- To enhance a clear understanding of the importance of marketing in modern business and to provide a grasp of effective contemporary marketingpractices;
- To provide a theoretical overview of marketing theory and practicalapplication of innovative marketing strategies;
- To critically analyse all relevant factors affecting the exchange
Marketing in the 21st Century has drastically evolved and is a critical component of business administration. The design of marketing plans is integral to business organisation and the assessment for this subject aims to provide students with the opportunity to apply the knowledge of developing effective marketing strategies. This assessment requires the students to analyse market trends before developing a marketing strategy. There is a short scenario for students to address the assessment tasks.
Assessment 1 requires students to create a case study and review marketing plans. Specifically, assessment 1 requires students to establish the context through analysing market trends. Assessment 2 requires students to devise a marketing plan of products or services offered by their own organisation and to consider how the marketing plan will add value to their organisation.
Case Study of Small Bar and Kitchen (SBK)
The aim of this report is to generate emphasis on the day to day activities of the small business. The business of the restaurants is increasing in the market at a higher rate. One of the restaurants in Australia which is Small Bar and Kitchen is planning to expand their business at international level. SBK is a small restaurant with innovative concept located in Sydney of Australia. They created a loyal customer base with the high quality of items at a competitive price. The customers of SBK belong from medium to higher income group, local population, and tourists (Storey, 2016).
In the following context, there will be detailed discussion on the SBK and the way to expand their business in the new market which is Singapore.
Small Bar and Kitchen (SBK) is a small restaurant in Sydney of Australia. It is a high-quality restaurant. It is established in the year 2014. The restaurant is known for their quick service and they have a concept of doing the big things with the small steps. The whole restaurant is managed by the Kirribilli who is the co-founder of the SBK restaurant. SBK is based on the concept of western culture by presenting a small bar and kitchen. They cater delicious drinks with different varieties, fantastic food with amazing service. Space is warm and inviting and serves eclectic tapas-style dishes, perfect for sharing. It is a high-quality restaurant with the quality meal which presents mouthwatering and tasty food with a wide range of varieties. The SBK is famous for two reasons: one represents the person who is interested in good or quality drink or food and another way are with the way the food is being presented especially in a quality way or inartful manner. The company also specializes in making different varieties of chocolates (SBK, 2018).
- The main mission of the restaurant is satisfying customers by catering great meal with fun atmosphere provided by SBK. They are doing unique things which set apart them from their competitors. They want the experience of dining to be as good as the foods which are serving on their palate.
- The major focus of SBK will be to serve good quality food at a great value for money. For customers there would be a wide range fresh prepared food which will be full view of their guest; they want to be the restaurant of choice for everyone such as singles and families, young and old, male or female.
- The restaurant also has a mission towards employee welfare. A happy employee makes a happy guest. They combine a variety of menu, ambiance, atmosphere and friendly staff to create a sense of place in order to achieve their goal of overall value in the entertainment experience.
- Respect and reward the contribution of each individual at SBK.
- Be honest, open and direct in dealing with one another.
- For having a competitive advantage over competitors new & innovative ideas are encouraged which is a key for successful growth.
- Commitment to maintaining the highest standard to the personal and professional integrity at all time.
- Dedication towards the growth in the sale, profit and size of the organization
- Work as a team.
SBK has a planning to expand their business in the new market at international level. The targeted country is Singapore because it includes three national which is India, Malaysia, and Chinese and the country has a huge hub of tourist. Therefore, it is significant to expand business in Singapore. The main targeted area in Singapore is Sentosa because at his place most of the tourist will come during their tour surely. Therefore, it is in a pipeline to select are in Sentosa to target maximum customer. It will take around a thousand square meters and totally designed to reflect and describe the specialty of their culture and specialty in food and drinks (Barringer & Greening, 2008).
- To cover maximum customers and slowly gain market share from another restaurant
- To be well known in the world. It means when people talk about a restaurant in Singapore, they will think about SBK immediately (Henrekson & Sanandaji, 2014).
Market Analysis of Singapore
Before entering in a new market, SBK will analyze the marketing environment of Singapore which cover microenvironment and macro environment. It is necessary to analyze both environments before entering a new market to achieve the desired goal efficiently and effectively. The analysis of the microenvironment helps SBK to have knowledge about the taste of buyer, supplies, and competition in the area of Singapore. The analysis of macro environment helps the SBK to know about the impact of external factors such as political, social, legal, technology and many more on the restaurant which helps the restaurant to cope up from such challenges (Henderson, 2016).
