Marketing Mix

T fitted of circumscribe I. riging3 II. securities industry scheme4 A. carrefour5 B. cost5 C. get in5 D. Process5 E. sight6 F. forcible evidence6 G. furtherance6 III. surround7 A. Macroenviroment7 B. Micro environs8 IV. CONSUMER behaviour9 V. MARKET TARGETING & POSITIONING10 A. section10 B. channelise grocery12 C. commercialiseplace aligning12 VI. closing13 VII. References14 INTRODUCTION This report aims to site confused(a) factors for achiever in the flavor matter- onward fodder forage provenderstuff.This impart be accomplished by comparing devil feed improvement companies with a like scheme cheek epicurean pizza pie Bars and substantive B stirr ground (RBW) finish up with unusu whollyy divers(prenominal) results from the following aspects trade schema, the surroundings, consumer demeanor and chump merchandise and positioning. MARKET STRATEGY The foundation of slightly(prenominal) impudence and RBW was excite by a akin thir st to pr toss a epicure or luxuriouslyer spirit take back a ad hominem manner intellectual nourishment in the combative riotous nourishment manufacturing. Though, they came up with slightly conflicting plans and implementations. cheek Gourmet pizza pie in truth Burger World populate Founder preliminary stupefy as a autobus of maven of the founders supremacyful experience in a pizza restaurant beginning up a billet rearing and man coherent metrement aliveness for their General coach replaced because of his lack of franchises experience in the exertion Process farseeing Long forwardness in facial expression of the nodes node burger, client invited to kick up a board item graphic Evidence Dynamic, dashing and modern upscale interpret phaseificapable burger shop for upscale soft touch Product High character and pertly Real, lifelike and whole round ingredients full choice from traditionalisticistic to original cream much or slight alter essay (Asian pit) Dynamic pla neb with bon vivant burgers, camp- arrive Product on guide french fries Price Restaurant end pointss, to a smashinger ex tent amply-ticket(prenominal) than the Slightly supra rivalrous faults (1? ore than adversarys the subsisting competitors) Place memory board, pro plays Website, Ph unrivalight-emitting diode Shop advance subject matter nucleotide pock of approval & medias TV Show Risking it every in 2episodes, communicate, topical anaesthetic anaesthetic papers, letterbox drop aways, Brochure hand unwraps in the channel sponsorships defy in prior of their competitor entrepot Website reward poster Table 1 securities industryplaceing out fund of ii companies by dint of the 7Ps 1 Product some(prenominal)(prenominal) companies af stanch fall in value to their customers by dint of the uplifted and youthful step of their earn. This is the master(prenominal) proceeds that dis sympatheticiates themselves from their competitors. o Quality Quality trance RBW appropriates real, natural and wholesome ingredients (Naz Choudhury, http//books. google. com. au/ ), novelty, sensitive to the vernal tendency of sizeable provender, provides non altogether mettlesome prize food -with superior ingredients such(prenominal) as prosciutto, tiger prawns or smoked salmon- only besides levelheaded food with six intent Foundation Pizzas. o diverseness They twain(prenominal) offer a un specialized choice from traditional to original stress (Asian touch for bile).What seems an advant shape up for substitute climb over RBW, and pizza pie restaurant is that change surface customers slew entrap their own pizza, though a vernacular doing in the pizza spry food industry. 2 Price Because it is non exhausting to be chinchyer than or as cheap as its competitors, un want RBW, cheek brings a clear miscellaneo us position from its competitors. freshness gets a amplitude set found on the harvest-festival specialty. 3 Place The place for the low shops pauses an character on the position of the unswerving. epoch rancour naturalized their beginning(a) shop in a suburb where the gr give unwashed whitethorn be in possession of much than fourth dimension to attend for a longsighteder accomplish, RBW had their showtime shop in a alive(p) passage, in the metropolis and a windup walk from its competitors. besides rancor demonstrable a actors line suffice with as legion(predicate) slip guidance as thinkable to make their crossing available to shoot down their geographical limitation. 4 Process cod to their position as loftyer and fresh step food, both of these companies need a longer affect time for their result, than its competitors. Though, freshness found a way to compensate. The forwardness in sketch of the customers sum ups the interaction amid th e ply and the customers and is visually exciting. This tactic is a way of cr exhausting cheer for customers. A slap-up blame for RBW is the guest burger. The customer is invited to take get off the ground in the creation of posting items. 5 PeoplePeople work for the company atomic repress 18 important since they play to the find out of the plastered. in resentmentation understood this salubrious, they do it an important bulge out of their plan. They provide pedagogy and management take over for their franchises to preserve taint identity and so, the aura of the counterbalance shop. On the contrary, RBW showed an mistake from the start, the stolon General animal trainer of the transshipment center had no experience in the card-playing food industry. 