Discuss About The Strategic Marketing Management Cerebellum.
Wannaburger is one of the best restaurants that is situated in High Street in Edinburgh in the year 2004. The name of restaurant was originally named “Relish”, however after a year name was changed to Wannaburger. Jon Clemence is entrepreneur of restaurant that mainly focuses on providing customers with humble hamburger and main desire to provide people with good food within a few minutes.
The main mission of the restaurant is to be favourite place for customers for eating hamburger. The company is dedicated towards being best place for employees who are working in organization and provide positive influence to the customers (Wheadon & Duval-Couetil, 2014).
The vision of the restaurant is to be the quickest delivery service provider restaurant in entire competitive marketing. The main motive of being best is to provide outstanding quality of goods and services as this can assist them in making customers smile and meet their expectations.
Specific- Business of Wannaburger can create different objectives to achieve targets at end of the year. Proper specification is essential to find out specific target customers. Wannaburger needs to create such goal and objective with serving the single ordered customer within a minute of the order that has been placed by them.
Measurable- Objective of Wannaburger has to be measured as this will help managers in understanding the achievements that can be made by them. Wannaburger can measure time of service during period of one-hour. This will help them in recording number of times customers with single orders has been served within minute of placing order.
Achievable – The goals can be achieved by Wannaburger in order to make sure that that they have different tastes of food that is being served by the restaurant and serve food as soon as possible. The managers need to keep an eye on how efficiently the employees are working and serving the single-ordered customers within a minute after order has been placed by customers.
Relevant to firm- The objectives are essential in nature to achieve the goals and aims of the entire business. The customers are required to be provided with different services as this can make them happy and it will increase the profitability of firm.
Time- The objectives and goals are required to be set with start along with finish dates. For instance- The managers of Wannaburger can tell different employees to achieve one-minute service objectives as this will assist them in performing better than different competitors in market.
Range of the customers is key success factor of Wannaburger wherein it provides ability to appeal to wide range of different customers in market. Wannaburger can offer customers in market with different hamburgers within short span of time. This will appeal the customers who are from 15-24 years of age and there are wide range of menu for parents.
Nutrition is other factor that is managed by Wannaburger Company that includes on website that states that the major commitment is to offer the customers with nutritious food as this will be nutritious in nature.
Affordability is the critical success factor that has to be managed by the company in which it is seen that there are economic downturns (Di Benedetto & Lindgreen, 2018).The affordability is major factor and Wannaburger offers customers with a full meal at a small or lower cost.
Availability is the critical success factor that has helped them in making convenience a key factor in the success. In 2006, it has been seen that the restaurant wanted to start business neat well-known shopping area at Princes Street (Di Benedetto & Lindgreen, 2018).
The location of business of Wannaburger is in centre of Edinburgh and the main customer group was for tourists who visited place every day. The key suppliers of the restaurant were supply of food and other requirements that are required and is necessary to prepare food and deliver to customers.
The quality control and assurance department carry out inspection of production facilities of the restaurant to check the quality of the food. Furthermore, the speciality suppliers are the ones who supply the different requirements of the hamburgers. At present, there is no such e-location of the business in Edinburgh (Foxall, 2014).
The main offerings of the restaurant are to serve customers with different kind of drinks and food such as hamburger that will allow their customers to take away and other food delivery services.
The requirement of business plan is used in order to help to run company in a more cohesive manner. This acts as roadmap and this helps in analysing plan for marketing, sales along with manufacturing and website design.
The main characteristics of the food and beverage industry includes the planning of the menu along with purchasing and reception of the different kind of raw materials. The main food production and beverage services system is highly emphasized in the hospitality sector. The food and beverage manager need to forecast and plan the ordering of the different food and beverages for the hotel premises (Kotler, 2015). The food and beverage department are responsible for maintaining high quality of foods and services provided to the customers, along with managing the different departments effectively.
The important trends in the industry that has affected the revenue and profit of the different restaurants are as follows:
The main competitors of Wannaburger are
Wannaburger needs to formulate a competitive strategy that can assist them in competing with the other competitors in the market. The main competitive strategy that can be adopted by the respective restaurant is to provide nutritious food, hygienic environment along with providing quality food to the customers as this can help them in gaining competitive advantage in the entire market (Kotler, 2015).
Political Factor- Wannaburger is operating in one country, hence the exposure of the same is in restricted to the respective country Edinburgh. However, Wannaburger has to be comply with the different regulations of the government like other restaurants pertaining to hygiene and health. The government has been pressurizing the entire fast food industry as the fast food has been seen as the junk food and this leads to obesity as well (Kotler, 2015).
