Question:
Discuss about the Digital and Direct Marketing Plan.
This is a report, which will portray the digital and direct marketing plan for the organization named Zambrero. This report will include the situational analysis that consist of the macro environment analysis and the microenvironment analysis. This will include the pestle analysis in the macro analysis and the internal analysis will include SWOT analysis. The objectives of the organization will be discussed in brief to identify the necessary actions that have to be taken based on the needs of Zambrero. The strategy will be developed based on these objectives and will include the digital and direct marketing plan of the organization. The report will conclude with the actions and tactics that have to be applied in order to achieve the strategy that has been developed. Zambrero is a chain of restaurants in Australia who serves Mexican food to its consumers. The chain of restaurants started in the year of the 2005 in Braddon and then it expanded nationally and internationally (Zambrero 2017). The organization consists of 110 outlets all over the world and is one of the leading fast franchises in the world. The organization is involved in many social activities and is aimed at reducing global hunger. Dr Sam Prince is the owner of this chain of restaurants and the chain is available in 145 locations all over the world.
The situation analysis will analyze the macro environment and the internal environment of the fast food chain industry to identify the present opportunities, the external and the internal threats the organization will be facing.
Political
The Australian government has recognized the fast food industry as one of the sub sectors of the consumer industry, which is highly competitive in nature. The political environment of the country is stable and this is the sole reason for the rapid growth in the economy of the organization. Various analysts predicted that the fast food industry would contribute 32 % of the total value provided by the consumer service by the end of 2017. The legal system of the country is transparent and this has helped in the reduction of the corruption especially in the service sectors. The government of the country has made efforts to ensure that there is no unbiased in the practices in the industry. The government wants to protect the national economy and in order t do so they are promoting competitive pricing and restraining the unnecessary increase in the price (Hollensen 2015). Moreover, the government are holding the organizations responsible for the pricing policies they have been exercising. The government has facilitated the foreign direct investment so that the growth of the economy is boosted. The government authorities have implemented policies, which will eliminate illegal financing and money laundering in the industry. The taxation of the country is liberal which has grabbed the attention of many foreign investors in the market. Thus, the political environment of Australia is appropriate for the development of Zambrero and they can easily capitalize on this opportunities in the market.
Economic
There has been rapid growth in the economy of Australia and the gross domestic product of the country has been increasing by almost 2.8% until the global financial crisis. However, the country has been able to recover and is one of the fastest growing economies. Australia has made efforts to digitalize the economy by increasing the direct private investment and the consumption expenditure. The food industry has been one of the major contributors for the development of the economy of Australia. However, even though the economy of the country has been able to recover, the risk of inflation is still eminent in the market. The food service industry is one of the promising sectors in the market, which has the potential of growing at a fast rate. The popularity of the fast food industry is still very prominent as it is one of the aspects of the Australian culture (Pike and Page 2014). Various surveys show that the Australian population is visiting the economy very frequently. The disposable income of the population is high and it is one of the major reasons for the growth of the fast food chains.
Social
The population of the country consists of the diverse cultures and can be considered a cosmopolitan population. The variation in the environment and the immigrant culture has significantly influence the lifestyle of the people as they belong to different cultural background and have difference in their lifestyles. The dominant language in the country is English but still can be considered multi linguistic. The majority of the population of the country is of age 55 or higher; this is one of the concerns for the country as it is difficult to maintain the sustainability of the economy in the future. This composition will increase the dependency of the population on aids from the government. The majority of the population who visits these fast chains are between the ages of 14-29 and comprises 86% of the population (Malhotra and Malhotra 2012). Various surveys have shown that the population in the country is one of the major spenders on the fast food consumer market. However, the obesity level of the people is high and this has given rise to various campaigns regarding the food habits of the people. Thus, the population have become aware of the health issues and willing to pay for healthy food products. This has lead the people to go for healthier options and the population is expecting a balanced diet. Thus, Zambrero will have to provide the consumers in the market with some healthier options. The population of the country searching for healthier option in the market so Zambrero will have to make sure that they are able to cater to this segment.
Technological
Globalization has led to the technological advancements and provided the organization with many opportunities. This has facilitated the reduction in the cost and high quality connectivity in both national and international market. Australian government have increased the investment in technologies and it has made the nation as one of the most connected in all over the world. Information technology is the major contributor of technological innovation and growth in the economy. Technology is one of the major factor for providing the consumers with a experience that is satisfactory (Solomon 2014). The trends suggest that the majority of the companies in the market will be making use this technological advancement to provide the consumers with a better consumer experience. Ecommerce is one of the booming industry in Australia so Zambrero can utilize this opportunities to use online media to increase their consumer base. This will definitely help in the increase in the growth of the sales of the organization, as the penetration of the online media is more than the conventional form of media.