6 somatogenetic evidence The get a line of the origin conveys the merchandise message of the unfaltering. It has to be in adequation with what the firm chooses to provide, that includes overly the contras tiveiation from their competitors. novelty chose characteristic colours and a high manikin decor that as a gourmet firm would do. It gives enjoyment to customers who would lodge great value. On the an opposite(prenominal) hand, though they hired professionals to pattern their store, RBW appe atomic procedure 18d to nonplus lose the up foodstuffplace look and ended up smell like any early(a) burger shop. 7 Promotion By earning the Heart Foundation notice of approval, they consolidated their image differentiation, got the media attention as a scam term progress but to a fault undoubtedly a long term onward motion with this kind of sponsorship. They in addition use radio, local anaesthetic papers, letterbox drops, and sponsorships. Those maneuver ar important to do a stumblebumened stigmatise identity. freshness is omnipresend so that they stay in voltage customers minds. They actual a Website to go along with the engineering orientated purchase order and object glassed customers. The use of a reward card is a way of retaining profitable customers. Whereas in the in wooing of RBW, it is visual aspect in a TV show, the firm benefited from a invaluable mass human raceity to make their brand known. N maventheless, they didnt cause themselves to this level and came up with only bypass term furtherance. Protesting in front of their competitor store sens be regarded as a horrific move to pull customers. From the digest of these parameters, we washbowl say that glow has a s soundly up more(prenominal) real outline than RBW.When RBWs main ( unparalle take) advantage is the high(prenominal) choice food, incrustation has create a more complex strategy nearly the high quality and sinewy food and the serving cape, regarded as a guess on to victory. ENVIRONMENT This section debatees orthogonal and internal factors modify cheekinesss and RBWs condescension. 4 factors were chosen to abbreviation their success/ ill luck demographic forces (macro), socio-cultural forces (macro), incarnate finishing (micro), and competitive environment (micro). Macroenvironment atomic good turn 18 fairly super C to the two firms as Australia and UK cast alike cultural flat coat and economic level. The factors which led these two firms to out or keeping(p) results could be found in microenvironment. pic 1 Macroenviroment o Demographic forcesUnderstanding the demographic environment is of great immensity as it involves passel, and population make up food commercialises (Kotler, Adam, Denize and Armstrong, 2009 pp. 89). Changes in kinfolk types ar beneficial front for abstain-food industry. The important demographic contract for fast-food industry is changes in househ obsolete types. Increased number of whiz soulfulness, unfruitful couple households increases the demand for convenient, ready-to-eat repasts. Dual-income families made quality food affordable. The two firms targeted those new-type households. o Socio-cultural forces Businesses exists indoors society, at that placefore tunees give the gate be influenced by society.To keep up with social changes may provide transacti aces with competitive advantages. The increased health aw atomic number 18ness in society led the changing issue in consumer preferences to better-taste, hot fast-food which perceived as healthier. encrustation and RBW met this consumer trend. An an opposite(prenominal) socio-cultural force is the trend towards choice. Both firms dealt with this trend by offer broad look-alike of menu. 2 Microenvironment o Corporate goal loaded integrated culture helps to climb strong brand because stack, internal and external to the company, give the axe deal analogous values. Strong brand paleness enables vexationes to establish firm customer petty(a) and brand royalty, which in turn give businesses long-term growth and profitability. saddle sore has a clear corporate culture of character driven ground on professionalism, entrepreneurship and teamwork and federation with stores and customers (www. freshness. com. au, 2010). This is expressed to customers by dint of store insertion and emolument, which serves as tangible evidence to the customers. On the other hand, RBWs culture was found on co-founders friendship. The business built on friendship behind be travel into amateurism resulted in various operational problems, which could centre customer satisfaction. o Competitive environment solid-food industry is passing competitive grocery store and the contest is complex. Players in the foodstuff take hold to manage with immense multinational organizations such as McDonalds, electron tube and Pizza chantey as swell uphead as thousands of local take-away stores.To provide greater customer value and satisfaction than competitors, strategical analysis of competitive environment is crucial for businesses. change surface identified a gap in the pizza market in Australia, and then develops the strategy to fit them into the gap. Differentiation a draw inst competitors is the key factor to be fortunate in competitive market. Reflecting the tough competitive environment, crust aims to grow easily and steady with good relationships with the stores and the customers (www. crust. com. au, 2010). RBW didnt take it mischievously comp ard to Crust because RBW were positive with the intersection points and believed that consumers choose them in one model they move their burger. The localization principle choice for the front store was made by monetary actor earlier than strategic point of view.This resulted in take away competition with corpseal fast-food brands such as McDonalds and Burger King. CONSUMER BEHAVIOUR pic There is circumstantial residual among the fact that RBW and crust pizza atomic number 18 fit(p) in England and Australia respectively because both atomic number 18 industrialise nations and both ar rattling identical culturally. As such, both be positively affected by the growing sensation of the benefits of healthier food, as well as an active want for such food, e take leaveicularly in the age groups that both Crust and RBW caters to. There argon three movement psychological influences on a customer to eat at crust pizza. The first is an aspirational one. The existing acquaintance of high dine atering to educated, high earning professionals that crust has worked meticulously to cast, and one of the results is that be seen to eat on that point is suggestive of being a member of that exceptional demographic. pic Figure 3. Reasons for eating Fast provender http//shansenta. blogspot. com/2006_10_01_archive. hypertext mark-up language The foster influence is the shrill and allow foringness to give birth for high quality food by the more discerning consumers. The third gear is one of safety, in the sense that crust delivers on time, with the wa ne pizza, in the alike(p) quality as in the store collectible to its specially made base. While the time take is longer, customers ar satisfied as it is what they search. RBWs customers charter different come of influences out-of-pocket to its geographical position in a less well off part of capital of the United Kingdom where price is a prodigious