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

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	Australia is a member of OECD, Commonwealth of Nations, G20 and World Trade organization. This country maintains a very close association with UK. Australia holds a number of criticism regarding its deportation law, Indigenous rights as well as protection of human rights.	Negative
Economical	Australia’s economy has been grown by 2.4 percent in 2017 which is not satisfactory. It has grown by 3 percent in last year. Current company tax rate is 30 percent in Australia. However, the rate is 27.5% for the lower companies. Machinery, vehicles, mineral fuels such as oil is some of the key imports of Australia.	Positive and Negative
Social	Australia is known as one of the best country for living in terms of its wealth, health, education as well as quality of life. Australia has a low population of 22.9 million compared to other economies. Having more retirees and less people in working area is the main concern.	Positive
Technology	It is one of the most technologically advanced countries in the world. Australia is well known for its fast adapting quality in terms of technologies rather than other developed countries. Australia’s technology purchases have grown by 4 percent in last year.	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 Wonderbao has wide range of bao. Less bao restaurant in Literature Lane makes them famous in that area. Bao have a good future in the places of Melbourne.	Weaknesses Low range of other food items compared to other restaurants. High investment.
Opportunities Collaboration with Gelato Messina has brought them an opportunity to show their food in larger scale. Their pop-up stalls in several areas of Melbourne allow them to showcase their food items. Recent event at Queen Victoria market helps them to grow their sales rate	Threats Pricing problem Supplier problem in terms of law material.

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 8^th 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 8^th 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 9^th 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 9^th 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 8^th 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 9^th 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 8^th February 2019. Retrieved from https://link.springer.com/article/10.1007/s11747-015-0455-4

WONDERBAO (2019), Wonderbao to you! Retrieved on 9^th February 2019. Retrieved from https://www.wonderbao.co/menu

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