Discuss about the Marketing Management Strategy in Bread Talk Bakery.
The company taken here is namely as Breadtalk, which mainly produces different food and beverages. The company is founded in the year of 2000, and the number of available stores is around 836 all over the world (Breadtalk.com 2016). The founder of the organization is George Quek and Katherine Lee. The net current asset of the company is about 149.933 million. Along with this, the total income of the company is about 16.177 million. The company started its business procedure from the basic market segmentation. The segmentation is based on demographic and geographical perspectives. In this case, a bread market is divided into small subsets containing homogeneous group rather cluster of clients. The variables or assessment factors are religion, family income, age, sex, occupation, etc. Thus, it can be said that, for the business to business marketing followed by BreadTalk, is entirely dependent on this organizational entities. The other target marketing is based on certain other segmentation categories such as- behavioral segmentation, geographical segmentation, multivariate account segmentation, cultural segmentation etc.
Figure 1: BreadTalk
(Source: Breadtalk.com 2016)
This is one of the top listed Singaporean Bakery company, currently which is facing different problems regarding sales and marketing (Kotabe and Helsen 1998) due to its declining products. This report will discuss various suitable theories, frameworks, and techniques rather professional models that are related to different major marketing plans. Among various techniques, most appropriate one will be taken for granted to improve its commercialization and sales not only in South East Asia but also in all over the world.
Market Audit
During the marketing audit along with different interrelated situation assessment, it is found that current position of the company is declining due to the production of some poor quality food (Jain 1989). Market planning is a theoretical overview that defines the particular development progress process, tactics and strategies those are required to evaluate the objectives of the company (Zou and Cavusgil 2002) but this company is following all of them in a perfect progressive manner. The entities related to the marketing planning process are all interconnected to each other.
The business segmentation of BreadTalk group of Limited revenue structure from the geographical aspects is shown below:
|
Development of Geographical Revenue |
value |
|
Singapore |
$70,000 |
|
China |
$140,000 |
|
Hong Kong |
$210,000 |
|
Row |
$280,000 |
Figure 2: Revenue structure
(Source: Ryu, Jang and Cho 2014, pp-155)
Mainland China is in the top most level and the other competitions are shown in the graphical diagram.
Figure 3: Competitor Assessment of BreadTalk Bakery
(Source: Ryu, Jang and Cho 2014, pp-155)
From the internal analysis it is defined that the improvement in the sales and profitability market share falls under the category that is known as internal market analysis (Norris 1992). In the external market analysis it is found that the micro environment and the macro environment analysis fall under the different category review (Wicaksono et al. 2007). From two of the assessment processes, SWOT analysis is done to obtain the underlying objects of the company’s market planning.
Figure 4: SWOT analysis
(Source: Kumar and Rajan 2012, pp-130)
Apart from this, it can also be said that the business analytics method that is needed to determine the current revenue structure of the company is factor analysis and gap analysis. Gap analysis in a business analytics process that determines two conditions: the conditions are as followed:
The Gap analysis of BreadTalk, defines that the current status of the company is declining due to some of the entities such as quality of the products, price of the products, variations in the products, services by the corporation, non-friendly services provided by the company and the product affordability by the consumers of the enterprise.
It can be demonstrated that the external analysis is simultaneously required for the examination audit technique of the company. In addition to this, the marketing and sales of the enterprise also define the sustainability, flexibility and profit generated from the marketing aspects and different assessment processes. From the overall view and other known facts the position of the company can be defined easily. Norris (1992) opined that the factors come under consideration for the evaluations are as followed: legal, economical, cultural, political and technical and social. Altogether the collection of the elements is known as the PESTLE analysis.
From the factor analytical point of view it can be said that there are several factors those needed to be précised for the position structuring (Peng 2013). In the competitive business market, the current status of BreadTalk is not satisfied at all. In order to improve the overall structure of the company it is needed to acquire certain active strategies. At the same time, the perfect execution is also necessary to get a satisfactory result from the analytical perspective (Kalish, Mahajan and Muller 1995). Before any factor implementation the core need is to improve the imperfect entities that affect the maintenance of the position of the company in the competitive bakery marketplace.
This analysis is also applicable to calculate the existing competition of the enterprise (Chen, Liang and Yueh 2014). In order to achieve one of the best positions in the competitive marketplace the rivalry measurement among the Singaporean bakery world in imperative. The five forces are as followed:
The threat of substitutes: The Bakery farm took under consideration for marketing analysis namely as BreadTalk bakery has the biggest threat in the marketplace is Starbucks. Starbucks is one of the very famous coffee shops, which has its individual unique tasted food products. Thus, it can be said that the threat to the existing company here is Starbucks and other pastry and bakery making companies. From the revenue structure of the company it is defined that some new threats are certain known international bakery companies such as Duke Bakery International Plaza, Postre Bakery & Café, Delcie’s etc (Doole and Lowe 2008). The company must attain certain protections against imports of the substitutes. Therefore to solve this problem the company should make itself aware of the other existing company’s products.