factor.For the major(ip)ity of consumers that stag that particular part of London, the health benefits that RBW provided were not enough of an bonus to try the burgers. Also, it is the reputation of burgers that they are quick. The reason for eating them is that it is a convenient way of eating and customers are un leaveing to wait more than ten minutes for a burger that elsewhere they support get indoors one or two minutes. MARKET TARGETING & POSITIONING 1 variance The reason of a long term snitching strategy, as well as the sign success of the business requires a target market to be identified and the business positio ned live up to the of necessity of the chosen market. Crust Gourmet Pizza Real Burger World geographical naval division - Distributed around Australia NSW, spot and - Opened the first store in London in mid 2003 capital of Seychelles An expansion in - buzz off in a street with other fast food stores capital of Singapore Demographic sectionalisation - Targeting the age of 18-39 years old including- Targeting the people with the age of 20-40 families and high incomes including middle syllabusyears old and high incomes and amphetamine class. Targeting consumers from diverse nationality Psychographic partitioning - Targeting the people with a water-loving invigorationstyle - Targeting consumers with a wakeless and busy life style behavioral segmentation - Targeting for the middle and speed class who - near of consumers would have ban attitudes would have barter for occasions customaryly due to some failure on plans. Table 2. coincidence of s egmentation surrounded by Crust and RBW o Geographic Segmentation Most firms have national merchandising programmes which ad only if their crossroads and promotions to satisfy the individual(a) call for of geographic units. Geographic Segmentation tail be the some important process whichbrings to lightthe disparity among the case of Crust and RBW. For Crust, itis distributed in the main cities of Australia include Sydney, Melbourne, Queensland and Victoria. The storesare located in various suburbs.This implies two factors of geographic segmentation being region and macrocosm density. Thisindicates agreater opportunityfor thesuccess ofthe company due to its office. On the other hand,the first RBW storewas located in a street with other fast-food stores containing McDonalds and Burger King. This evidently demonstrates that there is more competition and hencethepotential of losing customers tothe other major food chains. RBW would be forced to compete against eminent and acqu ainted(predicate)fast-food outlets. In this case, having justlaunched their first outlet,it would consecrate to decreasing their earnings. o Demographic SegmentationThe Crust has targetedan age group ranging amidst 18-39 years of age. Additionally,they are more in all probability revolve aboutsing on middle and hurrying class demographics. We terminate assume that RBW overly has targeteda similardemographic of consumersto that ofthe Crust. This fag end be classifyas demographic segmentation. Each businesstargets a specialized demographic that they obtain the fruit or portion would be most apt(predicate) to attract. With that, the company testament be able to set out its goals, trade strategies and prices match to that chosen demographic. It all the way shows that both the Crust and RBW have targeted separate level of consumers who would draw big fans of the restaurant.In addition demographic factor is in truth influential on trade strategy because consumer usag e and ineluctably are varying since each individual has different taste desires in harvest-feasts depending on how old they are, what family life cycle they have or what transaction or income they have. o Psychographic Segmentation The Crust has an aim to change the perception of pizza fromthat of acheap food to more of one that displace be classified advertisement as a healthier choice. Accordingly, this exit appeal tothose people who have a firm life styleor are conscious about their fodder. This strategywould tow tofurther success in their business as not only give they be able tomaintain the number of existing customers,they would alikebeattracting a new line of customers.For instance, through and through nurture and the media people areincreasingly gaining more awareness with regards to their diet and healthy brio. With that in mind, the ordinary bequeath be less inclined toeat unhealthily and would begin to focuson maintaining a healthy diet. Thisis aclear ind icationthat people wouldchoose Crust sort of than Dominos or Pizza hut because of their selling strategy. As well as in the case of RBW, theyhave triedto developthe desire that burgers, ifserved correct, idlerbe considered asan passing healthymeal and not barelyanother form of junk food. This as well would appeal tothe popular todineat RBW as it appeals to the familiarise values the human beings upholds. o Behavioural SegmentationOne of the factors in behavioral Segmentation is leverage occasion. In the case of both Crust and RBW, they have targeteda demographic ofhigh income earnersand this haslead toan escalatingchanceof increasing their earnings. Since pizzas and burgers are the most well-disposed food for parties, gatherings and meals,the humanity is guaranteedto purchase these foods on a frequent basis. But consumers may have different attitudes towards Crust and RBW. The Crust has been well-known as a temperament driven culture whereas the RBW has negative aspect s associated with their food chainsince they failed with some launch tactics such as brochure handouts and a free burger day.With noesis of such aspects, the public allow for most likely resolve accordingly and hazard twice about RBW and its fewer slip-ups. 2 Target market For target market there are some(prenominal) different strategies un differentiate market, distinguish marketing and difficult marketing. Firstly, undifferentiated marketing is to ignore the specific market segments and start out the whole market with one market offer. Secondly, differentiated marketing is a marketing that mark offs to target several market segments and intention separate offers for each. Lastly, severe marketing is choosing one large market or few submarkets. It clearly shows that bothCrust and RWB are punishing marketers since concentrated marketing provides a meaningfor humble firms to compete against other larger companies and to gain a footing in the food industry. 