Economic Factor- The different economic factors are essential for Wannaburger especially as the restaurant is operating in one country and trying to expand the business in other countries as well. The import of raw materials or buy the same from local market is one essential aspect that has to be handled along with rate of taxes (Chernev, 2018).
Socio-Cultural Factor- The evolving lifestyle can create huge impact on the performance of sales of the restaurant. The people in present era is seeking sophisticated fare where they prefer to eat (Chernev, 2018). The people in Edinburgh may prefer to eat hamburgers and French fries, however when the restaurant will be moving to the other countries, there can be differences in the tastes and preferences of the individuals.
Technological Factor- It has been noticed that technological advancements play a limited role in the entire fast food industry. The high technological advancements assist the restaurants in improving the productivity and management and reduce the wastage and resources. It helps in scheduling, forecasting sales and revenues of the company (Aivazidou et al., 2017).
Environmental Factor- In present era, the individuals are protecting environment and they care about water and air pollution. Wannaburger has started sustainable packaging of the food that is delivered to the customers and they have started using organic ingredients that can quickly mix in environment (Villeneuve & Pasquier, 2017).
Legal Factor- The regulation is the major concern to the company and as it is the fast food company, they need to adhere to the different regulations such as employment and labour law along with corporate law (Weinstein & Pohlman, 2015).
Competitive Rivalry is one of the factors wherein Wannaburger faces tough competition as the entire fast food restaurant is already saturated in nature (Hutchinson et al., 2015). In case of Wannaburger, the competitive rivalry is the strong force that includes the following:
The customers of Wannaburger has been experiencing low switching costs that means they can switch over easily that includes Wendy’s (Chernev, 2018). Therefore, it can be explained that competition is significant external forces on business of Wannaburger.
Bargaining power of customers of Wannaburger is the other factor wherein they need to address the significant power of the different customers. This deals with the demands and influence of the customers on Wannaburger (Armstrong et al., 2015). The different external factors that play a major role in to the strong bargaining power of the customers that includes:
There are different other substitutes of Wannaburger and it can be a competitive rivalry for Wannaburger. For this, they need to develop different strategies to increase the customer loyalty.
Bargaining power of suppliers of Wannaburger is the other factor in which the different suppliers influence Wannaburger and this creates impact on the business (Charter, 2017). The weak bargaining power of the suppliers are described as follows:
The different number of suppliers of Wannaburger weakens the individual suppliers effect on the company. This is caused due to the lack of global or regional alliances among the different suppliers. It has been noticed that there are different suppliers of Wannaburger are not vertically integrated and this is a threat for the company (Chambers & Humble, 2017).
Threat of substitutes of Wannaburger is the significant concern of the restaurant and this element mainly deals with the different potential effects of the different substitutes on the growth of the restaurant. The following external factors can be a strong force of substitution that includes the following:
Threat of new entrants is the last factor that impacts the market share of Wannaburger. The moderate threat of the new entrants is based on external factors that includes the following:
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Strengths ? Wannaburger has rolled out successfully new items that include smoothies and hamburgers and they are expanding the range of menu ? Consistency of the food that is being served to the customers (Berbegal-Mirabent, Gil-Doménech & Alegre, 2016) ? Successful Items- different kind of hamburgers |
Weaknesses ? It is harder for Wannaburger to create a position in prime locations as there is already huge bundle of restaurants ? Wannaburger is lagging behind in comparison to the other restaurants as the usage of the equipment are not up to the standard |
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Opportunities ? China can be a great opportunity for Wannaburger as the hamburgers can be liked by the customers (Litman, 2018) ? Joint ventures with different retailers (Chernev, 2018) ? Consolidation of the different retailers so the better locations for their franchisees |
Threats ? Strength of the competition ? Fluctuation of the foreign exchange rates ? More health-conscious customers in the market ? Changing demographics |
The target market of Wannaburger includes the following:
The benefits gained by Wannaburger is that they can create the customers with different range of products and services as per their choices. The customers are the assets of Wannaburger and the company needs to understand the requirements of the different age to serve them in different manner (Bresler & Lubbe, 2014). Furthermore, the restaurant knows the value of retaining the customers by providing them with efficient training and providing unique benefits. This will help the commitment level of the employees in performing their job efficiently.
Furthermore, it includes the fast and efficient service to the different customers by adding good value offering and pricing to the customers (Baker, 2016). The consistency in the menu items is necessary in nature as this helped them in providing quality products to the customers of different age groups and gain competitive advantage in the market.
Wannaburger offers the customers with consistency in the products that is offered by them. The different kind of segmentation has been done in the company in accordance to the lifestyle and convenience of the individuals (Huang et al., 2015). The behavioural segmentation has been done by the company that included the different occasions such as birthday parties organising along with other occasions are celebrated by the company that helps them in becoming the best in the entire competitive market (Martín-de Castro, 2015).
