housing development that are being introduced in the area. This will promote the restaurant’s business and increase its profits. The diverse balanced options on the menu will entice the people turning away from junk food as a result of the health campaign.

Problems that result when environmental health attract weaknesses

Oishi Gourmet stands to incur losses if the operating costs and rent go up since they have limited funds to cushion these threats. The restaurant is at risk of losing its business to the new fast-food joint since it has not advertised itself efficiently.

How internal weaknesses may prevent the restaurant from taking advantage of opportunities

The limited funds at the restaurant’s disposal may limit its ability to take advantage of the potential expansion opportunity that has come up due to the building next door being available. The lack of efficient advertising of its business may prevent Oishi Gourmet Restaurant from achieving its full potential in attracting the new market from the office complex and housing development that have been established.

How strengths reduce vulnerability to threats

The diverse items on the menu offered by the restaurant at relatively low prices may help it counter the competition from the new fast-food joint that is about to open up in the office complex since it not only offers a healthier option but it is also affordable.

Market and Customer Analysis

Market and customer analysis are aimed at giving a business a sneak peek at the growth trends of the market in which it operates as far as its size is concerned, the competition it faces, and the critical issues that affect its operations in both the short-run and the long-run as a new market plan is launched.

Customer description: the customer base for Oishi Gourmet Restaurant is wide especially if considered in a demographic sense. The restaurant offers diversity in the dishes it serves its customers which enables it to reach an expansive market in terms of age, race, and household size. The relatively low prices offered also ensure that customers of different income levels are covered in the market. This market is affected by psychographic issues such as lifestyle characteristics, attitudes, and behaviors affecting the purchasing patterns of the customers.

Market segments: a business needs to examine how the customers group themselves into unique groups based on common characteristics. This would be particularly instrumental to Oishi Gourmet Restaurant in establishing the buying patterns of the customers which would facilitate better performance.

Market size and the potential growth trends: A clear knowledge of the size of a business and the growth opportunities and potentially available to the business is essential in developing a market plan. The projections that can be generated from this information would enable Oishi Gourmet Restaurant to increase its performance while paying attention to its budgetary constraints.

Competition analysis: To grow a business and expand its business, a firm needs to be aware of its competition to structure its marketing strategies to cater to the challenges they pose. In case the restaurant should seek information about its competitors since in learning their strengths and weaknesses it can be able to effectively position itself to counter the competition.

Conclusion

From this extensive exercise carried out by the Supreme Marketers Organization, we have come to the conclusion that: with effective and efficient marketing plans and strategies, a new or non-sustainable market offering can ultimately be positioned on sustainability. Through the formulation and implementation of a Creative Problem Solving process in marketing decision making, a ‘solid’ marketing plan can be established.

The analysis of Oishi Gourmet Restaurant has further demonstrated that a new market offering can not only establish itself as a key player in a competitive market but also, through the use of sound marketing decisions, ensure that the goals and objectives of the business are sustained in the long-run.

Recommendation

In our quest to market Oishi Gourmet Restaurant as a sustainable market offering inclined towards the ‘triple bottom lined’ approach of decision making, we have discovered that there is a lot of room for improving operational quality.

Oishi Gourmet Restaurant should ensure that it carries out routine internal and external analyses of its operations and environment respectively: to efficiently penetrate the market and in the long-run become a leading sustainable market offering. Another key area the restaurant should look into is advertising. We recommend that the restaurant carry out intensive advertising campaigns to commence establishing itself in the minds of potential consumers.

The restaurant should also continue maintaining competitive prices to maintain a competitive edge and also establish customer loyalty. Lastly, Oishi Gourmet Restaurant should monitor government policies and regulations continue to keep abreast of external environmental aspects that have a potential impact on it maintaining its ability to maintain sustainability.

References:

Blackburn, W. R. 2007. The sustainability handbook. Washington, DC: Environmental Law Institute.

Bridges, C.M& Wilhelm W.G. 2008.‘Going beyond green: The “why and how” of integrating sustainability in to the marketing curriculum’, Journal of Marketing Education, vol. 30.

Dolan, P. 2002. The sustainability of sustainable consumption. Journal of Macromarketing, 22, 170-181.

Hawken, P., Lovins, A., & Lovins, L. H. 1999. Natural capitalism: Creating the next Industrial Revolution. Boston: Little, Brown.

Hooijberg, R., & van der Kaaij, J. 2003. Building a sustainable, profitable business: Fair trade coffee (A) (IMD No. 165). Lausanne:International Institute for Management Development.

Wood, M.B. 2011. The Marketing Plan Handbook. Upper Saddle River, NJ: Prentice Hall.

Click Here To Order Now!