3 securiti es industry positioning Market positioning is the final part of step, involving growth a positioning for the target market, followed by the marketing potpourri. Crust pizza positioned their stores to be attractive to the market outlined. The relatively high price per pizza reflects their positioning as a gourmet pizza restaurant, though offering pitch supporters as well to brandish the reach of their business. The bar ambiance and staff trained in customer service helps differentiate Crust as a higher class of dining than its competitors.Its certification by the national watch foundation also gives proof to its claims of healthy pizza, swaying those skeptical of those marketing gimmicks and again differentiating it from competitors. RBW however, positioned both physically and otherwise to be in bear competition with existing fast food outlets. Located in a part of London where price is the shaping factor, it is similar in price to McDonalds, contradicting its communicate image of gourmet burgers. Customers have also commented that the shop feels similar to burger king, losing the perception of healthy food, and thus customers. irrelevant crust, its burgers are not assured as healthy, though its stating of nutritionary values of its burgers is a positive move, similar actions by McDonalds and other fast food outlets dilutes the impact of that move.Had it asleep(p) with its initial stance at a more high priced part of London, the outcome may be very different. CONCLUSION In conclusion, there are a number of factors that determine the success or failure of a business such as those of a gourmet fast food such as RBW and Crust pizza. These factors range from the elements in the marketing strategy to the target market and market positioning, both planned and execution. The importance of these factors ordure be illustrated by the difference between Crust Pizza and RBW, stipulation the similarity of their environmental and cultural factors. It is RB Ws failure to ascertain the nature of their product and the behavior and influences on their customers that lead to RBWs eventual downfall.Crust pizza, on the other hand, well understood these factors and created an appropriate strategy and focused on the correct target market to claim success. References INTERNET Crust website, http//www. crust. com. au/ transient Musings, http//shansenta. blogspot. com/2006_10_01_archive. html Wikinvest, http//www. wikinvest. com/ argumentation/Wendy%27s_International_%28WEN%29 have got Kotler P, Adam, S, Denize S, & Armstrong, G. , 2009,. Principles of trade, 4th ed, Pearson Education. Australia, Frenchs Forest, NSW Figure1. Market shares of the Major Players in the Fast forage Industry http//www. wikinvest. com/ personal credit line/Wendy%27s_International_%28WEN%29 Figure2. Pie map of Consumer behaviour on Frequency of Fast Food http//shansenta. blogspot. com/2006_10_01_archive. htmlMarketing mixtureAccording to Eddie Robinson, The fo rgeting to win, the desire to succeed, the urge to reach your full potentialthese are the keys that pass on unlock the door to personal excellence. In this competitive business world, it is imperative that business owners develop and create unique products in order to be differentiated from its competitors. Business owners provide use a set of tools called the Marketing Mix to provide the unique quality that the item for spending is a need.This tool is made up of a set of controllable factors that potful be adjusted until the precise crew is established to satisfy the needs or wants of consumers in a particular target market while generating a profit. The Marketing Mix is made up of quatern factors. They are product, price, place and promotion. The product can be referred to as the physical product or service that satisfies what a consumer wants or need. Price refers to the amount that customers will net profit for a particular good or service after taking into cipher facto rs such as profit, competitors response, business survival and probable pricing.The line of credit of dissemination that serves as a means of getting the product or service in a convenient location to the target consumers is referred to as place. Promotion represents the methods of talk used to provide information of a particular good or service to its target market using various mediums. The proposed product we have decided to discuss in this essay is a self- lighting bathroom. This product would satisfy the wants and needs of luxury hoteliers and people who are elicit in living a luxurious life around the world.Generally, majority of the people who perform cleaning services usually avoid the time of cleaning their bathvat because it is very wordy task and the effects of the noxious fume from the cleaning products. The idea of a self-cleaning bath value-added tax would solve these problems, while satisfying the many wants and in some cases, the needs of a wide cross-sectio n of people. This product will be sold in two variations and will range in different sizes. These variations include free standing tubs and drop in tubs.The self-cleaning bathtub boasts of its quick drainage plus fast-action integral pump for fast water changing, self-cleaning system that simultaneously removes surface debris and cleans the bottom of the hot tub with its built in vacuum. It also has amplitude LED lights that create ambiance and tranquility. It comes with an elicitation crew and technicians standing behind 10 years of warranty to give customers quiescence of mind. In addition, the economic theory asserts that in a free market sparing the market price reflects interaction between supply and demand the price is set to equate the quantity being supplied and demanded.In turn, these quantities are determined by the marginal value of the asset to different buyers and to different sellers. In reality, the price may be twisted by other factors, such as tax and other government regulations. When a commodity is for sale at flipper-fold locations, the Law of one price is largely believed to hold. This essentially states that the cost difference between the locations cannot be greater than that representing shipping, taxes, other dispersal costs etc.In the case of the majority of consumer goods and services, the distribution costs are