Eating and traveling out are going two leisure-spending activities by the customers of Singapore. Approximately twenty percent of the people spend significantly by eating out. Most of the spenders in eating out are adult in no children households. In recent, the customer emphasis on freshness, health, provenness, authenticity and environmentally friendly products. One-half of the local Singapore individuals produced food. Retailing of food and out of the home market is definitely to benefit (Chung, Song & Lee).
There has been a rise in new puritans interested in health and lifestyle. They advice other that what to be done and what not to be done. Customers getting more conscious about the quality food and better service with less expensive items which have been reflected casual in the area of Singapore.
The people under the age of twenty-four are the maximum user of a casual dining restaurant. The casual dining in the market is greatly influenced by the demographic, economic growth, have-it-all society and experience economy. Women think and feel that a healthier eating option is more important. Sixty-six percent of population emphasis on the quality of food, food, and value for the money, type of services which influence the eating out market. Therefore, food, service, and value remain the important market driver to the demanding customers (Najeemudeen & Panchanatham, 2016).
Most of the customers prefer a cleaner restaurant with efficient service, low price of items and friendlier service. The customer of the young generation is more interested in lower price items. the option of healthy food and concern towards the environment though not vital for them but cannot be fully ignored. The public generally prefers and understand branded chain (Fernandes & Panda, 2018).
The microenvironment analysis consists of all forces that are close to SBK and on which SBK has a great impact. These forces directly affect the ability of SBK to serve their customers. There are five forces which influence the microenvironment of SBK. As it will cover in the analysis of Porter Five Forces:
Microenvironment Analysis of SBK
The threat of New Entry
In the current market of Singapore, it is not very difficult for any restaurant to enter in the food market. However, it would be quite difficult to take over the market share from the business which are already running restaurant dominancy in Singapore or even can make a significant amount of profit. Therefore, it put pressure on the restaurant to prepare a proper strategy of lower pricing, cost reduction and also provide a new value proposition to the customers. SBK has to build an effective strategy to protect the competitive advantage (Hargreaves, 2015).
Buyer Bargaining Power
The customer always wants quality items at a lower price. In Singapore, most of the customers are a tourist. The restaurant cannot set high price unless the restaurant is offering something innovative and extraordinary because the buyer has knowledge of the market and can switch to another restaurant it can push the profit margin downward of the SBK.
Supplier Bargaining Power
The suppliers have little bargaining power. The restaurant has not much bargaining power when dealing with suppliers of a fringe product such as truffles, wild porcini mushroom, and organic watercress because of lack of competition in the market of the supplier. It is also challenging for the restaurant to deal with the large producer of a simple ingredient such as potatoes which is supplying to the huge number of restaurants.
The restaurant can face the challenge from substitute products and services. The supermarket and Grocery chain are the major substitutes to the SBK, especially in economically hard time. There are other competitors also in the market and the substitute products, in this case, would be vegetarian foods, drinks such as mojito and so on. Their primary products differ greatly from each other. Therefore, SBK can set up store which is located near a popular tourist attraction to maximize the customer.
SBK has a little rivalry with similar food chain because the core products are different from another restaurant as they cater to a different kind of cuisine with different taste and style. But the restaurant has to take care of the customer more efficiently because one bad experience for a customer means they may not return.
In Singapore, the food market is highly competitive. There will be a wide number of direct and indirect competitors for the SBK. The main competitors of SBK are The Cliff and Verde Kitchen. The Cliff is the main competitor of SBK as they have already set their reputation in the market of Sentosa (Baksi, Rao & Anitha, 2018).
Porter's Five Forces Analysis
The Cliff is evolved in freshly elevated casual dining and cuisine establishment that caters authentic and comforting flavor of Italy with heartwarming ambiance. It is bidding addio to the ilLido Group after a two-year partnership, and provide more traditional with a fun selection of Italian classics, forgoing stuffy white table linens and strait-laced dress codes (Sofitel, 2018).
The dishes of Cliff have an extensive selection of homemade pasta, starters, desserts, gourmet pizza which is baked in the wood-smoked oven with the finest selection of wines and refreshing beverages.
The main target of The Cliff is a tourist. Singapore has a rush of tourist with a different culture. The Cliff caters homemade foods which attract maximum customers of Singapore. The Cliff is a sophisticated restaurant; they mostly target the customers who are conscious towards healthy food.