Legal
The legal environment has a great impact on the business environment of the organizations in the market. The organization will have o alter their operations from time to time due to the change in the legal rules and regulations in the business environment. However, the Australian legal rules and regulations are liberal and this provides the organizations in the industry to capitalize on the situation in the market. The rules and the regulations for the direct investors in the market are liberal which means that it will facilitate in the growth of the economy (Chaffey, Smith and Smith 2013). Although the business rules and regulations are liberal, the food industry has some strict guideline, which they have to abide by. The legal system of the country is well knitted so that it could protect the organizations from any illegal activities.
Environmental
The government of Australia are the leaders in maintaining the sustainability of the environment. The government is focused on protecting the rare species of flora and fauna in the country. The government has promoted business which is friendly to he environment and the laws regarding the environment quite strict and can be penalised. These have protected the biodiversity in the continent of Australia (Galizzi and Venturini 2012).
Thus, from the pestle analysis of the food industry in Australia suggests that it is a growing market and Zambrero has the opportunity of expanding their business by increasing the number of the consumers. The use of online media and digital market is in trend, which means that the organization can use digital and direct marketing to penetrate further into the market.
SWOT analysis
|
Strength |
Weakness |
|
· Provides high quality of food and services · Affordable pricing · Fast delivery · Corporate social responsibility · Good brand image |
· Diversity in the products offered is less · Conventional method of marketing · Technological development |
|
Opportunity |
Threat |
|
· Industry growing at a rapid rate · High disposable income of the people · Technological development · Digital and direct marketing |
· High competition in the market segment · Market entry barriers are low · Population becoming more health conscious |
Table 1
(Source: created by author)
The objectives of the organization are as follows:
Segmentation, target consumers and positioning
Australian market is highly diverse and have a high disposable income, the organization is choosing the consumer based on their demographics, behaviour and geographic location. The Australian people have a culture of eating outside and recently they have the become aware of the health issues. Thus, a large number of population wants to have healthy food where there is balance diet. However, there are consumers between the age of 14-38 have the maximum affinity for fast food and restaurants (Rothaermel 2015). However, based on behaviour it is evident that the majority of the population are outgoing and have the tendency of spending money on eating outside where their food is tasty and healthy. The psychographic segmentation also suggests that the majority of the consumers in the market prefer Mexican food as it is spicy and is different from what the other competitors in the market are serving.
Thus, the target consumers for the organizations are the population which is between the age of 14-38. This is because of the fact that from the segmentation of the market it has been identified that the majority of the consumers are from this age group. The cultural diversity of the country is high so it makes easier to cater to the younger generation as they are ready to try something new. The population who are above the age of 40 do not like to experiment which means that it is tough to change the food habits of people who are quite aged. It will be easier to convince the chosen market as they are open to change and wants to try something new that is of good quality (Keegan and Green 2015).
Zambrero serves only Mexican food to its consumers and so the organization has positioned the product as healthy, tasty and good quality. The target segment of Zambrero is niche so the organization will have to use their unique selling proposition to convey their message through the conventional and the digital media so that they can further penetrate into the market. The organization has provided free food to the people in need and have been involved in a lot of corporate social responsibility activities. Thus, Zambrero will have to host events so that they are able to convey their positioning to the consumers and their families.
There are two types of products in the marketing mix, one is the marketing mix of a product and other is the marketing mix of service. The marketing mix of Zambrero will consist of the four p’s of marketing which includes the pricing, promotion, product and place.
Product
The marketing mix of the product will include the quality that is being offered by Zambrero. The product offered here is different from the other competitors in the market and that is the unique selling proposition. The organization is trying to provide best quality food at affordable which consist of a balanced diet. The organization focuses on take aways more than the other services so this can provide Zambrero with competitive advantage in the market (Gordon 2012).
Pricing
The products are available at affordable as majority of the consumers vary from the age 14-38. The pricing strategy of the organization is trying to promote that the good quality of food at a price which can be afforded by a variety of consumers (Rettie, Burchell and Riley 2012). Zambrero also provides discounts on a regular basis which is able to attract the majority of the target consumers.
Place
The location of the restaurant has to be in the prime location so it can grab the attention of the majority of the consumers. Zambrero consist of chain of restaurants os each of the location will have to be apt for the successful business of the organization (Gbadamosi 2013).
Promotion
The organization will have to use both conventional and the online marketing media so that they are able to reach maximum number of consumers at an affordable price. This will consist of direct and digital marketing so that the organization can gain competitive advantage on its competitors in the market (Huang and Sarigöllü 2014).
The promotional strategy of the organization will include the direct marketing and digital marketing. This is because of the fact that technological advancement and the online media is necessary for sustainability of most of the companies in this industry. The promotion al strategies that should be used by the organization are as follows:
Direct mail marketing is one of the essential needs for the restaurant industry as it helps to acquire more consumers through direct mail. This will include the special offers and coupons which will help to attract the consumers who belong the higher age group. It will also include the link of the website and the mobile that can be used to order food. The cost of this type of promotion is less and can be more effective for some segments of the consumers (Armstrong et al. 2015).
Call campaigns is effective if the organization is willing to provide catering services to the other businesses. This will help to capture the local market and build a reputation which will facilitate in gain more business.