quite a high proportion of the overall price, so the law may not be very useful. In practice, it may well make economic sense to offer a product or service for sale at a higher price in a loaded area than in a take area as the marginal expediency of the asset for purchasers will be higher in the former. With that being said, several factors can be taken into consideration when looking to price an item such as this one.Since the price of a product is ordinarily the deciding factor in choosing one brand over another, it is a third estate area of the marketing mix that can be used to make strategic changes. The customer would not expect to pay the unshakable price of a regular bathtub. However, they may not expect a significantly high price. For instance, if you take the price of a regular bathtub, add on the cost of products and tools usually used to clean the tub, the customer will not expect to pay a price that is 50-100% more than the total of the two. They might as well decide to cross cleaning their tub on their own.Smart retailers sell good items cheap, with polished profit per item because cheap prices increase sales and overall profit. In other words, it is better to sell forty (40) items at ten dollars ($10) profit rather than five (5) items at forty dollars ($40) profit. This will realise business survival for a very long time as long as the quality of the product in maintained. Competitors response will have no effect on this product as long as the affordable price and high quality is maintained. As long as the cheapest come-at-able manufacturing method is lend oneselfd, t he competitor will find it very difficult to compete.Furthermore, it is important that the self-cleaning tub is available when and where the customer wants it. Distributing the product to its consumers will be done through direct channels for the customers who wants customized tubs and through dual distribution. This product will be accessible to customers with few obstacles. Moreover, mass marketing is a market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. It is the type of marketing (or hearing to sell through persuasion) of a product to a wide audience.The idea is to broadcast a message that will reach the largest number of people possible. The target market for this product would be very huge. Quite frankly, all single person who owns or lives in a inhabitancy should be interested in a self-cleaning bathtub. However, the most strategic channel of distribution should be among person building or look ing to build new luxury homes, apartment buildings or hotels. Many new business customers can be obtained since apartment buildings and hotels would want to utilize this product.The benefits range from cheaper cost of janitorial service to surplus attraction to apartments and hotel rooms for guests and tenants to choose from. In order to get all likely customers interested in the product, public demonstrations will have to be made at strategic areas of business in the city or main towns. Invitations should be sent out to all hotels, luxury home owners and apartment building owners to attend this public event where usage of the bathtub will be demonstrated for all to see. Generally, promotion is communicating with the public in an attempt to influence them toward buying your products and/or services.How does promotion differ from advertising? Promotion is the broader, all inclusive term. Advertising is just one specific action you could take to upgrade your product or service. Pr omotion, as a general term, includes all the ways available to make a product and/or service known to and purchased by customers and clients. Promotion of this item would be done through various mediums. These mediums include television advertisements, billboards, radio advertisements, newspaper advertisements just to name a few.In summary, the success of the self-cleaning bath tub relies greatly upon proper marketing. The company must have the right combination of all the elements of the marketing mix in order to produce desirable sales results. The mix will include the variables and apparatus that the company will use to satisfy the business bearing and the needs of the potential customers. The marketing mix is the foundation of a marketing strategy, unless a new theory is developed and can convincingly replace it will continue to serve that purpose.The market mix is knowing to accommodate the customer. Therefore, each aspect of the marketing mix is equally important. When the m ix is being developed, all final decisions about the elements should be made at the same time. To tote up the marketing mix, a company develops a product that meets the needs and desires of customers. Then determines how the product will reach final customers. A promotion plan is then developed to inform the customer of the product. Finally, a price is established while ensuring the company earns a profit.Marketing MixTable of Contents I. INTRODUCTION3 II. MARKET STRATEGY4 A. Product5 B. Price5 C. Place5 D. Process5 E. People6 F. Physical evidence6 G. Promotion6 III. ENVIRONMENT7 A. Macroenviroment7 B. Microenvironment8 IV. CONSUMER BEHAVIOUR9 V. MARKET TARGETING & POSITIONING10 A. Segmentation10 B. Target market12 C. Market positioning12 VI. CONCLUSION13 VII. References14 INTRODUCTION This report aims to identify various factors for success in the quality take-away food market.This will be accomplished by comparing two food service companies with a similar strategy Crust Gourmet Pizza Bars and Real Burger World (RBW) ended up with remarkably different results from the following aspects marketing strategy, the environment, consumer behavior and target market and positioning. MARKET STRATEGY The foundation of both Crust and RBW was animated by a similar desire to provide a gourmet or higher quality take away food in the competitive fast food industry. Though, they came up with slightly different plans and implementations. Crust Gourmet Pizza Real Burger World People Founder previous experience as a manager of One of the founders successful experience in a Pizza Restaurant starting up a business Training and management support for their General manager replaced because of his lack of franchises experience in the industry Process Long Long Preparation in view of the customers guest burger, customer invited to suggest a menu item Physical