Verde Kitchen is the famous restaurant in Singapore. This restaurant caters healthy dishes with an ecological thrust. The concept of Verde Kitchen is based on organic foods which are free from impure ingredients. The Vedic Kitchen cater healthy dishes which are free from thinking gluten, dairy free, vegetarian and options of raw food, avoid plumped chicken or exotic extravagances, organic vegetable and meat (Hilton, 2018).
Verde kitchen cater grilled Cyprus origin cheese tossed as well as superfoods such as chickpea, bulgur, rocket salad, the healthy hearty mix cater with drizzled with roasted walnut dressing. The restaurant also caters organic seafood, the MSC- certified Glacier Tooth Fish with dressing in a green crusted coat of organic basil for a toothsome bite.
The customers who believe in sustainable food and environment-friendly are the main target of Verde Kitchen. They cover a wide range of customer which covers vegetarian and non-vegetarian with a variety of items. All the items of Verde Kitchen are organic which attract the customer in a huge amount.
Therefore, both restaurants are the main competitors of SBK because the prices of their items are also not high which attract the customers most. SBK has to prepare certain strategies to enjoy the competitive advantage.
SBK has planning to operate in a larger force of macro environment which generate opportunities but also involve a threat. Thus, SBK has to carefully examine the trend of macro environment and must create a competitive response to such trends (Lee, Guan & Chan, 2017).
The society created a great impact on the demand for chocolate products. SBK is having a planning to cater their specialist chocolates to their customers in Singapore. But SBK has to analyze the how much the society of Singapore has an influence on Chocolate product. These are explained in below points (Pickles, Barrientos & Knorringa, 2016):
- The people in society are highly conscious of their health. They have a thought that chocolate contains a high rate of calories which directly affect their health. Therefore, most of the time consumers try to avoid chocolates which directly affect the demand and consumption of chocolate products.
- Society always prefers to use sustainable items without harming the environment. The production of cocoa cause global warming. Therefore, society takes certain steps against the chocolates and resists using such products.
- In the society, most of the people are facing the issue of diabetes and the consumption of sugar in the chocolates is very high, therefore they prefer to ignore such things.
- Most of the chocolates in Singapore are exported from other countries. It increases the price of the product; therefore, most of the people in society avoid such expensive chocolate which affects the demand for chocolate in the country.
The factor of political consists of governmental policies, regulation, and laws of a county which directly affect the business established in the country. Singapore is a bureaucratic and also a demographic nation, the political set up of Singapore directly affected by the decision made by the government. Therefore, change in the decision of the government directly affects the business of SBK (Henderson, 2016).
The economy of Singapore is extremely stable in nature because it considered having a wide economic independence. It shows positive aspect to expand business in Singapore for SBK. It will help in growing an active pace in the economy of Singapore (Ng & Karim, 2016).
Singapore is a developed the country and remains updated with the latest technologies. It is a fact that Singapore is highly developed Island in term of technologies. It will help SBK to adopt the latest technology in term of distribution and marketing and also help to maintain quality service with the help of updated technologies in Singapore.
Legal consist of laws that are common in the country that creates hindrance in working of an organization. Singapore is highly strict towards the health law that affects the business of the restaurant; a restaurant has numerous health indications, specifically on children and could also be a reason to obesity or can occur other health issues. SBK has to maintain and adhere to the laws of Singapore and also cater their chocolate products in keeping the mind of law for health in Singapore.
It has been analyzed that the consumption of food and chocolate in Singapore are higher in young age group and the person with high-income group and middle education level group. Meanwhile, the consumption of energy drink is also very high in the place of Singapore. It affects the business of SBK positively and can expand the business in the market of the high consumption area to earn maximum profits.
Cultural and Natural
Singapore has a mixed culture of Malay, Chinese, Indian and Europeans and they believe in sustainable items which are being natural. Therefore, the country has a variety of people with different taste. The SBK can cater their food to particular consumers or cover the whole market by catering to different varieties. It has a huge market of different taste. SBK can target any among different customers.
From the above, it is concluded that the food is the essential thing that every people requires. There is huge scope for a restaurant to grow in a global market with a variety of items. The Small bar and Kitchen is the restaurant in Australia. The restaurant plan to expand their business in the different market, thus SBK selected the area of Singapore to expand their business. Singapore has huge opportunities for the restaurant but also include some threat which will affect the business, therefore proper strategies should be prepared by SBK to cope up from such threat and challenges.
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