Marketing Planning for Crepes and Waffles PDF

4.2 Marketing Planning Mtro. Ian M Guillen Ortega Crepes and Waffles  Colombian for-profit social enterprise, is a French-style crêpe restaurant that actively employs single mothers. Crepes and The restaurant also promotes clim...

4.2 Marketing Planning Mtro. Ian M Guillen Ortega Crepes and Waffles  Colombian for-profit social enterprise, is a French-style crêpe restaurant that actively employs single mothers. Crepes and The restaurant also promotes climate-resilient farming practices in Waffles Colombia. It is most famous for its brunch menu. The business, founded in the 1980s, now has a total of 120 restaurants in Brazil, Panama, Mexico, Chile and Venezuela. The marketing mix The marketing mix of the Crepes and Waffles business has evolved over the years. Before the first restaurant opened in 1980, there were virtually no brunch restaurants in Colombia. The owners spotted a gap in the market, which enabled them to find a niche for their unique product. Differentiation The company then differentiated itself further by becoming a positive stakeholder in the community. Crepes and Waffles hires mostly women, who are often the heads of households, thus supporting the social foundation through the social enterprise values. The business takes care of its employees by providing stable employment contracts, health benefits for staff and their families, and education and art programs. These policies support workers, but also differentiate the business from its competitors. Customers know that the people who serve the food at Crepes and Waffles are treated and paid fairly; they are more likely to eat at Crepes and Waffles because of the social values of the business. Marketing strategy. Most recently, the business has turned towards sustainable environmental practices. It is sourcing its products locally and serving seasonal food to both promote and benefit from Colombia's biodiversity. The business has achieved a well-developed and resilient marketing strategy. Some customers come to the restaurant for its unique menu. Some customers come for its sustainable and regenerative social and environmental practices. Role of marketing planning A marketing plan is a document that outlines the entire marketing process of a business. The main elements of the marketing plan include: 1. the marketing objective 2. the marketing budget 3. segmentation and the target market 4. market research 5. marketing strategies 6. control tools Marketing plan It begins with identifying corporate business goals which, in turn, inform the marketing objectives. The business should conduct a marketing audit – a look at where the company is and where it wants to be – and establish marketing objectives based on the current position and goals. The business should then look at its budget and determine the appropriate level of spending on its marketing goals. Once the budget is established, the business should conduct market research and determine the target market. Subsequently, the marketing mix will be developed with the aim of meeting the needs of the target market and achieving the overall marketing objective. Finally, control tools will be selected so that the success of the marketing mix can be evaluated. The marketing objective The marketing objective will provide direction for the marketing function. If achieved, the marketing objective should help the company achieve its overall business objectives. The marketing budget A budget is the amount of money that has been allocated to a task. There are different ways in which a business can set its marketing budget. objective based, where an estimate is made of the budget needed to achieve the marketing objective sales based, where a fixed percentage of the company’s sales revenue is allocated to marketing incremental based, where the previous year’s marketing budget is used as a guide, with a percentage increase to cover inflation Objective-based budgets are the most flexible because they do not limit spending to achieve the objective. The other two budget types set limits for spending based on historical or current performance information. Segmentation and the target market MARKET SEGMENTATION INVOLVES MARKET SEGMENTATION ALLOWS A ONCE TARGET MARKETS HAVE BEEN BREAKING CONSUMERS INTO GROUPS BUSINESS TO ANALYZE THE MOST IDENTIFIED, THE BUSINESS CAN THAT HAVE SIMILAR CHARACTERISTICS PROFITABLE MARKET SEGMENTS TO DEVELOP MARKETING STRATEGIES TO AND NEEDS. SERVE WITH ITS PRODUCT. FULFIL THOSE NEEDS. Market research Market research involves gathering Effective market information about For market-oriented research allows consumers’ needs, companies, market companies to identify tastes, habits and research is the basis of new opportunities, preferences in order to all decision making. which can lead to aid marketing increased sales. decisions. Marketing strategies Marketing strategies are long-term actions that aim to achieve the marketing objective. The marketing mix – product, price, place, promotion, people, processes and physical evidence. These are often referred to as ‘the seven Ps’. Control tools Control tools allow managers to assess whether marketing strategies have been successful. This involves gathering quantitative and qualitative data to see whether the objectives of the business have been met. Data can be gathered from a number of sources, including: sales revenue and profit data the number of repeat customers surveys and focus groups Marketing cycle Marketing should be viewed as an ongoing process and marketing plans should be continually updated. Control tools not only provide