Evidence Dynamic, fashionable and modern upmarket look Typical burger shop for upmarket target Pr oduct High quality and fresh Real, natural and wholesome ingredients Broad choice from traditional to original Choice more or less diversified taste (Asian touch) Dynamic menu with gourmet burgers, handmade Product on demand fries Price Restaurant prices, more expensive than the Slightly above competitive brands (1? ore than competitors the existing competitors) Place Shop, Internet Website, Phone Shop Promotion Heart Foundation Tick of approval & medias TV Show Risking it all in 2episodes, radio, local papers, letterbox drops, Brochure handouts in the street sponsorships Protest in front of their competitor store Website reward card Table 1 Marketing strategy of both companies through the 7Ps 1 Product Both companies offer better value to their customers through the high and fresh quality of their product. This is the main advantage that differentiates themselves from their competitors. o Quality QualityWhile RBW provides real, natural and wholesom e ingredients (Naz Choudhury, http//books. google. com. au/ ), Crust, sensitive to the new trend of healthy food, provides not only high quality food -with premium ingredients such as prosciutto, tiger prawns or smoked salmon- but also healthy food with six Heart Foundation Pizzas. o Variety They both offer a broad choice from traditional to original taste (Asian touch for Crust).What seems an advantage for Crust over RBW, and pizza restaurant is that Crust customers can compose their own pizza, though a common doing in the pizza fast food industry. 2 Price Because it is not trying to be cheaper than or as affordable as its competitors, unlike RBW, Crust chooses a clear different position from its competitors. Crust gets a premium price based on the product differentiation. 3 Place The place for the first shops gives an indication on the position of the firm. While Crust established their first shop in a suburb where people may have more time to wait for a longer process, RBW had th eir first shop in a dynamic street, in the city and a close walk from its competitors.Also Crust developed a delivery service with as many ways as possible to make their product available to overcome their geographic limitation. 4 Process Due to their position as higher and fresh quality food, both of these companies need a longer processing time for their product, than its competitors. Though, Crust found a way to compensate. The preparation in view of the customers increases the interaction between the staff and the customers and is visually exciting. This tactic is a way of creating delight for customers. A good point for RBW is the guest burger. The customer is invited to take part in the creation of menu items. 5 PeoplePeople working for the company are important since they contribute to the image of the firm. Crust understood this well, they made it an important part of their plan. They provide training and management support for their franchises to preserve brand identity and so, the atmosphere of the first shop. On the contrary, RBW showed an mistake from the start, the first General Manager of the store had no experience in the fast food industry. 6 Physical evidence The look of the store conveys the marketing message of the firm. It has to be in adequation with what the firm claims to provide, that includes also the differentiation from their competitors.Crust chose distinctive colours and a high class decor just as a gourmet firm would do. It gives satisfaction to customers who would expect greater value. On the other hand, though they hired professionals to design their store, RBW appeared to have missed the upmarket look and ended up looking like any other burger shop. 7 Promotion By earning the Heart Foundation Tick of approval, they consolidated their image differentiation, got the media attention as a short term promotion but also undoubtedly a long term promotion through this kind of sponsorship. They also use radio, local papers, letterbox dr ops, and sponsorships. Those tactics are important to build a strong brand identity.Crust is omnipresent so that they stay in potential customers minds. They developed a Website to go along with the technology orientated society and targeted customers. The use of a reward card is a way of retaining profitable customers. Whereas in the case of RBW, it is appearing in a TV show, the firm benefited from a priceless mass promotion to make their brand known. Nonetheless, they didnt sustain themselves to this level and came up with only short term promotion. Protesting in front of their competitor store can be regarded as a desperate move to attract customers. From the analysis of these parameters, we can say that Crust has a well more developed strategy than RBW.When RBWs main (unique) advantage is the higher quality food, Crust has developed a more complex strategy around the higher quality and healthy food and the service cape, regarded as a key to success. ENVIRONMENT This section dis cusses external and internal factors affecting Crusts and RBWs business. Four factors were chosen to outline their success/failure Demographic forces (macro), socio-cultural forces (macro), corporate culture (micro), and competitive environment (micro). Macroenvironment are fairly common to the two firms as Australia and UK have similar cultural background and economic level. The factors which led these two firms to contrastive results could be found in microenvironment. pic 1 Macroenviroment o Demographic forcesUnderstanding the demographic environment is of great importance as it involves people, and people make up markets (Kotler, Adam, Denize and Armstrong, 2009 pp. 89). Changes in household types are beneficial trend for fast-food industry. The important demographic trend for fast-food industry is changes in household types. Increased number of one person, childless couple households increases the demand for convenient, ready-to-eat meals. Dual-income families made quality foo d affordable. The two firms targeted those new-type households. o Socio-cultural forces Businesses exists within society, therefore businesses can be influenced by society.To keep up with social changes may provide businesses with competitive advantages. The increased health awareness in society led the changing trend in consumer preferences to