QUESTION
1. Analyze how the key elements of the marketing environment currently affect a business
2. Investigate basic marketing problems in general business situations and effectively identify potential solutions and target markets.
3. Demonstrate the role of the marketer and the marketer’s contribution to the direction of the organization
4. Demonstrate the development of key fundamental academic and professional skills required for further study and the workforce.
ANSWER
INTRODUCTION TO MARKETING
Table of Contents
3. Situation Analysis
3.1 Market Analysis
3.2 Company summary
3.3 Products overview
3.4 Environmental Analysis
3.5 Customer analysis
3.6 Competitor analysis
3.7 SWOT Analysis
Reference list
3. Situation Analysis
3.1 Market Analysis
Social and technological trends have accelerated revenue growth of Wonderbao restaurant over the past 5 years. Busy Lifestyles and time schedule have led customers to choose restaurant and food places for meals which results in revenue growth by 1.8% through 2018-19 (sbs.com.au, 2019). As per the views of Liu & Tse (2018), in order to sustain in the competitive market of Australia Wonderbao restaurant owners have to consider the latest market threats and opportunities. Changing consumer behavior and their search for fancy dining places have driven Wonderbao to reconstruct their restaurant. They also have made significant changes in their price structure which help them to attract consumers from local food chain.
3.2 Company summary
Wonderbao is known for their freshly made steamed goodies since August in the year of 2012 (WONDERBAO, 2019). The restaurant is situated on Literature Lane, Melbourne. Wonderbao is famous for its bao which is a well known and loved food of Melbourne. Three generations of bao maker’s family’s effort is behind the success of Wonderbao. Voorhees et al. (2016) stated that they have working on their special events to attract new customers as well as to surprise their existing customers who made a significant effect in current local food market as this takeaway is place becoming very popular among students and office workers.
3.3 Products overview
Main products of Wonderbao are their special freshly made steamed buns. Valenzuela et al. (2017), some of their special buns are Da pork bao which is made of egg, Chinese sausage and shiitake mushroom. This combination of ingredients makes the bao famous to the students and workers in the locality. Wong, the current restaurant owner has included a new food items in their menu which are Hong Kong style bao and Taiwanese style gua bao (sbs.com.au, 2019). These two buns are the combination of tradition and present trend of taste which make these foods special and acceptable to all age groups. Wong and his wife Tina have taken inspiration from the local coffee shops and develop their strategies of making food items as per the trend. They have several other items to offer such as deep fried bao and even ice cream bao. Wong has taken advantages of his presence by making new items like truffle bao for a recent event at Queen Victoria Market (WONDERBAO, 2019).
3.4 Environmental Analysis
Market of Wonderbao is at a High point as bao have taken off in the bun market in last few years. Ryu & Lee (2017) opined that Bun has been appearing in many Australian menus in last few years and the rate is satisfactory in Melbourne which influenced Wonderbao to add various new items in their menu. According to Boo (2017), their target and strategy is to satisfy all age groups such as students, workers and traditional food lovers which driven them to make bao with the mix of trend and tradition. They have also an offsite production kitchen to keep up with the demand of the market as well as for wholesale.
Factors |
Detailed information |
Impact |
Political |
|
Negative |
Economical |
|
Positive and Negative |
Social |
|
Positive |
Technology |
|
Positive |
Table 1: PEST analysis
(Source: SBS, 2019)
3.5 Customer analysis
Customers of Wonderbao are of all age groups as this restaurant serves wide varieties of product which is a mix of traditional food and trending taste. Lee, Hallak & Sardeshmukh (2016) stated that students and daily office goers are their main target as they have also take away services which are a value addition to save consumers time.
3.6 Competitor analysis
Longrain Melbourne and Bangpop restaurant is Wondrbao’s main competitor in terms of following areas.
4P’s marketing Mix
Place:
Wonderbao restaurant is located in less popular area compared to Longrain which is a drawback for the restaurant. Longrain has its different branches in Australia including Melbourne which is crowded place and have many other famous restaurants. On the other hand, Bangpop is situated in Victoria which is a famous place in Australia to satisfy different food needs for the food lovers.
Product:
Bnagpop restaurant has wide varieties of other products too rather that bao and bun which attracts more customers in terms of their taste and likings. They are famous for serving varieties of rice dishes as well as noodles and desserts. They also have various other sectuins of small and large food items which makes the restaurant special than Wonderbao. Longrain restaurant has an exclusive food range of Indian foods whuch includes famous Palak Paneer. Their Indian menu makes this restaurant very much special than other restaurant in Melbourne which is a plus point of this restaurant over Wonderbao (Based on views of Boo, 2017).
