Marketing Plan and Corrected Situational Analysis for Straight Six Burger
Critically analyzing all the key factors associated with the business operations of Straight Six Burger in Assessment II, this specific report will mainly emphasize on development of a marketing plan for the chosen organization. The entire report will mainly analyze and evaluate a structured and complete plan along with a corrected situational analysis. Moreover, the marketing plan will also focus in development of the company’s lifecycle analysis followed by a BCG Matrix, Ansoff Matrix and brand positioning map that would enable in elaborating three major marketing objectives and necessary strategies that needs to be implemented. The corrected situational analysis provided an in-depth overview about the macro-environmental factors in reference to straight six, the BCG and Ansoff Matrix indicates the growth and market share in regards to straight six and lastly the strategies and customer segmentation provided in-depth evaluation regarding the measures that the organization can consider for enhancing the business operations.
Analyzing and evaluating the market scenario by implementing both internal environment analysis and external environment analysis in assessment II, it can be stated that the Straight Six has become one of the most significant and reputed burger joints in Australia. For enhancing the reputation and revenue of the organization it is quite essential for Straight Six to implement some necessary things that would help the organization in strengthening the weak areas. Assessing all the key factors it can be evaluated that the aim of this report to further analyze the business operations and market scenario by focusing on developing an effective marketing plan.
The entire marketing plan depicted in the report will emphasize on correcting the situational analysis provided in assessment II, followed by providing an in-depth overview about company’s life cycle, a BCG Matrix that will analyze the products of the company, an ansoff analysis which will elaborate in understanding the risks of distinctive options by which profits can be increased and new customers can be reached. Moreover, the report would also provide a set of key marketing objectives and strategies along with brand positioning map and strategy.
For formulation of the effective marketing plan, the SWOT analysis and the PESTN analysis is used.
Company Lifecycle Analysis
The following table highlights a clear overview of the organization’s lifecycle analysis. Considering the quality services and products provided by Straight Six, the product lifecycle can analyzed in an effective manner by using the BCG Matrix. The BCG Matrix will provide an in-depth evaluation about the products provided by Straight Six.
- Star Product: This specific aspect indicates the high growth and high market share. (David, 2011). The Australian market and the company owned outlet has eventually been the star for the burger products produced by the organization. It has been assessed that there has been a significant enhancement of 2.8% in profit with the sales of burger products.
- Question Mark Product: This specific aspect critically evaluates the low market share and the high growth. In Australia, the Straight Six burgers and other available products are being consumed immensely but the organization faces stiff competition from the likes of Burger King, Pizza Hut, KFC, McDonalds and various other domestic burger joints which have significant impact on the sales and revenue generation of the organization (Bensoussan & Fleisher, 2012).
- Cash Cow Product: This specific aspect elaborates the high market share but low growth. Straight Six is still performing in its initial stage and therefore domestic market i.e. Australia is the only market it operates (Counihan & Van Esterik, 2012). Despite providing wide range of products which include double patty burger, double cheese burger, maple bacon burger and many others but due to intense competition the organization doesn’t have the influential brand name. This specifically highlights that the cash cow product of Straight Six is still not existent.
- Dog Product: This specific aspect mainly evaluates the low market share and low growth. Straight Six has both low market share and low growth as the burger joint is still operating in its initial stage and does not owns quality outlets all over Australia (Bereznoi, 2015). Moreover, the organization doesn’t operate globally so it can be assessed that the low market share and low growth of the organization is the dog product.
Ansoff Matrix Analysis
- Market Penetration: Straight Six is a new burger joint in town, it is quite essential for the organization to emphasize on increasing sales of the wide range of products they offer. As Straight Six operates in Australian market, the organization must emphasize in increasing the sales of existing products (Shaw, 2012). For example, Straight Six may implement the idea of allowing the consumers to choose the type of burger they want and provide them with the requested ingredients. By this way, the intention of enhancing the sales can be done which will also result in greater consumer satisfaction.
- Development of the Product: This significant aspect basically intends in enhancing the sales by launching new range of products into the existing market. Evaluating the scenario of Straight Six, for enhancing the sales the organization must prolifically focus on launching new products that would attract the consumers (Jarratt & Stiles, 2010). For examples, Straight Six must consider introducing a new premium burger made out of the most quality buns and natural ingredients. This can actually help the burger joint not only in enhancing the sales but also acquire quality market share.