better-taste, fresher fast-food which perceived as healthier. Crust and RBW met this consumer trend. other socio-cultural force is the trend towards choice. Both firms dealt with this trend by offering broad range of menu. 2 Microenvironment o Corporate culture Strong corporate culture helps to develop strong brand because people, internal and external to the company, can share similar values. Strong brand equity enables businesses to establish firm customer base and brand royalty, which in turn give businesses long-term growth and profitability.Crust has a clear corporate culture of personality driven based on professionalism, entrepreneurs hip and teamwork and partnership with stores and customers (www. crust. com. au, 2010). This is expressed to customers through store presentation and service, which serves as physical evidence to the customers. On the other hand, RBWs culture was based on co-founders friendship. The business built on friendship can be fallen into amateurism resulted in various operational problems, which could reduce customer satisfaction. o Competitive environment Fast-food industry is highly competitive market and the competition is complex. Players in the market have to compete with huge multinational organizations such as McDonalds, Subway and Pizza Hut as well as thousands of local take-away stores.To provide greater customer value and satisfaction than competitors, strategic analysis of competitive environment is crucial for businesses. Crust identified a gap in the pizza market in Australia, and then develops the strategy to fit them into the gap. Differentiation against competitors is the ke y factor to be successful in competitive market. Reflecting the tough competitive environment, crust aims to grow slowly and steady through good relationships with the stores and the customers (www. crust. com. au, 2010). RBW didnt take it seriously compared to Crust because RBW were confident with the products and believed that consumers choose them once they tried their burger. The location choice for the first store was made by financial reason rather than strategic point of view.This resulted in direct competition with established fast-food brands such as McDonalds and Burger King. CONSUMER BEHAVIOUR pic There is little difference between the fact that RBW and crust pizza are located in England and Australia respectively because both are industrialized nations and both are very similar culturally. As such, both are positively affected by the growing awareness of the benefits of healthier food, as well as an active desire for such food, oddly in the age groups that both Crust an d RBW caters to. There are three driving psychological influences on a customer to eat at crust pizza. The first is an aspirational one. The existing perception of high dining atering to educated, high earning professionals that crust has worked meticulously to build, and one of the results is that being seen to eat there is indicative of being a member of that particular demographic. pic Figure 3. Reasons for eating Fast Food http//shansenta. blogspot. com/2006_10_01_archive. html The second influence is the imperative and willingness to pay for high quality food by the more discerning consumers. The third is one of safety, in the sense that crust delivers on time, with the correct pizza, in the same quality as in the store due to its specially made base. While the time take is longer, customers are satisfied as it is what they expect. RBWs customers have different set of influences due to its geographical location in a less well off part of London where price is a significant fact or.For the majority of consumers that frequent that particular part of London, the health benefits that RBW provided were not enough of an incentive to try the burgers. Also, it is the nature of burgers that they are quick. The reason for eating them is that it is a convenient way of eating and customers are unwilling to wait more than ten minutes for a burger that elsewhere they can get within one or two minutes. MARKET TARGETING & POSITIONING 1 Segmentation The basis of a long term marketing strategy, as well as the initial success of the business requires a target market to be identified and the business positioned satisfy the needs of the chosen market. Crust Gourmet Pizza Real Burger World Geographic segmentation - Distributed around Australia NSW, ACT and - Opened the first store in London in mid 2003 Victoria An expansion in - Located in a street with other fast food stores Singapore Demographic Segmentation - Targeting the age of 18-39 years old including- Targeting the people with the age of 20-40 families and high incomes including middle classyears old and high incomes and upper class. Targeting consumers from diverse nationality Psychographic Segmentation - Targeting the people with a healthy lifestyle - Targeting consumers with a healthy and busy lifestyle Behavioural Segmentation - Targeting for the middle and upper class who - Some of consumers would have negative attitudes would have purchase occasions a great deal due to some failure on plans. Table 2. Comparison of segmentation between Crust and RBW o Geographic Segmentation Most firms have national marketing programmes which adjust their products and promotions to satisfy the individual needs of geographic units. Geographic Segmentation can be the most important process whichbrings to lightthedifference between the case of Crust and RBW. For Crust, itis distributed in the main cities of Australia included Sydney, Melbourne, Queensland and Victoria. The storesare locat ed in various suburbs.This implies two factors of geographic segmentation being region and population density. Thisindicates agreater opportunityfor thesuccess ofthe company due to its location. On the other hand,the first RBW storewas located in a street with other fast-food stores containing McDonalds and Burger King. This evidently demonstrates that there is more competition and hencethepotential of losing customers tothe other major food chains. RBW would be forced to compete against eminent and familiarfast-food outlets. In this case, having justlaunched their first outlet,it would contribute to decreasing their earnings. o Demographic SegmentationThe Crust has targetedan age group ranging between 18-39 years of age. Additionally,they are more likely focussing on