Billboard advertising is quite expensive and has to be used in an effective way. The billboards will have to be placed in premium location such as airports and city centres so that it grabs the attention of the majority of the population. However, it is difficult to calculate the return on investment on this investment so it essential to track the responses so that the positive impact can be identified (Chikweche and Fletcher 2012).
Search engine optimization is one of the most effective way of promoting the restaurant. Zambrero will have to hire SEO experts which is quite inexpensive when compared to the other forms of media. However, social media interaction and website are the best form of SEO that an organization can use in this age of the social media (O’Sullivan and Abela 2013).
Local Search optimization is one of the ways in which local media can be used by registering into local directories so that the organization can capture the local market (Lee and Carter 2012).
Email marketing is a way of keeping in touch with the present consumers and at the same time has the potential of acquire new consumers in a cost-effective manner.
Social media marketing is one of the most influential media which can gain maximum number of consumers and it provides Zambrero with the opportunity of interacting with the consumers in the same platform. Facebook, Instagram and Twitter are the social media and micro blogging websites, which can provide the organization with competitive advantage (Wilson and Gilligan 2012).
Mobile marketing is more effective than direct mailing and emails as people are more on their phones and this can produce better results at similar cost.
According to the situation of the organization, it can be said that Zambrero has to use digital marketing if they want to sustain in the industry. Digital marketing is cheap and easier to implement so it has to be used for acquiring more consumers in the market. Social media marketing and search engine optimization are the most essential methods that have to be incorporated in to the business model of the organization (Hutt and Speh 2012). This will facilitate the organization to interact with people on the same platform and improve the quality of performance offered by the organization.
The monitoring of the strategy is important, as it will help to identify the deviation from the actual strategy. The strategies that have been applied are expensive so return on investment of each method will have to be indentified in order to make sure that there is positive impact on the strategy of the organization. Control will include the evaluation, measurement and monitoring of the processes (Baker 2014). The standards have to be set in order to compare with the actual with the expected to calculate the deviation from the original value. There are various ways of analyzing the control factors such as market share analysis, sales analysis, market information system, market research and performance of the promotional activities.
It is recommended that the organization should make use of their unique selling proposition to capture the market. Social media marketing and mobile marketing are two of the most cost effective ways of creating more consumer base. Zambrero will have to monitor the plan of action in order to indentify the loopholes so that the marketing plan can be further improved.
Conclusion
Thus, the conclusion that can be drawn from the report is that Zambrero has a good reputation in the market so it essential that the organization uses this asset to get involved in more corporate social responsibility activities. The marketing environment of the organization is feasible and is appropriate for investment so the organization will have to capitalize on the situation to gain competitive advantage in the market.
References
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction. Pearson Education.
Baker, M.J., 2014. Marketing strategy and management. Palgrave Macmillan.
Chaffey, D., Smith, P.R. and Smith, P.R., 2013. eMarketing eXcellence: Planning and optimizing your digital marketing. Routledge.
Chikweche, T. and Fletcher, R., 2012. Revisiting the marketing mix at the bottom of pyramid (BOP): from theoretical considerations to practical realities. Journal of Consumer Marketing, 29(7), pp.507-520.
Galizzi, G. and Venturini, L. eds., 2012. Economics of innovation: the case of food industry. Springer Science & Business Media.
Gbadamosi, A., 2013. Principles of marketing: A value-based approach. Palgrave Macmillan.
Gordon, R., 2012. Re-thinking and re-tooling the social marketing mix. Australasian Marketing Journal (AMJ), 20(2), pp.122-126.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Terpstra, V., Foley, J. and Sarathy, R., 2012. International marketing. Naper Press.
Pike, S. and Page, S.J., 2014. Destination Marketing Organizations and destination marketing: A narrative analysis of the literature. Tourism management, 41, pp.202-227.
Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to market outcome, brand equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-132). Springer New York.
Hutt, M.D. and Speh, T.W., 2012. Business marketing management: B2B. Cengage Learning.
Keegan, W.J. and Green, M.C., 2015. Global marketing. Upper Saddle River, NJ: Pearson.
Lee, K. and Carter, S., 2012. Global marketing management. Oxford University Press.
Malhotra, N.K. and Malhotra, N.K., 2012. Basic marketing research: Integration of social media. Boston: Pearson.
O’Sullivan, D. and Abela, A.V., 2013, May. Marketing performance measurement ability and firm performance. American Marketing Association.
Rettie, R., Burchell, K. and Riley, D., 2012. Normalising green behaviours: A new approach to sustainability marketing. Journal of Marketing Management, 28(3-4), pp.420-444.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
Solomon, M.R., 2014. Consumer behavior: Buying, having, and being (Vol. 10). Upper Saddle River, NJ: Prentice Hall.
Wilson, R.M. and Gilligan, C., 2012. Strategic marketing management. Routledge.
Zambrero 2017. Zambrero. [online] Zambrero.com.au. Available at: https://zambrero.com.au/ [Accessed 12 Oct. 2017].
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