- Market Development: Considering the scenario of Straight Six, it can be said that the domestic market i.e. the Australian fast food market is the new market for them and therefore the organization needs to enhance the sales of their burgers and other food stuffs in the Australian market (McDONALD, 2016). The organization must emphasize in providing quality products to the consumers which will enhance the goodwill as well as the revenue. This will also help the organization in having outlets in major other cities in the country as well as in various parts of the world.
- Diversification: This aspect mainly defines the launching of varied new products into new markets that enables in potential increase of sales by a significant amount. Considering it to be as the most risky strategy, Straight Six must effectively plan out new food ranges as per the demands of the consumers as a method of the diversification strategy (Weinstein, 2013). Using this specific method can be quite beneficial as the firm can use new range of products for tapping new consumers and market for meals. As of now, the food range of Straight Six has only been intended for complimenting snacks, burgers and beverages and not on a significant source of consumers’ meals or revenue. Implementing this specific form of diversification with the present market and product range can be assessed as related diversification and can be quite beneficial in the long run.
Evaluating the Organization Life Cycle, Product Life Cycle via BCG Matrix and the Ansoff Matrix, it can be easily assessed the core mission and objectives that needs to be considered by the burger joint Straight Six. Assessing the strategic analysis that defines the position of the enterprise, key marketing objectives can be evaluated that can be quite effective for the organization.
- The first and the foremost principle marketing objective of Straight Six is to establish itself as a new powerhouse in the quick service fast food sector in Australia as well as other countries.
- Secondly, to enhance the sales of the unique range of products by providing quality service to enhance the customer satisfaction rate.
- Lastly, the marketing objective of Straight Six is to adopt specific values and culture that is noticeable in the form of “related diversified” menu items they offer.
Brand Positioning Strategy and Positioning Map
Analyzing the business scenario of Straight Six and the major focus on establishing the organization in the Australian market along with other global markets, it is important for the management take prolific measures in positioning Straight Six as a low priced organization offering quality products and services via the help of quality promotion (Lotenberg, Schechter & Strand, 2011). This specific strategy is quite beneficial in the fast food sector and therefore attracts huge number of consumers because of the quality products and services offered at low prices. Moreover emphasizing on quality discounts and offers by providing rebates to the consumers can also provide added advantage for Strategic Six to position itself in the market.
On the other hand, considering the objective of attracting new consumers in getting higher sales volume Straight Six must implement the Umbrella branding also termed as the family branding. Considering the fact that Straight Six has wide range of products and the key objective is to attain goodwill under the single brand name this concept can be quite effective in selling the related products under the brand name of Straight Six (Gandy, 2012). This significant strategy can enhance the products marketability as it follows the psychological concept that any specific product that carried the same brand name i.e. Straight Six is produced using the same quality standards. Thus, as per the scenario of Straight Six the brand has immense product lines but trust on the specific brand will leverage the attributes of all the product lines.
Target Market and Development of Strategies
Considering the fact that Straight Six is new to the market and operating its business in the initial stages it is therefore important to analyze the target market. As evaluated in the marketing mix, the prices of the Straight Six burgers are quite cheap which makes them quite affordable for the lower and middle class people therefore; the organization must use the mass marketing strategy. This will specifically help in ignoring the differences among the market segmentation and target the entire market with different offers. This aspect will help in emphasizing on what is common rather than focusing on what is dissimilar. Considering the target market by evaluating the marketing mix the organization can effectively implement the below mentioned key strategies for effective business operations.
- Customer Service: For enhancing the consumer satisfaction, communication is quite important. Thus, Straight Six can provide training to all their staffs for learning all the product knowledge and communications skills that would help in handling the consumers with ease. This can be quite beneficial for the organization enhancing the consumer handling (Counihan & Van Esterik, 2012). The target segment for quality service will be all consumers coming to straight six for availing the service. In terms of customer service the organization won’t target any specific consumer segment.
- Consumer Relationship: Individual consumer information can be used by the organization for developing long term relationship. It must be assessed that Straight Six being a new organization in the fast food sector must understand the consumers for building loyalty and consumer relationship. Introducing new offers and loyalty cards for the consumers can help Straight Six for increasing the consumer loyalty (David, 2011). This specific marketing strategy will emphasize in targeting the regular consumers who visits the Straight Six Store and avail the service. The organization must mainly focus on enhancing the consumer relationship by offering added benefits to the regular consumer segment.