Price:
Wonderbao’s product price is comparatively less than Bangpop which is a value added factor for the restaurant while customers are seeking for fresh bao in affordable price. Bangpop restaurant has used economy pricing strategy in order to set their prices as this strategy depends on consumers and suppliers which are most valuable part of any business. This is valuable for their marketing as they are providing wide range of products in a good price. Longrain has applied two different pricing strategies for their Indian and all other foods. Pricing at a Premium strategy for Indian foods and Pricing for Market Penetration strategy for other foods (Lethlean, 2013). These strategies which are taken by the restaurants have brought a huge drawback for Wonderbao even if their pricing is less than these two restaurants.
Promotion:
Wonderbao has taken strategy of wholesaling as well as the idea of collaboration with Gelato Messina which place them a step ahead than Longrain which help them to overcome their situation. On the other hand Longrain has been using Content Marketing strategy in order to drive more traffic to their restaurant as this marketing strategy is the king for any business (Lethlean, 2013). Bangpop has taken the strategy of event sponsoring for customer experience to draw customer’s attention. As Wonderbao does not have sufficient budget for this type of marketing so this restaurant is lacking in their customer field to some extent than these two restaurants.
Figure 1: 4P’s marketing mix
(Source: Hsiao, 2016, p.2940)
3.7 SWOT Analysis
Strengths
|
Weaknesses
|
Opportunities
|
Threats
|
Table 2: SWOT analysis
(Source: SBS, 2019)
Reference list
Boo, H. V. (2017). Service environment of restaurants: findings from the youth customers. Journal of ASIAN behavioural studies, 2(2), 67-77. Retrieved on 8th February 2019. Retrieved from https://jabs.e-iph.co.uk/index.php/jABs/article/download/183/236
Hsiao, Y. H., Chen, L. F., Chang, C. C., & Chiu, F. H. (2016). Configurational path to customer satisfaction and stickiness for a restaurant chain using fuzzy set qualitative comparative analysis. Journal of Business Research, 69(8), 2939-2949. Retrieves on 8th February 2019. Retrieved from https://www.sciencedirect.com/science/article/pii/S0148296315007043
Lee, C., Hallak, R., & Sardeshmukh, S. R. (2016). Innovation, entrepreneurship, and restaurant performance: A higher-order structural model. Tourism Management, 53, 215-228. Retrieves on 9th February 2019. Retrieved from https://fardapaper.ir/mohavaha/uploads/2017/10/Innovation-entrepreneurship-and-restaurant-performance-A-higher-order-structural-model.pdf
Lethlean, J. (2013). Longrain founder Martin Boetz leaves The Australian [online] Retrieved on 20 March 2019. Retrieved from https://www.theaustralian.com.au/life/food-wine/longrain-founder-martin-boetz-leaves/news-story/a0b3985d5b6878674e9e9b25d4aa07f9
Ryu, K., & Lee, J. S. (2017). Examination of restaurant quality, relationship benefits, and customer reciprocity from the perspective of relationship marketing investments. Journal of Hospitality & Tourism Research, 41(1), 66-92. Retrieves on 9th February 2019. Retrieved from https://journals.sagepub.com/doi/pdf/10.1177/1096348013515919
SBS (2019). Three generations of bao makers are behind Wonderbao. Retrieved on 8th February 2019. Retrieved from https://www.sbs.com.au/food/article/2018/08/06/three-generations-bao-makers-are-behind-wonderbao
Valenzuela, L. M., Merigo, J. M., Johnston, W. J., Nicolas, C., & Jaramillo, J. F. (2017). Thirty years of the Journal of Business & Industrial Marketing: A bibliometric analysis. Journal of Business & Industrial Marketing, 32(1), 1-17. Retrieves on 9th February 2019. Retrieved from https://www.emeraldinsight.com/doi/abs/10.1108/JBIM-04-2016-0079
Voorhees, C. M., Brady, M. K., Calantone, R., & Ramirez, E. (2016). Discriminant validity testing in marketing: an analysis, causes for concern, and proposed remedies. Journal of the Academy of Marketing Science, 44(1), 119-134. Retrieved on 8th February 2019. Retrieved from https://link.springer.com/article/10.1007/s11747-015-0455-4
WONDERBAO (2019), Wonderbao to you! Retrieved on 9th February 2019. Retrieved from https://www.wonderbao.co/menu
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