The overall marketing objectives of Wannaburger includes the following:
From the above diagram, it can be analysed that the key performance indicators of Wannaburger helps them in maintaining the quality along with serving the customers in an appropriate manner.
The marketing mix is essential in nature for all the organizations as this assist in providing and creating right strategy of marketing along with the implementation through different kind of effective tactics. The importance of the marketing mix is to determine the ability to help the businesses to determine the suitability of the product or service for the particular customer base in the entire competitive market (Chernev, 2018).
Wannaburger needs to introduce the marketing mix in such a manner that can help them in managing the different kind of issues related to the 4Ps of marketing that are of huge importance in Wannaburger and this can help them to compete with the other competitors in the entire competitive environment (Chernev, 2018).
Wannaburger is one of the growing fast food restaurants that is based in Edinburgh. The places wherein Wannaburger will be introducing their franchisees or branches, the company needs to emphasis on the development of the menu and the requirements of the customers as well.
The research of the entire market is required to be done to understand the changing tastes and preferences of the customers. In order to meet the changes and requirements, the company needs to introduce new products in their menu and phased out the old ones. Wannaburger is known for hamburger and while this product is their main product line, the company offers different products to complete the experience of the customers (Chernev, 2018).
This kind of pricing strategy can be adopted by Wannaburger to generate profits and the diversified product range can help them in focusing more on the vegetarian products in different regions wherein the customers prefer such products with high nutritional value. This product component includes standardization of the products that helps in supporting economies of scale.
Wannaburger can include different pricing strategies that offers bundling products with meals and other products for their customers. The perception value of the different customers is essential element or determinant of the price that is being charged (Chernev, 2018).
The customers may draw a picture in their mind regarding the worth of the product. The danger of using the low price for the products can be dangerous for the company as the customers may feel that the food is of low quality and it has been compromised.
It is required for Wannaburger to decide on price after being fully aware of the brand and the integrity of the same. The pricing strategy of Wannaburger includes the following:
From the above, it can be seen that the pricing strategy of Wannaburger is market oriented in nature and this market strategy can help in reflecting the market conditions along with competitive landscape (Chernev, 2018). However, the product bundle strategy includes the offering of the products such as combo meal that can help the company in gaining more customer presence.
Wannaburger can promote the different products through the help of variety of implementation of strategies along with tactics. This particular component of marketing mix uses the communication mix strategies to reach to the customers in an effectual manner. The communication strategy is followed with the help of the social media networking along with personal selling and advertisements. Wannaburger can apply the following communication strategies that is arranged in accordance to the significance:
Advertising is the most essential tactics that is used by Wannaburger as to promote the different products to the customers in the market. Wannaburger uses the personal selling technique in such a manner that will encourage the customers to order more products such as desserts or sides (Chernev, 2018). The Wannaburger restaurant can use the public relation strategy to promote the business as well as the services delivered by them to the customers.
Wannaburger can complete the different transactions in the restaurants and this component of the marketing mix includes different places or venues through which the restaurant can make different transactions with the customers. Wannaburger can include the different kind of places for distributing products that includes:
Wannaburger can generate most of the revenues at the different restaurants. On the other hand, the restaurant occasionally uses Kiosks such as in different malls along with venues of special events. The customers of Wannaburger can place the orders through the website of Wannaburger as this can assist them in generating sales and revenues in a huge manner (Chernev, 2018). Furthermore, the restaurant can allow consumers to access their menu along with special deals through the mobile application of Wannaburger.
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Particulars |
Overall Marketing Budget |
Digital Marketing Budget |
Traditional (offline) marketing budget |
|||
|
2017 |
2018 |
2017 |
2018 |
2017 |
2018 |
|
|
Advertising of products and services offered by them |
$2000 million |
$2200 million |
$988 million |
$1088 million |
$600 million |
$200 million |
From the marketing budget of Wannaburger, it can be identified that the company needs to keep budget for the different marketing of the goods and services. It is essential in nature for them to keep a separate amount for digital marketing along with traditional marketing of the products and services as well. Wannaburger needs to increase their sales and revenues in the market with the usage of technological advancements.
|
Expenditure |
Low |
High |
|
Cost of construction inclusive of flooring, panels, paints and grease trap |
$175000 |
$300000 |
|
Kitchen Equipment |
$110000 |
$150000 |
|
Tables/Chairs |
$25000 |
$40000 |
|
Signage |
$10000 |
$12000 |
|
Office Electronics |
$18000 |
$20000 |
|
Insurance |
$15000 |
$25000 |
|
Opening Inventory |
$5000 |
$6500 |
|
Pre-opening training/hiring |
$7500 |
$8900 |
|
Social Media Set Up |
$5000 |
$6500 |
|
Marketing Costs |
$6000 |
$9800 |
|
Initial Operating Capital |
$20000 |
$40000 |
|
Total |
$358500 |
$553700 |
From the action plan of the budget, it can be analysed that the budget is required to be created both low and high as this will be the maximum costs that can be incurred by Wannaburger. The advertising costs is huge in nature as the company will be spreading their operations in different parts of the world in the future to gain competitive advantage in the market.