Threats of new entrants: Some of the other companies are also coming forward, which has become the threat to BreadTalk (Srinivasan 2014). In order to mitigate these issues the company must obtain some of the best marketing models so that the sales and the sales and the marketing structure of the company reach the best of the position. Generally in this case the declining products are dream pastry. Thus, the company must obtain the high level of barriers to the new entrants and a limit of protection to the foreign entries.
Bargaining power of the buyers: The bargaining power of the buyers also misbalances the benefit level of a particular company. The equity theory measurement is paramount to calculate the overall profit level, sales and the marketing of the enterprise. The fundamental entities related to BreadTalk are the weak consumers protections laws and regulations and the segmented and small local level buyers (Jain 1989). BreadTalk should obtain different regulations and protection laws for the related poor users. It can also segment low level of local consumers.
Bargaining power of the suppliers: the acronym can also be implemented as market of investment to the company, but the leading problems occur due to certain potential factors such:
Intensity of rivalry: There are certain potential factors which are essential to calculate in the industrial competition study (Bradley 2005). The competitiveness in an existing market some possible factors are needed to be analyzed such as:
Figure 5: Porter’s five forces
(Source: Chen, Liang and Yueh 2014, pp-5)
Marketing planning is one of the most important diagnostic essential functions that are needed profoundly oriented to almost every organization (Alden, Hoyer and Lee 1993). The selection of the model and the model regarding isolated tactics are necessary to be undertaken by the company business analyst in a proper way (Zou and Cavusgil 2002). It the choice of the model went wrong then the entire efforts will go in vain.
|
Specific |
This is one of the primary objectives that are acquired by the corporation to produce best quality food for the consumers (Kalish, Mahajan and Muller 1995). The quality maintenance of the food is imperative for any company. If the company does not maintain the quality of the food, then it will be tough for the company survives in the competitive business marketplace. In order to produce good quality food the investment level of the firm must be enhanced (Doole and Lowe 2008). Then only the ingredients required for the production of food will call as quality food. As the company is facing several competitions in the market, the bakery products of the company should contain unique flavor and incredible taste at the same time in order to attract consumers from various zonal regions (Peng 2013). Therefore, most of the important objectives for this bakery company is to produce good quality of foods. |
|
Measurable |
As per the assessment of the BreadTalk bakery the piece level of the company is comparatively higher than other baking organizations situated in Singapore (Coghlan 2015). Thus, in order to mitigate this issue the company is currently perusing certain activities. Initially, the company has certain manufacturing kitchen equipment, but those are time-consuming and used to take huge money for the maintenance (Kotabe and Helsen 1998). Therefore, the company is currently buying some advanced equipment those have advanced technologies and also take less for the preparation of the foods. Therefore, another important objective for this bakery company is to provide proper price ranges of foods. |
|
Achievable |
In order to achieve a huge number of consumers, the company is currently acquiring an expert group of highly experienced chef those who will provide good as well as various quality foods (Wicaksono et al. 2007). Apart from this, the company is also receiving advanced technical equipment and good quality ingredients for unique taste. Therefore, one of the most important objectives for this bakery business is to produce a variety of foods. In the Singaporean market the need for baking is very much high but from the economic perspective it is also known that the price will rise when the demand will rise simultaneously and at the same time when the demand will less that time also the piece will increase. For the consumer aspect if the price of bakery products is high then it is very evident that the users will avoid it. If they can easy obtain the same quality products at the lower price, then the customers will prefer that company. The Company used to provide all friendly and reliable services to the consumers. From the environmental aspects the report analyzed that in the North West zone, the company can provide its services with any complaint from the users because they have a friendly service for the clients of the enterprise (Coghlan 2015). But in a case of the southern east zone, the services provided by BreadTalk are not at all friendly for the customers. As the services are not friendly enough thus, from the different analysis, it is defined that user-friendly ambiance is vital for the development of the position of any company (Doole and Lowe 2008). As the company is declining for its products therefore beside the product improvement, a customer friendly service is also another primary objective of the enterprise. Therefore, one of the most important targets for this bakery business is to provide user-friendly services of foods. |
|
Realistic |
From the year 2000 onwards the company is providing a variety of food that includes different delicious desserts, biscuits, cookies, and pastries. There are many businesses situated in Singapore, which are producing different bakery foods, but the quality and the variation of the foods are advanced than Breadtalk (Doole and Lowe 2008). Though the company is having over 136 of outlets all over the world while it’s time to face competition the rate of interruption is always very high than all others. Thus, the variation in food is paramount. |
|
Time |
Currently almost all the Singapore based bakery companies are providing excellent services to the consumer’s offline as well as online services regardless of the geographical location of the customers (Hooley and Beracs 1997). Not only this but also it provides a twenty-four seven service. BreadTalk Bakery Company is acquiring certain technologies that improve the service technique of the company (Metzger 2014). Initially, they do not have the facility to provide anytime anywhere services, but now they have the facility. Thus, it is possible for the company to provide excellent and efficient services to the consumers. Therefore, one of the most important objectives for this bakery company is to produce a variety of foods. |
Affordable ranges: The pastry and the other chocolate cakes produced by the firm range very high. Due to its expenses middle-income belonging people are unable to buy the products. Thus, affordable price of the products is critical for the company. If the consumers can obtain the same things at the lower price from other bakery shops, then the clients will not buy products from the enterprise.