- Checkout Counter and Mobile Application: For enhancing the consumer handling efficiency, Straight Six can consider having more checkout counters so that consumers don’t have to wait in the queue for long. Moreover the organization can also develop software that would help the consumers to directly pay by using their phone (Shaw, 2012). Launching a personalized mobile application can also increase the efficiency of online payment. More checkout counter will help the organization to enhance the efficiency in providing fast service to the consumers. Thus for this the target segment will be every consumer and the organization won’t make any specific target segment that would only avail the fast checkout ways. But the organization must try to emphasize to provide this specific service for the old age customers as it is quite tough for them to wait in long queues. In terms of mobile application, the target segment will be the adults and office-goers who have limited time in hand. Paying via the phone can be quite beneficial for them for availing the service with quick time and avoid waiting.
- Digital Marketing: Considering the significance of consumer attraction, the organization can consider online marketing as their major source. The enhanced use of social networking websites like Facebook, Twitter, Youtube and LinkedIn can be used to market the new burger joint and the services and offers are provided. This can be quite beneficial for the organization to attract potential consumers. As observed that modern youth are keener and spends quality time on social media platforms. Considering the immense traffic in such platforms, marketing via these platforms can be quite effective for the organization and therefore for this specific marketing strategy the target segment is the young consumers.
Critically analyzing each target segment for each of the aforementioned strategy, following are the major aspects that has been assessed in framing the customized marketing mix.
- Product: As Straight Six is a new burger joint in Australia emphasizing on acquiring a significant hold in the market, the organization must prolifically emphasize on producing quality products which are liked most by the target segment mentioned above. Out of the wide range of products double patty burger, double cheese burger, maple bacon burger and many others are among the most preferred products and therefore as per the desires of the particular segment these products must be focused on.
- Price: Straight Six has moderate pricing for all the products. Considering the fact that Straight Six focuses on providing service to all segments in the market, it is essential on the part of the organization to keep the rates of the preferred products intact i.e. moderate by which the organization can enhance the volume of product sales that will help in acquiring market share rather than just generate revenue and profit.
- Place: As Straight Six is new in the market it has only one outlet located in Flemington, Australia and the target segment of the organization can avail the service from this specific outlet. The organization presently doesn’t have any other outlet as it is new to the market. From the Flemington outlet the consumers can get the services and based on the performance in regards to quality, service and profit the organization will focus on opening new outlets in other parts in Australia and then go global.
- Promotion: Critically assessing the aforementioned strategies and the target segment under each strategy, considering the Integrated Marketing Communications can be quite effective along with traditional and digital marketing. This will help the organization in covering up all the market segments which includes from old age people to the youth. The use of billboards, hoardings, newspaper ads, advertisement via television etc. can cover up the old age consumer segments of the market whereas the IMC tool along with digital marketing can be effective for the modern youth.
Marketing Metrics Framework for Evaluating the Effectiveness of the Strategies
For evaluating the effectiveness of the strategies, Straight Six can constantly monitor the business operations in its stores. The management can analyze the business operations and can take correct measures in case any modifications are required. On the other hand, Straight Six can also collect the feedback of the consumers via providing them comment cards. This will help the management to know about the reviews of the consumers and what are the improvements that need to being implemented for sustaining long term relationships with the consumers. Another significant method is the time management system for evaluating the waiting time of the consumers for getting the service and payments. The organization can evaluate the consumer waiting time and take adequate measures if it needs improvement.
Properly analyzing and evaluating all the factors from assessment I, the following report provides in-depth review about the major things that must be done for the betterment of the business operations of Straight Six. The key evaluation of all aspects can be considered by the management which will help in implementing correct measures and enhance the operations of Straight Six as well as increase the market share by building a firm position in the market.
Appendix 1: SWOT Analysis
Appendix 2: PESTN Analysis
Appendix 3: Company Lifecycle Analysis
Appendix 4: BCG Analysis
|Country||Revenue||Revenue Growth||Trading Profit||Trading Profit Growth||Marketing Position||Loyalty Scheme Members|
|Australia||1.5m AUD||+ 0.8%||Not Applicable||Not Applicable||Not Applicable||11,000|