information about whether an objective has been met, but also help provide the basis for the next set of objectives. It is therefore useful to view the marketing plan as a continuous Segmentation Segmentation involves splitting a population into groups of people with similar needs or characteristics. A target market is the consumer segment at which a business aims its marketing messages. The main methods of segmentation used by businesses can be split into three broad areas: geographic segmentation demographic segmentation psychographic segmentation Geographic segmentation State and Urban and Region and Country country rural continent region settings Demographic segmentation Socio- Age Gender* economic Religion* Ethnic* group* Psychographic factors Psychographic segmentation divides the population according to lifestyle and personal interests. Customer profiling can lead to targeted direct marketing campaigns where customers are offered goods that marketers believe they will be interested in. Advantages 1 2 3 4 identify gaps design suitable reduce the diversify and and products for waste of spread risks opportunities in specific groups resources targeting markets in order to different increase sales consumer and profits segments Activity SAME COMPANY DIFFERENT TARGET MARKET Targeting Targeting refers to selecting the most appropriate segment for a marketing campaign. Often this will be obvious, with a specific age group, or a group with a particular set of tastes, being the most appropriate. But the selected segment can also be a larger group of individuals, especially when MASS MARKET products such as milk or crisps are marketed. The segment will be much smaller for more exclusive or NICHE MARKET such as high-end fashion. Markets When markets are characterized based on size, they are often divided into niche and mass markets. A niche market targets a small segment of the population, while a mass market refers to selling undifferentiated products to a large segment of a population. Niche markets Customers for niche markets have very specialized needs or wants that are different from the larger market. Examples include: Dietary products – such as wheat-free bread – within the larger food market, or A specialist clothing store that only stocks clothing for very tall people. NICHE MARKETS New and small companies will have limited marketing budgets, and this may force them to target niche markets. These markets have less competition and a well-defined target market. Therefore, more cost-effective below the line promotional messages can be used. Niche markets To be successful in niche markets, businesses must listen to the needs of their target markets and then design products that meet those specific needs. Targeting niche markets will never lead to a high quantity of sales. However, the lack of competition means that customer loyalty is more likely, so the business can charge higher prices. Examples luxury goods within niche sports, such as the larger clothing wakeboarding or market horse riding equipment designed for people who are local shops that have left-handed (such as a close relationship left-handed golf with their customers clubs) Mass Market A mass market is a market for goods that are produced in very large quantities. Because of economies of scale, products sold in mass markets are less expensive than in niche markets, and the same marketing mix is used to target all consumers. Target markets are likely to be large and may even include an entire population. If companies are successful, mass-market products can lead to incredibly high quantities of sales. However, the attractiveness and size of these markets mean that competition is intense, which can lead to price competition and low profit margins. Examples Supermarkets are full of mass-market products. Examples include: Colgate toothpaste Nescafé coffee Pantene shampoo Lay’s crisps Dove soap Oreo cookies Tide detergent MASS MARKETS Larger companies can afford above the line promotional activities, such as television advertising, aimed at mass markets. Airbnb Questions Explain how Airbnb’s market could be characterised as a niche market. Identify two ways in which Airbnb is now segmenting the rental market. ANSWERS A niche market is a small part of a larger market, which usually has specialised needs or wants that are different from the larger market. Airbnb’s early market could be characterized as a niche market, as the company initially targeted young, tech-savvy, budget-conscious travelers who were looking for short-term rentals in mostly urban areas. This group was a niche market. Segmentation is the process of dividing a broad market group into various segments (such as age, interests, additional needs or location). Airbnb is currently segmenting the market by income (campsites to villas), by geography (urban and rural areas), and by accessibility (accommodation for individuals with mobility needs). Product positioning Product positioning maps are maps visual representations of how various competitors might attempt to position their brands in the eyes of the consumer. A product positioning map usually displays two attributes, such as price and quality, or price and age. More complicated maps can include more than two attributes. Positioning map As a tool, a product positioning map is a useful for: identifying market segments whose needs and wants are not fulfilled establishing gaps and opportunities in the market for launching new products helping a business to understand who and what their closest competitors and threats are, and to use this information to target the market appropriately