The organizational structure is essential in nature as this will help in analysing the different functions of the different departments along with the analysis of the entire infrastructure has to be done to analyse the human resource plans that can be implemented in the organization.
References
Aivazidou, E., Tsolakis, N., Vlachos, D. P., & Iakovou, E. (2017). Water Footprint Mitigation Strategies for Agrifood Products: The Application of System Dynamics in Green Marketing. In Strategic Innovative Marketing (pp. 275-281). Springer, Cham.
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction. Pearson Education.
Baker, M. J. (2016). What is marketing?. In The Marketing Book (pp. 25-42). Routledge.
Berbegal-Mirabent, J., Gil-Doménech, D., & Alegre, I. (2016). IMPROVING BUSINESS PLAN DEVELOPMENT AND ENTREPRENEURIAL SKILLS THROUGH A PROJECT-BASED ACTIVITY. Journal of Entrepreneurship Education, 19(2), 89.
Bresler, M., & Lubbe, I. (2014). Marketing management.
Chambers, I., & Humble, J. (2017). Plan for the planet: a business plan for a sustainable world. Routledge.
Charter, M. (Ed.). (2017). Greener marketing: A responsible approach to business. Routledge.
Chernev, A. (2018). Strategic marketing management. Cerebellum Press.
Di Benedetto, C. A., & Lindgreen, A. (2018). The emergence of Industrial Marketing Management as the leading academic journal in business-to-business marketing. Industrial Marketing Management, 69, 5-12.
Foxall, G. (2014). Strategic Marketing Management (RLE Marketing) (Vol. 3). Routledge.
Fulker, D., Timur, A., Dew, K., & Butler, J. (2016). A Case Study of the Grey Oaks Community and Club: Creation of a High-Performance Culture Through the Innovative Use of a Data-Driven Business Plan. International Journal of Hospitality & Tourism Administration, 17(1), 72-99.
Huang, J., Guo, P., Xie, Q., & Meng, X. (2015). Cloud Services Platform based on Big Data Analytics and its Application in Livestock Management and Marketing. Proceedings of science.
Hutchinson, K., Donnell, L. V., Gilmore, A., & Reid, A. (2015). Loyalty card adoption in SME retailers: the impact upon marketing management. European Journal of Marketing, 49(3/4), 467-490.
Keller, K. L., & Kotler, P. (2016). Marketing management. Pearson. (Keller & Kotler, 2016)
Kleinaltenkamp, M., Plinke, W., & Geiger, I. (2016). Business Relationship Management and Marketing. Springer-Verlag Berlin An.
Kotler, P. (2015). Framework for marketing management. Pearson Education India.
Litman, T. (2018). Parking Management Strategies. In Parking Management Best Practices (pp. 86-225). Routledge.
Martín-de Castro, G. (2015). Knowledge management and innovation in knowledge-based and high-tech industrial markets: The role of openness and absorptive capacity. Industrial Marketing Management, 47, 143-146.
Miquel-Romero, M. J., Caplliure-Giner, E. M., & Adame-Sánchez, C. (2014). Relationship marketing management: Its importance in private label extension. Journal of Business Research, 67(5), 667-672.
Sheth, J. N., & Sisodia, R. S. (2015). Does marketing need reform?: Fresh perspectives on the future. Routledge.
Villeneuve, J. P., & Pasquier, M. (2017). Marketing management and communications in the public sector. Routledge.
Wagner, S. M., & Eggert, A. (2016). Co-management of purchasing and marketing: Why, when and how?. Industrial Marketing Management, 52, 27-36.
Weinstein, A., & Pohlman, R. A. (2015). Customer value: a new paradigm for marketing management. In Proceedings of the 1997 Academy of Marketing Science (AMS) Annual Conference (pp. 132-133). Springer, Cham.
Wheadon, J. D., & Duval-Couetil, N. (2014). Business plan development activities as a pedagogical tool in entrepreneurship education. The Journal of Engineering Entrepreneurship, 5(1), 31-48.
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