In order to mitigate this issue, the company is trying to decrease the price of the goods so that it would become affordable to all the consumers (Ehrnsperger and Pihlgren 2015). The other competitive companies in Singapore have an appropriate price range that is readily available for the clients of the products. Thus, from the logical business point of view, it is defined that management audit is needed to make a balance between the commercial investment and its respective outcome or benefits (Metzger 2014). Therefore, for BreadTalk bakery another objective of the company is to range its prices in an affordable one.
There are several marketing models followed by different marketing groups (Javaid 2014). The programs based on the marketing strategies are analyzed with the help of the Porter’s five forces, PESTLE’S analysis, 4P marketing model, and 7P marketing model, Belbin’s, etc. Among many of the marketing strategies, the best-taken option is known as the 7p marketing model. BreadTalk Company uses 4p marketing model, but the report suggests one of the most famous models is 7p marketing model (Zou and Cavusgil 2002). As the 7p marketing model has some advantages and also extended features which the 4p marketing model does not contain.
According to Bradley (2005) among different marketing theories and models the best solution suggested is the 7p marketing mix. The products produce by the company should be satisfactory to the customers or else the company will undoubtedly face a loss (Alden, Hoyer and Lee 1993). In order to bring benefits to the farm, the structure modeling and designing approach need constructive suggestions and concentration from other high level management authority of the company. Before producing any of a food product, the company must target certain cluster of consumers. This will do with the help of marketing mix and market segmentation (Leonidou, Katsikeas and Samiee 2002). Once the product produces by BreadTalk Bakery Company launched in the market, some steps are required to be followed to overcome the issues arising regarding their marketing and sales. Some matters come under consideration for the commercialization sales.
The existing model used by the bakery company is 4p marketing model, and the factors which are important to be analyzed are product, place, price and promotion. The components of the marketing mix are served to the consumers of the company leading products (Ehrnsperger and Pihlgren 2015). In the 4p marketing model there are only four elements that come under consideration but in a case of 7p marketing model, there are seven components that are needed to be measured to calculate the overall marketing and sales of the company products.
The objectives of the 4p marketing mix model help an organization to provide effective outcomes to the marketplace (Norris 1992). While the BreadTalk Company is using this model they concentrated on the availabilities:
Production of the products as per the consumer’s need
Affordable price range
Availability of the products at all the outlets of the company
Availability of the product information to the consumers all over the world regardless of time and the geographical location:
Here, the report suggested BreadTalk Company to implement 7p marketing mix in their model designing approach (Knight 2001). The questionnaires indicated above can be answered in a well-organized manner only if these questions analyzed. There are about seven elements found in a 7p marketing mix (Leonidou, Katsikeas and Samiee 2002). The answers to the questions help an organization to build a perfect design. The 7p marketing mix model has strictly interrelated to the product strategies also (Biswas et al. 2012). The components of the 7p marketing mix are as followed:
Price: In this model, there are lots of different price fixing strategies available. This approach is made to attract the consumer all over the world (Metzger 2014). A whole pricing procedure is beneficial to the company as well at the same time. Every organization offers a particular charge for individual products. It is termed as the second most important components in the process of the marketing mix. The price fixing of a particular product is paramount in order to satisfy the consumers of the company. There are some factors which are needed to be measured for the price fixing. The factors are as followed:
Even it can be said that the product produces by the corporation must have a perfect price value as it makes a powerful effect on the consumer need (Keegan and Schlegelmilch 2001). It also affects the profit calculation of the firm.