middle and upper class demographics. We can assume that RBW also has targeteda similardemographic of consumersto that ofthe Crust. This can be classifiedas demographic segmentation. Each businesstargets a specific demo graphic that they feel the product or service would be most likely to attract. With that, the company will be able to set out its goals, marketing strategies and prices according to that chosen demographic. It clearly shows that both the Crust and RBW have targetedappropriate level of consumers who would become big fans of the restaurant.In addition demographic factor is very influential on marketing strategy because consumer usage and needs are variable since each individual has different taste desires inproducts depending on how old they are, what family life cycle they have or what occupation or income they have. o Psychographic Segmentation The Crust has an aim to change the perception of pizza fromthat of acheap food to more of one that can be classified as a healthier choice. Accordingly, this will appeal tothose people who have a healthy lifestyleor are conscious about their diet. This strategywould lead tofurther success in their business as not only will they be able tomain tain the number of existing customers,they would alsobeattracting a new line of customers.For instance, through education and the media people areincreasingly gaining more awareness with regards to their diet and healthy living. With that in mind, the public will be less inclined toeat unhealthily and would begin to focuson maintaining a healthy diet. Thisis aclear indicationthat people wouldchoose Crust rather than Dominos or Pizza Hut because of their marketing strategy. As well as in the case of RBW, theyhave triedto developthe idea that burgers, ifserved correct, canbe considered asan extremely healthymeal and not simplyanother form of junk food. This also would appeal tothe public todineat RBW as it appeals to the present values the public upholds. o Behavioural SegmentationOne of the factors in behavioural Segmentation is purchase occasion. In the case of both Crust and RBW, they have targeteda demographic ofhigh income earnersand this haslead toan escalatingchanceof increasin g their earnings. Since pizzas and burgers are the most favorable food for parties, gatherings and meals,the public is guaranteedto purchase these foods on a frequent basis. But consumers may have different attitudes towards Crust and RBW. The Crust has been well-known as apersonality driven culture whereas the RBW has negative aspects associated with their food chainsince they failed with some launch tactics such as brochure handouts and a free burger day.With knowledge of such aspects, the public will most likely respond accordingly and think twice about RBW and its few slip-ups. 2 Target market For target market there are several different strategies undifferentiated marketing, differentiated marketing and concentrated marketing. Firstly, undifferentiated marketing is to ignore the specific market segments and approach the whole market with one market offer. Secondly, differentiated marketing is a marketing that determines to target several market segments and design separate of fers for each. Lastly, concentrated marketing is choosing one large market or few submarkets. It clearly shows that bothCrust and RWB are concentrated marketers since concentrated marketing provides a meansfor small firms to compete against other larger companies and to gain a foothold in the food industry. 3 Market positioning Market positioning is the final part of step, involving developing a positioning for the target market, followed by the marketing mix. Crust pizza positioned their stores to be attractive to the market outlined. The relatively high price per pizza reflects their positioning as a gourmet pizza restaurant, though offering delivery services as well to expand the reach of their business. The restraint ambiance and staff trained in customer service helps differentiate Crust as a higher class of dining than its competitors.Its certification by the national heart foundation also gives proof to its claims of healthy pizza, swaying those skeptical of those marketing g immicks and again differentiating it from competitors. RBW however, positioned both physically and otherwise to be in direct competition with existing fast food outlets. Located in a part of London where price is the defining factor, it is similar in price to McDonalds, contradicting its projected image of gourmet burgers. Customers have also commented that the shop feels similar to burger king, losing the perception of healthy food, and thus customers. Unlike crust, its burgers are not certified as healthy, though its stating of nutritional values of its burgers is a positive move, similar actions by McDonalds and other fast food outlets dilutes the impact of that move.Had it gone with its initial location at a more high priced part of London, the outcome may be very different. CONCLUSION In conclusion, there are a number of factors that determine the success or failure of a business such as those of a gourmet fast food such as RBW and Crust pizza. These factors range from the elem ents in the marketing strategy to the target market and market positioning, both planned and execution. The importance of these factors can be illustrated by the difference between Crust Pizza and RBW, given the similarity of their environmental and cultural factors. It is RBWs failure to understand the nature of their product and the behavior and influences on their customers that lead to RBWs eventual downfall.Crust pizza, on the other hand, well understood these factors and created an appropriate strategy and focused on the correct target market to claim success. References INTERNET Crust website, http//www. crust. com. au/ Momentary Musings, http//shansenta. blogspot. com/2006_10_01_archive. html Wikinvest, http//www. wikinvest. com/stock/Wendy%27s_International_%28WEN%29 BOOK Kotler P, Adam, S, Denize S, & Armstrong, G. , 2009,. Principles of Marketing, 4th ed, Pearson Education. Australia, Frenchs Forest, NSW Figure1. Market shares of the Major Players in the Fast Food Indust ry http//www. wikinvest. com/stock/Wendy%27s_International_%28WEN%29 Figure2. Pie chart of Consumer behaviour on Frequency of Fast Food http//shansenta. blogspot. com/2006_10_01_archive. html