Promotion: The promotion of any product is the ultimate resulting outcome of all the components (Srinivasan 2014). The summation of the components can move up the string and down string as well. If the company is running in benefit, then it will be known as up line and vice versa. If the products produce by the corporation meet all the requirement of the customers then the marketing efforts given by the organization is said to be useful. But in case if it does not reach the requirements as per the consumers’ choice then the effort will be in vain (Keegan and Schlegelmilch 2001). Majorly it can be defined that the promotion is the outcome of the summation of all other components of a 4p marketing mix.
People: For the provision of the services most of the essential ingredients are the people rather the consumer of the products (Ehrnsperger and Pihlgren 2015). The customers of the products give the final acumen about the provision and the delivery structure.
Process: According to Sengupta and Chattopadhyay (2006) In BreadTalk bakery to avoid any confusion efficient service is needed to be treated. The information and the data flow of the process must follow a proper way. Otherwise, it will cause the interruption in the process.
Physical evidence: The physical evidence mainly describes the service destination of the product served by an organization (Leonidou, Katsikeas and Samiee 2002). It is precisely interrelated to the operation made by the retailer shops.
Products: Product leads to the manufacturers of breadTablk. The pastries and bakery products that are mainly produced by the company are judged with the help of gain received and at the same time, the customer feedback. If the feedback gives positive vibes to the management team, then the product will be determined as lining user-friendly (Srinivasan 2014). Breadtalk products are declining in the competitive market. Thus, they must obtain new and advanced strategies (Nguyen 2015). Products take different forms while it is launched in the competitive marketplace (Srinivasan 2014). In other words, it can be said that it is referred to the services and products offered by any of an organization. The consumers do not pay for any of a tangible product rather they spent money for their satisfaction (Kogut, B., 1993). As BreadTalk is a bakery company the products are required to be tasty in order to achieve more consumers and also to satisfy the existing customers. Products can also be described as a cluster of benefits to the company. Thus, it can be said that assemble of all the factors should be done in proper and well organized, proportional manner else different organizational loss will arise.
Place: The term place in the 7p marketing mix defines the source of the manufacture of the declining products (Putra and Harijanto 2015). The Company produces its products for the sake of the customers need. Therefore, the availability is paramount for any of them (Metzger 2014). It is the third most crucial element in 4p marketing mix model designing. This term is related to the anytime anywhere services offered by an organization. It is essential that the pastries and bakery products should be available in South East Asia (Norris 1992). The manager of the company is bound to make the profit from the southeastern zonal region (Kalish, Mahajan and Muller 1995). Therefore, they must open some more outlets over there so that the consumers belonging to that section will be able to avail the products whenever the need. Apart from this, the convenient profit can also be made if the service is found to be user-friendly. Again BreadTalk can also offer franchises to the nearby southeastern zone (Javaid 2014). If it is restricted to the company to sell its products directly to the consumers then, they can take the help of third-party selling team. If the company provides the facility of third party retailer holds, then it will be beneficial to the consumers and to the company itself.
Figure 6: 7p marketing mix model
(Source: Chen, Liang and Yueh 2014, pp-3)
After calculating all the marketing elements it is found that previously the company used 4p marketing mix model, but in this case, the components of 4p are not much advance (Kotler 2009). Therefore the report suggested BreadTalk bakery company implements 7p marketing model so that the company could attain the significant amount of benefits (Doole and Lowe 2008).
The marketing monitoring process monitors the entire process flow of BreadTalk. The top managerial team scans the overall stem from the source to the ultimate destination (Ehrnsperger and Pihlgren 2015). The methodologies focus on all the relevant business analytical factors.
The structure design to the profit gained by BreadTalk is controlled and monitored by the financial and audit team.
Figure 7: Images of marketing environment
(Source: Biswas et al. 2012, pp-260)
Conclusion and Recommendations
At the end of the report it can be said that the suggested marketing model is constructive enough to ensure the increment in sales for BreadTalk. In this report, the practical outcomes of the models are discussed elaborately so that the managing director of the company in the southeast region will understand the efficiency of the design correctly. In this report, all the marketing models, porter’s five forces, PESTLE analysis and difficulties facing the company are also discussed in a well-organized manner. The current revenue of the organization implies that due to the declining products it is becoming difficult to obtain a good position in the competitive market for BreadTalk bakery. But if it follows the 7p marketing mix model in order to launch its products in the market then the benefit structure will increase.
The constructive recommendations for BreadTalk are as followed:
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